New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-10-21
A CORNER IN NORTHERN PACIFIC
A FLUTTER FOLLOWS A SHARP ADVANCE
THE STOCK EXCHANGE "LoNG' By MIsrAKE-
SOME SHARP TURNS.

SOME SHARP TURNS
The trorsfar hooks of the Northern Pacific Rail-
road Company closed yesterday for the special
Meeting of the stockholders called TO act upon the
nronosed issue of second mortgage bonds. Ihe
nreferred stock has been i'll demand lately
a4 tbe Stock Exchange because the
assent of tree-fourths Of it is necessary under the
plan of reorganization, to authorize the proposed
mortgage. A difference of to 4 per cent between
regular transactions and sellers three-day OPP
tions was made on Friday. The option covered,
practically, merely the closing of the books, and
expressed the opinion of the bears" that the
scarcity of the stock wasdue only to the closing OF
the books The clears" expected that as soon as
the requisite three-fourths obtained the stock
would be loaned freely and that, consequently, the
premium for its use would disappear.
The same difference in prices was made yesterday,
and the loaning rates for the stock were advanced
from to per cent day. Before the close OF the
delivery hour the difference mad risen 70
nearly per cent but only small transactions.
The chairman of the Stock Exchange had received
notices, however to buy in the stock for the ac-
count of delinquent brokers. His first purchases
were for the account Of William Heath Il Co.
LOO shares, and the first price was "a. Before
the close of business the chairman had bought in
under the rule about 5000 shares at prices ranging
from O. to 7Sl2, the last price being 754. The
exact amount of the transactions under the rule
and the names of the brokers for whom the pur-
chases were made could not be ascertained of1caIy
At late hour Secretary Ely had not received the
report from the rostrum and he showed some
tmpatience at the delay. The attention OF the
Stock Exchange was centred upon the Northern
Pacific shares and aside from these the market was
dull. The purchases of the chairman were watched
90 H,oIr hot al
rounded the rostrum. Excepting few groups. in
which there was done small business, the rest of
the floor was deserted. The excitement in front OF
the rostrum was great, but William Heath, for
whom the bulk of the purchases was made, wan
dered careessly about the room. 1t was
generally understood on the Street that his
customer caught short of the Northern Pacific
stock was Henry n. Smith, the specu-
lator against whom Mr.. Vanderbilt recently emptied
the walls of his wrath. Last spring Mr. Smith was
credited with being engaged with the younger
Vanderbilts In efforts to advance the prices of GER
tain stocks
The excitement at the Exchange led to great
deal of gossip in Wall Street. 1t was
said that the reason for the extraordinary
delay in reporting tho official purchases
to the secretary mistake OF the part of the
chairman, who had bought 200 shares of the stock
in excess Of the amount called 1Of Dy the uotIceS'
That the Stock Exchange was long" Of 200
shares of Northern Pacific preferred was remark
able enough, but the error led to confusion as
to the other purchases and the prices at
which they had been made. Some
persons vcntured the opinion that the building
would have to be mortgaged to pay the loss, while
Others said that tho profits ON Monday would make
a handsome addition to the Gratuity Fund, TO which,
of courSe they would be devoted,
1t was related as a fact that member
Of one prominent firm received an order
on the floor of the Exchange to buy
5000 shares Of the stock in the regular way and
that lac overlooked the limit of IS q at the bottom
of the order When the price had risen To 81 he had
obtained only 600 and he hurried 10 the Office
to ascertain whether he should continue his buying
1t Is said that he never spoke when the nature of
his order was explained to him until he was again in
the group on the floor of the Exchange. The prlcc
of the stock was then 90 and he sold ont the 1OOO
shares at profit of 1920 which the customer OF
the firm probably never will see. 1t was also told
of a gallant Philadelphian that having borrowed
fiat some 200 or 1000 shares of the stock IN
the city of brOtlerIy love he hired special train
for his messenger who arrived with it about the
best time made even by the Pennsylvania Railroad.
The Generals enterprise is said To have been re-
warded with generous profit. Another
broker was less happy who early loaned
a few hundred shares at per cent but
afterward received teleqaphc order from his Gus
toner to sell the stock for cash. He executed the
order, but since has wondered where his own profit
was 10 be gained.
The corner" seemed to be perfect, but it was
not known yesterday whether it would be further
nfOrced.