Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1901-05-10


same position
The struggle of financial giants which
broke the most remarkable movement
that American stocks has ever had. dates
back but fortnight. f.. ii. Hartman
and his associates. so they relate the sto-
ry in the street. discovered that brokers
representing J. =. Morgan 4 Co. were
buying Union Pacific Hartman at once
began increasing his own holdings. buying
on market that rapidly advanced, ana.
when sure of control. submitted propo-
sition for some basis of agreement as to
the control of Burlington. just acquired
by the Great Northern and Northern Pa
cific. That offer was rejected. On Mon
day last, there began sensational move
ment in Northern Pacific and the pun..c
got the first intimation of the battle Tor
supremacy. banker who participated
in the movement to relieve the market
this evening. made this statement to The
Associated Press:
I'VE loaned u, 900 900 in the street. after
| 10 O'Clock, today. some of it as low as 9
per cent. and feel that the crisis is over
| | do not believe that a single large house
| will go down. There have been tremen-
dous losses. Thousands of accounts rep
resenting millions of dollars are wiped
| out. But the banks are firm and the
large operators are. we think, capable of
caring for themselves. You see. they
have been taking large profits and are
capable of standing up. At present price J
feel that stocks are good investment
and look for heavy buying orders. \
good day and the market will be STEADY
again. The banks acted together. today
but there was no conference or agree
ment about 1t. We placed about 6.0oo.
0C0 in the aggregate and the moral effec,
many days like this. but as it is the
storm is wcathercd and the situation will
improve from the opening. tomorrow.
An industrial leader made the state
ment to The associated Press:
Il believe the worst of the storm Is
over There have been conferences of
Importance among the larger financicri
and 1t has hcen decided that every man
of standing in the street shall he protect
cd | had thought there would be fail
urcs bat there are influences strong
enough to avert them at work and | am
sure now they viii succeed. | look for
buying orders and rally in the market.
lItlc Will also 10 peace lie
forests now ut war
J. :. Bache & Co. had some Northern
Pacific stock in Troy. this morning.
which it was necessary to have in the
New York office before 2.15 T. NJ. at
which time deliveries for today closed.
The firm hired n snecial train at Troy
at 1880 4. NJ. and ii reached this city
seven minutes before schedule time. 4
messenger from the firm met the train
and brought the stock down to the
firms Office in ample time to fulfil the
contract fer the day.
Tonight, an individual who has been
Q party to conferences relating to the
strained conditions in Wall street. this
week. made statements and expiana-
tons which give to the contest in Wall
street different construction than was
generally accepted down town, today
He said
Tomorrow morning, Kuhn. Loeb &
Co. will issue notice saying they will
let out their Northern Pacific stock TO
shorts at $3.50. Positive statement is
| made. tonight, that tomorrow, j. +.
Morgan & Co. will notify short that
they will be yeiea sed of short Obliga ton
to Morgan & Co. on the basis of $50.
THE Burlington deal will be known.
tomorrow. as an accomplished fact. 1t
has already been accomplished. The
MOrgan-HiI interests control the
Northern Pacific stock and the board
| of directors has absolute power to close
| the Northern Pacific burlington mer-
ger without the consent of two-thirdS
| Of the Northern Pacific stock. The old
| law of the Northern Pacific prescribed
| that two-thirds of the stock should as
| sent to such 4 transaction as the pres
| ent deal. This provision, still printed
! in the manual accepted as authentic.
| has miSled the opponents Of the Nor
| gan-Hill plans. because in the rc-or-
| g2niZa ton the twO-thirds provision
| was abolished and the power was vest
| Cd solely in the board of directors.
THE board has stipulated that when
| two-thi,d DIS of the Burlington stock had
been deposited in n designated trust
company. the Northern Pacific Bur-
lington deal should thus automatically
close. The stock has been deposited
and the transa ction so consummated.
Meanwhile the Kuhn, Loeb & Co. in
tercst. believing two-thirds stock con-
sent in Northern Pacific necessary to
cCrsummaton, have striven to absorb
enough Northern Pacific to prevent
two-thirdS consent, with results seen
in Wall street this week. This after
noon. they discove1ed that two-thirds
consent in Northern Pacific stock was
not necessary to the MorEan-H Hill deal,
that they had acted on wrong informa-
ton on that point.
Moreover. they learned, late today.
that while the No! thern Pacific scrip
they held and the paper contracts
made the aggregate they had sought.
the paper contra cts were in part empty
FOR the shorts could not get the stock
they had agreed to deliver Conviction
WAS compelled that Morsan-H Hill had
tEc real gJodS--the scrp-and there
fore, that The accumulation of North
+ crn Pacific in the hands Of Kuhn, Loeb
x co. was stratcgically valuelcss.
, Hence, according to q statement to me
, by one of the Kuhn, Loeb & Co. group,
. this evening, the Northern Pacific
burlington deal is sure and safe. This
being true. Kuhn, Loeb & Co. have no
, tactical use for their load of Northern
, Pacific and will therefore let it out. to-
morrow, to shorts at $50 and discharge