The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-05-11
oN e sFocK ExcHANeE.
Speculation on an Unparalleled Scale
on Wall Street


New York, May i62 Brs,Istras s.
financial ,1at Review tomorroR viii saw,
3 : peeulatlon On an unparalleled scale
naS at last resulted IN a decline in
$3.50 OF great severity, attended bv
sStl "a l3onai developments, although The
. lnafhel recovered sharply on E7rfds :
/ ne corner in N0ttIrernF Pacific $50
( dHo tne contest FOR the control of fb.t
pIopsIty between the Union Pacific fr~
-. 5sPEeSeLi tea by Kuhn, Loeb e,
~, ana TIE Morgan Hill party was
a unexpected and unforeseen. In fact m
- 4asl tuesday the street was move
impressed by the idea that there M :
- FSs2tl on toot 10 obtain control O.
me onion Pacific for the -Eay7r5e,bfl+.
interest and the Northv5esferr s1,I g
e9l systems tnant by the real danger
HtlF winch u was confronted
& 4 Ae enormous trading in Union pa
Slhe SHARES gave point to this theory
-, :. -.lOifaay when the dealings
~ northern Pacific common stock rose
10 nearly 100000 shares for te daT ana
.elle puying assumed. a. concentrated
tt.1iP the presence. OF some unusual fac
t1Es was recospized. Even this. Erfth
tliS rise OF the stock to lS3- was -af f;rsf.
deemed to be a matter. OF. seeof,sis,.,-
llll'er Jances-- but when Northern tPaSA
CHIC stock became scarce ia me 'fosr
crowd and the rate for the borrowinas
vas quqJeq fiat or Without inter-.
y =
the caseaOu Tuesday. III tfss ti7sy3 ~
QelstoOds that a collision betTveen-a-res-f
laIHoad and banking interests had
taken place.
Ehe fuli signifcance or the situation
was seen when Northern. Pacifc COM
mon SCARED to over 149 on TUESDAY ana
Uhe rate. al which It could be borrowed
over night was as high as 10 r,efr cent
Tron1 the par value.
0n Wednesday the street was in prac-
81 raF z 49, -
Union Pacific interests obserted ia IRE
Burlington deal effected by the Moran
Fiji allies IN behalf of the Great North
ern and Northern Pacific and had re-
gteslse mat II be admitted to a one
tnifd interest IN the transaction and
being refused had proceeded to acquire
the Northern Pacific stocks to an
amount sufficient to control the vating
power or that company and thus dictate
terms to the combination.
On Wednesday, there was a further
advance of Northern Pacific to $50 and
the stock loaned for use as high as
5O4Der cent and the logical conclusion
was that the MOrgan-HiiI people were
also acquiring stock. that the possession
Of a control by either was stiil a rnatS
ter Of doubt and that the consumma--
ton OF the Burlington purchase by the
Great Northern and Northern Pacific
m the form originally PROPOSED might
be defeated. $
The short interest in the stock was
also manffestly large and was due
partly to the temptation to bears to sell
the stock atsitse extreme advance and
partly to the marketing of stock by
foreign arbitrageurs against purchases
made in London, from which city GER
tlncates cannot reach New. Y orfa under
ten days time The Representa- lives Ct
the rival parties naturally expressed a
.rea diness to make the matter easy for
arbitrage houses by lending shares fat.
or on reasonable terms. but st wa s 9th.
erAvise With the rank and file of the
shorts among whom the street believed
some large speculative Interests were
included
Dangerous as the situation in North
ern Pacific was, il became positively,
demoralizing to the market. on Thurs
day when hones Of a settlement Of the
complication did not bear fruit ana tbs.
price of Northern Pacific oems1on,a
under urgent buying by bears called on
to return borrowed stock forced the
price 70 $500 per share. then to 500 and