Omaha daily bee., 1902-02-21
LIKE A BOMB MERGER CAMP
Announcement Of Proposed Federal Action
Against Railroads Causes surprise.
Hll-nOReAN FORCE wLl FIGHT 70 LAST
Declare They VIII Not he Thwarted
I'm Plans of NOrthera Securities
Company without Legal
Battle.

NEW YORK, Feb. 2~o.-Bankers OF this
city identified with the formation OF the
Northern Securities company we're greatly
surprised to learn, and at nrst refused to
believe. that Attorney General Knox is
preparing a case against the company.
They pointed out that a decision In a
case from the supreme court Of the United
States is expected on Monday next. They
were unable to understand why notice Of
another action should be given pending
this decision. ,
1t is stated to be the intention Of both
the. Hill-Morgan and Kuhn, Loeb q Co.
and Hartman syndioates to fight the case
out to the end. All the bakers seen ex-
pressed themselves as confident Of the ulti-
mate result A long legal battle is prom
Used, but It is understood that, no matter
what the decision may be. the prominent
idea that brought the. company into ex-
istence will be maintained. Such con-
tingencies as have arisen, he said, were
foreseen by legal talent when the last
details were arranged some months ago
and provision is made for the carrying out
Of the community of-ownership idea
Opinion Great Surprise.
Charles Steele, n member Of the arm of
J. p. Morgan a Co., was in conference
with Mr.. Morgan at his residence as to
the effect Of the action Of Attorney Gen.
eral Knox.
'This opinion came as q great surprise
to all Of u.s." he said. mo such action
was expected and there has been an abb
bolute quiet since the argument Of the case
Of the state Of Minnesota before the SUI
preme court Of the United States.
After this bill in equity, rs suggested
by Attorney General Knox, has been filed
we will be prepared to speak Of our line
Of defense. At present we are wholly in
the dark, but 1 will say that q long legal
battle will ensue.
1--WE had not heard that President Roose-
velt had asked for the opinion Of the at
torney general in the matter, and, although
we have heard Of It. from several sources
in the last few hours, l am inclined to
doubt the report" .
Not the slightest rumor Of tho attorney
generals action had reached Wall street
before the close. Therefore It's effect on
stock prices was not apparent.
FIurry I'm stock Market.
There wal a sensational furry in the
stock market this morning. which proved
how disagreeable q surprise President
Roosevelt had given the speculative world
by his instructions to the attorney general
to begin proceedings to test the legality
Of the formation of the Northern Securities
company. The stocks Of the transconti-
mental railways bore the chief brunt OF
the process Of unloading stocks, as they
are most Immediately concerned IN the
project represented by the formation OF
the company. Great Northern preferred is
the only stock still listed on the exchange
which is Immediately involved in the COM
pany and. the first sale OF that was 6h lower
than last night. However. Union PACING,
st. Paul. Northwest and Southern Pacific
always show close sympsthy with the at
fairs of the Northern Securities company.
/ and all Of them dropped sharply, Union
Pacific losing 3h, st. Paul 3 and Southern
Pacific "a. The weakness was by no means
confined to this group, The wide breaches
in value among the southWeSterns and IN
Reading, as we'll as in high priced In
dustrlals like Sugar. Tennessee Coal ana
the local fractions, was a fair indication
Of how confident a hope had been cherished
that the aupTemJ court next Monday would
dispose Of the Northern Securities uncer-
tainty and relieve the stock market from
that repressive influence.
Prompt support of Market.
Generally speaking, the FIRST prices were
the lowest and the bear party was evil
IDENTIFY q factor in offering stocks at as
low a level as they dared. with the purpose
OF unoovering margins ana the dislodgins
Of stocks. Support for the market was
| prompt and powerful. The buying on this
occasion had to absorb very heavy offerings
| for q time. The fact that buying was
going on relieved apprehension, however.
| and the selling became less urgent. The
bull interests were then able 10 bid up
prices again and the market rallied. Thu
| recoveries by no means restored prices to
last nights level hut improvements OF from
| one to two points we're scored by some Of
the principal. active .sforks. The buying
then decreased ;aesin end prices yielded