The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-05-09
Broker Keene Alleged to De Respon-
sibIe for the Pyrotechnics in
Northern Pacific Shares.
BLOW TO THE MERGER SCHEME
UNION PACIFIC PROBABLY IN POSI-
TION TO DICTATE TERMS.
Mny Prevent Ratification IL It's In
terests i'm the Burlington Are Not
Protected-HiII Not Selling.


NEW YORK, May S.-Dealing with the
relation of things in the turmoil of Wall
street to-day 1.-THE turmoil is described on
the market page of the Journal the finan-
cial writer of the Evening Post. in news
leader in it's last edition. this evening.
says: THE fundamental fact in the North
ern Pacific situation to-day was that the
Burlington deal is placed in jeopardy,
matters stand at present. Union Pacific in
terest, which were alarmed at the danger
TO their property lying in the Burlington's
control. by the northern transcontinentai
lines. have bought enough Northern Pacific
stock TO prevent the ratification of the
Burlington purchase by the Northern Pa
citc shareholders unless some agreement
is made with them which will protect their
interests sufficiently. The corner in the
shares was unprecedented. That develop
ment resulted, it is said, from Mr.. Keene's
clever appreciation of the situation in
the stock, the legitimate demand for which
had heavily reduced the floating supply.
The corner is a secondary phase though
the more spectacular one to the public, in
movement of far-reaching conseuuences-
possibly putting a stop to the plans for
setting President Hills audacious plan to
have Northern Pacific control the Burling-
toms operations.
THE policy of Kuhn, Loeb & Co. has
been essentially one of self-protection and
being now in a dominant position with
the balance of power in the Western rail-
ways situation restored, they will content
themselves with this, rather than create
he
lasting hostilities which would follow the
abandonment of the Burlington deal. This
probably will now be made a triangular
arrangement, the Union Pacific sharing
control with the Northern Pacific and Great
Northern under modification Of the guar
antee.
WHAT KEENE DID.
1.-THE conditions under which Kuhn, Loeb
& Co. were able to win their advantage
were that the Hill-Morgan interests in
Northern Pacific held about 100000 shares
of Northern Pacific as a permanent in
vestment, which was practically off the
market In addition about 100000 shares
were held abroad and a good deal of this
passed to the Union Pacific interests. This
left virtually but 100000 shares of 100000
shares of common stock outstanding avail
able in the New York market. While there
have been heavy sales of Northern Pacific
by insiders the stock held for control has
not been sold and it is not likely that in
siders sold short on the market as has been
intimated The corner in the stock was not
looked for by the serious buyers of North
ern Pacific, who had practically accom-
plished their purchases before Mondays
SHARP Use The 'pyrotechnics in the shares
are attributed to Mr.. Keene, who, COM
pretending what was actually going on
in the stock and understanding the large
short interest of spectators went into
the market and effected the corner.
MIR. Hill, it was authoritatively stated
to-day. has not sold any of his Northern
Pacific stock. His large interest was
quired last summer around fifty, when the
stock broke on the reduction of the COM
mon dividend and seemingly poor traffic
prospects resulting from the failure of the
spring wheat harvest. He said to-day: L
have not bought a share of Northern Pa
cfc in six months. and in reference to the
reported differences between the Hartman
syndicate and the Morgan-Hill interests he
said: That has been magnified a thousand
tines"
Reports were circulated in Wall street
this afternoon, that Thomas I. Eckert and
Alvin W. krech. OF this city, and Norman
b. Ream, of Chicago, have been elected
directors of the Union Pacific Railroad
Company TO succeed George Buchanan.
Roswell Miller and the late John w. Doane
Mr. Eckert is president of the Western
Union Telegraph Company. and Mr.. Krech
Is an official of the Mercantile Trust Com
pany, which has close Gould affiliations. At
the office of the Union Pacific Railroad
Company all the officials declined to con-
firm or deny the report. Wall street at
ached much Importance TO the fact that the
conferences were held at Mr.. Harriman's
Office all morning and in the early after
noon. one of the conferences was with H.
Mex Twombley. J. ]. Hill and Daniel S
Lamont. Some of their associates were in
session at Mr.. Hilrs offices throughout the
morning.
TALK ON THE STREET
There was talk in the street # a great
fight for control between the Morgan Hill
interests on one side and the Hartman
Kuhn-Loeb-Standard people on the other.
hut nothing definite could be learned of it,
In some parts of the street the talk of a
fight and Of a great clash between these
powerful interests is credited In other
Iarts II is ridiculed. Another story has Il
that over 10000 shares more than the ac-
tual capital stock of the company have
teen bought by the opposing syndicates.
and that II is as yet uncertain where con-
troll lies. However, whatever the situation.
several conferences were held to-day I'm re-
gard 10 the Northern Pacific stock situation
which were participated in by James Stin-
man. Kuhn, Loeb * Co. and E H. Harri-
man on the one side, and Daniel Lamont.
James J. Hill and Mr. Racon of L u Nor