The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-21
HOW STOCKS ARE HIT
Northern Securities OF Four Points,
Great Northern Affected

Great Northern Affected.
The bomb thrown into the stock market
by the United States attorney general, ex-
rloded with force enough to cause jar
in speculative circles in Minneapolis. The
announcement that Attorney General
Knox had expressed to President Roose-,
welt the opinion that the attempted north
western railroad merger and organization
of the Northern Securities is in violation
of the spirit of the antitrust laws came
as a great shock. Long before the stock
market opened the offices Of local stock
brokers were crowded with anxious in
vestors Of whom had been buyers
of Northern Securities on the late favor
able reports sent out from Wall street
offices. The wires were hot with early
gossip. One early telegram to lead
ing local house said:
"The announcement Of the report of the
attorney general and Of the attitude Of
the president in the Northern Securities
case came as great surprise to Wall
street. We look for break in Norther
Securities and advise cautiousness.''
True to this prediction. Northern Sc
curities was off four points. At the close
yesterday the quotation was 1861. The
opening trade this morning was at 1929.
Great Northern broke Gk points and. fell
quickly from 1909 down 10 1S4. This
slump in Northern Securities and Great
Northern had affect all through the mar
ket. OF late there has been some gossip
to the effect that when the mergerites got
everything going to suit them, the 500
road would be taken in. 500 stock has
had a sensational advance of late, This
was a legitimate advance based on the
actual earnings of the road, but the pos
sibility Of the road ultimately being taken
over by the Northern Securities crowd
has been in SOME degree an additional
-ep
1R points and all the so-called Morgan
stocks were weak. "A later dispatch to a
local house said
! Have no fear of any severe breaks,
at least not to-day, for the reason that
the big moneyed interests, especially the
Morgan crowd have been alarmed and are
lending vigorous support to the market. -
4 Later advices said that Mr.. Morgan
was having prepared a statement Of the
Northern Securities company for general
publication. Charles Steele of j. P. Nor
gan & Co.. was quoted as saying that the
action of the attorney general was a
great surprise, but that everything will
go on just the same and the fling Of the
bill in equity on behalf of the govern
ment will mean the greatest legal battle
of the century
One local man, close personal friend
Of J. j. Hill, was at his Office an hour
ahead of time this morning, having hur-
ried down to protect himself in case Of
a severe break in the Northern Securi-
ties, which he is said, to have bought
freely of late on advice direct from the
fountain head Many others had dipped
into the stock and were caught to some
extent.
Now the question, is asked, what wifi
be the attitude Of the eastern financial
papers that have been persistently MAIN
tanning that the state Of Minnesota had
no case The local anti-mergerites 1nnin-
tain that the action of the attorney gen
>eral is the most noteworthy Indication
yet shown OF the good Judgment yf Gov
ernor Van SAINT in starting the opposition
to the merger That the attorney gen
eral should see the combination as being
legally vulnerable, attacking it, and that
the presidents influence, in a >way. goes
with the opposition to, 1t, is thought to
mean the greatest setback ,he plan has
yet met. with. On the other hand. the
mergerites who are still game, maint ain
that Mr.. Morgan and his associates will
welcome the governmental attack, as tn.
thing must be settled somehow pretty
soon if some OF the numerous plans of the
house of j. P Morgan & Co. are not to
be hung up Indefinitely. Since it is to be
a fight to a finish, anyway, it is claimed
the quicker it begins the better It will
please the promoters. OF the gigantic
scheme. 81 s3s5 III # 8