America's Money Machine

The Rich Man's Panic 23
should make it felt that they held this practice wrong, and one that might
lead to disastrous results. Second, as the road was presently managed, the
board of directors was practically impotent. The chairman of the executive
committee (Mr. Harriman) was in absolute power, and if the stockholders
remained silent, they would be responsible. Third, Harriman's
career was such that no confidence could be reposed in him. He was in
it for his own profit and to carry out his own vast schemes.
Among Harriman's misdeeds, spread before the meeting, was his juggling
ofSouthern Pacific accounts to manipulate the stock. Thus, he had
charged cost of improvements to operating expenses, thereby showing
reduced earnings, and so depressed the stock, but later, desiring to enhance
the stock he transferred these same accounts to surplus, which
would be distributed to stockholders.
The consensus of the meeting was that Fish was the lesser oftwo evils
and that the stockholders should give their proxies to the Fish nominee,
Charles M. Beach. l
The climax of the fight came just before the annual meeting, which
opened on Tuesday noon, October 15, when the Fish forces obtained a
court injunction forbidding Harriman to vote the Union Pacific holdings
of Illinois Central stock. About 400 persons attended the meeting in
Chicago, and it was reported that Fish was greeted by applause as he
entered the room, but that Harriman, because of his small stature, entered
unobserved-in any case, without recognition by those present.
Fish affably approached Harahan, his successor in the presidency, and
attempted to lay his hand on his shoulder, but Harahan was not to be
placated, and almost returned the gesture with a blow. Fish, it is said,
merely smiled and returned to his seat. Harriman, however, noticing
Fish's son, went over and shook hands with him.
The meeting ended in a draw, and a motion was accepted to adjourn
until December 18.
The day before the Illinois Central meeting the telegraph services
reported that Roosevelt had stalked a bear in the Louisiana swamps, but
had failed to bag it.
The same week brought more earth shaking events in Wall Street. The
first ofthese involved the fortunes ofa copper mining figure, F. Augustus
Heinze. Heinze, born in Brooklyn and educated as a mining engineer,
had made a fortune as a mining promoter in Montana, and a reputation
as an opponent of the copper "trust." His battles with the big companies
ranged from court conflicts over mining claims to miners' brawls fought
with hose and pick deep in the earth. In 1906 he beat a retreat by selling