Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-09-15

Hannibal = st. Joe oorner-President
9. Dowd Criticized Rufus HAtch's
Confession.
New York Sun, >10th.] ryT
Wall street generally wa. not SO excited
over the corner In Hannibal and st. 10 yester-
day as on Tuesday and Wednesday. The cor
ner remained unbroken, however, and what
was lacking in excitement over it was more
than made up by the uncertainty that was oc-
casioned by reports OF other corners Ac-
cording to these nearly half the active stocks
on the list were cornered, and the rush, to
cover, by both big and little bears, was pitt
able. .fsfsr a.ze 50 aaexgs.E- sezsT Iolss {
The strongest indications OF fresh corner
was found id the Ohio & Mississippi railway
company stock. It opened at 89I, or per
cent higher than it clOsedf on Wednesday az
ternoon. WlthiH an hour and q half it was.
selling at 60. The foundation, for this move
ment was that on Thursday representatives Of
two large Wall street houses petitioned the
court having jurisdiction over the road to APP
point a receiver who would not operate the
road in the interests of the Baltimore Il Ohio
railroad. For long time John King, Jr.,
vice-president of the latter road, has been re-
ceiver of the Ohio & Mississippi, and now
that he has resigned to 60 abroad for his
health, Messrs. Ward, Campbell & Co. and
George 8. Scytt & Co. of this city,wh are hold
ers, or represent holders, of large amount
of the stock, made the movement for new
receiver. According to common report this
movement brought to Wall street large or
ders from Baltimore to purchase the stock, pre-
sumably in the interest of the Baltimore & Ohio.
It was assumed by some of the short sellers
of the stock that such orders were about to
be executed, and they therefore jumped IN to
cover. The danger of the situation was
deemed to be increased by the fact that large
amount of the stock is known to be held or
controlled by three wealthy and influential
houses. The anxiety to cover became in
tense, and in their greed to get stock
the bears cut one another's Threats by
running up the price. After they
found they could get shares easily, and the
more timid of the shorts had covered, the
price began to drop as rapidly asst rose. 1t
closed at 4515. The sales aggregated about
90, 900 shares. It is believed hat it would be
impossible to corner this stock, as the num-
Der of shares floating in the streets is very
large.
In the Hannibal and st. 10. corner both
sides seem TO have halted for developments.
The price was not advanced above 200, but
sales were made at that figure. One sale was
made at 1856, and the stock closed at 200. Ac-
cording to the precedent of former corners,
the winnings of the clique may be considered
an unknown quantity; for, granting that the
clique squeeze several millions out Of the I'm.
fortunate shorts, it will still have its 40, 900 or
more shares of stock on hand to market, and
after the last settlement is made, the price is
liable to drop back to the point at which tn
manipulation began.
On Wednesday Henry R. Wilson, an owner
of some of the convertible bonds of the Han
nibal 81 st. Joseph company, presented $780,
| Nm A. L 4 L. -
have them converted into stock. The request
was refused by the officers of the company, by
advice of counsel. The point taken was that
the conversion could be made only on the
dates upon which the interest is payable, Sept.
and March |. Mr.. Wilson then served notice
on the officers of the company formally de-
handing the conversion of his bonds, and no.
tifylng them that in event of their refusal he
would hold them liable for any loss he might
incur. Yesterday, through his counsel, Gen.
Wagner Swayne, he applied to Judge Dono-
hue for a mandamus to compel the company
to transfer his bonds. In his petition he sets
forth that he believes that certain officers
of 4 the company and other per-
sons to him unknown have con-
spired to place an artificial valuation upon
the stock of the company, and that the con-
spiracy extends to their refusal to convert his
bonds into stock. Judge Donohue issued an
3
officers Of the company to show cause why a
manda INNS should not be issued compelling
them to convert Mr.. Wilson's bonds. If Mr..
Wilson carries his point the corner can be
broken by the conversion of bonds into stock,
provided the bears can obtain an amount Of
bonds sufficient for the purpose. 1t is said
that the bonds are widely distributed.
Another phase of the speculation is the
issue that has been raised between President
Dowd and some of his directors. Mr.. Russell
Sage said on Wednesday that at a recent meet
ing of the directors a resolution was passed
directing the president to sell stock of the
company at his discretion, with the proceeds
of which to take up the bonded debt of the
company. He expressed surprise that, since
the stock had reached par, which was higher
price than the company could have expected
10 obtain for Its stock, the president had not
sold stock for account of the company.
President Dowd said yesterday that no
authority to sell stock for the company and
no such resolution had ever been adopted.
lie said that it was spoken of after the board
of directors had adjourned. He also said that
no new issue of stock had been authorized.
A director of the company, who prides him
self on the practice of the principle that an
officer of corporation should not utilize his
official position to speculate in its stock, gives
the following version of what took place at
the meeting alluded to: Sat an executive meet
ing Of the board of directors, held June 2, the
advancing price of our common stock was
noted It was. then selling at about S3, 1
believe. 1t was reported that there was
a pool in d IT, The feasibility of
the company's selling adf stock was
discussed. To make sure of our rights in the
matter, we sent for our counsel, Mr.. Elihu
Root, and for the charter of the company. We
found that we were entitled to issue stock to
an amount equal to the cost of the road The
convertible bonds represented part of the cost
of the road, and also called for stock. The
charter which is a liberal one, does not say at
what price the company shall sell its stock.
AS the price was getting high, proposed that
we sell some. Some one wanted committee
to do the selling, but said, mo; let us leave
it in the hands of the president. We are
all of us more or less interested
in the market, and ought not to have any
thing to do with the matter Some one
facetlously suggested that we limit the presi-
dent to sales at par. None of us ever thought
1t would 60 there. At length it was infor-
mally agreed that the president should sell
stock for the company at such times and prices
as in his Judgment was for the best interests
of the company. The action was not entered
on the minutes, for we did not want it to
leak out. Now, Mr.. Dowd knows that the
issue of new stock is authorized, and if he did
not understand that he was to issue and sell It,