The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1904-08-26
MUST TESTIFY.
Railroad Men and Financiers Must Go
on the Stand and Tell of
Blue Thursday.

view 1OFK, Aug. Zo.-J. L. Morgan, j.
j. Hill, E. H. Hartman. Jacob Schiff
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 Il corner
Northern Pacific stock and rob the
public. An order signed by Justice
Scott, directing the %hnanciers to appear
TENDER i, 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 Bedoin,
Of Morgan & Co.; r. H. Thomas, an
eN-president of the stock exchange;
George H. Earl. secretary of the North
ern Pacific Railroad company; Morti-
mer Schiff, of Kuhn. Loeb & Co, brok-
ers, NJ. B. Mendham. Charles NJ. Scott,
jr, and on NJ. Sternberger of the stock
exchange firm of Sternberger, Fluid &
Sim. The other men will be served as
soon as found.
Mr.. O'Leary's Charges.
John ]. O'Leary of Chicago is the
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 & 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, we'll knew.
Mr.. O'Leary had $4,000 on deposit
with his brokers the day of the panic,
and he lii not know how he was be-
Ing put out of the market until the fol-
lowing day. May 9, when the panic
was at its worst, the stock sold at
$1,000 a share. Numerous sales were
made between $500 and $500 a share.
and millions were lost. OtLeary's claim
Is against his brokers, as he assumed
In his complaint that they never really
paid Kuhn. Loeb & Co., more than $3.50
a 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.. Thi 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 G. Co.
The panic was caused by a fight for
the Northern Pacific railroad. Morgan
& Co. and j. J. Hill controlled the road.
They secured an option or the Burling-
ton system as a feeder. Hartman.
who was the visible manager of the
Union Pacific, a Rockefeller property,
went to Morgan and demanded that
Union Pacific be permitted to share
in the Burlington purchase, as that
system conficted 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 Pacific
stock through Kuhn, Loeb & Co.
Morgan Was in Control.
Word was cabled to Morgan, who or
dered that all the Northern Pacific Sc
curfties be bought at n price. This
order was executed by James r.. Keene.
When the panic was over the rivals
together and displayed their stock.
II proved that, counting the preferred.
a won, but Morgan con-
trolleG the board of directors. so he re-
tired the preferred and issued new
common in it's place in such a way as
to throw control back to himself. Then
followed the formation of The Northern
company, which has been de-
clare an outlaw by the United States
court, and a distribution of
the properties over which Hartman
and Morgan are fighting in the United
States court.
Because he slept on guard Morgan
Daniel Bacon u OF his firm. Yates.
Duffey & Reville are the attorneys for
Mr.. OrLeary. who is said to be a
contractor of Chicago.