The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1901-05-31

"ifplland' in his New York letter in
the Philadelphia Press yesterday said
about the efforts of capitalists to get
control OF the Lackawanna road:
"lf there were anybody courageous or
! reckless enough to sell shares of the
backaW1nna stock not having these
shares in their possession or knowing
Just where they could he obtained then
there would arise exactly the conditions
which produced the Northern Pacific
corner'ihrce weeks ago. For from one
point of view. I.ackawanna stock is
practically cornercd now.
But. apparently. no one is selling
Lackawanna stock short Thc very
nigh prices that arc offered fo. il re-
SUIT in many sales. but these arc sales
made by men who possess the stock
ana can mako immediate delivery, or
who know where they can get it, II is
this lack of short selling that rcfutes
tn" statement made by some who have
been trying to explain the mysterious
movements in Lackawanna by saving
that they are purely speculative. In
stead of that they represent "A new
struggle for the possession of a rail
way system almost as desperate as
that which characterized the attempt
t" control Northern Pacific property.
MOVEMENTS IDENTICAL.
"Thc movement in Lackawanna has
been almost identical in its superficial
appearances with some of the earlier
demonstrations that indicated that
powerful financial interests were seek
ing to buy the control of some of the
greater railway systems.
Last winter there began to he rc-
corded soon after the first of the wear,
daily increases in tho price for which
the stock of the St Paul railroad sold.
Al first it was said that this was due
solely t" investment buying but when
the figures passed the point that would
represent reasonable return upon the
investment, then ii was apparent that
IT was not Immediate investment, but
some other purpose that led to this eX-
tenslvc buying upon the rising market.
After a While we learned that these
mysterious figures were due to the pur-
pose of Mr.. Hill and his associates to
secure control of the ST. Paul system.
purpose in which they were blocked.
Then. after little, an almost idcn-
teal demonstration was made by the
record for the prices which the Bur
lington stock fetched IN the daily mar
kct. The same explanation that had
been given when the movement in st
faul was first noticed was afterWard
employed to satisfy the curious minded
with respect to the demonstration the
Burlington stock made. After while
it was discovered that this buying of
burlington was not due to any desire
to seek good investment of surplus
capital. but was the result of a strenu-
Gus and ultimately successful attempt
To gain the control of the Burlington
system by the Morgan-Ilill interests.
THE EXPLANATION.
so, too. there were like movements
in Union Pacific stock, not explained
until there came the sudden announce
ment that Mr.. Hartman and his asso-
ciatos of the Union Pacific had secured
possession of the Southern Pacific.
"Othcr examples of a similar charac-
ter might he cited. all showing char
actcriSticS similar to the movements
that have made the Lackawanna stock
conspicuous in the markets for some
time The price offered for Lacka-
income basis Of per cent At PAP. the
figures quoted today, it is considerably
less than that. Everybody who has
stock to sell and who is willing to part
with it at the prices offered finds a
ready purchaser at these high quota
tions.
1T is impossible, therefore. to ac-
"rpt any other conclusions than that
"a,
ing now the control of the Lacka-
wanna system ana arc willing to pay
for that control prices far beyond
any investmcn, value of the stock.
These interests can only desire CON
tro! of that system either to bring
il into some one of the transcontl-
mental systems or else on the other
hand To prevent Il transaction of that
kind. Therefore,. ii Is presumed that
upon the one hand are Mr. Gould and
the Rockefelers and Mr.. Sage, and
AL those associated with the South
western system, of which the Mis-
souri, Pacific is The core. whereas. on
the other hand, arc in all probability
the Vanderbilt and the PENNSYLVANIA
interests, or, If Pennsylvania bc
counted out, then the Vanderbilt in
l'l'HlS AUNT
THE BUYING BROKERS.
"'rhc brokers who have heen buying
LackaWanna stock at the high fig
urcS are presumed to be in closer
touch with Gould and Rockefeller in
tercsls than with the Nanderblts.
This may not mean very much In
1888 at the very time of the dSaS-
truus summer panic of that year. Will
liam *, Vanderbilt through brokers
who acted with utmost skill, and all
of whom were not Identified with his
interests, bought so 1000 shares of
Lackawanna stock before any one
realized that he was making pur-
chase of this kind,
''fhoso who should know say that
Mr., Gould has recently bought not far
from $4,000 shares of Lackawanna
stock, and this interest, together with
that of the Moses Taylor estate and
of the Rockefellers, would probably
give control of the LaCkawanna. In
fact, il is now understood that in any
event Mr., Gould Is to he chosen a
director in the LaCkaWanna. 'rhx
| common impression here Is that he is
not 10 remain satisfied with ~
mere traffic or contract agreement
| by which he may use his Wabash
system in connection With the Lacka-
wanna.
"There will he no occasion for him
| To buy large blocks of stock to carry
out a purpose of that kind. Ills
| Wabash system and the Lackawanna
| already have traffic agreements that
in the past have been satisfactory, so
| that it is inferred that he is in con-
nection with the RoCkefellers and tho
] ~. .:l.... ...ll..l - L.. !.