The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1901-05-17
CONTROL OF The Mp.
MOrgan-Kuhn, Loeb & Co. Truce
Leads to Settlement.
C0MMUNITY-oF-INTEREsTENCoRE
Buying by Kuhn-LOeb Interest.
Makes Northern Pacific u
Hartman Road.

New York. May 17.-The Journal OF
Commerce says:
1t seems to be generally acknowledged that
the truce between the Morgan and the Kuhn,
Loeb & Co. interests in their contest for the
control of Northern Pacific has assumed the
dignity OF definite settlement Of future pol
icy, and that attempts will be made to recon-
struct, so far as is necessary, the ''commu-
nifty OF interest plan of railway management
on a new basis. This means that the north
western roads are to be brought more thor
oughly and directly into the fold than has
heretofore been contemplated. The Kuhn
Loeb interests are already heavy holders in
Great Northern, and their recent heavy pur-
chases of Northern Pacific make that road q
distinctively Hartman road, notwithstanding
that the nominal control shall still remain
with ]. P. Morgan & Co., which, according
TO best information, is the present plan. The
Hartman people will be adequately repre-
scented in the board of directors of the North
ern Pacific. and win be fully able to protect
the Union Pacific from any encroachments in
its territory by the Northern Pacific. On
the other hand, there have been active pur-
chases OF the Union Pacific stocks by inter-
ests coming very close to J. P. Morgan & Co.,
so that the practical effect of the recent cor
ner and the purchases responsible for it has
DeeQ Ine occasion the exchange OF UNION
Pacific stock for Northern Pacific stock
It is of course, now a Quetsion what fnan-
cial arrangements have been made by the
Hartman interests for financing their pur-
chases Of Northern Pacific, as II Is taken for
granted that they did not make such pur-
ehases on any private account but with the
sole object of protecting Union Pacifc's inter
ests, and it is therefore supposed that the
recent heavy purchases of Northern Pacific
securities to be turned over at their cost
price to the Union Pacific, which will issue
convertible 4 per cent bonds in payment.
There are 800, coo 900 of these convertible
bonds already authorized. and only $40 900, 900
have thus far been issued. It may be stated
on authority that the matter of thus financing
the Northern Pacific stock has not yet off,
cially been considered by the Union Pacific
board There is no doubt, however, that the
matter will be taken up at a very early op-
portunity. 1t is expected that Mr. Morgan
win secure satisfactory representation in the
Union Pacific board.
Much interest is shown in the report that
the preferred stock of the Northern Pacific
stock is to be retired at par There seems
substantial ground for the statement that no
action having this in view for next January
has yet been taken. To secure the cash 1t
would be necessary to issue entirely new Sc
curities, as the company has at the moment
no more resources available for retiring the
preferred except perhaps something less than
s5O0OOO per cents in the treasury. which are
now not reserved for any specific purpose,
and except also a guarantee fund of 50 1000, 900
cash for the preferred dividends, which be-
comes. on Jan. next available for any pur-
pose the Northern Pacific directors may elect.
No mortgage may be issued, however, which
will have preference over the present per
cents, but there is no reason why additional
common stock should not be issued, provid-
ing, Of course, that it receives the assent of
the present proportion of present stockhold-
ers, both preferred and common