The Washington times., 1901-10-28
4 NORTHERN PACIFIC DEAL
Belief That Settlement of Negctia-
tions Is Near at Hand.
Return of j. Il. Morgan From the
West May he Followed by De-
Velopmcnts ImmcdintcIy-The Pre-
ferred Stock Likely TO BE Retired.

NEW YORK, Oct 27-Although not yet
settled, it is generally understood in
railway and banking circles that the ne
gotiatiOns over the control of the North
ern Pacific are rapidly assuming such
shape as Will enable the final touches to
be made within short time after the
return of j, p. Morgan, who reached this
city yesterday after an extended stay in
the West. Mr. Morgan. was not at his
Office during the day, but held several in
formal conferences uptown, at which re-
ports were submitted of the progress of
negotiations by his associates and by
members of the banking firm of which he
is the head.
The principal point made by those who
believe that a satisfactory settlement is
assured is that the strcnE interests which
have been a-rayed on opposing sides Of
the question realize that n harmonious
settlement is absolutely necessary for
self-pre servation. While this is logical
enough, the fact remains that the one
stumbling block is the final lodgment Of
the Chicago. Burlington and Quincy
which the Hartman Kuhn, Loeb-Rocke-
feller syndicate insist that they must have
a voice in. because of the opposition
which might be forced at any time to the
I
by these bankers and railway managers.
Tentative proposals both sides have
been made. and many of them have been
rejected MIR. Morgan has returned in
time to have laid before him the status
OF affairs, and give his personal attention
to developments along the lines outlined,
which will subsequently be laid before w.
X. Vanderbilt when he returns from Eu-
rope in the early part of November Mr..
Vanderbilt has been selected to act as
umpire by both sides in the contest, as
it is believed that he would be more apt
to take an impartial stand than any other
OF the great railway magnates. In addi-
tion to the Northern Pacific matter, Mr..
Morgan VIII give his immediate attention
to the status of the steel trade, and take
up ultimately the question of reducing by
half the common stock of the Southern
Railway, using the special permission
granted some months ago by the Legis-
lature of Virginia, with that object in
view.
Just how the Northern Pacific contro-
vcrsy will end will determine to a very
large extent the immediate course of the
stock market. and hence it ranks first in
Importance from speculative point of
view. 1t is learned authoritatively that
one important point upon which the ne
gotat"rs now differ. is the retirement Of
. WI tAitL II at lllC pre- james >. nm
Is decidedly in favor of paying off this
stock for cash. which can be done at par
on January J. in whole or in part As
the Hartman Kuhn. Loeb Rockefeller
syndicate are very large holders OF the
preferred, through which they obta aiaed
representation in ne Northern Pacific
board Of directors. they are naturally op-
posed to such course unless tier inter
ests are safeguarded in some otner way
II Is asserted that this can b., done
through the medium Of the new Chicago
burlington and Quincy road recently in
corporatod under the laws Of Iowa The
Northern Pacific preferred can be retired
for cash al par and an additional bonus
given in the stock Of this new Organiza-
tion.
This will give the Union Pacific inter-
ests a voice In the new Burlington cor
poration. the Hill-Morgan party obtain
ing similar representation through the
turning over to the company of various /
Burlington corporations not |
by the capitalize tlon Of the !
old company. The new Burlington com |
pany can then become the operating con-
corn Of the Burlington system, and be so |
as TO maintain neutral atti- |
tude toward the Union Pacific on one side |
and the Northern Paeidc-Great Northern |
on the other