Newspaper Page Text
THE MINNEAPOLIS JOURNAL.
PBICE TWO CENTS. FRANK H. PEAYEY IS CALLED FROM EARTH An Attack of Pneumonia in Chicago Terminated Fatally at an Early Hour To-day. He Was a Self-Made Man Who Had Won a World-Wide Rep- Frank H. Peavey, one of the foremost citizens of the northwest, and a com manding figure in the grain trade of the ■world, died at the Auditorium Annex In Chicago, yesterday morning at 3 o'clock. The sad news came flashing over the wire early this morning and brought with It a feeling of profound grief to hundreds of friends and acquaintances of the dead man, who had made his home in Minne apolis for seventeen years and who, dur ing that time, had won for himself a most tuvlable position in the community. Unaided and through his own ability, Mr. Peavey had built up a great fortune. He waß one of the wealthiest men in the city; but that fact was merely incidental. It Is not so much the man of affairs who will be mourned, as the friend and com panion; for Mr. Peavey was a rarely com panionable man, a helpful man and a philanthropist. When success came to him he never forgot the Maine newsboy of his earlier years, and it was his chief delight to aid others along the way that he himself had traversed with such con spicuous success. Always approachable, Mr. Peavey was never too much engrossed in his own af fairs to listen to appeals for assitance MILLSMAYCLOSE Kansas Millers Find the Rise in Wheat Prices Dis astrous. *••» Ymi'k Sun Somoiml Smrvfom Topeka, Kan., Dec. 30.—Many of the largest flouring mills in Kansas will have to shut down before the close of the week if the price of wheat does not drop from the recent heavy rise. The mills which stocked up heavily two months ago at a lower price are running to full capacity and are making big money on their flour, Probably one-half of the mills of the state did not do this, and the result is that a jump of 12 cents a bushel makes it impossible for them to buy and com pete with the others. Very little wheat is moving, as farmers are either holding for a greater rise or to feed to stock, which is cheaper than 75 cent corn. RELIGIOUS RIOTS Scotch Police WoUnded and Troops May Be Em ployed, London. Dec. 30. —The Island of Lewis has been the scene of serious religious riots, arising from the union of the free and united churches of Scotland. The islanders refused to countenance the al liance, and when the minister at Ness Joined the United church they locked him out of his church. A strong force of police was sent over from the mainland to open the doors, whereupon the islanders con- Kr.'sa'ed and, throwing volleys of stones at the constables, drove them inside the 'milding and bombarded them until they < ;i],iiulate.l and agreed to leave the island. Every member of the police detachment was wounded. It is probable that a de tachment of troops will be sent to sub due the rioters. FORMOSAN FIGHT Over a Hundred Killed in a Mix-up Between Troops and Rebels. Tacoma, Wash., Dec. 30. —According to advices from the orient, a party of 105 coolies, engaged in transporting camphor, was attacked by Formosan insurgents late iv November and twenty of them were killed. Nineteen were decapitated. Japa nese troops and police were sent against the rebels. A battle took place in which more than 100 were killed, the heaviest losses being on the side of the rebels. Capitalization of Trusts New York, Dec. 30.—1n an annual review of the corporations of the United States the Journal of Commerce estimates the total capitalization of "all-industrial" con solidations in the United States at approximately $6,500,000,000. This does not in clude railway, street railway, lighting or banking consolidations. It is also estimated that the "industrial" corporations completed during 1901 and having an authorized capitalization of $1,000,000 or more have an authorized preferred stock issue amounting to $562,450,000 and a capitalization of common stock amounting to $1,153,450,000. utation. from others, and rarely were such appeals allowed to go unanswered. The curse of mtoney passed >bJm by, for, although he amassed an enormous fortune he never became a mere money-making machine. With him the making of money was not an end but a means; a means toward the attainment of a higher and a nobler ambi tion. Mr. Peavey wa» a sociable man. He enjoyed nothing so much as to spend a day at "Higheroft,? his magnificent coun try home overloolijlng the shores of pic turesque Miunetarika, surrounded by his family and their friends. Of recent years "Highcroft" had b«en his hobby; and the hours he spent there were the happiest of I his lifo. In the business world none stood higher than Mr. Peavey. He was not a specu lator. When he bought or sold wheat it was the actual commodity, not a fictitious article, having an existence only on the quotation board. Such deals he regarded as little better than gambling; and he was not a gambler. Hi» TakliiK Off Unexpected. His death comes as a distinct loss not only to his immediate family and friends but to the city of Minneapolis, the state Continued on Seveiitn~Pajfe. KNOX MAY GO Considerable More Money in Not Being Attorney General ffaw York &un Same/atSorvlcm Washington, Dec. 30.—Attorney General Knox Is chagrined and humiliated because he has been an object of attack by the anti-trust forces and of investigation by the senate committee on judiciary. Mr. Knox's feelings are intensified by the fact that he does not want to be attorney gen eral. Every day he remains a member of the cabinet means a sacrifice of income. His private law practice in Plttsburg yielded upward of $100,000 a year and it was of a character which is peculiarly pleasant to lawyers. It was composed al together of corporation practice. . Mr. Knox had to abandon his business when he accepted President McKinley's tender of a place in the cabinet. His law firm was practically dissolved because one of his principal partners became a member of the board of directors of the United States Steel corporation, a position whose duties compelled him to abandon the af fairs of the former law firm of -which Mr. Knox was senior partner. It is not unlikely that the attorney gen eral will find it convenient before the end of his term, and possibly within a short time, to resign and return to Pittsburg. The United States Steel corporation is very desirous of securing his services, because he is better versed in the intri cacies of the steel business than any other lawyer in the country. TIMBER TRESPASS Agent Farr Would "Sock It" to Corn- moil wealth Lnmlier Company. From The Journal Jitcrtxiti, Moom 4S, Post Building, Washington. Washington, Dec. 30.—Joseph Farr, special agent of the Indian office, who partly in vestigated timber trepasses on the Indian reservations, has written a letter to Indian Commissioner Jones, in which he embodies the statements contained in his interview in Milwaukee. In addition to them, however, he suggi-sts to the commissioner that if it becomes necessary to sue the Commonwealth Lumber company for the amount of its in debtedness to the government for illegal cut, the amount sued for should be increased raa ttrially so as to bring the total up to more than $40,000. Te thinks ihe company should be forced to pay the cost of the investigation and incidentals that arose in connection with the rescale by him and O'Neill. It is not likely that his advice will be fol lowed, as the Inaian office has fixed a net price for illegal cut and could not sue for a greater amount. Commissioner Jones said to-day that no reply had been received to the latest demand on the company. As soon as payment has been made or directions have been issued for a suit the commissioner will compile a statement covering the entire dead and-dcwn operations, showing every fact in connection with tliem. Perhaps it is called a "cold snap" be cause the coal men regard it as such. IPS ? flf f* ■' —i—■— ■ ■ ——^Vfl 1 -fe'^ ■'-..''' -~ • Born Jan. 18, 1850, at Eastport, Ma. Entered agricultural implement firm of Organized firm of Evans & Peavey, 1871. Sold newspapers in Eastport, 1863-1564. Booge, Smith & Peavey at Sioux City, Married Miss Mary D. Wright, 1873. „. . , o .- v t 18"°- • Organized firm of F. H. Peavey & Co., Messenger boy in Chicago, 18bo; book- Lost all his sav ings and assumed an in- 1873, and began handling grain keeper in Chicago bank, 1866. debteduess of ?2,000 occasioned by fire, Came to Minneapolis, 1884. Bookkeper in Sioux City bank, 1567-1870. 1871. Died at Chicago, Dec. 30, 1901. PLAN TO HIT THE MERGER Governors and Attorney Generals of Five States Begin Their First Conference at From a Staff Correspondent. Helena, Mont., Dec. 30.—Governor Van Sant's merger of states is being effected here ,0-day. The officials of five states are in conference over the threatened evil of railway consolidation in the northwest. Except the North Dakota deserters, all who have been expected are on hand. Governor C. N. Herreid of South Dakota and John L. Pyle, attorney general of the same state, arrived on the Burlington at 10:15 this morning. The train bearing Governor Yen Sant and Attorney General Douglas came in over the Northern Pa cific at 11:30. Governor Hunt of Idaho ar rived by the Great Northern from Butte at 12:50. Attorney General Stratton of Washington came in over the Northern Pacific, which was late, and the confer ence began without him, shortly after 2 o'clock. Governor Toole of Montana and Attor ney General Donovan, met the Minnesota party at the station and drove them to tlie Grandon hotel, which will be. headquarters. MINNESOTA'S COUNSEL IN ANTI-MERGER FIGHT —W. W. Jermane. SENATOR GEORGE P. WILSON, Minneapolis—Associate Counsel. MONDAY EVENING, DECEMBEK 30, 1901. A CONDENSED BIOGRAPHY Helena—White Backs Out. All lunched there and proceeded to Gov ernor Toole's office in the capitol. Governor Herreid said before the con ference: "I am here more out of compli ment to Governor Van Sant, whom I very much admire, than for any other reason. The Great Northern and Burlington have very little trackage in our state, and our interest is speculative rather than vital in this particular instance. We can lend our moral support and willingly do so, as we realize the importance of the principle involved." Governor Toole, who has been outspoken against the consolidation, declined to make a statement prior to the gathering. He is busy in the capacity of host, and will dine the visiting officials . to-night at his home. The absence of the North Dakota men is noted with glee by the railroad inter ests. Their non-appearance will hurt them more than it will the cause. Since their hand is shown, it is a matter of con gratulation that they did not come. They Chueklinpr Over North Dakota. W. B. DOUGLAS, attorney General of Minnesota. are too evidently in the grip of the Hill interests to be of any service here. Governor Van Sant and Attorney Gen eral Douglas were besieged by their ar rival with requests for interviews. They replied to all that their position was well known and needed no restatement. What ever they had to say would be stated to the other officials at the conference. Minnesota's officials realize the delicacy of the situation. The newspapers con trolled by the Hill interests are watching to catch them tripping, and hoping that they will discfose the details of their plan of battle while here. Messrs Van Sant and Douglas decline to give any one access to their arsenal—even the other governors and attorney generals. They did not come here intending to disclose the details of the pending suit. They favor an executive session and private conference for the exchange of ideas and opinions which may lead to effective ac tion by other states. What the conference Continued on Second Page. W. D. ML TN TN. ST. PAUL, Associate Counsel. 12 PAGEB-FIVE O'CLOCK. ANOTHER BLOW AT HILL'S SCHEME Suit Is Begun in Hennepin County to Prevent Retirement of North- em Pacific Preferred. Peter Power, Supposed to Represent Harriman Interests, Secures Tern- porary Injunction. Peter Power of New York commenced an action in the district court of Henne nin countybefore Judge Elliott this morn ing to secure an injunction restraining the officers of the Northern Pacific rail road from retiring the preferred stock of that company. A temporary injunction was granted by Judge Elliott this morn ing. It will be remembered it was a part of the plan of Mr. Hill and his associates as holders of the controlling interest of the common stock of the Northern Pacific to retire the preferred stock of that company on the first of January. Under an agree ment entered into when the preferred stock was issued, it may be retired at par on the first of any year up to 1917. A suit was instituted in New York a few days ago by a holder of preferred stock to pre vent this retirement, but that suit failed, the court holding that the owner of pre ferred could not object if he were paid at par That suit was supposed to have been brought by some one in the Harri man interests, although as to that there has been some doubt At any rate, the effect of that suit was apparently to re move all obstacles to the retirement of this stock The Harriman interests are said to have about 78,000,000 out of the 155,000,000 of Northern Pacific common and preferred, but although holding a major ity of both kinds of stock have not a ma jority of the common A majority of the common is in the hands of the Hill-Mor gan people, and the retirement of the preferrud would leave the control of the Northern Pacific in the hands of the Hill- Morgan people The inference is, there fore, that the suit instituted here to-day is in the interest of the Harriman people, for, manifestly, if they can prevent the retirement of the preferred stook, they will still be in control of the company. A Harrinian Move? Judge W. A. .Lancaster has been en gaged es the local attorney, but Mr. Pow er brings with him attorneys from New York and Chicago who will assist In the prosecution of the case. It is understood that this hundred shares of common stock is the only holding not hitherto con trolled and definitely located by one side or the other, the Harriman people or the Hill people in their contest for the Northern Pacific, and that the holder of this stock has been offered fabulous sums for his stock by the Hill people. In fact, it is said that this is the only bunch of common stock not absolutely controlled iby them. This would indicate that this suit is brought in the interest of the Harriman people, for if the holders of the the stock is not acting for the Harriman people, he could make more money selling out to the Hill- Morgan interest than he could by protect ing it in the courts against the retirement of the preferred. The suit is, therefore, an unexpected and sudden development of the igreat legal controversy and suggests new complications which have not been looked for. This action would seem to be altogether in the interest of the state and calculated to assist Governor Van Sant in his efforts to prevent the consolidation of the two roads. NORTHERN SECURITIES BLOCKED Geo. A. Lamb Says This Suit la a Fa tal Blow. "The injunction granted by v Judge Elliott this morning effectually blocks the schemes of the Northern Securities com pany." .So declared George Alfred Lamb, the distinguished New York financial lawyer, who is chief counsel in the proceedings begun by Peter Power to restrain the Northern Pacific company from retiring its preferred stock. "After the first of the year its plans would have been car ried out in detail," said Mr. Lamb, "but this Injunction ties the proceedings fast. The retirement of the Northern Pacific preferred is an essential step in the plans of the Northern Securities company." It was Mr. Lamb who thwrated the Federal Steel corporation two years ago by practically the same methods em ployed in the present attack on the North ern Securities company. The only ex ception Is that the Federal Steel injunc tion was brought in the federal courts. The case was carried to the United States court of appeals, but was dropped there. Mr. Lamb is a member of the New York firm of Lamb & Guernsey of New York. Associated with him are William E. Moro of the law firm of Bulkey, Gray & More of Chicago, and William A. Lan caster of this city. "We brought these proceedings In this city," 4 said 5Mr. Lamb, "because we be lieved that the sentiment in this com munity # was strongly opposed to the merg ing of the Northern Pacific, Great \ North ern and Burlington railway systems un der one management and because we felt that we could secure the justice that 13 due us," -:r . ' . • 1?'..-"'^ ■■' . Peter Power is one of the wealthy- men of New York. At pre-sent he Is not in active business, his wealth having 'been, inherited from his father. Mr. Power holds 100 shares of Northern Pacific com mon stock and, as far as is known, this is the only common stock not held by James J. Hill or his associates. He has been offered $1,000 per share for his stock but has consistently refused to part with it. The Petition for Injunction. In the petition praying for the in junction, which is quite a formidable document couched in the most technical of legal language, it is recited that Peter Power is a holder of common stock. The incorporation of the Northern Pacific un der the laws of Wisconsin and the fact that its lines are in Wisconsin, Minne sota, North Dakota, Montana, Idaho and Washington are recited. Much attention is paid to the^reorgani zation of 1896. One of the agreements wa« that no mortgage should be placed ahead of the common stock. Then the petition gets down to the meat of the matter in stating that the Great Northern, North ern Pacific and Burlington are endeavor ing to bring the three systems under the control of one management, the Northern Securities company. One of the essential steps is the retirement of the Northern Pacific preferred, in lieu of which there will be issued commercial certificates bearing a fixed interest of 4 per cent. Holders of common stock object to this because it places a prior lien on their stock. The present preferred stock is non cumuJative. If the company does not earn 4 per cent in any fiscal year it does not have to pay it. The present plan places the certificates ahead under the fixed charge of 4 per cent and on default of the principal and interest the road might be sold over the head of Mr. Poper. Further, It is recited that the attempted retirement is merely part of a general scheme which is in violation of the statutes, of the states in which the road runs and in defiance of the Pearsall deci sion rendered about five years ago by the United States supreme court. This deci sion had the nominal effect of preventing the consolidation of the Great Northern and the Northern Pacific railways. Acompanying the petition is a long af fidavit from George Alfred Lamb in which the whole history of the Northern Securi ties company as wel as the histories of the thre railway lines are given. It is shown that the directors of the three railway companies are also directors of the Northern Securities company. Service Is Secured. The first service of the papers wag made on . P. McNeil, the local Northern Pacific passenger agent. About an hour afterward they were served on President C. S. Mellen in St. Paul. Ab soon as service had been secured on President Mellen, the fact was telegraphed to New York and notice of the injunction was served on all the directors. A special corps of detectives was kept on the trail of all the directors. These detectives were in touch all the time with a central office and the notices were practically served simultaneously. JUDGE ELLIOTT'S ORDER Text of the Injunction Signed Thi« Morning-. The order signed by Judge Elliott Is as follows: Whereas the plaintiff Peter Power, above named, has filed his petition in the dis trict court of Hennepin county praying among otner things, that you, the Paid Northern Pacific Railway company, your officers direc tors, agents, attorneys and servants, 'be en joined and restrained from Issuing or selling any certificates of indebtedness or debenture bonds, or other evidence of indebtedness, or creating any indebtedness or liability either direct or contingent of any description for the purpose or object of raising money with which to pay or retire the preferred stock of the said Northern Pacific Railway company, or any thereof or from using or appropriat ing any moneys or proceeds, other than th« ordinary or surplus net earnings of the said Northern Pacific Railway company to Itie payment and retirement of the preferred stock of your said company, or any part thereof, and further that you the said Northern Pa cific Railway company, your officers, direc tors, attorneys, agents and servants be en joined and restrained from creating any in debtedness or liability other than the ordin ary indebtedness and liability for the operat ing expenses of your railroad system and the Indebtedness and liability new existing which would be a preference or take pre cedence of the common stock of ynur said company, and atili further that you, the said Northern Pacific Railway company, your offi cers, directors, agents, attorneys and servants, be enjoined and restrained from placing your property or any thereof or the manage ment of your railway system or any part thereof in the possession or under the control either directly or Indirectly of the Northern Securities company, or its officers, agente or servants, or from entering into any agreement or ■ arrangement either dir«»ctly or. indirectly through the ixedium of the Northern Securi ties company, or otherwise j with the; Great Northern Railway company, and the Chi -ago, Burlington & Quincy, Railway company, "or,";' either of them, their stockholders, directors, v officers or agents for the purpose of ranging the railway system owned and controlled by. . you, the said Northern Pacific Railway com pany, . to be operated in ' connection with or under .the same rules or by the same author ity as said Great Northern Railway company, and the Chicago, Burlington & Quinoy Rail way company, or either of them, ~or ' from entering into any ■ agreement with said com panies or either of them, their,stockholders, directors, officers, j agents, servants or . attor- ' neys, for the purpose of avoiding competition and fixing rates for the carriage of freight and 1 passengers upon them and their said lines of 1 railway: I And whereas the said Injunction has been '< ordered and allowed by the district court for the fourtfi judicial district, Hennepin f county j and the state of Minnesota, on the filing of * '■.. Con tinned on Second P«VM» 4