The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1904-09-02
MUST TESTIFY.
Railroad Men and Financiers Must &c
on the Stand and Tell Of
RIue Thursday

New York, Aug. 25.--J =. Morgan. j.
j. HILL Z. H. Hartman. Jacob Schtt
and others involved in the stock mar
ket panic of May 9, 1902, are to be put
on the witness stand ond forced to tell
whether they conspired to corner
Northern Pacific stock and rob the
public. An order signed by Justice
Scott, directing the hnanclers to appear
before Referee Philip T.. Revile Sep
TENDER l, to be examined on this sub
ject, was filed yesterday at the office
of the county clerk.
Subpoenaes in the case were served
on Charles Steele and Temple Bedoin.
of Morgan & Co.; r. H. Thomas, am
eX-president of the stock exchange;
George H. Earl. secretary of the North
ern Pacific Railroad company; Morti-
mer Schiff, of Kuhn, Loeb & Co. brol-
ers, M. B. Mendham. Charles M. Scott,
jr, and on M Sternberger of the stock
exchange firm of Sternberger, Fuld &
Sim. The other men will be served as
soon as found.
Mr.. O'Leary's Charges.
John J. O'Leary of Chicago is the
victim of the alleged conspiracy, who
seeks to expose it. He was short 200
shares of Northern Pacific at 1929 the
day of the panic. and his brokers Stern
berger, F'uld & Sim, covered it in the
market, buying 100 shares at $3.50, and
the remainder at $500 a share. He has
sued for $4,000 damages, alleging that
the stock was worth no more than $3.50,
as the brokers and the firm of Kuhn,
Loeb & Co, from whom the brokers
had borrowed the stock they bought to
replace, well knew.
Mr.. OLeary had $4,000 on deposi,
with his brokers the day Of the panic,
and he did not know how he was be-
ing put out Of the market until the fol-
lowing day. May 8, when the panic
was at it's worst. the stock sold at
$1,000 share. Numerous sales were
and millions were lost. OLeary's claim
Is against his brokers, as he assumed
in his complaint that they never really
paid Kuhn, Loeb 6, Co, more than $3.50
share for the stock.
How Morgan Settled.
O'Leary practically charges his brok-
ers with converting to their own use
the difference between $3.50 a share and
the price charged him. This charge is
based on the fact that the day after the
panic Morgan & Co. settled with shorts
on the basis of $780, 1t is assumed that
all the members OF the alleged conspir-
acy settled through Morgan &: Co.
The panic was caused by fight for
the Northern Pacific railroad Morgan
G. Co. and J. ]. Hill controlled the road.
They secured an option on the Burling-
wi oS oIelil DIS d leeueT. hartman,
who was the visible manager of the
Union Pacific, Rockefeller property,
went to Morgan and demanded that
the Union Pacific be permitted to share
IN the Burlington purchase, as thar
system confiicted with the Union Pa
ciftc Morgan bluntly refused to con.
slider the proposition. He went to Eu.
rope, leaving Robert Bacon, his secre.
tary or partner, in charge of affairs
here. Hartman at once went into the
market, and before Bacon discovered
what was going on. had secured almost
majority of the Northern Pacific
stock through Kuhn, Loeb e. Co.
Morgan Was in Control.
Word was cabled to Morgan, who or
dered that all the Northern Pacific Sc.
curities be bought at any price This
order was executed by James r. Keene.
When the panic was over the rivals
got together and displayed their stock.
IT proved that. counting the preferred
Hartman had won, but Morgan con.
trolle6 the board of directors, so he re.
tired the preferred and issued new
common in its place in such way as
to throw control back to himself. Their
followed the formation of the Northern
Securities company, which has been de.
clared an outlaw by the United STATES
supreme court, and distribution of
the properties over which Hartman
and Morgan are fighting in the United
States court.
Because he slept on guard Morgan
put Daniel Bacon out of his firm. Yates
Duffey & Reville are the ATTORNEYS fof
Mr.. O'Leary. who is said to be ;,
wealthy contractor of (rhicnp1