The Indianapolis journal., 1903-02-06
ROCK ISLAND RESISTS.
Latest "Nuisance Suit" to Be Fought
to u "Peter Powers" Finish

NEW YORK, Feb. 5.-Undismayed and
litigation against the United States Steel
Corporation and the Northern Securities
Company. parties have brought suit to
embarrass and obstruct the consummation
of the Rock Island financial plan. The
management of that company has served
notice that 1t will resist the litigation and
contribute to the best of its ability to MAX
ing that peculiar kind of litigation unre-
munerative and unpopular. The suit was
commenced in Chicago In the name of a
Boston broker against the Rock Island in
the form of a petition for an injunction to
restrain the owners of the property and a
New York trust company from proceeding
with the finance plan, which Is nothing
more nor less than an exchange of secur-
tiles.
1t transpires that the plaintiffs in the
suit bought the stock on which the action
is based several months after the plan be-
came operative. AS these matters are now
construed the case will probably be thrown
out of court. as there is an obvious lack
of good faith on the part OF the promoters
of the litigation. On the face of it the
stock was bought for a purpose which is
not regarded in legal ethics as legitimate
For years a group of shrewd fellows in
Wall street have been making money by
using the machinery of the courts to en-
barrass operations in high finance. When-
ever the opportunity has presented itself
block schemes of reorganization and pro-
motion. Almost everything in the least
vulnerable has been subjected to attack.
Reading, Southern Railway Northern Sc
curities, United States Steel Tobacco and
other concerns have been made defendants
in suits brought for the obvious purpose
of forcing settlement on terms which would
yield the instigators of the litigation large
profits for time and money spent.
The conspiracy yielded immense dividends
and was conducted with unvarying success
through series of years. 1t is estimated
that more than Sl.0O0,000 was paid by the
financial powers of Wall street I'm the pur-
chase of peace and for relief from annoy
ance. The United States Steel was the
first to offer open resistance to the game
of blackmail. 1t refused to pay tribute and
put up fight: The Northern Securities
was next to adopt policy of resistance.
Now Rock Island has fallen into line and
will make fight a matter of duty and
to insure protection against future forays
In the case of Northern Securities, Peter
Powers and his Immediate hackers were
knocked out in one round United States
Steel has successfully bowled over every
thing that came in sight. and the two to-
gether made such an exposure of the meth
ods and the personnel of the conspirators
that for a time they were driven into in
activity. 1t would appear, however. that
the industry has been revived Peputabe
attorneys in New York declin,ne 10 bave
anything to do with that sort OF thing IL
devolved upon the conspirators to find an
attorney somewhere else and one was dis
covered in Chicago who would take up the
fight. 1t is stated by the Rock Island people
that they have been approached repeatedly
by representatives of the suit Just brought
with suggestions that a settlement mig ht
be arranged. These overtures were turned
down and the intimation conveyed to the
principals that they might begin business
at once and they would be fought TO a
finish
The Rock Island financial scheme has
been practically carried to a finish The
litigation commenced in Chicago was de-
ferred too long to- engage the serious at
tention of the people against whom IL is
directed. 1t is noted that the street has
paid small attention TO the attack and has
classified il properly. Furthermore the
financial district regards with satisfaction
the advertised determination OF the Rock
Island people to discourage litigous enter
prises for speculative advantage.
JOHN MARTHOL