The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1901-05-10
CORNERIN NORTHERN PACIFIC
Successful Effort TO Prevent the Bur-
lfngton Railway Deal

New York May S.-Dealing with the
relations of things in the turmoil of
Wall street today, the financial writer
of the Evening Post in a news letter
in it's last edition this evening says:
The fundamental fact in the North
ern Pacific situation today was that
the Burlington deal is placed in jeo-
pardy as matters stand at present.
Union Pacific interests who were al
armed at the danger to their property,
lying in Burlingtons control, by the
northern trans-continental lines, have
bought enough Northern Pacific stock
to prevent the ratification of the Bur
lington purchase by the Northern Pa
cific shareholders unless some agree
ment is made with them which will
protect their interests sufficiently. The
corner in the shares was unpremeditat-
ed. That development resulted, it is
said, from Mr.. Keen's clever apprecia-
ton of the situation in the stock, the
legitimate demand for which had heav-
lily reduced the floating supply. The
corner is a secondary aspect, though
the more spectacular one to the public,
in a movement of far-reaching conse-
quences, possibly putting a stop to the
gers, upsetting President Hills auda-
cious plan to have the Northern Pacific
control Burlington's operations.
The policy of Kuhn, Loeb & Co.,
has been an essential one of self-protec-
ton and being now in dominant po-
sition, where the balance of power in
the western railway situation, so rude
ly disturbed by Mr.. Hills Burlington
deal, has been restored, they will con-
tent themselves rather than create
lasting hostilities among the great
western railroads, which would follow
the abandonment of the Burlington
deal This probably will now be made
triangular arrangement, with the
Union Pacific sharing the control as
well as the Northern Pacific and Great
Northern. under modification of the
burden Of the guarantee.
1.-The conditions under which Kuhn,
y Loeb & Co., were able to win their ad-
vantage were that the Hill-Morgan in
terests in the Northern Pacific held
about 100000 shares of Northern Pa
cific as a permanent investment which
was practically out of the market. In
addition, about coo shares were
held abroad and a good deal of this
passed to the Union Pacific interests.
This left virtually but 100000 shares
of the S00, 600 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 not looked for by the serious buy
ers of the Northern Pacific who had
practically accomplished their pur-
chases before Mondays sharp rise. The
'pyrotechnics' in the shares are attrib-
uted to Mr.. Keen, who, comprehending
what was actually going on in the
stock and understanding the large
short interest of spectators, went into
the market and effected the corner.
Mr.. Hill. it was authoritatively
stated today. has not sold any Of his
Northern Pacific stock. His large in.
terest was acquired last summer
around so, when the stock broke or
the reduction of the common dividend
and the seemingly poor traffic pros
poets, resulting from the failure Of the
spring wheat harvest. He said today
L have not bought q share of North
ern Pacific In six months" and in ref
erence to the reported differences be
tween the Hartman syndicate and the
Morgan-Hill interests he said: "Tha
has been magnified a thousand times