The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1904-04-22
RockcfcIiers Bcain Bear Raid.

course.
Rockcfellers Begin Bear Raid.
belleNlng they would win the fight In
the supreme court of the United States,
the Rockefellers began the greatest
bear raid on the stock exchange values
thai the world has ever seen, the ulti-
mate object of 1t being to force out
Northern Securities stock In a long
panic. This stock was snatched up as
iast as 1t came out. and the Rockefel-
lers believe they have enough Of it so
that when it is resolved back into it's
original elements of Northern Pacific
and Great Northern stock it will leave
them in undisputcd control of the
Northern Pacific.
The Burlington road is also in the
balance. 1t is held through bonds
guaranteed Jointly by the Northern
Pacitlc and Great Northern. Default
by either of these companies in pay
ment of Its share of the interest of these
bonds throws the road into ermanen
control of the company which pays.
Thus Hill and Morgan, ii they won in
reducing Rockefeller to a minority In
both roads, might let Northern Pacific
absolutely for the Great Northern.
Cause Of the Panic in 1901.
1T was because Morgan refused to let
Union Pacific share In the purchase OF
Burlington that Rockefeller ordered the
capture of Northern Pacific In 1901,
thus causing the panic and the merger.
For each 500 OF Northern Pacific
stock that was taken into the merger
after the panic started on May 1 s115
of Northern Securities stock was issued.
For each 500 of the Great Northern
there was issued $3.50 Of Northern Sc
curities.
Morgan and Hill want to cancel all
Northern Securities stock, returning
both Northern Pacific and Great North
ern In those propositions for Zach share.
Rockefeller insists. that none of his
friends var any great Northern stock.
He wants each share of Northern Sc
curlties stock traced back to it's original
elements.
Hartman, acting for all the Rookie
Teller interests, held when the merger
was formed $37,O23, 900 Northern Pa
citic common stock and Sal. OS5, 900 pre-
ferred. Morgan-EIill interests had s42,-
100000 common stock. The balance OF
the $50, 100000 of onmon stock was so
widely scattered that even the panic
price of $1,000 a share on May 9, 1901,
failed to bring it u Much of this was
later obtained by Rockefeller. Some
was converted into Northern Securities
shares. BY retirement of the Northern
Pacific preferred and sale of new COM
mon the Rockefeller was left with $751;
491,OO0 of the Northern Securities stock.
RockefeIIcrs in the Minority.
This, converted according to the Nor
gan-Iill plan. would return to Harri-
man only S34,794.0 900 Northern Pacific
common out of a total Of $3.50 600, 600.
1t would give them also s24,SS7,0OO
par Of the Great Northern stock, which
they do not want. 1t would leave the
RocKefellers in a hopeless minority in
both the great nrNnarfiec for 1arIioh tho,,
have kept the stock market in contin-
ual panic since May, 1901. II the Hair
riman contention prevails the sS2,491,-
900 Northern Securities will yield SILL
731. 600 Northern Pacific.
That the legal fight will be a long
is shown in j. P. Morgan's plan
to sail for Europe this week. He would
not dare cross the ocean with a big
fight about to be begun in the stock
y, Riot