The Honolulu republican. [volume] (Honolulu, T.H.) 1900-1902, 1901-05-19
TRUCE DECLINED AND
STOCK PANIC IS ENDED

NEW YORK. May s.-The North
ern Pacific corner has been broken
According to inI rIaation that reached
stockholders and operators at the
waldorf-Aetoria late tonight. a truce
has been declared. Kuhn. Loeb <
Co. gave notice that they would set
tie with al their shorts AZ 15o. J. p.
Morgan & Co and James r Keane
will settle. It is said. at between $50
and 1s5 Definite figures had not been
decided upon tonight. but VIII probab-
Is be announced before trading be-
gins tomorrow There was no bid
ding for loans OF Northern Pacific al
the Waldorf tonight This was re-
garded as most significant No great
squeeze is looked for in Northern Pa
eific tomorrow. On all sides il was
said that the worst was over and that
there would be no repetition of the
stupendous panic which rocked Wall
street from end to end today. The
exchange closes Saturday.
Many large houses could not stand
the strain of another day like today.
Prices fell from 20 to SO points. Money
loaned as high as SO. per cent A
syndicate Of bankers put out s1s ,000,-
900 at from 40 to so per cent While
other stocks were tumbling on every
sale the prices and large fortunes
melting away in minutes. Northern
Pacific went up with leaps and
bounds, till $1,000 a share was bid,
making advances Of 100 and 200 points
between sales. The trading was the
widest ever witnessed At one time
Northern Pacific was $40 points above
T Wednesdays closing. 1t was the
widest day in Wall streets history,
but there were no important failures.
Only five small consolidated exchange
firms went to the wall
The panic leaves one question Of
far-reaching Importance still in doubt
who will control the Northern Pa
cific Railway when this fight is over?
Both J. P. Morgan & Co. and Kuhn.
Loeb & Co. claim it, and neither of
these great firms usually makes any
claim 1t cannot prove. 1t is possible
that neither may know which is the
victor until the stock contracted for
has been actually delivered. The
master mind of Kuhn, Loeb & Co.
VI lnC DoAlRAAOAC anu
Ohio and Union Pacific Railways is
Jacob H. Schiff. Schiff said last
night. We think we now control the
Northern Pacific"
President Melien of the Northern
Pacific said: Hill and ]. P Morgan
between them own a majority of the
S155. 000, 900 of stock, common and
preferred They cannot lose control.
To my personal knowledge Hill re-
fused to buy more common stock last
week, because he already had con-
troll"
Uncertainty arises from the fact
that each firm may now hold con-
tracts for delivery of more than ma
jority of the 200 900 shares still out
standing In other words, contracts
have been made for more stock than
exists Some of these contracts OBJ
viously cannot be kept. When de-
liveries are forced there will be fail
ures. broken contracts. and it is i'm
1 possible TO foretell which firm will
secure the advantage in actual stock
receipts on these. contracts to deliver.
| There has never been such a situa.
| ton before.
II the Kuhn-Loeb-Harriman party
wins. the lease of the Chicago. Bur
lington and Quincy will be defeated
by the Northern Pacific stockholders
meeting. or else compromise will
be reached by which the Union Paci-
&c Railway will have representatives
in the board controlling the entire
Great Northern. Northern Pacific and
Burlington railway system. That will
make J. P Morgan and James ]. Hill
no longer dictators there.