The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1910-12-02
Private Fortune That Saved the
Union Pacific.
John Duff Of Boston Sent Hls securt
ties to New York Just In Time
to Meet Payment on Land
Grant Bonds.
BY e. J. EDWARDS.

| - o. W ehV bOAuS vi lu6 INOTIu6Tu
Pacific railroad, then in process of
construction. Grave embarrassment
was caused to many other railroad
companies by the panic, and not the
least embarrassed of these railroads
was the Union Pacific. which, at that
time, was regarded in the railroad
and financial worlds as a Boston in
sttution, since 1t was one of the great
railroad properties of the country
which Boston capital controlled.
From about 1866 John Duff of Bos-
ton, who easily took rank with the
great financiers who began immedi-
ately after the Civil war the work of
developing the railroad systems of the
country. had been prominently identi-
ned with the Union Pacific. His was,
In TACT, leading voice in the affairs
oil the company, and when it became
evident, first to the officers of the
company, and then to the public, that
the Union Pacific was not in a posi-
ton to meet the next payments on its
land grant bonds, Mr. Duff was greatly
concerned. He had been so closely
identified for seven years with the
financial management of the company
that he felt that his business credit,
MS personal honor, and, to, some ex-
tent, his investments, were involved
In maintaining the credit of the Union
Pacific.
But how was that credit to be main
tanned, with money in hiding every
where, and with the Union Pacific
treasury without the necessary funds
to meet the payments soon due?
! Not taken into account by the folk
who were confidently predicting a de-
fault by the Union Pacific was the
| grim determination of John Duff to
protect his good name at all hazards;
and so, the day before the coupons
of the land grant bonds were due, Mr..
Dun called into his office his son-in-
law, DR.. William H. Bullard, and
counted out in the latters presence
little over three hundred thousand
dollars in first class securities, which,
but a short time before, Mr.. Duff him
self had taken from his private strong
box.
William" said Mr.. Dun, motioning
to the securities, 81 want you to pack
these bonds In travelling satchel,
take the first train for New York, and
as early as possible tomorrow morning
call at the Office of Morton, Bliss &
Co., the railroads fiscal agents, and
offer them in my name as security for
payment of the Union Pacific land
grant coupons due tomorrow" There
| followed some detailed instructions,
and DR.. Billiard was off for New York.
Presenting himself at the banking
house of Morton, Bliss q Co. on the
morrow, short while before the be-
ginning of the business day DR.. Bull
lard opened his satchel in the presence
Of Mr.. Levi P. Morton.
"Mr. Morton" he said, II have here
a little over three hundred thousand
dollars in securities of the very high
est grade. They are to be deposited
with you as collateral security. I
have brought them from John Duff in
Boston, and with this collateral as Sc
curity, Mr.. Duff asks you to pay the
Union Pacific land grant coupons due
today and to keep on paying them un-
til he sends you word to STOP"
AS Mr.. Morgan began his examina-
ton of the securities, DR.. Billiard hap
pened to look from the bankers pri-
vate ONCE into the main office OF the
banking house. It was swarming with
clerks armed with coupons of the land
grant bonds due within less than q
quarter of an hour.
Carefully, cautiously. Mr.. Morton
looked over the securities. Finally, as
he laid down the last one, he nodded
his head approvingly, the next mo-
ment was issuing instructions that the
coupons should be paid until further
orders, and within less than five min
utes the first clerk to offer Union
Pacific coupon received his money, tt
the great establishment not only oi
himself, but also of the other clerks
there assembled, and, speedily there
after, of all Wall street. For good
financial news travels as fast as bad
and within an hour Union Pacific
stock, which had been quoted as low
as ten cents on the dollar, jumped
to twenty-five, and John Duff's son-in
law had his first lesson In the effec
of credit upon railroad property.
Until now, l believe. 1t has neve
been reported how the day was save'
for the Union Pacific by John Duf
pledging his own securities for none.
with which to pay the coupons. MI
Duff himself never referred to thi
act of his, not even when he wa
openly accused of improperly usin
his official relations with nationall
famous trust company to secure tn
funds so badly needed by the Unio
Pacific
copyright. 1910, by e. ]. Edwards. A.
Rights Reserved.)