THE MINNEAPOLIS JOURNAL.
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Resolution for Investigation
Offered in the House.
VOTE OF THANKS, TOO
Matter Fast Assuming a Partizan
HIT McKINLEY ADMINISTRATION
Democrats Attempting to Involve It
in a C'oloHHal Xtival
Washington, Dec. 17.— Representative
Wheeler of Kentucky to-day introduced a
resolution to Investigate the conduct of
Rear Admiral Schley from the time he
took command of the flying squadron up to
and including the destruction of the Span
ish fleet July 3, 1898. It recites the ac
tion of the court of inquiry and declares
the American people desire an investiga
tion by citizens not connected with the
Representative Mudd of Maryland in
troduced this resolution:
Resolved, That the thanks of congress and
of the American people are hereby tendered
to Rear Admiral Winfield Scott Schley and
the officers and men under his command for
their victory over the Spanish forces and the
destruction cf the Spanish fleet.ln the naval
battle on* Santiago de Cuba, July 3, 3898.
Mr. Mudd says the resolution is not the
result of any concerted action by the
Maryland delegation and represents his
Representative Cooper of Texas intro
duced a resolution declaring Schley in
command and entitled, to credit for -tho
victory at Santiago, and directing that he
be placed on the active list with the rank
he held before retirement. Representa
tive Vandiver offered a resolution reciting
that the language of the court of inquiry
reflected upon Admiral Schley and calling
for an investigation by seven members of
the house which shall investigate what
injustice has been done and whether envy,
jealousy, rivalry or other factional feel
ings exist among naval officers, and what
remedy should be applied.
Representative Norton of Ohio intro
duced a resolution proposing the restora
tion of Admiral Schley to the active list.
Secretary Long this afternoon informed
Senator McComas that he would grant
Admiral Schley "a attorneys an extension
of twenty-four hours of the time orginally
allowed for the submission of their state
ment. Thisy will make the time expire
Thursday at 4 o'clock.
, Stayton & Moore, who appeared before
the court of inquiry as attorneys for Ad
miral Sampson, have applied to Secre
tary Long for permission to be heard in
protest against the aprpoval by the secre
tary of the minority report written by
Admiral Dewey. The secretary has con
sented to receive any papers they may
car© to submit.
DiOI'IRV BY COXGRKSf
Demand Therefor Overwhelming,
Bat There Are OhNtacle*.
From The Journal Ituraau, lioom +3, j-,,,t
Washington, Dec. 17.—Public opinion is
practically unanimous h*re that congress
will investigate the navy department. An
investigation would lay all the secrets
of the navy department bare before the
country, exposing the cabals, the petty
hatreds and jealousies, the countless
games of cross purposes, and the malev
olent schemings of bureau officials, which
are directly responsible for the Scbley
affair, and have scandalized "the depart
ment since the Spanish war. Such an
opening of the whole question, it is
claimed, would be directly in the interest
of fair. play.
Since the verdict of the court of in
quiry was handed in I have interviewed
more than a score of members of con
gress, who say that congressional opinion.
Continued on Second Page,
The Political Linesmen —Where do we come in now?
FROZE TO DEATH
One Dies at Omaha—Others
Will Lose Hands and
Omaha, Neb., Dec. 17. —Last night's cold
weather proved fatal to one man and two
others were so badly frozen that amputa
tion of their limbs Is necessary.
Thomas Jefferson, a colored man, was
found unconscious in the rear of a saloon
and died at the police station.
George Rhodes, a sewing machine
ag^nt, was found in Riverview park by
the watchman. His hands and feet were
frozen. Fritz Heintz was found under
the Douglass street bridge in a half frozen
condition. Rhodes and Heitz were taken
to the hospital, where both may lose hands
Tacoma Report Concerning
Judge Noyes Declared
From The Journal Bureau, Jtoom 45, Pott
Washington, eDc. 17. —Attorney General
Knox to-day denied explicitely that he
and President Roosevelt have decided to
remove Justice Noyes, as reported in a
special dispatch to The Journal frcjm
'Judge Xoyea' case has not been a sub
ject of discussion between the president
and myself at any time since he has been
in office," said the attorney general,
"neither have I begun to consider the
case. I am waiting for the conclusion
of proceedings before the circuit court of
appeals at San Francisco in order that
I may get the benefit of the evidence pre
Fighting; for Harding.
Senators Gamble and Kittredge have
taken the case of Major J. W. Harding,
recently removed from the Indian agency
at Yankton, S. D., to the president. They
had an interview with the president re
garding the action of Secretary Hitch
cock a few days ago and again to-day.
The conference was short, but there prob
ably will be another in a few days, at
which the case will be discussed more
fully. The South Dakota senators are
prepared to fight to the last to have
Harding reinstated, or at least have his
record clear of charges which they be
lieve to be untrue.
South Dakota Hills.
Senator Gamble to-day introduced a
bill providing for the taxation of lands
embraced in Indian allotments, such taxes
to be paid by the federal government. He
also itnroduced a bill for a $200,000 build
ing at Yankton and to pension P. F. B.
Coffin of Huron ?50 a month. Thomas
Feneran of Madison $30 a month and
George W. Graham of Woonsocket $45.
Senator Kittredge introduced a resolu
tion providing for the payment of six
months' salary to the widow of John J
Healy of Ipswich, a former employe of
the senate. —W. W. Jermane.
About 1,200 negroes in Jamaica and ad
jacent islands have been engaged to help
build a railroad from Quinto to the coast
A Hearse Sent for a Live Man
Special to The Journal.
Norway, Mich.. Dec. 17.—As a result of a mistake made by a telegraph oper
ator, a Norway man returning home was met at the station by a hearse under the
supposition here that he was a corpse. Recently William Olson was badly in
jured by a blast at the Aragon mine. He was sent to Milwaukee for treatment and
was so greatly benefited that he was discharged. The telegram notifying the
mine officials of his prospective return requested that a carriage be at the sta
tion to meet him. However, the operator, knowing that the man had been seri
ously hurt, read the message carelessly and substituted the word hearse instead
The funeral vehicle, accordingly, was at the station when Olson arrived and
the mistake was made an embarrassing one all around.
TUESDAY EVENING, DECEMBEB 17, 1901.
Ransom of $70,000 to Be Of
ferred for Miss
Constantinople, Dec. 17.—The first
dragomen of the United States legation
and the secretary of the missionary so
ciety will leave her to-night with full
powers to negotiate with the brigands for
the release of Miss Ellen M. Stone on
the payment of £14,000 ransom. The
meeting will occur in Turkish territory.
Calumet & Hecla Responsible
for Prevailing Low
Special to The Journal.
Boston, Dec. 17. —In local copper circles
it is well known that the Calumet & Hec
la management is responsible for the
recent cut in the price of refined copper.
This company, the second largest producer
in the United States and the world, has
persistently refused to enter an agreement
of any nature to curtail the output of cop
per and help maintain prices. It is stated
that when the price of copper started on
its great advance . four years ago the
Calumet and Hecla did everything in its
power to stem the tide. This statement
Is confirmed by the annual reports of the
lowa stockholders express dissatisfac
tion at the refusal of the management to
enter an agreement with the Amalgamated
to maintain prices. Withlji a few years
the output of the mine must be curtailed
because of natural conditions and it seems
plain that it is for the best interests of
stockholders that the remaining copper be
sold as high as possible.
Under the Michigan law a mining com
pany is entitled to mine only the ground
that vertically underlies its territory.
Years ago it was learned that- the Calu
met's lode dipped out of its territory into
adjoining land at a distance of 3,500 feet
below the surface. This led the owners of
adjoining land to organize the Tamarack
Mining company, which put down vertical
-shafts, opened the lode and has for sev
eral years operated on it successfully.
The operations of the Calumet and Hecla
are rapidly approaching the Tamarack's
line and its mineralized area is narrow
Calumet ann Hecla has been getting
sixty pounds of copper from each ton of
rock mined, while the Tamarack gets only
thirty-five pounds. Thise best informed
do not believe the Calumet will figure for
more than three or four years longer as
one of the world's largest producers:.
Knoxville Prisoner Declared to Be
Knoxville, Term., Dec. 17.—Lowell
Spence, a Pinkerton detective, arrived
this morning from Chicago. He positively
identified the man under arrest here
as Harvey Logan, one of the alleged
Great Northern express robbers. Mr.
Spence had in his possession a photo
graph of Logan which is an exact likeness
of the men^ held. He says this man was
seen in Nashville with the woman who
was arersted there with Montana bank
money. The man still refuses to talk.
Large Cattle Owners Furnish
FEAR SMALL HOLDINGS
Principal Difficulty Is in Wyoming
CONTROL OF THE RESERVOIRS
•;'-—?. : - - -. . •" ■■
Cattle King* Want It to Be Vested
in Settlers So They Can Se
From Th» Journal Hwrvau., Jtioom AS, l'o*t
Washington, Dec. 17.—There is a radical
difference of opinion between members of
congress from the irrigation states over
the provisions of the general irrigation
bill which : these members for a week
have been trying to perfect. More than
a dozen irrigation schemes have been out
lined in pending bills, and these differ
ences must all be removed and the west
brought together in favor of some one
measure. Night after night the members
from western states have been getting to
gether for discussion, and while they are
making some progress, it is evident that
no bill such as the Hansborough bill,
which has been adopted by them as the
basis for argument, can:meet with gen
eral western approval. - And yet the
Hansborough bill, with amendments, will
finally be presented as the bill which the
irrigation states want.. It will be adopted
by a majority of the 1 western members,
and the minority . will either oppose it
openly or be lukewarm in its support.
The chief trouble is in Colorado and
Wyoming, which, in truth, are not strong
ly in favor of any form of government
irrigation, because it will give the small
farmers an opportunity to >. acquire hold
ings along the rivers and streams, which
are now given over to grazing. Both of
these states are range states, and since
that business is very profitable, there is
no reel desire to interfere with it, unless
in some way whigh will add directly to
the benefit" of local interests. J
Admire Montana Condition*.
The larger portion of the good farming
land in Montana, along the rivers, was
years ago gobbled up by the grazers, un
der the desert act, and it is possible, in
following the usual roads, to drive for one
or two days in that state without getting
off the property of a single company. It
is such a condition which the cattle inter
ests of Colorado and Wyoming wish to
■see brought about in those states, and
since these interests are very wealthy,
they help mold local public sentiment.
At the meeting of western members one
night late last week the question of
whether the general government should
conduct and control the irrigation plants,
or whether the?r sh..uld be turned over to
the several states and to the settlers,
was argued for three hours. The propo
sition to leave the matter in the hands of
the government was filially carried by a
large majority. The members who op
posed it were the members who repre
sent the grazing interests. The Hans
borough bill provides that no settler on
irrigated government land can acquire
more than eighty acres; this will be sold
to him for $5 per acre, and he will have'
five years in which to pay for it. There
is also a provision that while the gov
ernment, itself retaining the title, may,
in the discretion of the secretary of the
interior, turn the management of the
main ditches and lateral connections over
to the settlers, it shall forever remain in
full control and active possession of the
This latter provision produced a most
lively debate, and was only carried after
the struggle had been carried far into
the night Certain members from the
range states wanted a provision in the
bill that the reservoirs as well as the
ditches should be turned over to the set
tlers. This contention went straight to
the heart of the chief purpose of the gov
ernment, namely, to break the irrigated
land up into small holdings for the bene
fit of actual settlers who may want to
engage in agriculture. In no other way
will it ever be possible to thickly popu
late the semiarid regions. To give the
control of the reservoirs to the settlers
would open the way for the creation of a
monopoly in land holdings, and mean that
the irrigation policy of the government
would be established mainly for the bene
fit of the cattle barons.
As I have suggested, the western mem
bers will report a bill after the holidays,
and all of them, on the surface, may at
first support it. Ultimately, however, the
members from Colorado, Wyoming, and
possibly Utah and Idaho, will come out
against irrigation. The cattle barons
would rather have the lands as they are
than to turn them over to the small
farmers. Such a division of western
forces, hitherto supposed to be solidly in
favor of Irrigation, is likely to effect
seriously the standing of the bill.
Warren's Change of Front,
A shining illustration of what the range
states are doing is found in the attitude
of Senator Warren of Wyoming. His state
is given over to grazing in a large way,
and the cattle industry there is of great
importance and profit. For ten years he
has been one of the strongest advocates of
irrigation. When he was in the senate
the first time hs talked irrigation until
folks thought he knew nothing else; and
when he came back to the senate, after a
brief retirement, he began to talk it again,
with all of his old-time vigor. When it
came time to "get down to brass tacks,"
Senator Warren's interest in irrigation
began to wane. It has now almost entire
ly disappeared. It seems that he favored
a national system of irrigation which
would turn over to the states all of the
reservoirs, ditches, public lands, etc.
When the government proposed to hold
on to the reservoirs and lands and dis
pose of them in small lots to actual set
tlers, Senator Warren's ardor cooled;
such a plan would Interfere with the cat
Senator Warren's attitude is the atti
tude of a good many western members
who for years have been talking irriga
tion loud enough to be heard from one
end of the capitol to the other. These
members all want irrigation, but not the
kind that the government wants.
It is possible that the grazing opposi
tion will prevent the passage of any irri
gation bill at this session, or at any time
in the future, unless the government aban
dons its present wise policy and adopts
the one for which the cattle men con
—W. W. Jermane.
Representative* of American Firms
Are Getting- Busy.
St. Petersburg, Dec. 17.—A number of
experts representing big American firms
have arrived at Vladivostocti', en route
for Siberia, where they will build factories
and exploit the agricultural and mineral
1 wealth of the country.
Commander Torrance Makes
WORTHY MEN CHOSEN
Among Them They Represent All
Parts of the Country
PRESENT SITUATION IS DELICATE
The Committee Is Expected to Con
alder All Aspects In Making
Comander-in-Chief Torrance of tha
Grand Army of the Republic this morn
ing appointed the committee on pen
sions. The notiee^will appear in General
Orders No. 3 from national headquarters.
The committee on pensions will be con
stituted as follows:
Colonel Robert B. Death, Philadelphia, Pa.
General John C. Black, Chicago, 111.
General Janiea R. Carnahan, Indianapolis,
! Ex-Governor W.H.Upham, Marshfleld, Wis.
Judge Charles G. Burton, Nevada, Mo.
Henry E. Taintor, Hartford, Conn.'' i
i John C. Lanehan, Penacook, N. H.
These gentlemen will take up the pen
sion question and in view of the present
discussion and the dissatisfaction with
the pension office at Washington that
prevails at the present time among dis
abled veterans of the civil war, the com
mittee is one of great importance. The
commander-in-chief has endeavored to
appoint a committee that will look at the
question in a proper light as regards the
management of the pension office in
Washington and also consider the inter
ests of the government as well as those
of the soldiers of the civil war.
Commander Torrance does not occupy
a position of hostility to the present man
agement of the pension bureau but wishes
to see that the old soldier is protected as
the law provides and that he gets just
what a liberal government desires he
Under the authority of the national en
campment at Cleveland the whole ques
tion of pensions was referred to the com
mander-in-chief and this • committee
which was appointed to-day. .
;,; Personnel of the Committee.
The committee contains the names of i
men who are well known aside from their
prominence in the Grand Army of the
'"■. Colonel Beath.was commander-in-chief of
j the Grand Army of 'the Repulbic in 1382. Ho
has faeeii' a life-long and-mos 11' deyp^ed mem
ber of the organization. He lost a Teg in
the war and was a brave and gallant soldier.
He is now president of the United Firemen's
Insurance company, Philadelphia.: ■. •. ( _
General John C. Black has a splendid mili
tary record and bears numerous honorable
scars received in battle. He was commis
sioner of pensions from March, 1885, to March,
1899, and, although a democrat,' gave general
satisfaction in the administration of the pen
sion bureau. He has been commander of the
Department of Illinois, G. A. R., and United
States district attorney for Illinois, but is
now out of office, engaged in the practice of
his profession. He Is a very popular man, of
fine address and unusual gifts as an orator.
He will command the confidence and respect
of . every one.
General James R. Carnahan has an hon
orable record as a soldier; has been com
mander of the Department of Indiana; served
as judge advocate of the G. A. R. and is
now at the head of the Uniformed Rank,
Knights of Pythias. He is a man of sound
judgment and an able lawyer.
W. H. Upham was governor of Wisconsin a
few years ago. He is a man of good busi
ness ability and enjoys the good will and
respect of all who know him. He is also
past department commander of Wisconsin.
C. G. Burton served in congress from Mis
souri; was also judge of the circuit court in
Missouri, and is a past commander #of the
Department of Missouri. He is now engaged
in the practice^of his profession and is very
popular among Grand Army men and well
qualified for a place on this committee.
Henry E. Taintor is one of the best law
yers in the etate of Connecticut and a splen
did man in every particular. He has been
judge advocate general and has also been
commander of the Department of Connecticut.
John C. Linehan is a past commander of tb°
Department of New Hampshire, and for many
years past has been commissioner of insur
ance for that state. He has been prominent
in Grand Army circles for many years and
is well known, especially in the New Eng
land states, and commands the confidence
and respect of all who know him.
BLOW WAS FATAL
A Sioux City Saloonkeeper
Kills an Armour Man
With His Fist.
Special to The Journal.
Sioux City, lowa, Dec. 17.—Frank Cain,
owner of the Eagle saloon, last night
knocked down Pat Maloney, a butcher of
Armour's, because he was trying to buy
drinks from the bartender without pay
ing. Maloney died in bed last night,
blood running from his nose and mouth.
Cain has been arrested charged with mur
Effort to Keep Gold and American
Bill* in the Islands.
Manila, Dec. 17.—The Philippine com
mission has finally decided not to inter
fere again with the importation of expor
tation of gold or silver unless absolutely
compelled to do so by force of circum
stances, but beginning with the year 1902
the commission will alter the two-to-one
rate, in acordance with the existing ratio,
in the hope of preventing the further ex
port of gold and American bills.
The reports from the provinces of the
earthquake of Sunday last show that they
suffered more severely than Manila. At
Batangas, a soldier was killed by falling
Seven hundred bolomen have surren
dered in the island of Samar, owing to the
activity of the troops.
Four cases of the plague have occurred
here, the first since October.
New York—Arrived: Vaderland, from Ant
werp; Amsterdam, from Rotterdam; Mar
quette, from London
Liverpool—Arrived: Ovic, from New York.
Bremen—Arrived: Bremen, from New York.
16 PAGES-FIVE O'CLOCK.
"D'RI AND I" ARE
THE WHOLE THING
Darius Miller, Ostensible Traffic Manager of The
Burlington, Expected "to Whisper"
to Other Merger Roads.
Senator E. J. Jones of Morris Emphatic in His
Declaration That the Deal Must Be
Darius Miller's election to the Burling
ton directorate, and his choice aa traffic
manager of the Burlington system, is the
most significant move since the resigna
tion of Hill from the Northern Pacific
board. It's "D'ri and I," now for J. J.
It will soon be followed by Mr. Miller's
resignation from the Great Northern. He
will remove to Chicago and assume charge
of the traffic operations of the Burlington
This is taken by northwestern railroad
men to mean that Miller will become in
actual fact the traffic director of all the
merger roads. His connection with the
Great Northern, the Northern Pacific and
the Union Pacific will be "advisory," but
his word will be final. His will be the
master mind which will settle all intri
cate problems arising from the new or
der of things.
This is Hill's way of accomplishing some
of the aims of the merger in spite of
the governors and the courts. Miller will
have no visible connection with any com
pany but the BuFlington. He will sit
behind the scenes and give directions,
sotto voce, to the rest.
Senator !•:. J. Jones Alarmed.
The intense feeling among business men,
who are for the most part silent, was ex
pressed to-day by E. J. Joues, a leading
merchant of Morris. Mr. Jones is a mem
ber of the state senate and a leading man
in the republican party of his section. He
Is at the Windsor hotel to-day, and speak
ing on the question of the merger said:
"I believe the consolidation should be
prevented at ail hazards. I do not pre
tend to be a lawyer, and know nothing
about the legal points involved, but every
business man and shipper in the north
west is intorested in preventing a con
summation of the deal. We cannot tell
what will happen to the shippers if it is
not stopped. The power of the combina
tion over the business interests of the
northwest would be limitless. It could
make and unmake business men in every
community along the two great lines of
To Help the State Fight.
Whatever counsel Attorney General
Douglas is to have, no other attorney has
yet appeared In the case. Commencement
of the suit has been postponed^ until after
the holidays, and meanwhile it is believed
that counsel will be retained. Some
prominent twin city attorney will proba
bly be called In from among the large
number who have been informally con
There is a strong sentiment, which the
governor is believed to share, in favor of
retaining some prominent eastern attor
ney, of reputation equal to the legal ad
visers of the Northern Securities com
pany. Such a men as Frank' T. Griggs,
the former attorney general, -would bring
to the case a knowledge of the question
in its broad relation to the constitution
and the federal laws, whioh might give the
state its winning card.
"Oh, Please, Mr. Governor.".
The governor's mail continues to be
flooded with letters of advice and com
mendations, but from eastern financial cen
ters have come several letters urging the
governor to call off the dogs of war, in the
interests of business. They plead that
his attitude has depressed the markets by
hurting stocks, and will inevitably cause
a falling off in stock trading unless he re
considers. These communications do not
come from parties directly interested, but
from brokers and speculators indirectly
The governor flies them away with a
grim smile after a courteous acknowledg
ment of their receipt.
MKLXE-N REMAINS IN
Denial That Underwood Will Be
Northern Pacific President.
Special to The Journal.
New York, Dec. 17. —There Is no pres
ent , foundation for the report that Presi
dent Mellen of the Northern Pacific is
to resign and be succeeded by President
Underwood of the Brie. Mellen is not
in the city, having left Saturday for St.
Paul, after being in New York since the
October meeting of the directors; but it
can be stated on the best . authority that
Mellen's resignation from the Northern
Pacific at this time is most improbable,
and Underwood has no idea of leaving the
Erie. ~ ' / , r . \'
The report that he is meeting with op
position from some Erie directors in work
ing out his plans is unfair to him and the
company. On the main points of his
policy Underwood is following the lines
marked out by Chairman Thomas, al
though he is gradually developing his
If Mellen should at any later time re
sign from the Northern Pacific, Hill
would undoubtedly urge Underwood to
take the presidency, as, last fall, he urged
him to take up railway duties in the
Any talk of the resignation of Mellen or
Underwood at present, however, is idle
gossip, for no such action is contemplated
by either officer, is not expected or de
sired by the directors. Nor could it be
carried out without upsetting important
plans. While Hill and Mellen, as pres
idents of competing rival railways, have
been antagonistic in the past it is well
understood that it is very important to
Hill to retain Mellen as president of the
Northern Pacific, not only because of hl3
knowledge of the system, but because of
the effect on popular sentiment in the
west, which would take such a resignation
as confirming the suspicion that no com
petition will be allowed between the
Great Northern and Northern Pacific.
No Securities Company for Them Y«t
Special to The Journal.
New York. Dec. 17.—The recent rise la
New York Central stock was due to talk
that the plan for a Vanderbilt Securities
company would be brought out without
awaiting a decision in the Northern Se
curities case. These reports were proba
bly incorrect. The Vanderbilt interest*
iave always been thoughtful of public
opinion and careful not to pursue a
course calculated to arouse antagonism.
It would be a reversal of this policy to
bring out a securities company intended
to produce another large railway trust at
a time when the west is stirred up on
the question and when the difficulties in
the way of such an enterprise are so
If there is to be a Vanderbilt Securities
corporation it is not likely to be launched
until the courts have had their say re
garding the Northern Securities. If that
corporation stands, others will be sure to
come. If it does not stand. It will be
necessary for the Vanderbilt properties to
be left as they are or be combined on a
plan other than that adopted in the
X. P. PREFERRED
Argument Heard on Proposed lv-
j unction to Prevent Retirement.
Special to The Journal.
New York, Dec. 17.—Justice Scott, in the
supreme court to-day heard arguments*of
counsel in return of the order issued by
Justice Beach Dec. 10, directing the
Northern Pacific to show legal cause to
day why the temporary injunction issued
Dec. 10, restraining until further order of
■the court the company "from retiring the
preferred stock of the said Northern Pa
cific Railway company on the first day of
January, 1902, under or pursuant to the
resolutions of its directors, adopted Nov.
13, 1901," should not be continued. The
suit for injunction was brought by George
B. Hackett and Charles A. Chase, of Penn
sylvania, and by Wolf Bros. & Co., of this
city. Wolf Bros. & Co. asserted the firm
held 40,000 shares of preferred stock of the
Northern Pacific. Hackett said he held
600 shares of the company's preferred
stock. Chase said he held 1,000 shares.
The plaintiff also asked the court to issue
an order "requiring that preferred stock
holders shall have equal rights and priv
ileges with common stockholders in buy
ing bonds to be issued by the company
under resolutions of its directors, adopted
Nov. 13." Cochran, Moore & Heldreth
appeared as counsel for the plaintiffs.
W. H. Cochran. counsel for the plaintiff,
said that at a meeting of the directors
of the defendant company, Nov. 13, l&ol,
they voted to retire all preferred stock
Jan. 1, 1902, at the par value of $100 a,
share, and to give notice of such retire
ment to the holders of preferred stock.
He said that at the same time the di
rectors aleo voted the issuance at the rat*
of 4 per cent of debenture bonds of tha
Northern Pacific to the amount of $75,000,
--000 to provide funds necessary for the re
tirement of the defendant company's pre
ferred stock. Cochran also said the di
rectors by resolution provided that i^
bonds should be convertible into shares or
common stock of the company. The law
yer asserted that the action of ihe di
rectors by "drag-net resolution" was In
violation of the rights of each and'every
one of the preferred stockholders and that
the resolutions were "lyill, void and of no
legal force or effect," as the directors
were without power or authority to adopt
or carry the resolutions into effect.
"These resolutions," exclaimed Cochran,
"are drag-net resolutions, passed for the
purpose of fooling the public. The direc
tors had no legal right to pass such reso
lutions, changing the entire nature of the
corporation. The stockholders were not
heard, were not permitted to vote. The
directors assumed to exercise power
which they did not have. Directors can
not change the entire nature of a cor
poration. Whether this is an increase or
decrease of stock it is not lawful. The
directors cannot make such conversion as
they attempt to make without the vote
or approval of stockholders."
Daniel Lamont, vice president of th»
company, was in the courtroom and list
ened attentively to the arguments. Fran
cis Linde Stetson, counsel for the com
pany, occupied a chair next to Lamont.
Cochran asserted there was nothing in
law or equity which authorized the direc
tors to give greater privileges to com
mon stockholders than to preferred stock
"The object of the scheme on the part
of the directors," exclaimed Cochran, "la
to put the company into the hands of the
common stockholders so they can get ab
solute control of the road and divide large
profits. It is a stock-jobbing scheme."
Stetson opposed the application. He
said the plaintiffs were in no position to
ask for an injunction, as they had be
come stockholders since the passage of
the resolutions. They had a right to try
their suit, .but not to an injunction.
This suit lis Ifce sequel to the flgih|
waged last summer between Morgan and
Kuhn, Loeb & Co. and which resulted in
the union of those financiers in the North
ern Securities combine. Preferred stock
was heavily bought at the time of the
Northern Pacific corner by the Harriman
crowd, who were trying to force Hill to
admit them into the Burlington board.
The Morgan-Hill men sought to retire
preferred stock under vote of stockholders
but the Harriman men refused to surren
der the stock. Then the Northern Se
curities was organised.
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