New-York tribune., 1901-07-18
NORTHERN PACIFIC PEACE.
o,,tar, ANNOUNCEMENT OF HARMONY
MADE BY ]. P. MORGAN.

a,+ over Northern Pacific Railway control
D made yesterday afternoon, and created a
=, Wall Street. It was regarded by many
f-,o5 men and brokers as the most significant
fSi-..t .u,ent that had been made in financial
s'a.. since the Northern Pacific corner that
she panic of May 9. and it was taken to
i that there had been complete restoration
o-rnony in the control of the railroad. 1t
a, the form of a letter, signed by j. PIER
"" Morgan and addressed to j. p. Morgan d
romes ]. Hill. E. H. Hartman. and kuhn'
loeb & Co. and said:
In accordance with the memorandum
Gent ~ 1ou under date of May 81, 1901, under
sgneo ~ Composition OF the board of directors OF
The Northern herr newt annual meeting was left in my
elecssss I beg 20 advise you OF my cohclusioh DIS
.OloEss;:, the following gentlemen as the new
ssrs nos OF the board fill the vacancies 10 Dc
created: F4in. president of the Great Northern
railway conpa5 pcnInittee n Of the Union Pacific Rail-
the comnanv: William Rockefeler ulrecUoI oA
the CnSG1e CS Mex Twombly. director of the Chicago
PAP Northwestern Railway COMPANY ana Sa,Itues aI4
TO ASSUME DUTIES AT ONCE
49, would suggest that the attention of the
,srS be called the advisaolnty OF sfS srtailsiis m
fotnrs foT Of the company as possible with
oneI on awaiting the annual election. ....
nF9n is my Tithn Itself the elements adapted
FOR the formulation OF the plan Wem y Van
ISeTbilt named therein as referee - .
oyery important interest Will have its representa-
. utho viii be brought into close touch with the
sItnstion as a whole, and there should be no dim,
eIy s 70 ali concerned and tend the establishment
q permanent harmony among the diIerent IL Hncs sI
manner viii seem desirable
The memorandum of May 81. referred to by
wr Morgan, contained the following:
An understanding has been reached between
Northern Pacific and Union Pacific interests under
hoard will be left in the hands OF J. Perpont Nor
gan certain names having been alTenoy b
recognized as representative of the common IN
terests.
BOOM FOLLOWS LETTER.
The letter Of Mr.. Morgan was not made pubic
until shortly before 3 p. n. but there was
hint early in the afternoon that his formal state
,neut was ready, and that was sufficient TO ere
ste a. boom IN railroad stocks Several Western
railroad stocks went UP u te.v points on the IN
formation that Mr.. Morgan had named the new
members Of the Northern Pacific directorate AS
soon as copies Of Mr.. MoTgan's letter were oo-
tainable il was read and discussed with interest
nv MANY Wall Street men Mr.. Hill. as one Of
the new Northern Pacific directors. many
brokers said, would represent his own and the
sent his own and the Kuhn. Loeb & Co. inter
ests Mr.. Rockefeller would represent the Stand
ard Oil interests without being antagonistic to
the Morgan or Hartman interests. Mr..
Twornbly representing the Vanderbilt interests
and Mr. Rea representing the Pennsylvania
Railroad interests, were said to be neutral ana
TO have been agreed upon both by the Morgan
and Hartman interests
After his letter appeared, Mr.. Morgan would
not discuss x. Members of Kuhn, Loeb & Co.
said the letter covered the situation fully and
they had nothing TO add TO Il. The names Of the
five directors of the Northern Pacific Railway
Company who to retire were not made
known yesterday. In the list Of the present dI-
rectors are Edward D. Adams, George T. Baker,
Dumont Clarke. Robert Bacon. Robert NJ. Gala
way, Brayton Ives, D. Willis James, John Mel
len, Walter G. Oakman Charles Steele. Samuel
Spencer, James Stillnan and Eben E. Thomas.
LAMONT MAY BE PRESIDENT.
One Of the reports that followed the appear
ance of Mr.. Norgan's letter was that President
Mellen probably would resign, and that Vice
President Daniel Lamont probably would sue
ceed to the presidency of the Northern Pacific
Railway Company A representative OF the
Hartman interest said he did not believe that
Mr.. Mellen had sent in his resignation, and II,
highly improbable that any change in III
presidency of the road would occur before De
next regular meeting Of the board, which is /till
several weeks Off He said he did not think Mr.
Lamont would be promoted to the presidency OF
the road.
The letter OF Mr.. Morgan was emphasized by
small sale Of Northern Pacific stock at the
Stock Exchange the first that had been recorded
since June 3 Two hundred shares Of the COM
mon stock were sold at 11S, which thirty
one points lower than the stock brought June
3; and LOO shares Of the preferred stock
brought 95l9 and 96la The temperance Of
Northern Pacific stock on the tape followed
Immediately by bound in the prices for West
ern railroad stocks. The boom spread to other
stocks. and steel stocks went up two points, al
though there was no information Of early set
tenent Of the steel strike.
THE FAMOUS y. p CORNER
The corner in Northern Pacific sent that stock
up high as 81 000 on May 9. and caused a
panic in the stock market. The panic would
have been more disastrous than il was II there
had not been a postponement Of the delivery Of
stocks for twenty-four hours. The corner that
produced the panic understood early TO be
the result Of a fight between the Hill and Nor
gan Interests on one side and the Hartman and
Kuhn, Loeb & Co.'S interests on the other side,
for control OF the Northern Pacific directorate.
Il known on May that there had been
Secret buying Of Northern Pacific stock by both
SIDES, and Northern Pacific common had risen
10 80 and had fallen again 10 145. 1t became
apparent on May that the two factions had
bought up about all the Northern Pacific stock
that was IN the market and the wild bidding Of
men who had sold the stock short and who want
eo to protect themselves by purchasing the stock
ran the price OF Northern Pacific up to $1,000
aDout an hour before noon. Large blocks Of
otner stocks We're sold at a loss by excited
brokers, and there were heavy declines in prices,
although the announcement Of the postponement
OF deliveries had some effect TO check the panic.
ana Northern Pacific dropped to 325. Some of
The banks raised a fund Of $19.500000 to be lent
at market rates.
MERCY FOR THE SHORTS.