The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-10-19
Is to the Interest of HilI-Morqan Faction
That Preferred Stock Should
Be Retired.
Hartman Clique Unlikely TO Let Any Such
Action Be Taken if They Can Pos
sbly Prevent It,

: NEW YORK, Oct. 1S-(Special. )-The
feature of the trading in today's stock
market was Northern Pacific preferred
which, on sales of 10000 shares in the
first hour, advanced over three points
This same stock was fairly active and
strong yesterday and scored a net gain
of two and half points.
Strong support kept the stock going up,
and by noon it had recorded a gain of
eight points, to 10S7s. 1t reacted a point,
but was still potent factor. The market
closed dull and about steady The total
sales of stocks today were $4,000 shares.
important interests in the Northern
Pacific railroad were comforting today
over the question of the possible retire
ment of the preferred shares. AS yet no
action has been taken toward this end,
nor any agreement reached. The matter
has not come before the company's board
of directors, either individually or as a
board, and the discussions now going OH
among the controlling interests are not
likely to come before the board for action
in the near future. The possibility be-
came plain enough today that there may
be no agreement.
POWERFUL INTERESTS OPPOSED.
The interests concerned in the propo-
sal are so vital and affect such powerful
parties that an attempt to retire the
preferred shares, except by agreement, is
most improbable
The point was made today that exercise
of the rights apparently vested in the
company or its board of directors, to re-
tire the preferred shares would reopen
the whole situation, which it was believed
had been closed by the agreement be-
tween Kuhn, Loeb & Co. and j. P Nor
gan & Co., assented to by Mr.. Hill and
Mr.. Hartman, to leave the selection of
a Northern Pacific board to Mr.. Morgan.
It was stated today, however, that Mr.
Hill IS actively pressing for the readjust-
ment of the present stock ownership by
retirement of the preferred shares and
has been able to get that question taken
UP again. That the present situation as
regards this question has been recently
brought forward seems to be indicated by
Mr. Morgan,s absence from New York,
the fact that Mr. Schiff has been away all
summer, returning only this week, while
E. H. Hartman had definitely arranged
to visit the Pacific coast Whatever his
plans may be now, Mr.. Hill was absent
from New York today. 1t was originally
the intention of Messrs. Morgan and Hill
to retire the Northern Pacific preferred
stock at par after Jan. 1 next.
QUESTION MAY BE DROPPED.
One high authority in Northern Pacific
matters said today that while the right
OF the company to retire the preferred
shares was being actively discussed by
those who had power to act, he thought
that the great interests Of the stock
would not allow the mutual concessions
OF last summer, which have resulted in
the harmonious action of recent months,
to be upset, and that if all interests did not
agree to the retirement of the preferred
shares, the, question would be allowed
to drop and not forced to an issue. It
was stated today that some time before
the Northern Pacific shareholders meet
ing an agreement was made, when the
Kuhn-Loeb interest turned their voting
proxies over to J. p Morgan, that in
case Of the retirement Of the preferred
shares, holders of that issue would re-
ceive rights to subscribe for the new
common stock, which was generally ex-
pected to issue, in any capital readjust-
ment
OF the right to retire the preferred
shares there appears today to be conflict
of legal opinion on certain points, as of
interest. One very strong opinion has
been secured that the directors cannot
by their action alone retire the. preferred