Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-05-10

tH6t Juey were Severely c0IueTeQ ana
made frantic efforts to secure stock.
The movement for their relief began
last night, but the failure Of the leaders
to agree left them in desperate straits.
There was some consolation in the ex-
tension Of time for delivery, but that
arter all was merely deferring the
reckoning. Kuhn, Loeb & Co. this
morning renewed 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 promising
features of the closing hours to-day. a
doubt fingers as to the effect of the
Northern Pacific situation upon the
whole market tomorrow.
A banker who participated in the
movement to relieve the market, this
evening made this statement to the AS
ISOLATED Press:
1--WE loaned 81 100000 in the street
after 10 O'Clock to-day, some of it as
low as 6 per cent, and feel that the
crisis is over. l don't believe that a
single large house will go down.
There have been tremendous losses.
Thousands of accounts representing
millions of dollars are wiped out. But
the banks are firm and the large opera.
tors are | think, capable of caring for
themselves.
Wall street could not stand many
days like this, but as it is, the storm is
weathered and the situation will i'm
prove from the opening tomorrow.
Settlement Reported.
A conference was held in Kuhn, Loeb
& Co. S Office this afternoon between
Geo. j. Gould. No official statement
could be obtained, but it was reported
that a settlement of the railroad differ
ences in the west had been arranged
and that assurance would be given to
the Rock Island, st. Paul and Union
Pacific companies that their interests
would be protected in the Burlington
Great Northern-Northern Pacific alli-
ance.
Agreement Reached.
Tonight an individual who has been
a party to conferences relating to the
strained conditions in Wall street, this
week, made statements and explana-
lions which give to the contest in Wall
street a different construction than was
generally accepted in town to-day. He
said:
tomorrow morning Kuhn, Loeb &
Co. will issue a notice saying they VIII
let out their Northern Pacific stock to
shorts at $780, Positive statement is
made tonight that tomorrow ]. P.
Morgan & Co. will notify shorts that
they will be released of short obliga-
tons to Morgan & Co. on the basis of
$3.50 This will be the penalization.
The shorts will get no stock from Nor
gan & 20. they will get only free
dom.
THE Burlington deal will be known
tomorrow as an accomplished fact. 1t
has already been accomplished. The
Morgan-HiH interests control the North
ern Pacific stock and the board of di-
rectors has absolute power to close the
Northern Pacific Burlington merger
without the consent of two-third OF
Northern Pacific stock. The old law OF
the Northern Pacific prescribed that
two-thirds Of the stock should assent 70
such transaction as the present deal.
This provision still printed in the man
ual accepted as authentic. has misled
the opponents of Morgan-Hill plans, be-
cause, in the reorganization the two
thirds provision was abolished, and the
power was vested solely in the board Of
directors.
The board had stipulated that when
two-thirds of the Burlington. stock had
been deposited in a designated trust
company the Northern Pacific-Burling-
ton deal should be thus automatically
closed. The stock has been deposited
and the transaction so consummated.
Meanwhile the Kuhn Loeb interests,
believing two-thirds stock consent in
Northern Pacific
Necessary to Consummat ton,
have striven to absorb enough North
ern Pacific to prevent two-thirds con-
sent, with results seen in Wall street
this week. This afternoon they discov-
cred that two-thirds consent of North
ern Pacific stock was not necessary to
the Morgan+Hill deal, that they had
acted on wrong information on that
point.
Hence, according to a statement to
me by one of the Kuhn Loeb group
this evening, the Northern Pacific-Bur-
lington deal is sure and safe. This be-
ing true, Kuhn, Loeb & Company have
no tactical use for their load of North
ern Pacific and will therefore let it out
tomorrow to shorts at $50 and dis
charge makers of paper contracts TO
deliver stock they could not get on the
same basis.
This action makes logical the stated
design of Morgan & Company to de-
liver no Northern Pacific stock to
shorts, though shorts may purge them
selves of their short obligations at $50.
This release by Morgan-Hill, and the
letting out of actual stock no longer
useful to them, by the opposing inter-
ests, is expected to refieve the tension
and smooth out the complications in
Wall street tomorrow.
in the light of these facts and con-
ditions, it becomes apparent why Nor
gan-1ill interests declined the propo-
sitions of their opponents to loan stock
to shorts pro rata
WHAT GATES SAID.
John w. Gates said: The medicine has
been hard to take, but it has done good.
There was TOO much speculation and it
had to be checked. There will be heavy
buying orders and the market will rally
promptly This Northern Pacific settle
ment will clean things up. The banks
saved the day and 1 feel quite sure there
will be no failures of any size"