Evening star., 1901-05-13
STOCK PANIC AFTERMATH
HOW UNION PACIFIC FORCED THE
FIGHTING.
Alarmed at J. j. HIS Purchase of
BurlfngtOn-Determ to
Block His Plans.

The New York Times of today says:
The following statement concerning the
clash between the Union Pacific and the
| Northern Pacific interests has been Sc
cured from source that is thoroughly re-
liable. The person making the statement
is so well known for accuracy that no doubt
can be entertained of its absolute correct
ness. " IT
| Early in the present year large stock
| holders in the Northern Pacific and Great
| Northern railroads began to accumulate
Burlington and Quincy shares at alarm
| ing rate-alarming for the Union Pacific
| interests. The buying continued until Bur
| lington and Quincy went to 10. although
| it had been quoted at l4O, only a few weeks
| before. .ra
Mr.. Hnl was Intercepted by the Union
| Pacific people as ito the meaning of his
| large purchases of Burlington and Quincy.
I He denied all knowledge of OF interest in
| the movement The Urrion Pacific peo-
| pie, believing in Mr. Hill, paid no further
/ attention to the report that the Northern
| Pacific and Great Northern companies
were making efforts to secure control of
| the Burlington and Quincy. 1t was soon
found, however. that their credufity had
| been imposed Upon Mr.. Hill had been car
| rying on, and had brought Well-nigh to a
| conclusion negotiations for the purchase of
| the road. .i
! With positive evidence in their possession,
representatives of the Union Pacific sought
| another conference with Mr.. HILL This
| conference held at the residence of
George +. Baker In the course of this con-
| ference Mr.. Hill was urged not to carry
| into effect on behalf of the Great Northern
! and Northern Pacific interests his contem-
| plated deal without first coming to an
| agreement. by which the Union Pacific
| would be protected and assured against
| aggressions in its territory. 1t was impos-
| sible to elicit anything from Mr.. Hill ex-
| cept vague statements and he proceeded
| to Boston torcomplete the purchase Under
| the terms OF this purchase the Burlington
and Quincy was, to be turned over to the
| Great Northern and Northern Pacific in
! terests at the rate of $500 share. 1t Is
| not likely that the Burlington stock pre-
| viously acquired, said to amount to 100000
| shares. had cost more. on an average, than
| $16O share. Here is an apparent profit
! Of $16OODO00 more.
Union Pacific interests finding that they
| were unable to make any impression on
| MIR. Hill, and alarmed at the situation.
! turned to Mr.. Morgan. who was then about
| leaving for Europe and could for this rea-
| son not be demonstrated with. His. part
ners were then approached In a spirit of
! friendly protest, and upon their suggestion
| that no proposition had been submitted by
| the Union Pacific interests, the latter made
the positive offer to join in the Burlington
purchase. undesirable they believed 1t to
| be, at the high figure agreed upon.
| Wanted One-ThIrd Interest.
Their proposition was to buy one-third Of
! the stock, and they offered to deposit cash
| or give satisfactory security for any bonds
| the Great Northern and the Northern Pa
! citic might have to issue. This was also
refused by MIR. Morgans partners, to whom
| it was then stated that the Union Pacific
| company must and would be protected at
! all hazards for the situation their acnrrfaf.
| ton Of the Burlington would produce could
! not be tolerated.
An effort to gain control Of the Northern
! Pac1hc was then determined upOn and so
| swiftly and silently was this accomplished
| that upward OF 40 per cent of the entire
| capital stock of the Northern Pacific was
knowing it. On Friday, May 3. Mr. Hill
was Informed in "a friendly manner that
| $65, 600 Of NoftheEn Pacific stock had
passed into the hands Of Union Pacific in
I terests. and with this the assurance was
! given to Mr.. Hin that the acquisition was
made solely through desire to bring
about harmonious condition Of affairs.
I Offer of Nortllern Pacific Control.
1t was further stated that If he and his
associates would be willing to accept the
| situation, the control of the Northern Pa
cific would be permanently secured to j.
| P. Morgan & Co. upon the sole condition
that the Union Pacific should be protected
/
J promised to use every endeavor to bring
| about an understanding along these lines.
but instead the furious and frantic buying
| Of Northern Pacific stock began on Monday
| In both New York and London.
AS SO large part of the share capital
| of the Northern Pacific had already passed
| into the hands of the Union Pacific inter-
! ests, the new purchasers. within twenty
four hours after they had begun their fran
tic buying. necessarily brought about the
| unfortunate condition which is yet too
vivid to need repetition.
| Even after these conditions had been pro-
| duced every effort was made by the Union
! Pacific interests to protect both legitimate
| and speculative dealers against the terri
| Bile position in which these market inter-
ests had been placed. But these efforts
| were only tardily, unwiIling1y and partially
seconded by those without whose unreason-
able action the situation could have been
1 entirely avoided.
The scorpion nt Greenvf1le, Mfsa.
The Navy Department has been informed
OF the arrival of the gunboat Scorpion at
Greenvnle Miss, where she is to assist at
L9