The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-04-14
The Purchase of the St. Louis & San
Francisco Will Now Be Al
lowed to Lapse. $
This Is the First Result Of the Mer-
ger Decision-Both Parties
Agree to It.
Mr.. Schiff Predicts Some Further
Liquidation and Then
Recovery.

New York. April 14.--As a first result of
the Northern Securities decision, the pur-
chase of the ST. Louis & San Francisco
railroad by the Rock Island, according to
semiofficial admissions by leading inter-
ests in both properties, will be allowed to
lapse. This action, it Is understood, rep
resents the mutual desire of both parties.
A leading interest in the Rock Island
company announced that the proposed
purchase of the ST. Louis & San Fran
cisco had been abandoned, but that ne
gotiations might be resumed. He de-
clares that the, failure of the plan has
nothing to do with the recent decision.
1t was simply question Of price, and the
parties concerned failed to come to terms
Officials Of the Frisco road decline to
discuss the matter at all.
Mr.. Schin Not Pessmistlc.
Jacob H. Schiff of the banking firm OF
Kuhn, Loeb Il Co.. members of the Har-
rinlan syndicate. and a director Of the
Northern Securities, the Baltimore & Ohio
and the Union Pacific railroad, in an in
terview in the Evening Post on the North
ern Securities case. said:
1.-THE result of the decision, if it be
confirmed upon appeal, must necessarily
be far-reaching. The decision practically
establishes this. that anything done which
will put it in the power of any company
to restrain industry and trade, is illegal,
even II the very reverse Of such restraint
is intended, as has no doubt been the
bona fide purpose Of the corporators of
the Northern Securities company Thus,
as a logical consequence, the power the
Pennsylvania possesses in influence Bal
timore & Ohio and other corporate man
agements, all the power the New York
Central possesses to direct the Lake Shore,
Michigan Central and the Nickel Plate
companys management, or the New York,
New Haven & Hartford's influence over
the New England road, even If such power
of influence as naturally exercised be ben
eficial to the public, Is Illegal This is
the danger in the situation which has now
been created. Not that I believe that the
government will at present go any fur
Their. but, as it is, almost any one, for the
purpose of blackmail or sinister purposes
has it henceforth in his power to open
fire and rharrass most Of the large railroads
and industrial corporations.
Further Liquidation, Then Recovery.
| with all this, do not feel particu-
i1arly pessimistic. We SHALL no doubt, for
some time, find a great unwillingness- to
embark in new affairs, but that Is no mis-
| fortune, for prom otion has been carried
| too far, and in this respect, perhaps the
Northern Securities decision may prove a
blessing in disguise. The American peo-
pie have a faculty for adapting themselves
to conditions as they exist, and in due
time the effects and resultssof the situation
now created will wear off, and in conse-
uuence Of the inactivity and further 1iqui
| dalton which we are certain TO nave,
money WILL, after a time, become plenti
full, and then likely all sound securities
will benefit by the process of recovery,
which sooner or later will surely set In
! The country has at no time in its his
| tory been IN a better and more prosper
Gus condition than it Is at present. and II
is certain to profit by the experience which
it is Just gaining in perhaps somewhat
forcible and, to some, unexpected man
ner.''
What Mr.. Hill Says.
| 1--WE will have our appeal papers READ!
in a day or two. We expect to WIN But
even tho the United States supreme court
should compel the Northern Securities
company to give back the stock to the
Great Northern and the Northern Pacific
companies, the control would still be the
samc.'