The Birmingham age-herald., 1903-02-07
ROCK ISLAND REsIsTS.
Latest "Nuisance Suit" to be Fought to
 "Peter Powers' Finish.

New York, February 6.-Undismayed and undeterred by the failure of black mailing litigation against the United States Steel corporation and the North ern 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 it will resist the litigation and contribute to the best of its ability to making that peculiar kind of litigation unremunerative 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 se- curities.
 It transpires that the plaintiffs in the suit bought the stock on which the action is based several months after the plan became 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 1t the stock was bought for purpose which is not regarded in legal ethics as legitimate.
 
 in Wall street have been making money by using the machinery of the courts to embarrass operations in high finance Whenever the opportunity has presented itself they have instituted legal pro- ceedings to block schemes of reorganiza- tion and promotion, Almost everything in the least vulnerable has been sub jected to attack American Sugar Re- fineries, Smelting. Erie Reading, South ern Railway, Northern Securities. United States Steel, Tobacco and other concerns have been made defendants in suits brought for the obvious purpose of fore ing settlement on terms which would yield the instigators of the litigation large profits for time and money spent.
 The conspiracy yielded immense divi- dends and was conducted with unvarying success through a series of years. It is estimated that more than s1.000.0O0 was paid by the financial powers of Wall street in the purchase of peace and for relief from annoyance. The United States Steel was the first to offer open resistance to the game of blackmail. 1t refused to pay tribute and put up a fight. The Northern Securities was next to adopt a policy of resistance. Now Rock Island has fallen into line and will make a fight as matter of duty and to insure protection against future forays. In the case of Northern Securities. Peter Powers and his immediate packers were knocked out in one round. United States Steel has successfully bowled over everything that came in sight and the two together made such an exposure of the methods and the personnel of the conspirators that for a time they were driven into inactivity It would appear, however. that the industry has been re- vived. Reputable attorneys in New York declining to have anything to do with that sort of thing it devolved upon the conspirators to find an attorney some where else and one was discovered in Chicago who would take. up the fight. It is stated by the Rock Island people that they have been approached re- peat edly by representatives of the suit just brought, with suggestions that a settlement might be arranged. These overtures were turned down and the in- timation 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 litieation commenced in Chicago was deferred too long to engage the serious attention of the people against whom 1t Is directed. IL is noted that the Street has paid small attention to the attack and has classified it properly. Further more the financial district regards with satisfaction the advertised determination of the Rock Island people to discourage litigous enterprises for speculative ad- vartage. -OHN MARTHOT4