Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-05-09
HILL SD[AL IN DANGER
Financial Expert OF New York
Evening Post Sees Danger
In Burlington Deal.
Enough Northern Pacific Shares
Sold to Prevent the Bur.
linston Purchase.
English Iron Workers Discuss
Loss Of Trade to AM
orleans.

New York, May 9.--Ioeallng with the
relation of things in the turmoil of Wall
street the financial writer Of the Even
ing Post in a news leader in its last edi-
ton last evening says
THE fundamental fact in the North
ern Pacific situation today was that the
burlington deal is placed III jeopardy as
matters stand at present. Union Pacific
Interests, whowere alarmed at the dam
ger to their property lying in Burling-
tons control by the northern transcon-
tinental lines. have bought enough Of
Northern Pacific stock to prevent the
ratification OF the burlington purchase
ty the Northern Pacilc shareholders
unless some agreement is made with
them which will protect their interests
Sufficiently.
The corner in the shares was unpre-
ineaitated. That development resulted,
it is said, from Mr.. keene's clever appre-
citation OF the situation in the stock, the
Legitimate demand for which had heav-
lily reduced the floating supply. The cor
ner is a secondary aspect, tho the more
5nent of far-reaching consequences-
possibly putting a stop to the plans for
the greatest of railroad mergers. upset
ting President Hill's audacious plan to
have the Northern Pacific control the
Buprlington's operations.
The policy of Kuhn, Loeb & Co. has
sheen essentially one of self protection,
and being now in a dominant position.
where the balance of power in the
Western railway situation, SO rudely
disturbed by MIR. Hills Burlington deal,
has been restored. they Will content
themselves rather than create lasting
hostiiities among the great western rail-
roads which would follow the abandon-
,nent of the Burlington deaf. This prob
ably Will now be made a triangular arr
rangement. with the Union Pacific shar
ing the control as we'll as the Northern
Pacific and Great Northern. under a
modification of the burden Of the guar
antee.
THE conditions under which Kuhn.
Loeb & Co. We're able TO win their adj
vantage were that the Hill Morgan in =
terests in Northern Pacific held about
400. 900 shares of Northern Pacific as a
permanent investment which was prac-
;ically off the market In addition abou,
100000 shares were held abroad and a
good deal of this passed to the Union
Pacific interests. This left virtually but
100000 shares of the 100000 shares OF
common stock outstanding available In
| the New York market. While there hav.
been heavy sales of Northern Pacific by
INSIDERS the stock held for control has
not been cold and Ii is not likely that
insiders went short OF the market. as
has been intinated.
The corne. in the stock was not
looked for by the serious buyers of
Northern Pacific, who had practically
accomplished their purchases before
Monday . sharp8rise. The spyrotechnics
In the shares are attributed to Mr..
Keene. who. cemprehending what was
actually going on. and understanding
1.-the large short interest of spectators
went into the market and effected the
corner.
MIR. Hill. il was authoritatively stat.
ed. has not sold any OF his Northern Pa
| cific stock. His large interest was ac.
quired Last summer around so. when tn,
stock broke on the reduction of the com
mon dividend and the seemingly poor
traffic prospects. resulting from the
! failure of the spring wheat harvest. HI
Esaid: I have not bought share OF
/ Northern Pacific in six months and II
4 reference to the reported differences be
Tween the Hartman syndicate and the
Morgan Hin interests he said: .Tha
4 has been magnified a thousand times