The Minneapolis journal., 1901-05-13
REVISING THE NAP
New Version of the Recent Panic
Over Northern Pacific.
MomENToUS MEETING IN LONDON
Morgan and Hill Held Responsible
for Raid-HiI1 Said TO Have
Overreached Himself.

New York, May 13.-When properly
considered the story Of the Northern Pa
cifc corner which precipitated a panic
on Wall street on Thursday last, is sim
ply an illustration of the old saying that
there can be too much Of good thing
says the Herald.
From developments of the last few days,
it is very apparent that the efforts OF
one set of men TO acquire an interest IN
others properties engendered bitter
feeling. That this should have broken
out in a stock market duel is not sur
prising.
1t is now made clear that the attempt
on the part of Morgan and Hill to ac-
Quire the st. Paul road not only was not
favored by the Standard Oil and Wander
bilt interests, but Strenuously opposed by
them, and that the subsequent attempt
to secure the Burlington property resulted
in an open breach Of peace between in
terests represented by the banking firm
of ]. Pierpont Morgan & Co. on one hand,
and Kuhn, Loeb & Co. on the other.
This was not a fight as some would
have it, between banking houses, but be-
tween capitalists Identified with great rail-
road properties. The true story OF the
long contest is here told for the first time.
The struggle extended over months and
originated at a London meeting in which
road map of the United States spread be-
fore them, calmly considered whose prop
critics they could acquire. That some per-
sons should have resented attempts to
carry out the plans made there is not
strange, nor is it peculiar that their pro-
lection of their former properties caused
a bitter fight The capitalistic interests
that are clashing are the greatest in the
country. How the struggle will end no
one can tell.
In the meantime, however, other rail-
roads are seeking to protect themselves.
1t was not the Union Pacific interests
alone which objected to the Burlington
Great Northern Northern Pacific deal. The
owners of the st. Paul road are surveying
a line to the Pacific coast, and the Chicago
& North Western interests are by no
means idle. With men who were once
loud in praise of harmony of interest
they now maintain that the Burlington
deal Is the most ill-advised railroad un-
dertaking since the West Shore and Nickel
Plate affairs.
Mr.. Hill himself tells the story of the
Inception of his plans. 1t is in substance
the following:
There chanced 10 be in London last year
J. P. Morgan. myself and a representative
Of the DeuEsche bank of Berlin. The rail-
road map of the country was laid out be-
Of various properties. In the course of the
conversation there came up the question as
to what was 20 become of the Missouri Pa
cifc system The future of other systems
were discussed, among them the st, Paul
road. 1t was my opinion that the other sys-
tens would continue under their present con-
troll, but the future of the St. Paul was not
absolutely assured.
Morgan asked me if the St. Paul road
could be bought. I told him that I thought
it could but l didn't know. In some manner
the information as to his project became
known. 1t was never more than possibility
and a vague one at that
From this statement it is apparent that
the meeting at London, at which the three
men, Morgan, Hill and the agent of the
Deutsche bank. sat around the table,
with railroad map of the United States
before them, and calmly planned and dis
cussed the acquisition of other mems
properties, led finally to a quarrel, which
convulsed Wall street and the entire
financial world
One man, very prominently identified
with the Union Pacific party, said
that the chief reason of the recent dis
pute lay in the fact that James ]. Hill,
in seeking to live up to the title the
newspapers had given him Of the greatest
Railroad King" the, world had ever
known, overreached himself.
AS to the calling in the stock which
had been loaned to the short interests and
which closed the corner, the opinions on
Wall street may differ, but the weight of
evidence strongly indicates the Morgan
Hill -Keene party. Following the tremen-
dous purchase by Street & Norton that
firm loaned heavily, but followed this up
Immediately by calling the stock when
from premium Of 112 per cent the night
before it had been forced up to 8 and
10 per cent for use over night, and the
stock bid in privately after the close Of
the market at a sharp advance above the
closing figure.
On that date large loaners Of stock were
Herzfeld & Stern, acting for Kuhn, Loeb
& Co. In the fight for control, Of course,
neither side could show much mercy, for
the stock might have fallen into others
hands.
It is now known that neither of the
two great banking houses realized that
the stock was cornered, or had set about
to accomplish any such result.
Royal NeighbOrs of America.