The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-05-09
BUY NORTHERN PACIFIC
Shares Taken to Prevent Ratification
of Burlington Purchase.
CORNER IN STOCKS UNPREMEDlTATED
The Burlington Deal Wit Probably BE- Made
triangular Arrangement Union Pacific,
Northern Pac fc and Great North
ern All Sharing Control.
ern All Sharing Control.
CBy the Associated Press )


New York May S.-Dealing with the
relation of things the turmoil of wall
Street today the financial writer of the
Evening Post, in news leader in It's
last edition this evening says:
The fundamental fact in the Northern
Pacific situation today was that the Bur
lington deal is placed in jeopardy, as mat
ters stand at present Union Pacific in
terests who were alarmed at the danger
to their property, lying in Burlington's
control, the Northern trans continental
lines, have bought enough Northern "a
citic stock to prevent the ratification Of
the Burlington purchase by the Northern
Pacific shareholders unless some agree
ment is made with them which will pro
tect their interests sufficiently. The cor
ner in the shares was unprecedented.
That development resulted, it is said.
from Mr.. Keenes clever appreciation Of
the situation in the stock, the legitimate
demand for which had heavily reduced
the floating supply. The corner is
secondary aspect, though the more spec
tacular one to the public, in a movo-
ment of far reaching consequences
possibly putting stop to the plans for
the greatest Of railroad mergers, upset
ting President Hills audacious plan TO
have Northern Pacific control Burling-
tons operations.
The policy of Kuhn, Loe and Company
has cen essentially one of self-protec-
tion and by now in a dominance position,
where the balance Of power in the Wes-
tern Railway situation, so rudely dis
turbed by Mr. Hill's Burlington deal, has
been restored, they will content them
selves rather than creating lasting hos
tilities among the great Western Rail-
roads which would follow the abandon
ment Of the Burlington deal This prob
ably will now be made q triangular ar
rangement, with the, Union Pacific shar-
ing the control as we'll as Northern Pa
ciiic and Great Northern, under a modi-
fication of the burden of the guarantee.
The conditions under which Kuhn. Loeb
and Company were able to win their ad-
vantage were that the Hill Morgan inter
ests in Northern Pacific held about AGO.
900 shares of Northern Pacific as a per-
manent investment which was practically
Of the market In addition about 200 900
shares were held abroad and a good
deal of this passed 20 the Union Pacific
interests. This left virtually but 260 900
shares of the 600,0 600 shares of common
stock outstanding available in the New
York market While there have been
heavy sales of Northern Pacific by in
siders the stock held for control has not
been sold and it is not likely that in
siders went short of the market as has
been intimated The corner in the stock
was not looked for by the serious buyers
of Northern Pacific, who had practically
accomplished their purchases before Mon
days sharp rise. The 'pyrotechnics' in
the shares are attributed to Mr. Keene,
who comprehending what was actually
going on in the stock and understanding
the large short interest of spectators,
went into the market and effected the
corner.
Mr. Hill, it was authortatively stared
today has not sold any of his Northern
Pacific stock. His large interest was
acquired last summer around fifty, when
the stock broke ON the reduction of the
common dividend and the seemingly poor
traffic prospects, resulting from the fail
ure of the spring wheat harvest He
said today:
/ have not bought a share OF North
ern Pacific in six months and in refer
ence TO the reported differences between
the Hartman Syndicate and the Morgan
Hill interests, he said:
That has been magnified a thousand
times. F."