Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1910-08-03
NEW NEWS OF YESTERDAY
The Private Fortune That
Saved the Union Pacific
BY "HOlIand."


One Of the great causes OF the
financial panic of 1873 was the failure
of the banking house of Jay Cooke
& Company through having advanced
too largely on the bonds of the
Northern Pacific Railroad, then in pro-
cess of construction. Grave en-
barrassment 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 Bos-
ton institution since 1t was one of the
greatest railroad properties of the
country which Boston capital con-
trolled.
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 railway systems of the
country, had been prominently identi-
fed with the Union Pacific His was,
in fact, a leading voice in the affairs
OF the company, and when it became
/ evident. first to the officers of the COM
/ pany, and then to the public that the
| Union Pacific was not in a position TO
meet the next payments on its land
grant bonds, Mr.. Duff was greatly con-
/ cerned. He had been so closely
identified for seven years with the
! financial management of the company
that he felt that his business credit.
his 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.
Duff called into his office his son-in-
law, Dr. William II. 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. Duff, motioning
" AttN G11Ai tAAtog WANT Nb4 " pawn
these bonds in a travelling satchel,
take the first train for New York, and
as early as possible tomorrow morn
! ing call at the office of Morton, Bliss
/ & Company, the railroads fiscal
agents, and offer them in my name
as security for payment of the Union
/ Pacific land grant coupons due to-
morrow" There followed some de-
/ tailed instructions, and DR.. Bullard
was off for New York.
| Presenting himself at the banking
house Of Morton, Bliss & Company on
the morrow, a short while before the
beginning Of the business day, DR..
Bullard opened his satchel i'm the
presence of Mr.. Levi p. Morton.
MIR Morton" he said, Il have here
q little over three hundred thousand
dollars in securities of the very high
est grade. They are to be deposited
with you as collateral security. | have
brought them from John Duff, in Bos-
ton, and with his collateral as Sc
eurity, Mr.. Duff asks you to pay the
Union Pacific land grant coupons due
to-day and to keep on paying them
until he sends you word to stop"
As Mr. Morton began his examina-
ton of the securities, DR.. Bullard hap
pened TO look from the bankers priv
ate Office into the main Office of the
banking house. 1t was swarmine
with clerks armed with coupons OF
the land grant bonds due within less
than a quarter Of an hour.
Carefully, cautiously Mr. Morton
looked over the securities. Finally
as he laid down the last one. he nod
ded his head approvingly. the next
moment was issuing instructions tina.
the coupons should be paid until
further orders, and within less thar
FIVE minutes the first clerk to offer q
Union Pacific coupon received his
money, TO the great establishment moi
only of himself. but also of the other
clerks there assembled, and, speedily
thereafter, of all Wall street Fol
good financial news travels as fas
as bad, common belief to the contrary
notwithstanding and within an houi
Union Pacific stock, which had beer
quoted as low as ten cents on the dol
lar, jumped to twenty-five, and JOIN
1 Duff's son-in-law had his first lessor
in the effect of credit upon a rail
road property.
Until now, I believe, it has neve
been reported how the day was save
for the Union Pacific by John Dui
pledglng 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 was open
~ accused of improperly using hi
official relations with a nationall
famous trust company to secure tn
funds so badly needed by the Unio
Pacific
Copyright, 1910, by f. ]. Edwards
All rights reserved).
Tomorrow Mr.. Edwards win tell q
The Man Who Refused to Associat
with Jay Gould.