Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1904-08-25
MUST TESTIFY.
Railroad Men and Financicrs Must &c
on the Stand and Tell of
Blue Thursday.

New York, Aug. % j. T.. Morgan, J..
j. Hill, r.. III. Hartman. Jacob Schin
and others involved i'm 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
public. An order signed by Justice
Scott, directing the lnanciers to appear
before Referee Philip e. Rcvile Sep
TENDER j, to be examined on this sub
ject, was filed yesterday at the office
of the county clerk
Subpoenaes in the case We're served
on Charles Steele and Temple Bedoln,
ex-president of the stock exchange;
George III. Earl secretary of the North-
ern Pacific Railroad company; NORTH
mer Schiff, of Kuhn, Loeb & Co. brok
ers, M. b., Mendham, Charles NJ. Scott,
jr, and on NJ. 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. OLeary of Chicago is the
victim of the alleged conspiracy, who
seeks to expose it. He Was short 200
shares of Northern Pacific at 1925 the
day of the panic, and his brokers Stern
berger, Fluid & Slim, covered it in the
market, buying 100 shares at $3.50, and
the remainder at $40J a share. He has
sued for $4,000 damages alleging thai
the stock was worth no more than $l50.
as the brokers and the firm of Kuhn.
Loeb & Co., from whom the brokers
had borrowed the stock they bought to
replace, we'll knew.
Mr.. O'Leary had $4,000 on deposit
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-
N n n INV 1,nt,
was at it's worst, the stock sold at
$1,000 share. Numerous sales We're
made between $500 and 500 a share,
and millions We're lost. O'Leary's claim
is against his brokers, as he assumed
in his complaint that they never really
paid Kuhn, Loeb & Co, more than $3.50
Il share for the stock.
How Morgan Settled.
O'Leary practically charges his brok-
ers with converting to their own use
the difference between $l50 u 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 $3.50. 1t is assumed that
all The members of the alleged conspir-
acy settled through Morgan & Co.
The panic was caused by a fight for
the Northern Pacific railroad. Morgan,
& Co. and j. j. Hill controlled the road.
1iiSS sSSuiSa stll OplluIl Oil lile burning
ton system as Il feeder. Hartman,
who was the visible manager of the
Union Pacific, a Rockefeller property,
went to Morgan and demanded that
the Union Pacific be permitted to share
In the Burlington purchase, as that
system conflicted with the Union Pa
cific. 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
a majority of the Northern Pacitic
stock through Kuhn, Loeb & Co.
Morgan Was i'm Control
Word was cabled TO Morgan, who or.
dered that all the Northern Pacific Sc.
curities be bought at amy price. This
order was executed by James r. Keene.
When the paric was over the rivals
got together and displayed their stock
1t proved that, counting the preferred,
Hartman had won, but Morgan con.
trolled 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. Then
followed the formation of the Northern
Securities company. which has been de-
clared an outlaw by the United States
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 fol
Mr.. O'Leary, who is said to he q
wealthy contractor of Chicago.