New-York tribune., 1904-10-05
n. p. CORNER TESTIMONY.
J. II. Schif and Charles Steele T'es-
tify in O'Leary Suit.

Hearing before Referee Reville. at his office, NO
15 Willam-st IN the suit of J. J. OLeary, OF Cht-
cago, against the stock brokerage firm or stern
berger Fuld sinn 10 recover $55o0o for losses in
the Northern Pacific corner in May. 1901 was con
tinued yesterday. The transactions out of which
the suit grows were made by Sternberger, Fuld q
Sim, with J. J. Townsend & Co. of Chicago, VINO
acted for Mr. OLeary. The latter. through ll'e
Townsend firm. short two hundred shares OF
Northern Pacific common stock SternbeTger, tuld
& Sim bought in one hundred Of these shares at
$50 share. and one hundred at 800 share MI
OLeary charges that these transactions were NOT
genuine and that the stock could have been bought
at $50 a share. He alleges that Kuhn, Loeb & Co,
with whom Sternberger. Fuld & Sim were short
of the stock. settled with various shorts az that
figure.
Samuel sinn a member OF the defendant frm
the first witness yesterday his examination
being conducted by Henry Wilcox. counsel for MI.
OLeary He testified that his dealings I'm this case
were with Townsend & CO. and he identified a tele
gram which had been sent 10 Townsend & Co on
May 2 1901. having been written by Mr. Stern
berger. This telegram insisted that all shorts IN
the Northern Pacific stock must be covered at once,
the danger great and 1t had sold up 10
SOD to-day" In response 10 questions from Mr.
Wilcox AIr Sim said that he understood that J. T.
Morgan & Co. and J. J. Hill held large quantities
of the stock and that it was not for sale He said
that the heavy buying Of the stock was not for
working corner but for getting control Of the
Northern Pacific road He said that the refusal
OF Kuhn. Loeb & Co 10 lend stock on that day was
possibly the cause Of the high prices for the stock
William Mcclure, secretary Of the Stock E1-
change said that the day of the panic the chair
did not buy in any Northern Pacific TO pro
tect shorts which is permissible. Mr.. Mcclure tes-
titled that the rules OF the Exchange protected
could protect. its members from being compelled
10 pay eXOrhtant prices made through corner
The first witness the Afternoon session was
Jacob II. Schiff. head Of The frm ot Kuhn, Loeb &
Co. Mr Schin SAID that the transactions in NoIth-
ern Paclhc stock concerned the ,"nlry Ct the lad
He refused 10 tell who were with Kuhn. Loeb &
20 IN the transaction. de SAID MS concern fad
been buying Northern Pacific for several months
ZION of tbe dealings betwSen his Irr and stern
berger, Fuld d Sim concerning the 290 shares in
the amount Of stock held ~ J. r Morgan & Co
Mr. Schiff was excused until Today
on or about May his firm held about $Z0.0010d9 Of
this had been purchased because the firm wanted
between J. P Morgan & Co and j. j. HilI concrn-
ing the control OF the road.
Mr.. Steele was asked who else held large amounts
Pacific interests were large holders and that he
understood that Mr. Hartman the representa-
Lyes q those interests lie said ii was also under
stood that Kuhn. Loeb & co. were interested in
Mr. steele declared that there had been no confer
SnceS en- e between J. p Morgan & 90 and Kuhn, Loeb
stock and that j. P Morgan & Co. had no inter
est in the holdings of Kuhn, Loeb & Co.
Did J. p Morgan & Co conspire with Kuhn
Loeb q Co or any other persons TO create corner
N T6gth9i9 orr 5i &. Pacific stock Vas asked
Nj steele added that. FAR he knew. there
had been no rivalry or strife prior to May for the
On Nay 81. he said, a conference took place to
that the composition Of the Northern Pacihc board
was TO be left to Mr.. Morgan As nearly he
tended that conference. There were others but Mr.
Steele could not remember their names.
Mt Steele said that J p Morgan & CO. had also
n5eI n3,Id So snare rare as me price at which shorts
thought TO be a fair valuation Of The stork "
r H. Hartman is expected to testify to-day.