New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-03

until September. 1902 At the outset pool
members were confident that the stock
would sell at par within six months.
About August. 1902, there had been a
scmi-onicial announcement that the
Southern Pacific might issue convertible
bonds FOR the purpose of meeting the cX-
pcusc OF the bctterments needed by the
system. but a little later it was decided
by the controlling interests 10 adhere to
thc policy of applying earnings 10 better
mcnt and improvement. This meant an
indefinite postponcmcnt Of dividends, and
the stock began To decline. the Kecne pool
ccasiug its accumulation and heavy sell
iur from various sources setting In At
around the same time II became known
that the Union Pacific holdings of South
crn Pacific had been Increased from go
ooo.ooo to @ooo.co. or only about 5000 900
less than absolute control
In March. 1895 the stock Exchange firm
Of Talbot j. Taylor q Co. the senior
member of which was the son-in-law Of
M Kceuc and which represented the in
forests OF the kccne pool. issued two cir
culars Ia the stockholders of the South
crn Pacific asking Tor their proxies for
Use in the coming annual election on
AUII - The circulars said mat tie
efforts of the minority stockholders were
not directed toward forcing a dividend
un southern Hacihc stock nor toward
anything except the separation OF the
Southern Pacific and Union Pacific sys-
TENS. with the object of having the
Southern Pacific road run IN the interest
of all thu stockholders of the Southern
Pacific Company. Mr. kccne. in IA long
public statement. took the same attitude.
The stock. which had sold at 81. N the
previous September had been DECLINING
since then. and in March. 1893. moved be-
tween 6si. and o.
While the Taylor nrm was appealing to
the other minority stockholders for proX-
les the pool agreement was extended 10
terminate on April 10. just after the date
Of the annual meeting. instead OF on
Aplil T. when 1t would have expired by
Limitation. ON March IL. two days after
this move, the keene party secured a
Temporary order for the Union Pacinc
IN show cause on April / why an injunc-
,ion should not issue restraining II from
Voting its te0.Orp.rj0 Southern Pacihc stock
at tho annual meeting. Whtn the near
ing was held the application Tor PEI .
fnanrut Injunction was denied, ana AT
tbn annual meeting the Union Pacihc was
iu mn control few days later the
Kreue pool was dissolved, It's accounts
showing "A total loss said to have been
HyS,rIv foiir years later In January. 1907,
il developed IN the course al the heaiihsS
held by the Interstate CoillneTce '3 i
ritc's relations with the Southern IA
cifc that while the injunction proceedih5S
Instituted by the kecne party Wer" prilu-
ing the executive committee OF tiie ore
gon Short Line sold 10 w o l.,'an, ~,
southern Pacific for s6.Oo.oc0 cash ana "a
deferred payment of sll.25oW"' ana pousht
back the stock in November. l9g5' AZ inc
same price. paving Mr.. Rockefeller per
cent ON his money and commission OF
xlS7OyO The object of this transaction
wac supposed to have been 10 enable the
Union Paclhc To show. If necessary. on
tn hcarigs for Re aric bnldihas We're
lar less Than the amount necessary Tor
On July a. 1908. three months after the
dissolution of the pool Talbot j. razor
90 announced their suspension, wnicn
vas commonly supposed to have resulted
from losses suffered by them In the
Southern Pacific undertaking. MY Keen.
said that he was the largest creator, anu
placed his probable loss at s5oo'U.
With the boom of 1893. however, he was
lack once more, and this time H.. H.
Rogers gave him the management OF an
Amalgamated Copper move that put the
stock al 90 At that point. IL is said, Mr.
Keene declared the top was reached ana
gave up his management. Mr.. rogers
disagreed and another manipulation
pushed the stock on TO 100.
The Hooking Pools.
Then came the Columbus & Hooking
pools two wears ago. which moved this
dubious security from 20 To 80 and In its
collapse wrecked three Stock Exchange
houses. According 10 the pool agreement.
90 por cent of the members had the right
al any time to demand an accounting or
The profits and losses from the pool man
9ser. Mr.. Keene When the pool collapsed
this demand was made. Mr.. keene was al
leueth forced To testify before the Ohlted
states commissioner In bankruptcy pro-
,eadinps against J. NJ. Fiske X Co. and
T.athron. Uaskins & Co. Mr.. keene main
tanned that he kept faith with ms ieilo"
members in the two pools and ana not Sell
short Nevertheless. he was l"Iced u" d"
mit that several thousand shares held by
Tim I'm the Hockln pool had been used Tor
delivery in short sales made by his bro
kers. He insisted however, that the
nrokers sold the stock short for 'heir own
account and merely borrowed his STOCK Tor
delivery under an old agreement ne de-
clared he did not even kno" at the time
that the transactions had taken MA %. AS
y ros,l, several suits Cor accounting and
a,,,accs charging bad faith, were
brought against Mr.. keene'
II was during these hearings ''"' MI
Keene. when asked to give Ills "ccupiloh'
made his famous reply. Il AN specuid-
tor" In defence Of speculation ne once
An thu, life consists of il the TAKING