The age-herald., 1901-05-09
BURLINGTON DEAL
 IS IN JEOPARDY
Explanation of the Stir Caused
 by Northern Pacific
UNION PACIFIC IS ALARMED
The Corner in Shares Was UnpremedI. tated and Resulted From Mir, keene's Appreciation of the
 Situation in the Stock.

New York, May S.-Dealing with the re- lation of things in the turmoil of Wall street the financial writer of the Evening Post, in a news leader in it's last edition this afternoon, says:
 'The fundamental fact in the Northern Pacific situation today was that the Bur lington deal is placed in jeopardy. as matters stand at present. Union Pacific interests who were alarmed at the danger to their property in Burlington's control by the New York transcontinental lines, have bought enough Northern Pacific stock to prevent the ratification of the Burlington purchase by the Northern. Pa cific shareholders until some agreement is made with them to protect their interests sufficiently. The corner in the shares was ,unpremeditated and resulted, 1t Is said. from Mir Keene's clever appreciation oi the situation fin the stock, of which the legitimate days business heavily reduced the floating supply. The corner is a sec ondary phase, though the more spectacu- lar one to the broker house is move of far-reaching consequences-possibly put ting a stop to the plans for the greatest of railroad mergers and upsetting Presi- dent Hills audacious plan to have North ern Pacific control Burlingtons opera tions.
 The policy of Kuhn, Loeb & Co.,, has been essentially one of self protection and being now in dominant position with the balance of power, and the western railway situation restored they will con- tent themselves with this rather than create among the great western railroads the lasting hostilities which would follow the abandonment of the Burlington deal. This probably will now be made a trian- ular arrangement, the Union Pacific shar- ing control with the Northern Pacific and Great Northern under a modification of the guarantee
 Cause of the Advantage.
 "The conditions under which Kuhn, Loeb & Co. were able to win their advan- tage were that the Hill-Morgan interests in Northern Pacific held about 40O, 900 shares of Northern Pacific as perma- nent investment, which was practically off the market. In addition, about 200. 900 shares were held abroad and a good deal of this passed to the Union Pacific inter ests. This left virtually but 100000 shares of the S00,0 shares of common stock out SldHulHS dNdlidDle III tue NeW lOrk mar ket. While there have been heavy sales of Northern Pacific by insiders the stock held for control has not been sold and it is not likely that insiders sold short on the market as has been intimated. The corner in the stCEi was not looked for by the serious buyers of Northern Pacific, who had practically accomplished their purchases before Mondays sharp rise. "The pyrotechnics" in the shares are at- tributed to MT. Keene who comprehend ing what was actually going in the stock and understanding the large. short inter est of speculators went into the market and effected the corner.
 Mir. Hill, 1t was authoritatively stated today, has not sold any of his Northern Pacific stock. His large interest was &C., quired last summer around the low price when the stock broke on the reduction of the common dividend and the seemingly poor traffic prospects resulting from the failure of the spring wheat. harvest. He said today:
 ''I have not bought a share of Northern Pacific in six months,' and in reference to the reported differences between the Hartman syndicate and the Morgan-Hill interests he said that has been magni- fled thousand times."