The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-19
DECISION BLOCKS BIG SCHEMES
PROSPECT FOR ENDLESS LITIGATION
RESULTING FROM OPINION.
The Keene-Harriman Southern Pacific
Suit May be Dropped-Morgan's
Projected Visit to Europe.

a.
and their associates in the Northern Secur-
tiles Company. The financial community
has recovered it's composure and has ceased
to look upon the court decision in the case
as injurious to intrinsic values in any
way likely to embarrass legitimate enter
prises. Wall street lost its head for day
or two, and hysterical panic In prices re-
suited On the break there was general
buying of good securities by the bargain
hunters, and at the present time commits
sion houses are barer of stocks than they
have been in two or three years. The weed
ing out Of weak accounts seems to have
been very thorough, according to all re-
ports.
1t Is not a cause for grief to learn that
the worst hurt interests are those chiefly
responsible for the creation of the mass OF
undigested securities and for the formation
of mergers now branded as illegal. 1t is an
open secret in Wall street that very infu-
entail banking cliques have been hard hit,
and that they have seen disappear within
the last ninety days large part of the
vast profits of the preceding three or four
years. 1t is not suggested, even most re-
motely, that these people are In danger
| financially, as they were wonderfully strong
to begin with, and they are strong yet
strong seemingly, beyond the faintest pos
| sibiity of trouble. One exceedingly pre-
tentious institution much in the public eye
and usually supplied with vast sums OF
loanabIe funds for use in the street has
itself been a borrower on huge scale late
". 1t has been very circumspect in raising
| money, and the fact that it is a borrower
Is known to comparatively few. One of
/ Of
prominence. Gilt-edged securities were Of
fered as collateral for the money obtained,
and SO the element of charity did not enter
into the transaction. A curious feature
about it, however. is that the borrowing
concern reloaned most Of the money In the
street at a less rate of interest than 1t paid,
the purpose Of the play evidently being to
forestall any gossip which might be started
If 1t should be apparently short Of loanable
cash. It was the first time in twenty years
that this house had been obliged to resort
to such an expedient to maintain its stand
ing in Wall street. The house in question
is reputed to be as strong as the Bank Of
England, and probably is but for the mo-
ment it is carrying larger load Of undi-
gested securities than is comfortable.
XXX
Wall street has thought of little else this
week excepting the Northern Securities de-
cision. There was no time last week for
the street to judge of it's market signifi-
canoe. The market had to undergo the
| actual test before it could be ascertained.
At first blush timid people were inclined
to take the view expressed by ex-Attorney
General Griggs' that the court finding was
revolutionary, and that 1t threatened uni
versal disturbance. This view has mater
tally changed as q result Of very general
discussion which has been going on in the
newspapers and among lawyers bankers
and merchants. The overwhelming consen-
sus of opinion is that the decision does not
threaten legitimate enterprise, and that the
country is in no manner in danger because
an ambitious group of financiers have been
baked in their attempts to override and
circumvent the laws enacted to prevent
combinations in restraint Of trade. The
fnanciers in question and many of their
admirers and imitators had been left free
and undisturbed so long that they had al
most ceased to look upon the law as worth
serious consideration or obedience If found
to interfere with their operations. The les
son of the decision and the consequent dis
cussion which most solemnlyl impresses
Wall street is the fact that the country as
that the laws are framed for observance
in the financial community as well as else
where. An interview by John SHELTON Will
gave direction and form to this view of the
case. and contributed much anything
TO restoration of confidence and recovery
from speculative hysteria.
The effect of the decision is going to be
far reaching, without doubt. Tt promises
to block many grand schemes of railroad
consolidation and bring down to earth
many heads that were in the clouds. Conn
bination was unquestionably taking form
not wholly to the interest or advantage of
he hi f0
| Washington next winter and force Congress
| to change the laws that the interrupted
| plans may be resumed. This scheme is
| seriously discussed in high financial quar-
tiers. The statesmen, however, are Quick
| to catch the drift of public sentiment and
| are going on record already as against any
| such proposition, being convinced OF the
wisdom and effectiveness Of the antitrust
| laws already on the statute books. Mem
| bers of Congress have a keen realizing
| sense of the truth of the statement fire.
| quently made by the late Joseph Medill
| the veteran Chicago editor that there are
more bakers, butchers and farmers than
| there are bankers and railroad presidents
| and when it comes to question of getting
| votes the multitudeS must be consulted be-
| fore the minority.
Attorney General Knox is to be consulted
| by the attorneys Of the Northern Securities
| Company and asked for a construction of
the decision in its bearing on the payment
| or suspension of dividends by the defend
ant corporation. The lawyers at first de-
| cided offhand that the dividends would not
be interrupted. They have since confessed
doubt as ts whether they might not be
mistaken in this, and will ask the head of
the Department of Justice what he thinks
about ii. 1t is exceedingly improbable that
the attorney general will hand down an
official opinion on the matter, but he may
give the inquirers the benefit of informal
and unofficial suggestions. He is more like
ly, however, to keep out and let the attor-
neys decide for themselves what had best
be done. They have not heretofore deemed
il necessary 10 go 10 him for advice. Out
of this projected pilgrimage TO Washington
sprang the rumor, full grown. that the
Northern Securities party would ask the
attorney general to make compromise
with them on behalf of the government
which would give them what they wanted.
without taking an appeal to the Supreme
Court. The absurdity OF this report did not
dawn on Wall street until after a fell day.
and it remained for the principals of the
securities company themselves to stamp 1T
untruthful and without the slightest
foundation. There is little the bosses
would not think of or attempt to do in
the way of gaining official sanction for their
plans, but they have not yet risen to the
dizzy height OF asking the government to
compromise, modify or reconstruct a court
decision to suit their wishes.
Endless litigation may grow out of the
attempt to resolve back to it's constituent
elements the property held by the Northern
Securities Company. The company has an
authorized capitalization of S&000O00O0 NJ