The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1901-05-13
ROMANCE Of n, P,
WHAT STARTED THE TREMEND-
GUS BUYING STAMPEDE.
HEAD OFFICIALS SOLD SHORT
Thought to Buy Again at Lower Price,
and Let Control Of the Great Road
Slip From Their Grasp-How Hill
Learned of the Facts, and Precipi-
tated the Great Rush.
(By Associated press.)

(By Associated Press)
Just prior to the recent corner in
Northern Pacific, the Union Pacific in
terests quietly began buying the stock
through negotiations with large holders.
Great Northern stock was understandable,
being very closely held by Mr. Hill and
his friends. The control of Burlington
had passed and the only property re-
naming available that had any voice in
the matter was Northern Pacific.
Had it not been for the friendship which
has existed for many years between ia
cob Schiff and j. J. Hill, it is doubtful IL
the difficulty would have been precipl-
tated. On the uprush of prices holders
of Northern Pacofic, including officers
and directors of that company, sold their
stock, hoping to rebuy it in the market
at lower prices. So far as is known, only
one of those sold short, and he, holder
Of record for large amount, unloaded
his entire holdings and was caught short
five thousand shares.
Mr.. Hill Wakes Up.
Northern Pacific men suddenly learned
the true situation as the result Of con-
versation between Mr.. Schiff and Mr.
Hill. Mr.. Hill, it is said, was boasting
of his accomplishment of getting the Bur-
lington, and was commenting upon the
bright prospects Of Great Northern as
result of acquisition. Mr.. Schiff is al
legged to have said in reply:
"Mr. Hill we have been friends for
period of % years, and the firm Of Kuhn,
Loeb & Co. have financed the Great
Northern time and again when it's credit
was not as high as ii is at present, and
when the property was vastly different
from it's condition now. I hope that the
friendly relations, both personal and of
business nature, will continue and 1t
is only in consequence Of our friendship
that l tell you this. I think I owe it to
you, Mr.. Hill, to let you know that you
and your friends do not hold the control
of Northern Pacific. The control of that
road is in Kuhn. Loeb & Company's office
at the present time
"That is not possible Mr.. Hill retort-
ed II own $50, 900 of the stuff myself,
and l have not sold share. With my
holdings and those of my friends, we have
an absolute majority"
You may be holders of the record ma
jority," replied Mr.. Schiff. but we hold
the certificates. Including the common
and the preferred stock, we have clear
majority" So
Buy at Any Price for Supremacy.
Immediately after this conversation the
furious. buying of Northern Pacific was
noted. In New York, London and Ber-
lin it was the same. The orders We're
unlimited, either as to price or quantity
The conclusion seems definite that some
of Mr.. Hills friends had parted with
their stock and were not at the time the
absolute owners of the property. Moth
ing else could possibly explain the erl-
ployment of James r. Keene by the
banking house of J. Pierpont Morgan &
Co. and the tremendous purchase of the
stock through Street & Norton, who
openly bid in 10000 shares and forced
the price W. "a points.
That some of the buying came from
Kuhn, Loeb & Co. is not unlikely, but
what is called the competitive buying
was not altogether contest between
the rival interests. It was due in part
to heavy re-purchases OF stock through
a Broadway banking and brokerage
house which handled the speculative ac-
counts of some large interests identi-
fled with the Northern Pacific properly.
1t will undoubtedly taken some time
to definitely settle where the control of
the property really lies. That the con-
test is very close is indicated by the buy
ing by both parties of fractional share
lots throughout the country. Both houses
have, in addition to stock, some con-
tracts, and where the contracts rest it
cannot be stated positively. More light
will be thrown on this point, however,
with the arrival of the steamships from
Europe.
Both Sides Claim It.
James r. Keene, in an interview to-
day. said:
Il believe Morgan and Hill have con-
troll of the Northern Pacific. Some tima
before the so-called panic, j. Pierpcnl
Morgan & Co. bought 10000 shares of
Northern Pacific stock through Talbot
| ]. Taylor & Co. The order was execut-
| ed so quickly and with so much sud-
| denness that the purchases We're made
before anybody could determine just
what the buying meant, whether it was
| for speculative account or something
| else. Nearly all the stock Morgan &
Co. bought was delivered to them. Then
the other side began buying
/ 1t was learned from a source that
| should be in a position to be We'll in
formed that the actual stOckhOld.ng in
/ terest in the Northern Pacific Of the Har-
/ riman people is sufficient to give them