PAGE THRE4
FiEileritonfrAvisnaiROAICLE
In the further extension of Union Pa. "silent panic" of 1907, he made a death benefit for $150 could be paid
in London at which the elder J. P. week Mr. 11111, who had been on very
notable address before the Chamber unless there was $1,000 in the treas-
Mac.
Morgan, Mr. 11111, one of the Rocke- Intimate terms with Mr. Schiff for
of Commerce of the State of New ury. The books showed $860 there.
Union Pacific Expansion.
fellers and a number of European capi- many years, walked into the Kuhn.
Meanwhile, Union Pacific had been York, predicting exactly what hap- Under the rules, it was said the com-
(From an Article in The New York Times.)
talists had attended. It was there Loeb & Co. offices and, it is said, it
to $75 and Use
expanding in another direction—to pened fifteen months later. As a con- plainant was entitled
that the groundwork Was laid for the a blustering manner announced what
court so decided.
ACOB HENRY SCHIFF, who died difficulties. The house of Morgan was glorified 11111 System.
he and his associates were going to the south. The great combination of structive banker he saw ahead of
The court ruled that Jacob Lieb-
most
others
the
need
for
a
system
railways
in
the
north
which
were
be.
do
with
Northern
Pacific
and
their
a week ago yesterday, was In t he outstanding banking concern In
en-
kind, a teacher of Hebrew,
Relations With Harriman.
system. Mr. Schiff listened to him log put together into the 11111 System something like that which exists now
many respects one of the most t hose days, and to it were brought
titled to $112 salary from the Tal-
But in this country there was an-
unusual characters the financial world most of the railroad reorganizations. other group of financiers which also for a time and then turned to him and was a constant threat. So Schiff and in the farm of the Federal Reserve.
mud Torah Machzike of Harlem, be-
Harriman looked to the eouth and
ever produced. A banker who had Atchison, Topeka & Santa Fe was one harbored ambitions for a great rail- remarked:
cause he was discharged before his
known him for thirty years said of of them. The Reading system was road system. Mr. Schiff had reorgan -
"In friendship to you. I think I picked out Southern Pacific for
contract expired.
him that he was unique. "Perhaps another. A third was Erie, or what ized Colon Pacific and controlled it. should tell you that control of North merger.
Sam Fenchel, of 2,140 Dean street,
the world is changing," he remarked, was then left of It, and Northern And he had with hint E. II. Ilarriman. ern Pacific is In that big safe behine
Through Edwin Hawley the Hunt-
Brooklyn, complained that the Con-
"perhaps we are developing along new Pacific was knocking at the door. Mr. Harriman, as stated above, had you."
ington holdings of Southern Pacific
gregation Bikur Chorim B'nai Jacob,
Mr. Hill, according to the testimony were obtained and enough additional
and different lines, but It will be a Speyer & Co. and Kuhn, Loch & Co. very little to do with the reorganiza-
2,134 Dean street, had fined.bint $50
long time before another comes along were attempting the rehabilitation of tion of the properly, but had become of men who know him at the time and stock was got from Speyer & Co. to
without cause and expelled him: Offi-
who quite combines his qualities, and Baltimore & Ohio, and the Union Pa- affiliated with the Kuhn, Loeb & Co. who were In the famous fight, went give Schiff and Harriman the control
cers of the congregation said he
probably there never will be another cific was kicking around trying to find interests atter his memorable fight from the Kuhn, Loeb & Co offices to they wanted. The financing of that
stirred up trouble and
those
of
J.
P.
Morgan
&
Co.
told
Rob
some
one
to
handle
Its
case.
quite the same."
with Morgan over Erie, In which 31r.
The court remitted Fenchel's
purchase was most interesting. It cost
Mr. Schlre name over will be asso-
The Morgan firm, being engaged Harrinian lost out but succeeded in in ert Bacon, acting head of the firm ir a great deal of money, and In the
tine, but ordered that he should not
ciated with three great events in with the reorganization of consider- creasing both his personal fortune and the absence abroad of J P. Morgan, of raising of these funds Mr. Schiff's
re - enter the synagogue.
NEW YORK.—When the Jewish
finance: The reorganization of the ably more than half of the Important his tollowing. This group also cast the situation. The famous order to great abilities as a banker were well
The court was adjourned until next
Union Pacific Railroad, the etruggle systems then in trouble, could not its eyes toward Northern Pacific as buy 200,000 shares of Northern Pa exhibited. Every conceivable wadi- (- purl of Arbitration was called to or- Wednesday night.
for control of the Northern Pacific take care of Union Pacific. The own- the logical road to be combined with elk. "at the market" was given to ant in this market and the European der for its Winter term thesmall grand
the Stock Exchange firm of Street &
Railroad, which terminated in the fa- ers of that property went to Kuhn, their Union Pacific system.
markets wee resorted to. But big as jury room of the Criminal Courts
building was comfortably filled with
It is said in Wall street that the Norton.
mous May 9 "panic" of 1901, and the Loeb & Co., or, more accurately speak-
was the Job the purchase was ar-
Northern Pacific stock sold for more ranged. Years after the Supreme litigants while ten cases were ready
opening of a world market for Japa- ing, to Jacob II. Schiff, for relief. Mr. Morgan Hill group did not at first care
KOVNO --- Mass meetings have
especially
for
Northern
Pacific,
but
for trial. The court came into ex-
than
11,000
a
share.
Other
stocks
nese securities. Of the three, the lief- Schiff gave it to them and in the doing
Court again applied the Sherman act
been held within the past few days
ond stands out as the most spectac- mode Kuhn, Loeb & Co. the great much preferred to acquire St. l'aul, broke badly, some of them losing 30 to the railroad situation and the ister.e last February to settle dis-
this city as well as in other Li-
in
putes
among
Jews
that
ordinarily
and
that
the
late
Mr.
Morgan
even
to 60 points and even more, and Wall Union Southern Pacific combine was
Idea*. but the others were far greater power it Is today.
thuanian towns, at which emphatic
achievements. They were construc-
There Is a popular superstition that went no fur its to make a proposition Street had one of its worst panics. dissolved. But this does not detract would fill the civil courts and require
protest was voiced against the at-
to the owners of that road that they Later there was a compromise. with a
months
for
adjudication.
Most
of
its
the late Edward II. Harriman was a
tive. The May 9 panic was not.
from the great accomplishment of put.
sell out to him. At the conference, settlement at 1150 a share for North-
cases are of a semi-religious char- tempted invasion of Lithuania by Po-
The real start of the banking genius factor In the reorganization of Union
which was held in the old St. Paul ern Pacific, but the tat hold been in ling it together.
land.
acter.
came in 1875. Shortly before this Pacific. This is not so. Mr. Harriman
Mr. Schiff had other affiliations of
hoard room in Broad street, William
The litigants agree to abide by the
The Lithuanian Seim has decided
the fire and much damage was done tremendous importance. For many
there had come to New York a group came into Union Pacific later, after it
Rockefeller Is supposed to have upset
decisions and each case must first be to send a delegation to Western Eu-
of Cincinnati merchants who had had been reorganized, and then came Mr. Morgan completely by springing a at is violating no confidence to say years he was a chief adviser to the
presented to Louis Richman, execu- rope which should appeal to the
prospered exceedingly. Among them In as the result of rather extraordi- counterproposal that the Morgan that of all the men who figured in that Pennsylvania Railroad.
tive secretary of the court, at 38 Park various' powers against any attempt
was Solomon Loeb, who was destined nary circumstances. The plan of re- group sell out to St. Paul, which was memorable conflict none of them was
Putting Japan on the Map.
Row. There are three judges, a mem- which may be made to disturb Li-
to prove the dominant twilit of the organization of the property, the plan another way of saying that the Mor- pleased with the performance, and all
From • purely banking viewpoint, ber of the judiciary, a rabbi and a thuanian independence. The delega-
banking house of Kuhn, Loeb & Co. which has allowed it to develop into gans sell to Standard Oil. Nothing would have preferred that it never
must of tion will consist of four members,
p robably Mr. Schiff never did a more business man. The last two
It is incorrect to say that Kuhn, Loeb one of the premier transportation sys- came of either proposition except ill- had happened.
onetructive act than when he intro- necessity be Jews. The judges who one of whom will be Dr. Soloweit-
The "harmony of interest" idea,
& Co. started as merchants and manu- tems of the world, was conceived and feeling, and then it Was that the real
presided
yesterday
were
County
Judge chicic. the Minister for Jewish Affairs.
uced imperial Japanese bonds into
however, was not dead oven after the
facturers in Cincinnati. They didn't. carried out by Mr. Schiff, and by no contest fur Northern Pacific started.
The Jewish National Council in
he New York and London markets in Louis D.Gibbs of the Bronx, the Rev.
Some of the original partners, many other, and today It stands as one of
That, according to the legends of the May 9 panic. There came the famous
Aaron
A.
Yudelovitch,
chief
rabbi this city' has made
known that it
1 904, when the Japanese-Russian war
of them in fact, had been merchants his great works.
financial community, probably was the Northern Securities Corporation,
in the United States, and Joseph is accepting money and letters for
was
in
progress.
Japan,
except
as
a
Notwithstanding the Su- greatest conflict in the history of the which was to be a holding company
in that city, but the banking house of
Smolensky,
a
business
man.
transmission to Soviet Russia.
place where art objects were made,
Kuhn, Loeb & Co. never has been preme Court's application of the Sher- American stock market. The Morgans for Northern Pacific and Great North-
The first case yesterday was that
was pretty much unknown. The state
anything but a banking house, and it man art to the freight associations. had James It. Keene for their chief ern. Very few legal experts expected
of Moses Platzman of 591 East 140th
of
her
finances
was
a
mystery
to
most
A Philadelphia Jewish boy is an
the twentieth century was ushered in market operator, and opposed to him that company to withstand the tents
was etarted in New York.
against the Congregation Is-
people, and her credit was one of street,
Olympic winner. In the account of
In 1875 Jacob II. Schiff married the with the greatest peace and good-will was Mr. Harriman. Behind Mr. Keene of the courts, and in fact it did not
rael Inshe Sfard, 490 East 140th street.
those
things
at
which
bankers
would
the
Olympic games being held at
daughter of Solomon Loeb, Therese existing among the railroads. All was was J. I'. Morgan and behind Mr Har- The Supreme Court ruled against It
Platzman was expelled from the con-
and it was dissolved. But In the die- look twice before considering. But gregation and this, he charged, not Antwerp it was announced that Wil-
Loeb, and soon afterward he became a well. at least so far as the public riman was Mr Schiff.
Mr.
Schiff,
who
bad
made
an
extended
liam
Clark, of Philadelphia, won the
The stock market had been active solution control of Northern Pacific,
only removed him from spiritual bene-
partner in the firm. It was an im- could see. And the stork market,
trip to Japan, knew both the country, fits, but caused him to be ostracized decision over Wrell, a Belgian. Wil-
portant house then, but not the great which had received a great initial Im betore, but In the early spring of 1901 which had been won by the Schiff-
with
Is
resources,
and
the
people.
by some of his friends. He asked liam Clark's real name is Wiliam
institution it became later. For ten petite after the successful conclusion It was more active than ever, and so Harriman interests, passed to the
Thanks almost entirely to his actIvi- the court for reinstatement and tam Orstatchcr.
years Mr. Loeb remained the head, of the war with Spain. was boiling far as the public was concerned there Morgan-11111 combination. It was done
ties, Japanese bonds to the extent of •
al-
was no cloud In the sky.
in this way:
and in 1885 he retired, leaving his along as never it had before.
enge a. { a i ot logy be made. The defense al-
Harry Elionsky, now of Cleveland,
lint still there were things going cm
After the May 9 panic, in part set- many millions were floated here and a
that Platzman had withheld his
But it seems there were things go-
son-in-law to manage the business.
1
who holds the world's record for en-
ing on under the surface which were underneath the surface which the pub- tlement of the controversy, the 61 per in London and on the Continent, even books as secretary.
Building a Reputation.
In
continental
countries
where
Russia
congre-
The court decided that the
durance swimming, has started train-
There followed another decade, dur- designed not for complete harmony, lic did not know about. The Morgan- cent of Northern I'acific which Kuhn,
ing which the country passed through but for just the reverse. What was 11111 group had Great Northern and Loeb & Co. held was lodged with the wax a powerful factor and at a time Ration was within its rights in remo v- ing in preparation for his attempt to
when Japan was fighting Russia.
ing the complainant from member- traverse 100 miles in the water next
many ups and downs. The house of later to be known as the 11111 System had acquired complete control of Chi- Northern Securities Company, but in
In still another way Mr. S chiff wee
Judge Gibbs said, however, month. Elionsky has already made
Quincy after their the diesolution this stock was not re-
Kuhn, Loeb & Co. was growing all the was in process of formation. The late cago, Burlington &
time ship.
of finance.
began to From
study the
and work that there was no reflection on Plata- 65 miles, which is a world's record.
time. It waa gaining Influence here James J 11111 owned the Great North- inability to get St. Paul. And tooth turned to Its original holders. Instead, a leader Oral
man's
character and the action of the
they
and
the
Schiff
HarrInian
group
when
he
their Northern Securities certificates
and affiliations abroad. Young Jacob ern, was a power In Chicago, Burling-
were bidding for Northern Pacific. were exchanged, pro rata, for both he was convinced that the American congregation was not excommuniea-
Schiff was making his mark, and In ton & Quincy and was ambitious to
Chicago's largest and wealthiest
grown
out
The
situation
was
becoming
uncom
banking
system,
which
had
lion,
the
complainant being free to
Northern Pacific and Great Northern,
social organization, the
hie quiet way was buildng the reputa• own Northern Pacific and Chicago,
Jewish
fortable for those powers, and one day and in the final exchange only a of the civil war necessities, was join some other congregation.
Milwaukee
&
St.
Paul.
Northern
Ple
lion which in 1896 caused the Mock-
Standard Club, is planning to aban-
Joseph Kreisberg of 908 Kelly don its big stone building at the
Mr. Schiff demanded of the Morgan- minority interest In both companies wrong, and he was a leading advocate
holders of the then bankrupt Union cific was not closely held, but its
the Bronx, demanded that the
Hill combination that be and his as- passed back to the Schiff-Harriman of currency and banking reform long street,
Pacific Railroad to turn to him for shams were widely distributed. St.
ay- southwest corner of Michigan avenue
e t e t, A s:n
Benevolent
sociates have representation In the
Kirol
group. They made the most of It, before moat bankers had thought
and Twenty-fourth street, and erect
salvation when other avenues seemed Paul, on the other hand, was largely
11111 system and offered concessions on
115 °wke
East
irl°11
much
on
the
subject.
In
1906,
when,
elation,
F
dominated
by
two
factions—the
Rocke-
though, for the market for both stocks
a $2,000,000 twenty-one-story club-
cloned.
him
a
death
benefit
of
$150
for
the
hie own side. Its was refused. The
went up considerably, and, when they as there le every reason to believe, he
In 1896 most of the American rail- fellers and "Silent" Smith, who had
was the con- house in the Loop, as soon as build-
fight wept on.
came to sell, their profits were hand - had little positive knowledge of the death of his wife. It
ways were In the hands of receivers. just inherited his share from that
ing conditions improve.
That
was
the
situation
In
the
last
troubles which were to bring on the tention of the association that
some. Part of those profits were used
A few were just emerging, Intl the strange old gentleman, his uncle.
In 1899 a conference had been held week of April, 1901. The following
majority still were in the greatest
Jacob H. Schiff, Genius of Finance
J
was
Open Winter Term
of Jewish Court
Ten Cases on Calendar of Arbi-
tration Tribunal Relieving
Civil Courts
dinate.
was insubor-
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