The times. [volume] (Richmond, Va.) 1890-1903, 1901-10-25
STOCK MARKET
MUCH BROADER
But There Was Much Profit sking
During the Day.
THE NORTHERN PACIFIC TANGLE
A New Yatk Eanker Explains How the Dead
Iock Was Broush: ab,ut-A Fight
Between Great L.
terests.
hc stock market vesterdav was BROAD


er ard more active than it Lad previously
been for some time past, although prices
were not much improved. There WIS
much trading in st. Paul and the Pacific
stocks, and at one time it looked as
though the spectators were going to
have a merry time of it. But the market
soon weakened and much protlt-takinS
was in evidence.
One of the interesting features of the
Gay was "a break in United States Steel
preferred. The stock sod from 90 down
TO 81 Is but soon recovered and after
wards sold at 50 IL. The market was
weakest toward the close, and closing
prices in many Instances were the lowest
Of the day.
THE NORTHERN PACIFIC AFFAIR.
AS much has been said in this depart
ment concerning the Northern Pacific
complication, the following statement
furnished the Philadelphia Ledger by a
New York banker is reproduced:
I'VE are confronted he said, with
the most extraordinary situation l have
ever witnessed in my thirty years eNpe-
riencc in Wall Street. Every one is IA
miiar with the events leading up to the
panic OF May 9th last, Of the Morgan
Hill plan for the absorption of the Bur
lington system by the Great Northern
and Northern Pacific, of the Gear of the
Harrima n-kuhn-Loeb syndicate that this
would be a serious menace of their in
terests OF Union Pacific, of which the
Burlington is a competitor, and OF the
consequent fierce struggle between the
two parties for the control OF the North
ern Pacific AS a result of that struggle,
the Morgan and Hill party was left with
{, majority of the common stock and the
Hartman syndicate with a majority of
the preferred and common stock taken
together 4 truce had to be declared TO
prevent further panic, but no final settle
ment was arrived at. Mr. Morgan was in
Europe on the 9th of May, and II vas
agreed that when he returned Mr.. Harrl-
man should sSve II IN proxies for the HaT-
rlInan-1>uhn-l-oeb STOCK, TO be used at
the coming annual election. at which
board of directors, representing both in
terests in the Northern Pacific, should
be elected | understand that after Mr..
Hartman had made the agreement to
deliver the proxies for his stock to Mr..
Morgan, he awoke TO realization OF the
TACT tnat the preferred stock could be re-
tired by the company at par for cash on
any LIST OF January.
LAVA tiRS DIFFER.
The retirement Of this stock would
leave Mr. Morgan and Mr.. Hill III undiS-
puted possession OF the Northern Pacific,
and thus Of the Burlington. Mr. Iarri->
man then demanded of Mr.. Morgan q
niedge that the preferred stock should
not be retired MIR. Morgan refused to
give this C4>Lge and at the same time
demanded that Mr.. Hartman should ful-
fill his unconditional promise to deliver
his proxies. This Mr.. Hartman did, and
at the annual election, a few weeks ago,
Mr.. Bacon, of Mr.. MorSan's Hrnl, voted
the entire Morgan-Hill, Harrinan-Auhn-
Loeb stock. \ board of directors was
elected, containing minority of Harri-
man men, but majority Of Morgan men.
Mr. Hartman then sought other means
or preventing the retirement OF the pre-
ferred stock. He consulted a distinguish
ed lawyer, Mr.. Guthrie, who, after a
study Of the subject, wrote an opinion
that the preferred stock could be retired
only by Il vote of The stockholders. Mir.
Morgan called in his lawyers, who in
formed him that the directors could re-
tire the stock without the consent Of the
stockholders. Meanwhile, Mr. Hill came
into the field with his plan for holding
company to take over a controlling inter-
EST in the, three systems, thus tf1ectinG
a virtual consolidation without violation
of law, and at the same time relieve the
Morgan-Hill syndicate of the burden of
carrying all the majority stock
AN ABSOLUTE DEADLOCK.
Thus tho matter stands continued
the banker, and it is an absolute dead
lock. So far as I can see me ccntro-
versy in spite CT efforts to settle it on a
permanent basis, is in the same position
it was three months ago. There is much
bitterness OH both sides, although both
make open professions of vocdiality. But
neither side wants to fight, for the re-
suit of war would be calamitous. I am,
therefore. persuading that a permanent
settlement will finally be reached. and
that the two svndicates will get out Of
their present unpleasant position. But in
the meantime every banker who sees
behind the scenes regards the situation,
pending a sttlement as serious l'id"cd
1t unsettles the entire money market.
The two syndicates are carrying their i'm
mense burden OF stocks on money cb-
tanned from sterling loans These Leans.
maturing frcTll time to time. have to be
renewed. and the sterling exchange mar
ket is thus controlled by this factor. No
wonder t'1@, stock market has become dull
and wholly professional. Until the two
s+Tndicates can settle their differences and
dispose Of q part Of the stocks they are
carving this Sta tie OF things must con-