The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-01
Serious Blow at Traders and Lawyers
who s.HoId Up, Corporations and
Obstruct Financial Plans.
NORTHERN SECURITIES CASE
IMPORTANT POINTS EVOLVED, AND
DELAY Is UNExPLAINABLE.
Rockefeller Still Subsisting on Skim
med MIX and Hard Bread-Carne-
gle and His Great Fortune.
Special to the indianapolis Journal.


Camille weidenfeld from the New York
Stock Exchange is body blow to the COM
bination of traders and lawyers engaged
in the practice of holding up corpora
tons and obstructing important financial
plans. The summary action of the COVER
nors of the exchange has thrown the
group into panic and will tend to harshly
discourage that kind of enterprise. The
purpose of the exchange to discipline one
or more Of its members for taking part in
these reprehensible campaigns has been adj
vertised for good while back in the inner
circles of Wall street, but the long delay
in taking the threatened action led to the
belief that the programme had been aban-
doned. The developments of this week
have shown that the postponement was
merely to get the machinery of the "Bogar-
dus Kicker. into smooth working order
so that there could be no slip. The result
is that one of the chief sinners now finds
himself on the outside clamoring for re-
admission to the floor of the exchange and
at the same time opening up a cannonade
of libel suits against everybody concerned.
To those unfamiliar with the organiza-
ton of the New York Stock Exchange and
the powers vested I'm its governing commit
tee the action taken in firing" Broker
Weidenfeld may seem harsh and without
warrant. The victim and his attorneys are
seeking to create the impression that he
was not given a fair show and that he was
railroaded off the floor in an illegal and en-
tirely unjustifable manner. 1t is explained
however. that the Stock Exchange is an
unincorporated institution and is In reality
nothing more nor less than private club
In the conduct of it's own affairs II is a
law unto itself and has extraordinary pow
ers of discipline. Members of the club VOL
unfairly subject themselves to its rules,
pledging obedience thereto, knowing the
risks they take. The courts very gener-
ally uphold the rights of commercial, finan-
cial and social organizations to enforce
discipline upon members, even where they
are incorporated. This was shown a num-
Der Of times in the Chicago Board of Trade,
which found 1T necessary to suspend and
expel a large number of members during
the last rt few years for monumental con-
occasionally, but I'm the main it's powers
are sustained almost as fully as on the
is a difference which is well understood by
those who comprehend the fine distinction
between Incorporated and unincorporated
associations. The greatest care is exer-
ciSed In framing the rules of the Stock
Exchange, and their enforcement gives
members no valid grounds for contest 1t
has never been admitted, even remotely,
that membership on the exchange car
ries with it vested rights. The member
ship Is held to be nothing more than adj
mission to the privileges of the floor"
consequently, when member is diSci-
plined he has no recourse, and 1t is the I'M
written law of the association or club that
any member who kicks against the pricks
invites further trouble and will get it, Con-
sequently Mr.. Weidenfeld IS in line for sup
Elemental discipline if the governing com
mittee sees fit to administer it.
There Is mystery in the delay in bring
ing the Northern Securities case to issue be-
fore the Supreme Court of the United
States. The case has been dragging along
in the courts of New Jersey and the North
western States and before referees masters
in chancery and all that sort of thing, for
fully year and half, and it is apparently
as far from finality as ever. or course,
the litigation is making progress, but it is
too slow for many impatient people in Wall
| street. The case is recognized as involving
| points of supreme Importance in the devel-
opment of high finance, and vast deals are
held in allegiance pending an ultimate de-
cision. Several consultations have been
proceeded with under cover of holding COM
| panies, and they are seemingly working all
right, but other great interests are in a
waiting attitude and are likely to so con-
| tinue until it is known definitely what view
| the Supreme Court will take on the points
! that have arisen in the Northern Securities
matter.
1t is true that many of the. holding COM
panies now I'm active operation are organ
| lied on lines somewhat different from the
| Northern Securities Company and are free
| from the perils found there. For instance,
| few of them have that dangerous point
which is the menace of Mr.. Hills combina-
| ton. namely, consolidation of competing
/ railroads In open defiance of State laws
| This question Is not involved in the slight
| est degree in the case of Rock Island
| for instance, consequently that COM
bination is unmolested, although friv-
olous litigation was commenced against
by persons identified with the bunch
| of professional litigants of which
Broker Camille Weidenfeld is the leading
spirit The United States Steel Corporation
| is a holding company, and it's position in
| every point seems to have been upheld by
the courts so far. The Metropolitan Street.
| railway Company of New York has finally
been lodged in holding company the prop
erty travelling devious path to find lodg.
ment in the lap of one of these institutions
The tobacco trust is in the same situation
The Standard Oil trust and the sugar trust
/ stand alone. What they have they owr
| outright and have not yet found ii ,neces
| sary to use the machinery of a holding com
pany.
Among the great combinations which are
awainting the Supreme Court decision in
the Northern Securities case may be named
the Southern Railroad merger, a plan OF
! great scope and Importance; the Goult
holding company, which is to take in al
the Gould properties east of the Mississip
pi river: the Vanderbilt deal, a plan Of
great scope; the anthracite coal trust anC
the express companies. although there i.
some doubt whether the latter will ever
range themselves formally under one or
| ganized head-this from motives of policy
There are many others, but those named
are among the most important.
There is theory held that the della,
is due to a knowledge that the compost
| ton of the Supreme Court was not favor
able to the holding company idea. Mean
time. however, the Supreme Court is ii
process of reconstruction, and IL is by n,
| means clear that the standing in tina
body of corporations and those who hav
| plans of high finance will be stronger in tn
future than now. The retirement of Jus
| tice Shiras is popularity supposed to hav
weakened the corporation hold on the Su
/ preme Court Judge Day, who succeed
4 him, is known to entertain decided view
| on some questions OF Importance to thos
| responsible for corporate development an,
| practical operation. For instance, he
bon record in many ways entertaining
| the belief that the Sherman and interstate
Icommerce laws are adequate to regulat