The representative. [volume] (St. Paul, Minn.) 1893-1901, 1898-01-19
Mr.. RUSSELL SAGE.
FORMER POWERFUL. FRIENDS HAVE
LEFT HIM BEHIND THEM.
Dropped From the Directory of the
Merchnntile Trust Company With
out COmmcnt-He Has Also Lost
Control of the Manhattan-GeOrGe
Gould Has Assumed Charge Of the
Lntter-NO Sympathy ON the street
NEW YORK. Jan 17-Russell Sage's

NEW YORK. Jan. 17.-Russel Sage's
Gay has passed.
Tie fnancier who for nearly half a CEN
tury has been one Of the foremost forces
in Wall street has been shorn of his power.
The men through whom he ruled, with
whom he made his combinations. have turn
ed their backs upon MIN. With d fortune
of $50oO0,000 he is no longer d power in
Wall street. Those who trembled 1T the
mention of his name a few weeks ago now
snap their fingers and gibe him.
Russell Sage has been dropped from the
directory Of the Mercantile Trust company.
He has lost control of the Manhattan
Elevated Railroad company and the Gould
interests are turned against him.
In the elShty-Sccond year of his age, the
man of vast schemes and tremendous en-
tcrpriSes the ruler OF the destinies OF men
and railroads, the manipulation OF markets.
is now nothing more than money lender
a petty, stock jobbing broker.
There is no sympathy with Russell Sage in
Wall street. He always hated there;
hated and feared
DROPPED OJT WITHOUT AN EXCUSE.
Russell Sage WAS thrown out of the d.
rectory of the Mercantile Trust company
because of the part ne played in the Union
Pacific deal. There was no effort to MAKE
this blow an easy one 1t was not soft
entd by excuses. 1t was the purpose of
those who control the company, the second
largest OF the kind in America, to make
Sage suffer much as possible.
He had been an officer Of the company
since its inception % years ago and one of
its ruling spirits. For many years he was
the dominant force. The board of directors
of the company is one of the strongest in
New York. Here it is:
Louis Fitzgerald. Chauncey NJ. Depew.
John Jacob Aston, Clement A. Griscom,
Marcellus Hartley. John I. Terry. Henry b.
Hyde, George J. Gould, Eugene De(anO, A.
j. Cassatt. J. r. Roosevelt. Thomas 7.
Eckert, Henry q. Margund. James Nc
Creepy c. c. Cuyler Rudolph Ellis. George
l.. Rivers, Hy Vi. Alexander. John f.
Searlos james II. Hyue. Edward d. Ad-
ans Charles II. Godfrey, }. Hampton
Robb, John w. Hunter. James w. Alex
ander, James Stokes. William II. Slocum,
Sidney Dilen Ripley. George Coppell. Henry
c. Deming, John j. McCook, L. {. Weir,
Oliver Amcs Henry IS. Ely.
THESE MEN GAVE SAGE POWER
His intimate association with these r9en
have given Sage much of his power.
Through them he has peen able to reach
many other powerful institutions. Els
strength has always been through his
lations for he has never taken any great
risks himself He is supposed &C be the
author OF the Wall street maxim: Doing
business with @. L. Mother peoples
money.
The Union Pacific reorganization scheme
which was born in the brain OF jacob II.
Schif, the active head of Kuhn Loco *
Co.. WIS backed by the Mercantile Tru5s
company. Cen Lewis Fitzgerald, the pres
ident Of the company, made chairman
of the committee. Russell Sage as a
m mhcr of the syndicate. His interest was
MT Nc.y large, comparatively.
After the Syndicate'S plans were formed
it TRANSFERRED that there would be a huge
profit in the deal. The Worlds e. pcsures
ventilated the robbery. the syndicate pro-
po-ed buying the property for $, coo less
til n the railroads debt to the government
" hen Russell sag saW the great profit 5
III sight he demanded a larger interest. 1t
IS said that his interest amounted to about
SJ00o9, and mat he wanted it doubled.
Sagc's demand was refused. He was told
that lndsmuch as he had refused to take
larger risk in the beginning it was not just
to expect larger profits when the success,
Of the deal was assured.
ri SSELi. II ED Up THE SYNDICATE
He tOld the members of the svndicat Q
HAT If they did not accada to his demands;
would take measures to protect himself.
And Ne did take measures. He announced
that he would form a syndicate to protect
the government from being robbed. He
pointed cut what he had done during the
war when he took up United States bonds
at a tremendous profit to himself. and
various other things.
sage took advantage of The vigorous fight
which the World made against the out
zen. lie announced tina, he would per
sopally subscribe $50 600. coo to his own syn
ucate
Inc next morning meeting was held in
the offices of the Mercantile Trust COM
pany. Sage sent for. The syndicate
acceded to his demands. They gave him
certain amount of profit. the amount
varying from S400 eco to $500 COS according to
different reports.
He accepted the terms. That afternoon
the syndicate telesraphed to WASHINGTON.
announcing that it ready to pay $50
VC3.WU. the full amount of the Union Pa
cities Indebtedness to the government FOR
the property. That afternoon Russell Sage
said that he had never formed the sy ndi-
cate and never intended to form one.
Sage'S trick had cost the syndicate some
thing more than IS, coo 900, because they had
to divide up some of their profits With rim
turn against him.
The members determined to make h,m
suffer j. p. Morgan & Co., Kuhn, Loeb
g. Co, the Mercantile Trust Co.. the Cen
tral Trust company, George j. Gould
Ladenburg, Thalamann & Co., Lazard Ere.
res and others were interested in it, so
some OF the power of the forces arrayed
against Sage can be estimated.
The annual election of the MercantiI,
Trust company took place on the thirt
Wednesday in December. Sage's name wa,
dropped from the list of the board o.
dirsctOrs. All his power in the compan,
was taken from him.
GEORGE GOULDS EYES OPEN
There even a htterer blow in stor,
for Sage. Ever since the death of ia,
Gould. and, in fact. before his DEATH Rus
cell Sage had complete control Of tn,
Manhattan Elevated Railroad. The Gould