Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-05-10

that the Hartman interest remained in
control Of Union Pacific.
I Then the war was carried into Al
rca. The Hartman syndicate bought
Northern Pacific quietly but diligently
until, about the middle of last week,
It had nearly If not quite control OF
that stock. Selling was partly by in
siders who knew that the stock was too
high and partly by foreign interests
either to realize or for short account.
dntimations were then given to the
Northern Pacific management that GER
tain measures were desirable, falling
which they might be enforced. 1t was
not, however, declaration OF war, but
an invitation to peace
Northern Pacific people did not ac-
cept the assurances rendered and
thought 1t necessary to secure safety
by largely increased ownership Of
Northern Pacific stock. Enormous buy
ing orders went into the market and
continued UP to Tuesday afternoon.
when it became apparent that the two
great buyers had purchased more stock
than there was in existence, and that a
close corner had been created without
such an intention on the part of either
interest.
The situation was extraordinary.
Where corner is undertaken deliber-
ately, the purpose is to compel cover
ing. The owners of the stock wish to
sell and settlement is merely a matter
of price. In this case the purpose was
entirely different. The object was the
accumulation OF certificates possessing
voting power, and not at all profits on
transactions. Hence, the holders OF the
stock were practically unable to accept
private settlements, CT to release con-
tracts. To do SO was to relinquish the
very purpose for which the stock had
been bought.
The position of the buyers was this:
eve do not want your money Or to
cause you losses, but you must give us
the certificates which you have agreed
to deliver. AS the stock sold amounted
to. more than 100000 shares in excess
of the stock in existence. it was obyi-
ously impossible for everybody to get
stock. In the effort to do so, the price
was run above $50 and the street was
full of anxious brokers and traders all
day.
One of tie large interests involved
announced early in the day that it
would lend stock to arbitrage houses
fat as long as the books remained
open, this being intended to give such
houses time to receive stock on the way
from Europe The offer great relief to
houses doing legitimate foreign bust
ness. 1t was also regarded as a great
generosity in the house which did this,
as it loaned stock fiat when borrowers
would have been very willing to pay
one or two per cent a day premium, and
would have been compelled to pay any
premium that might have been demand
ed
Anxiety was felt in regard to the
closing of Northern Pacific books, which
It was thought might be essential in
the contest. The management announc-
ed, however, that there would be no
sudden closing, and anxiety nee1 not
exist on that account.
The outcome can take one Of three
forms. One party can take control and
the other can take profits on long stock
or the other party can retain control
with assurances bearing upon other
properties which will be satisfactory,
or a general compromise can be ma le
covering various interests and permit
ting a return to normal conditions. The
effect, even if the contest ends in 81
compromise, will be unfortunate In its
bearings on the general market.