The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-11-23
EMO OF MORGAN.
The Great Financier Shorn of
Power and Greatness.
Hand of Rockefeller Descends
With Crushing Force.
AMERICAN OIL KING
Has Become the Hing of Steel as
Well.
Secret of Recent Decline in Sc
curities is Out.
AMERICAN OIL KING

New York. Nov 23.-John D. Rookie
feller's heavy hand has fallen upon the
throat of ]. Pierpont Morgan and
shaken loose from the clutches of the
master manipulation of steel stocks
more than s12. COO. 900 of bond conversion
profits.
The contract with J. P. Morgan &
Co to convert $3.50, 600 preferred
stock into bonds was Cancelled.
This action was taken quietly, but
the effect was volcanic. 1t marks the
passing of Morgan. He is eliminated
as ruling power in the steel com
pany and his dominance in Wall
street is over.
He must hereafter report to Rookie
Teller He was cut off from making
S12,0OO,OOO. He may be called on to re-
store the millions his syndicate swept
into it's Golfers by buyig steel stock
at starving prices and turning each
certificate into a bond. reaping an aV-
erage profit of SIS a hundred. about
s25. coo, 900.
NEW HEAD OF THE TRUST.
That A. w Thompson. president of
the Republic Iron and Steel company.
is scheduled to become the president
of the United States Steel corporation.
is the word received from Youngstown.
Ohio.
John F. Naylor, vice president and
treasurer of the Republic Iron and
Steel company, left Youngstown yes
terday to confer with c. w. French.
the head of the executive board of the
Republic Iron and Steel company. and
the two will go to Chicago later to con-
fer with representatives of the United
States Steel corporation to discuss the
absorption of the Republic company by
the big trust.
John d. Rockefeller has indicated his
control OF the steel situation by arrang-
ing to take into the Steel Trust fold
the strongest rival of the trust 1t is
said that John W.Gates is working with
him on these lines.
Without warning or advertisement
the oil king became also the steel king
of this country. His first official act
was to cut off at once any further ac-
tion by the bond conversion syndicate
headed by J. Pierpont Morgan, and
which has been charging the steel. cor
porauon per cent on all such conver-
slons, while at the same time making
enormous profits on every transaction.
From the office of ]. Pierpont Nor
gan a statement was issued accredited
TO Judge r. II. Gary, chairman of the
board of directors of the United States
Steel Corporation. 1t said in effect that
no further conversions of preferred
stock in the corporation into per cent
bonds would be made, and that the
$4,000 900 of preferred stock still un-
converted. would revert to the treasury
of the company,
That action deprives the Morgan svn-
dicate of 900 at least and ends
the huge inflow of bond conversion
prOhts which have amounted in the
past to more than twenty million dol
lars. 1t also indicates only too clearly
the master hand of Rockefeller in the
SITUATION, for those who know J. Pier
pont Morgan and are cognizant of his
methods know that he could have been
forced to yield $12, 900, 600 profits through
sheer domination only Nothing else
could demonstrate RockefelIer's control
OF the steel situation so fully as this.
KNOCKS OUT BEARS
rms action will probably bring to an
END the bear movement in Steel That
certain interests bent on speculation
profits have been responsible for the de-
preston of the price of the preferred
STOCK, along with the common stock. is
only too clear. Every point that the
preferred stock dropped meant profit
70 lne morgan syndicate, which was
purchasing the preferred stock at SO.
ior instance, and selling it at 10 Ey-
cry point the preferred stock was
uflVen down meant added profits to
them' and the driving went on in a
manner that resembled the enthusiast
uee eHorts of an energetic pile driver.
AT no time has the syndicate had less
than IS points of advantage in buvfnp
preferred stock and converting it into
per cent bonds and for this Service"
10 the United States Steel corporatior
MI Morgan charged 4 per cent. making
~ per cent profit at the least on everv
transaction ~ eSeAS
More than 20 million dollars has been
Hlade ny the Morgan syndicate in thiS
manner and there was the certain nros-
pect of II million dollars more before
the interference of Mr.. Rockefeller.
MORGAN MUST EXPLAIN
1t is now certain that Mr. Morgan will
be called to account for these fransan-
tons and will be called upon to explain
the methods of his syndicate That a
suit viii be brought by stockholders in
the United states Steel corporation is
as to make those in the shipbuilding
trust cease look like a kindergarten
game.
Selling Confederate money at Bar is a
foolish and frivolous financial scheme
compared to the bond conversion scheme
engineered by George w Perkins.
Upon Mr.. Perkins Mr. Morgan has
thrown all the blame for the faults of
the conversion plan but at no time
has Mr.. Morgan refused to take advan-
tage of the profits aecruing from the
scheme.
CARNEGIE CHECKMATED.
Through the bond conversion scheme
the influence of Carnegie was nulIifed
moreover. and the casting over of
Schwab was made possible. Thus Mr..
Morgan gathered the whole machinery
OF the steel trust into his own hands,
turned the wheels to his own advantage
and drew from the huge, unwieldy con-
Germ whatever of profits it could be
made to yield
1t Is now known that the profits of
the steel trust will be about one-half
this year what they were last year.
There will never be another dividend
declared on the common stock It has
ceased now to be a dividend paying
stock and is valuable only for its voting
power. The preferred stock dividends
are cumulative, but it is not likely that
the steel trust will ever make enough
70 nav the Der cent 1ividends rarr.iEl