The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-05-13
STILL IN DOUBT.
Control of Northern Pacific is
Not Yet Determined.

New York, May 1s.-Referring to the
recent corner in Northern Pacific, the
Herald today says:
The Union Pacific interests quietly be-
gan buying the stock through negotia-
tions with large holders. Great North
ern stock was unobtainable. being very
closely held by Mr.. Hill and his friends.
The control of Burlington had passed,
and the only property remaining avail
able that had any voice in the matter
was Northern Pacific. Had it not been
for the friendship which has existed for
many years between Jacob Schiff and ].
]. Hill, it is doubtful if the difficulty
would have been precipitated- On the up
rush of prices holders of Northern Pa
cifc, 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, a holder of rec
ord for a large amount, unloaded his
entire holdings and was caught short
5000 shares. Northern Pacific men sud
denly learned the true situation as the
result of a conversation between Mr..
Schiff and Mr.. Hill.
Mr. Hill, it is said was boasting of
his accOmp pliShment OF getting Burling-
ton and was commenting upon the
bright prospects of Great Northern as
a result of the acquisition. Mr.. Schiff
is alleged to have said in reply:
MIR. HILL we have been friends for
Kuhn, Loeb & Co., have financed the
Great Northern time and again when
its credit was not as high as it is at
present and when the property was
vastly different from its condition now.
L hope that the friendly relations,
q nd Of
will continue and it is only in conse-
quence of our friendship that tell you
this. I think owe it to you, Mr.. Hill,
to let you know that you and your
friends do not hold tne control of North
ern Pacific. The control of mat road is
in Kuhn Loeb & Co.'S Office at the pres
ent time
THAT is not possible" said Mr. Hill.
Il own $30000,000 of the stuff myself
and have not sold a share. With my
holdings and those of my friends, we
have an absolute majority
'sYou may be holders of record of the
majority replied Mr.. Schif, but we
hold the certificates. Including the COM
mon and the preferred stock. we have
a clear majority"
Immediately after this conversation
the furious buying of Northern Pacific
was noted. In New York, London and
Berlin it was the same. The orders
were unlimited either as to price OF
that some of Mr.. Hill's friends had part
ed with their stock, and were not at the
time the absolute owners of the proper
ty. Nothing else could possibly explain
the employment of James R. Keene by
the banking house of J. p. Morgan &
Co, and the tremendous purchases of
the stock through Street & Morton, who
openly bid in $50, 900 shares and forced
the price up "A points.
That some OF the buying came from
o
what is called the competitive buying
was not altogether a contest between
the rival interests. 1t was due in part
to heavy purchases of stock through a
Broadway banking and brokerage house
which handled the speculative accounts
of some large interests identified with
the Northern Pacific property.
It will undoubtedly take some time to
definitely settle where the control of the
property really lies. That the contest is
very close is indicated by the buying
by both parties of fractional share lots
throughout the country Both houses
have in addition to stock, some contracts
and where the contracts rest it can not
be stated positively.
More light will be thrown on this
point, however with the arrival Of the
from Europe.
LONDON Is NERVOUS.
London, May 13.-Decided satisfaction
has been expressed on the stock ex-
change over the tentative settlement of
the Northern Pacific. The representa-
Iives here of Kuhn, Loeb & Co. Powell
Jackson & Geoger. said to a represen-
tative of the Associated Press:
There is much nervousness in view
IF the fact that the relief may be only
temporary and that another crisis may
be preeipitated by the action Of either
Mr. Morgan or Mr.. Hartman. The sus-
pension of the settlement, announced by
the committee this morning, is of in
definite duration, but each day gained
helps the liquidation of accounts. The
brokers worse affected generally hold
options on Northern Pacific they can
realize on in June and July. In the
meantime salvation depends on the
of Mr.. Morgan and Kuhn,
Loeb & CO.
It is understood that Kuhn, Loeb &
Co, as well as Mr.. Morgan, are quietly
ending shares to their friends who have
been caught in the squeeze ,
The committee also decided that the
settling price for preferred was to be
10, but the amount involved is of minor