The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1901-05-10
Special to The Journal.

while brokers believe the situation has
not come to the front as many believed
would be the case to buy low-priced
stocks. Securities to-day are going beg
ging. Not that prices have declined, but
there is nobody in the street to take the
stocks that are offered at prevailing fig
ures.
There is no doubt that yesterdays
break will pretty effectually kill specula
tion in stocks for months to come. Now
that the smoke of battle has to some ex-
tent lifted, it leaves the position of the.
contending forces practically as it was
yesterday.
Morgan and Hill Control.
Morgan and Hill undoubtedly control
the Northern Pacific, though Kuhn, Loeb
& Co. assert in most positive terms that
they own majority of the stock. APP
parently, Kuhn. Loeb & Co. are counting
on the delivery of short stocks to give
them majority, for Morgan & Co. say
positively that the control rests in the
hands of themselves, Mr.. Hill and their
associates. who can absolutely be de-
pended upon to act with them. Last
night, when the announcement was made
that the shorts would be permitted to set
tie at $50 was looked upon as an admis-
been whipped; but this morning they come
up smiling and say that control is in their
hands, although they are very careful to
supplement this with the statement that
they will make no fight to prevent the
Burlington deal being carried through
Help From the Bankers.
The prompt action of bankers in ex-
tending aid to some of their crippled Gus
toners has so far prevented any failures
Of consequence. The bankers who formed
pool for the lending of money in the
legitimate need of money will be sup
piled, and it is probable that as result
Of this the several big firms which were
on the verge of bankruptcy yesterday will
OC dD1O " pun LAIOuSAs
While Morgan and Hill are to retain
control of the Northern Pacific, there is
no question that Mr.. Morgan's position in
financial New York has received set
with those people with whom he came in
contact in his recent combinations in rail-
roads and in the steel business has gained
for him a good deal of criticism, and it
was this which brought on the fight be-
tween him and the Rockefeller-Stillma
crowd.
Mr.. Stillman has come out of it with
his plumes somewhat draggled, and the
National City bank is being openly criti-
cized for its action in calling loans and in
refusing to extend credit to stay the
panic of yesterday.
The Worst Over.
The presidents of the largest banks in
the city to-day declared that the worst
is over, and that there need be no fear
of a repetition of yesterdays stock mar
ket revulsion.
The consensus of opinion is that the de-
preston in security values will not affect
general conditions of business in the
least. They are convinced that the call
ing in OF loans on the part Of out-of-
town banks yesterday was partially re-
sponsible for the generalization of the
market. Interior banks have more money
loaned in this city on call than ever be-
fore in the history of Wall street, and
the avalanche of kilograms demanding
that loans be called created endless con-
fusion. Boston, Philadelphia and Chicago
banks called in loans by the wholesale.
A Nassau street bank reports that a
western bank had 1900, 900 out on call.
'I was ordered to call in every cent of this
amount said the banker. Had l done so
another failure would have been added to
the list. AS it was, l took $750OO0 of the
loan myself
This was only one case in many that
can be cited. The local banks have been
taught lesson and will see to it that they
are not caught again. The news that a
banking syndicate had been formed with
500, 600 900 to loan at the market created
fear among interior bankers, and they
seemed as anxious to loan money as they
were to call it in the early part of the
day.
Exchanges at the clearing house to-day
aggregated $59S, ,537, ,41O, exceeding the pre-
vious high record by about $4,000, 900.
Bankers are not inclined to forecast the
probable showing of to-morrow's bank
statement. The confusion that has pre-
vailed will have tendency to upset all
preliminary calculations. Many are of the
opinion that the heavy liquidation that has
been going on foreshadows a heavy
shrinkage in loans.
MOrgnnss Blue Pencil.
The Hartman Kuhn-Loeb purchase Of
Northern Pacific stock was made on the
belief that the terms of reorganization of
the Northern Pacific provided that the as
sent of two-thirds of the stock was neces-
sary in order to execute any additional
mortgage guaranteeing bond issue. Nor
gan & Co. say this is not true. When the
reorganization plan was prepared it con-
tanned such provision, but Pierpont Nor
gan personally revised the plan and cut
out this provision. All statements OF the