The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-05-09
KEENE DID 1T.
He Engineered the Corner in North
ern Pacific Stock.

New York, May 9.-Dealing with the
relation of things in the turmoil of Wall
street, the financial writer of the Even
ing Post in a news leader in its last edi-
ton says:
The fundamental fact in the North
ern Pacific situation today was that the
Burlington deal is placed in jeopardy, as
matters stand at present Union Pa
cific interests which were alarmed at the
danger to their property lying in Bur-
Hngton'S control by the Northern Trans
continental lines have bought enough
Northern Pacific stock to prevent the
ratification of the Burlington purchase
by the Northern Pacific shareholders
unless some agreement is made with
them which will protect their interests
sufficiently. The corner in the shares
was unpremediatated. That develop
ment resulted, it is said from Mr.. Keene's
clever appreciation OF the situation IN
the stock, the legitimate demand for
which had heavily reduced the floating
supply. The corners secondary aspect
though the more spectacular one to the
public, is a movement of far reaching
correctness, possibly putting a stop to
the plans for the greatest Of railroad
mergers, upsetting President Hills au-
dacious plan to have Northern Pacific
control BurlingtOn's operations
The policy of Kuhne Loeb & Co. has
been essentially one of self protection
and being now in a dominant position
where the balance of power in the west
ern railroad situation, so rudely disturb
ed by Mr. HIPS Burlington deal, has
been restored, they will content them
selves without creating lasting hostiIi-
ties among the great western railroads
which would follow the abandonment of
the Burlington deal. There probably
viii now be made triangular arrange
ment with the Union Pacific sharing
the control as well as Northern Pacific
and Great Northern under modification
of the burden of the guarantee
The conditions under which Kuhne,
Loeb & Co, were abole to win their ad-
vantage were that the HILL Morgan in
100000 shares of Northern Pacific as a
permanent investment, which was prac-
tically off the market. In addition about
200, 900 shares were held abroad and a
good deal of this passed to the Union
Pacific interests, this left virtually but
200, 900 shares Of the 100000 shares of
common stock outstanding available in
the New York market. While there have
been heavy sales of Northern Pacific by
insiders the stock held for control has
not been sold, and it is not likely that
insiders went short of the market as has
been intimated. The corner in the stock
was locked for by the serious buy
ers of Northern Pacific, who had prac-
tically accomplished their purchases be-
fore Mondays sharp rise The pyrotech-
MICS in the shares are attributed to Mr.
keene, who. compromising what was
actually going on in the stock and I'M
derstanding the large short interest of
spectators. went into the market and
effected the corner.
Mr.. Hill, it was authoritatively sta
ted today, has not sold any of his North
ern Pacific stock. His large interest was
acquired last summer around 80, when
the stock broke on the reduction of the
common dividend and the seemingly
moor traffic prOsuecfS raS11ffiusy from tho
failure of the spring wheat harvest. He
said today:
Il have not bought a share Of North
ern Pacific in six months"
In reference to the reported differences
between the Hartman syndicate and
the Morgan-Hi1 interests he said:
THAT has been magnifed a thousand
times