The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-05-10
!. ]. HILL IN TIE SADDLE
INsIDER SAYS HIS FOLLOWING CON-
Trolls THE NORTHERN
PACIFIC ROAD
CROWD NOT IN IT
Predicted That with Release of
N. p. Shorts at $50 the Tension
I'm Wall Street VIII
BE Relieved.

| NEW YORK, May 9-Tonight an in-
| di i-ual who Ia BEEN party to the
| conference relaur the Il ned con-
| di lens in Wall street this week made
| st; tements and explanations which give
| to t e contest IN w II street different
! nstru elton than was gene ally ac-
! CO. tel down town odAy. He sad:
Tomorrow morning, Kuhn, Loeb &
| Co. will publish tice saving at
| they will let ut their Northern Pacific
s orts at so. ] tive statement -
made tonight that tomorrow }. p. Nor
gan & Co. will notify sho! Is thar they
will be released of short obligations TO
Morgan & Co. on the basis of $50. This
will be the penalization. The shorts W IL
get no sto k from e Morgan crowo.
They will get only freedom. The Bur-
li1gton deal will be known tomorrow as
an accomplished fact. 1t has alrea7y
been accomplished The Morgan-Hiu
in e ests contrnl the Northern Paci C
sto k and the DO, I'd of directors hi
absolute power to close the Northern
Pacific Burlington merger w tn ut
C nsent of two-thirds of Northern Pa
q C stock The oil law of the North
ern Pacific prescribed that two-tn,rds
If the sto k should assent to such 3
transaction as the present deal. This
provision still printed in the manual ac-
cepte1 as authentic, ha mislel the
POHeHIS VI N1OI SdIl-I1lll plGIS, OcCduSOS
in the reorganization the two-thirds pro-
vision was abolished and the power was
vested solely in the board Of directors.
DEAL IS FIN SHED.
"T''e board ha stipulated tina V hen
two-thirds of the Burlington stock had
been de osited in a designated trust
company the NortNern Facific- Burling,
ton deal should be thus automatically
clio ed The stock has be deposited
and the transact is contaminated.
MeanwhlH the Kuhn-Loeb in er SITS.
b lieving two-thirds stoc< consent In
Nortl ern aci C e,essary consul -
mat on ha striven to absofb enough
No thern Pact ic to prevent two-thi Dis
consent, with results seen IN Wall sire l.
This afternoon they discovered that two
thi Dis c)rsent VS. not necessary to
the Morgan-Hill al, that they had
actcd on wrong 1 fern alton Oh that
point. a
Moreover, they learned late today that
while the Northern Pacific scrip they
hold and their paper contracts made the
aggregate they bad sought, the paper
contracts were in part empty, for the
shorts could not get the stock they had
agreed to deliver.
HILL HAS TIE STOCK.
Conviction was compelled that Nor
gan-Hill had the real goods-the scrip
and therefore that the accumulation of
Northern Pacific in the hands of Kuhn,
Loeb & Co. was strategically valueless.
Thence. according to a statement made
to me by one of the Kuhn-Loeb group
this evening the Northern Pacihc-Bur-
lington deal is sure and safe. This be-
ing true, Kuhn, Loeb & Co. have no
tactical use for their load of Northern
Pacific, and will therefore let it out to-
morrow to shorts at $50 and discharge
makers of paper contracts to deliver
stock they could not get on the same
basis.
This action makes logical the stated
design of Morgan & Co. to deliver North
ern Pacific to shorts, though shorts may
purge themselves of their short obliga-
tinns at $50.
This release by Morgan-Hill, and the
letting out OF actual stock no longer
useful to them, by the opposing interests,
is expected to relieve the tension and
smooth out the complications in Wall
street tomorrow.
"In the light of these facts and condi-
lions it becomes apparent why Morgan
Jill interests declined the propositions
of their opponents to loan stock pro rata.