New-York tribune., 1901-05-09
BREAK In N. P. CORNER.
ONLY TEMPORARY, BUT WITH
BIG RESULTS.
NEW THEORIES AS To UNDERLYING
CAUSES OF FIERCE STRUGGLE FOR
CONTROL OF THE ROAD.


in disaster TO a large number Of spectators who
had sold Northern Pacific short The corner
still exists. however. as, in spite OF the demor-
aIization which extended more or less all along
the line. Northern Pacific common closed higher
than it opened. and preferred made net loss Of
only half point No had the market
closed for the day than guessing began anew as
to the hands in which the control of Northern
Pacific finally lodged. The Tribune has already
printed number of these conjectures. and pub
fishes herewith some new ones which came out
yesterday.
The newest OF these harl5s back TO the formal
ton of the United States Steel Corporation. Mr..
Morgan. Mr.. Carnegie and some others who
were heavily interested in that gigantic deal re-
fused, it IS said to associate with themselves a.
we'll known group of Chicago men, headed by al
daring and spectacular plunger- This group
owned certain properties which would have
suffered if they had been left of the analga-
nation. and at the same time they wantedl
by the Morgan Carnegie interests. but were by
no means necessary to their welfare. After some
objection. the members Of the Chicago groups
sold their interests outright the United States,
Steel Corporation. pocketing their wrath, along
with a large sum of money and saving up .botlsi
for more convenient season.
This opportunity presented itself-so the. story
goes-when the Morgan-HiIl scheme of CON-
roads began TO approach a successful issue. Thar
Chicago group, with the design of breaking up
this plan or else making it's promoters pay
dearly for it's consummation. began to buy ups
all the Union Pacific stock it could lay it's hands
on. AS soon this intention was perceived a
fight for control of Union Pacific began, and IN
the two weeks prior 10 May 1 the price of this
stock was forced UP twenty-seven points. Find
ing that control not to be had. how
ever, the Chicago group sold out near the
top Of the market and withdrew IN
good order with largely augmented stores OF
ammunition.
ITS NEXT CHANCE.
It's next chance to harass those who had re-
jected its cooperation came when the Morgan
Hill Burlington deal had proceeded so far that
only the vote OF a majority OF Northern Pacific
stockholders stood between It and complete
fruition. At once a secret buying OF Northern
Pacific began. 1t speedily attracted the atten-
tion Of Mr.. Hill. who set himself to counteract
the enemy. The enemy thereupon poured it's
millions out in floods. A deluge Of other MILL
ions met them Under this Brobdingnagian de-
mand Northern Pacific common made net ad-
vances Of seventeen and a half points on last
Monday. and sixteen points on Tuesday. Yes
tel day it made extreme advance of twenty
five points more. and then the Chicago group.
be beaten, began TO let go its holdings.
This. it is declared by many in the Street.
started the general slump in the market yester-
day. Wild as had been the demand for North
Pacific on the part of the shorts in the early
hours of the market. its price quickly fell from
$50 to 145 as soon as the Chicago group let go,
so nervous were the spectators and so sus-
picious Of every fuctuation. The Hill interests,
however. not content with beating out the at
tacking party, decided to make themselves the
certain masters of the situation, and continued
to buy until the price rose again TO 100 They
will take care to hold the stock it is said. in
their strong boxes, at least until the Burlington
deal has been ratified Meanwhile the Chicago
group its magazines better stored than ever
with powder and shot. will turn its big guns on
some other point. and the tip" went abroad last
night that Canadian Pacific would be the target
to-day
CONTRADICTED BY OTHERS
Interesting and plausible as this story is it
is contradicted by tales equally interesting IL
not quite so plausible. One Of these is that the
intrepid and spectacular pIunger who leads this
same Chicago group and makes his headquar-
ters at the Waldorf-AstOria when he is in this
cftv instead Of letting go his Northern Pacific
holdings yesterday at the proper moment was
caught in the temporary slump from $50 to 145.
and lost about S3 100000. II this be true. IT
is altogether likely that other members Of this
group suffered proporticnateIy; in which case
their ability 70 do further harm TO the Hill
Morgan scheme has probably been considerably
curtai;ed.
Wall Street had still another brand new theory
Yesterday to account for the struggle TO control
Northern Pacific 1t may be remembered that
when on April 80 last. the directors of the Chi
cago. Burlington and Quincy issued their circu-
lar from Boston making formal announcement
If the details of the offer of the Northern Pa
ciic TO purchase control of the stock the un-
usual course was taken of adding to this circu-
lar a few lines saying that James H. Smith Of
this city. recorded as voting against
the acceptance of that offer Mr. Smith
has declined to give when asked, his reasons
for so voting. The matter sIumbered for a time.
but not so Mr. Smith, if rUmor is to be believed.
He il is said. resolved to block the deal by buy
ing up majority of Northern Pacific stock and
voting against the Burlington purchase at the
last moment. His motive in this ight-if indeed
he be in it at all-is. of course believed TO differ
altogether from that OF the Chicago group al
ready referred to; but whether Mr. Smith has
succeeded in blocking Mr.. Hills plans or not.
time alone will telI-certanly Mr. Smith will not
If the alleged explanations of the underlying
factors in this mighty Northern Pacific manipu-
lation stopped with these the plight of the in
quirer after truth would be comparatively sim
pie. But there are many more. A sample one
is that a Hartman Kuhn. Loeb & Co.-Standard
Oil group has fallen out with the Morgan Hill
people, and is endeavoring TO Illustrate the
Burlington deal by gaining control OF Northern
Pacific In this il is said, the members of this