The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1904-04-22
IT'S ROCKEFELLER
AGAINST MORGAN
Real Inwardness of the Contest
for Control of the North
ern Pacific.
7 MAY CAUSE TROUBLE
Explanation of the Detail of Relations
Between the Big Financial Inter-
csts Involved in the Lines to
the Coast.

New York special: Unable to settle
their difficulties in the stock market or
through arbitration. John ID. Rockefal-
Ter and j. p. Morgan ave carried
the war for possession of the Northern
Pacific railroad to the courts. AS a
result. there is danger of the great
stock panic of May, 1901. from The eff
fects of which the market has never
fully recovered. being renewed.
Refusing to accept the distribution
of assets by the outlawed Northern Sc
gan and j.. j. Hill. Il. H. Hartman,
manager of the Rockefeller forces. has
asked the United States circuit court
to compel Morgan to hand Jack to him
the Identical Northern Pacific stock
which he testified under oath Morgan
dubbed him into depositing in the mer-
ger.
Harriman's petition was filed in St.
Paul late Saturday night. So secretly
was 1t one that the fact did not be-
come known until yesterday morning.
1t was served on H. G. Grover, L. w.
Bum and George b. Young, attorneys
for h Northern Securities company.
and is %returnable at st. Paul April -.
Battle Will Be Ficrcely Fought.
William D. Guthrie. Morgan's law
yer, signs the petition with Judge John
10 O4AAollB liz III
wiser. Both are formally attorneys for
E. H. Hartman and Winslow S. Pierce,
who bring the suit as trustees for the
Oregon Snort Line. in whose treasury
the Rockefeller shares of the Northern
Securities stock are held.
This Joining in the same petition OF
adverse lawyers is done to give the ac-
ton the outward appearance of a
friendly suit, but the battle will be
waged none the less Itercely because of
this fiction. Hartman, as before said,
has sworn he was dubbed into the mer-
ger, and Rockefeller has ordered him to
get the stock back again.
The formal demand is now mad that
the Oregon Short Line, as a stakeholder
in the Northern Securities, be permit
ted to intervene in the suit just decided
by the supreme court and have the de-
cree modified so as to compel redistri-
button of original stocks put into the
merger.
Buying of Union Pacific.
This movement explains much OF the
feverish buying Of Union Pacific stock
last two weeks. 1t was decided ten
days ago to carry the battle to court,
and this has now been DONE.
But before that decision was reached
the buying OF Union Pacific became
heavy. Purchasing on the part of one
wing Of the Rockefeller hosts was due
to the fact that they had sold great
blocks OF it In the belief that an adverse
decision on the merger suit would break
III stock market.
When the market refused to break on
h announcement of tho merger deci-
sio there was q wild scramble to get
this stock back.
]. P. Morgan, observing the buying.
also bought Union Pacific heavily for
nAvorp1 do VIC Ar tho carpo tir,o T II
Hill went into the market as a pur-
chaser Of Northern Securities.
Fight in Market.
All stocks We're so closely held. how
ever, that both sides knew there was
no hope Of deciding the fight in the
market at any price, so competitive
bidding became quiet. 1t is quite like
ly, however. that the stock will be torn
with q spectacular fight as soon as the
court has decided Harriman's suit. I'm
til then neither side will know where it
stands. If those who sold stock to the
Northern Securities company get bach
In exchange for the Cancelled merger
stock the same shares deposited origi-
nally, as Hartman demands, it will
give the Rockefeller party control of
the Northern Pacific.
When the Northern Securities com
pany was formed the Rockefeller party
which was made up of Hartman,
George j. Gould and the Kuhn, Loeb &
Co. factions. had control Of the North
ern Pacific, counting preferred stock.
But the Morgan board Of Northern Pa
cifc exercised its right to retire this
stock and issue common stock ii its
place. The new common stock was dis
tributed In h same proportion as the
old common was held, and thus the
Morgan party was left with a bare ma
jority. The legality OF this retirement
OF the preferred has been established
done.
But the Rockefeller party at once
laid plans to capture the Northern
Pacific, which they accused Morgan OF
taking from them by sharp practice
WhAp the suit was brought by the at