The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-05-10

shorts, but it was evidently not finally
concluded Shortly after the market closed
it was semi-offieially announced that
basis of settlement had been practically
agreed upon, and that it would be clinched
before nightfall. At 8 o'clock, however,
Kuhn, Loeb & Co, whom the street &C
cepts as masters of the situation an
nounced that nothing could or would be
said as TO the stock to-day. There was a
spirit of compromise and conciiation in
the air, but until il should bear the fruit
Of definite settlement the situation in
Northern Pacific was felt to be a menace to
the whole market. Kuhn, Loeb & Co and
the men enlisted with them in the Harri-
man syndicate seem disposed to a reason
able peace, and on the outside the strongest
influences OF the financial world are NOV
ing determinedly for financial truce that
will protect the rket, avert panic and
re estore confidence. In addition to an ar
rangement with the shorts it is believed
that the settlement of the fight will also
involve the future relations of the Union
Pacific, the Northern Pacific. the Great
Northern and the Burlington. Men close
to the Hartman and Kuhn, Loeb & Co.
group insisted that the deal for the sale
would be carried through.
Granting that Hartman. Kuhn, Loeb &
Co. and their associates are dominant in
Northern Pacific, it is assumed that they
will claim and win voice in the future of
Burlington. 1t is believed the settlement
with the shorts in Northern Pacific will be
made at 200 or under. Kuhn, Loeb d Co.
say they deprecate the policy of the third
interest in taking enormous profits from the
shorts, and their friends avow regret that
outsiders suffer. A settlement with the
shorts would clear the situation materially,
but there will still remain the greater prob
lem in railroad politics of the future of the
road itself. On that point the following
statement from a member Of the Hartman
syndicate is significant: Northern Pacific
is in control of Kuhn, Loeb & Co. The only
thing that can affect this control will be the
possible inability of certain people to de-
liver the stock TO them. j. Il. Morgan q
Co. are in the same position"
The struggle of the financial giants which
broke the most remarkable movement that
American stocks has ever had dates back
but fortnight E. II. Hartman and his
associates so they relate the story in the
street, discovered that brokers represent
ing j. p. Morgan e. Co. were buying Union
Pacific. Hartman at once began increasing
his own holdings, buying on a market that
rapidly advanced. and when sure of control
submitted a proposition for some basis of
agreement as TO the control of Burlington,
just acquired by the Great Northern apd
the Northern Pacific. That offer was re-
jected. On Monday last there began SEN
sational movement in Northern Pacific, and
the public got the first intimation of the
battle for supremacy. Street & Norton
took all of the stock they could get. SEEM
ingly without regard to price. Much of the
stock sold TO them was for short account
and could not be delivered. 1t developed
finally that there were three large interests
in the property, two seeking its manage
ment and the third a speculative profit.
Both the Hartman syndicate and the
Morgan-Hill interests claimed control, and
the predicament of the shorts was made
worse by the fear of both the Hartman
and Morgan syndicates 10 lend the stock TO
the shorts. 1t was this fear that led Kuhn.
Loeb & Co, of the Hartman interests, TO
seek an understanding with Morgan & Co.
as to the lending Of stock to shorts. To
have loaned without an understanding was
to court the danger of losing the stock
and possibly the dearly purchased opportu-
nifty to control. The shorts learned yester-
day that they were severely cornered and
made frantic efforts to secure stock. The
movement for their relief began last night.
but the failure of leaders TO agree left them
in desperate straits. There was some con-
ISOLATION in the extension of time for deliv-
cry. but that after all, was merely defer
ring the reckoning. Kuhn, Loeb & Co. this
morning continued their offer to loan the
stock they held, but it was stated that the
Morgans, for some reason, did not care to
enter the compact. The reckoning is to
come tomorrow, and, despite the promis-
ing features of the closing hours to-day,
a doubt fingers to the effect of the
Northern Pacific situation upon the whole
market