The Savannah morning news., 1901-05-10
, CoRNDR IN NoRTHERN PACIFIC.

A CORNER IN NORTHERN PACIFIC.
IT has been many day since there was
so much excitement in financial circles
in New York as there was yesterday.
Northern Pacific rose to $1,000 per share,
the face value of shares being 800, and
money was loaned at the rate of 60 per
cent. While the price of Northern Pa
cifc was going up the prices of pretty
nearly ell other shares on the Stock Elk
change list were falling with appalling
rapidity
1t developed a day or two ago that
there was corner in North Pacific, and
that it was being engineered by the we'll
known operator, James r. Keene. 1t
does not appear to be known whether he
is acting for himself or for a syndicate.
It is supposed, however, that he is oper-
ating for syndicate that has been aim
ing to get control of the Northern Pacific
"a syndicate that has any number of
millions of dollars at it's command.
1t seems that there are two groups of
fnanciers having great railroad interests
which have been fighting for the con-
troll of that property. One of these has
secured control Of the Union Pacific Rair-
way and desires to prevent the opening
of another trans-continental line. The
other group wants to get the Northern
Pacific in order to make another complete
continental line from New York to the
Pacific coast. Assuming that this state
ment is correct it can be seen readily
why the control of the Northern Pacific
has become a matter of so much import
ence. With only one transcontlnental
line from New York, and that one includ-
ing the Union Pacific, the latter property
would be Immensely valuable and the
value of the roads connecting with it,
and making the transcontinental line,
would be greatly increased.
The scheme to corner Northern Pacific
was daring one for the reason that the
number of its shares is so large--it be-
ing 10000. Mr.. Keene, however must
have had very accurate information as
to the extent of the short interest, and
also as to the whereabouts of most of
the shares. Without such information
nous risk. He knew, of course, that a
very large number of the shares were in
Europe where many thousands of them
have been ever since they were issued.
He deTstood, of course, that they would
be sent to this country as soon as the
price became tempting enough, but it
would take considerable time before they
could become available for delivery.
No doubt some of those who have been
holding this stock find themselves sud
denly rich. 1t may be that they have
been holding it for years, hoping that it
would yield them a comfortable income
Only last September it sold as low as
$40 a share, and four years ago it sold
for S121a per share. At that time 1000
shares could have been had for $12, 500, and
that number of shares, for a short time
yesterday had a market value of 81, 200, 600
But while few are weather. for the
phenomenal rise in Northern Pacific yes
terday there are hundreds, and perhaps
thousands, who are poorer The sudden
and extraordinary fall in the prices of
other stocks wiped out margins, and
stocks were thrown on the market in
great blocks. It is a safe statement
that a very considerable per cent. of
those who have been making money on
stocks during the last three months lost
every cent they had made and perhaps a
great deal more. Wall street is a place
in which fortune can be made quickly,
but the risk of getting rich there is so
great that it is advisable to keep away
from 1t.