The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1901-05-10
How the Situation Was Rem
dered Less Insufferab1e.
GILDERSLEEVE DID IT
Issued an Order Restraining Both
Factions in Northern Pacific.
THE ORDER WAS NOT SERVED
But 1t Had the Effect of Suddenly
Bringing the BeIIigerents
to Terms.


New York Ssn. ,SDeciaT Services.
New York. May 1O-Court proceedings
smashed the Northern Pacific corner anG
not a desire on the part of the hnanclal
giants fighting for the property to avert a
general panic. The speculative interests
which had become involved by battle OF
the Morgan-Hill and Hartman -huhn
Loeb & Co. syndicates and who had un-
Willingly participated in bringing about
a condition of affairs which they least OF
all desired. were amazed at the efforts OF
their own handiwork as evidenced in the
market. One Of the parties to the suit
whose name was kept secret, told how the
crisis was reached He explained it as
follows:
Early yesterday these gentlemen applied to
both Messrs Kuhn, Loeb & Co. and J. P.
Morgan & Co for authority to relax the ten
sion IN Northern Pacific so as TO stop the
panic in the general market. For an hour
the representatives are said to have pleaded
with the representatives of both firms, but IL
vain Neither would yield an inch. Then the
gentlemen who had done the pleading went
in haste to consult their counsel, Messrs-
Henry L. Scheurman and Herbert R. Lin
burger OF the firm Of Hoadley, Lauterbach &
Johnson. The lawyers did not hesitate long
n expressing an opinion, and wasted still
shorter space Of time in acting in behalf OF
their clients.
Order From Judge GiIdersIeeve.
IN an hour the pleaders again appeared at
the Offices OF Morgan & Co. and Kuhn, Loeb
& Co. They produced an order which had
just been obtained by Messrs. Scheurman
and Limburger from Justice Gildersleeve, sit
ting in the supreme court. The names of the
plaintin and the broker cannot be disclosed.
7ara y, in odd fO ha
broker in question, we're Messrs. Hartman,
fIfll, Kuhn, Loeb & Co., J. P. Morgan Co.,
Rudolph Keppler as president Of the New
York Stock Exchange, and the New York
Stock Exchange.
The order provides as follows: 1t was or
dered that the defendant brokers be re-
strained from purchasing any stocks of the
Northern Pacific Railroad company in order
10 close the account of the plaintiff or for
any other purpose on behalf Of the plaintih
or on account Of the plaintiff and all the de-
PENDANTS other than Rudolph Keppler and the
New York Stock Exchange are restrained and
enjolned from making any transaction what
soeYer with respect to the stock Of the North
ern Pacific Railroad company on behalf OF
the plaintiff and Rudolph Keppler and the
New York Stock Exchange are restrained
from ordering, directing OF requiring the
purchase OF any stock Of the Northern Pacific
company by OF on behalf or on account Of the
plaintiff.
Swung a Club.
The gentlemen at whose instance this order
was procured stated TO Mr. Sehiff and Mr..
Bacon, representing the respective contending
interests, that unless Immediately relief was
granted, the order would be served, and
similar order would follow on behalf of all
other houses short Of the stock before 2:15
p. N.
Confronted with this situation, the contend
ing forces were not long in reaching q decis-
ion. At 1890 notices were, by request Of the
parties in interest sent to the stock exchange
officials over the ticker to the effect that de-
livery Of Northern Pacific stock would not be
required. The promise was also exacted by
the parties who controlled the injunction pro-
ceedings that formal announcement should
be made upon the opening of business to-
morrow that all houses short Of Northern
Pacific could cover their stock at a uniform
price Of $50 share. A further promise was
exacted that the money rate, which was then
ruling at 20 per cent, should be reduced to 6
per cent by the advancing Of any amounts
necessary for that purpose.
All the conditions Of the agreement price
of s15O a share have been complied with, and
that stipulation is TO be performed on or be-
fore 10 o'clock this morning, pending which
the injunction paper remains unserved in the
possession Of counsel The Injunction was
obtained at the instance of David Lamar, but
It is stated that the main moves in the effort
to save the market and the corner and raise
the rate of interest to the legal rate, thus to
some extent at least restoring confidence,
we're really
Inspired by James r. Keene.
On Monday last J. P. Morgan & Co applied
So certain speculative interests to purchase
secretly on their behalf 100. 600 shares Of North
ern Pacific stock, which this firm desired to
purchase for the purpose of insuring their
absolute control and ownership of the ma
iority of the capital stock of the Northern
Pacific Railway company, which control this
firm and its principal associates, J. J. Hill.
believed to be in peril. The speculative in
terests referred to upon the understanding
that the transaction was an entirely legiti-
kaate one and intended only for the afore-
said purpose, consented to perform the serv-
ices, and the amount Of stock desired by
Messrs. Morgan & Co. was quickly purchased
at an advance Of only eight points.
Upon the following day it was developed
that the interests represented by Messrs E.
H. Hartman and Messrs. Kuhn, Loeb & Co.
had acquired an enormous amount of pre-
ferred and common stock of the company,
also for the purpose of control. 1t further
developed that portion of the stock Sold to
each of the contending interests was what
is commonly termed short" stock, and that
IN addition to a considerable amount had
been sold by arbitrage houses against stock
held in Europe.
Some question arose between the parties as
to the date upon which the books would
close. No satisfactory determination Of this
question was reached, and as a result, each
OF the contending forces became fmbued with
the idea that the immediate possession Of the
stock purchased must be had. The result
was a corner of the stock.