The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1901-05-14
HILL MORGAN VICTORY.
The Hartman interests Misled by an
Old Northern Pacific Rule.
May Unload ,oday.

New. York. May 10.-Last night an
individual who has been party to con-
ferences relating TO the strained con-
ditions in Wall street said in part:
Tomorrow morning Kuhn, Loeb &c
Co. will issue notice saying they
will let out their Northern Pacific
stock to shorts at $3.50. Positive
statement is made tonight that to-
morrow j. p. Morgan &c Co. will
notify shorts that they will be re-
leased of short obligations to Morgan
C Co. on the basis of $3.50. This will
be the penalization. The shorts will
get no stocks from Morgan & Co.
They will get only freedom.
"The Burlington deal will be known
tomorrow as an accomplished fact.
1t has already been accomplished.
The Morgan-Hill interests control the
Northern Pacific stock and the board
of directors has absolute power to
close the Northern Pacifc-Burlington
merger without the consent OF two
thirds OF Northern Pacific stock. The
old law of the Northern Pacific pre-
scribed that two-thirds Of the stock
should assent to such q transaction
as the present deal. This provision,
still printed in the manual accepted
as authentic, has misled the oppon-
ents of Morgan-Hill plans, because,
in the organization, the two-thirds
provision was abolished and ths
power was vested solely in the board
Of directors"
He said the Kuhn, Loeb & Co. in.
terests bought to prevent two-thirds
consent. but learned later it was not
necessary. They also learned that
shorts could not deliver some paper
contracts they held, while Morgan
Hill had the real goods. They now
have no use for their load and will let
it out today.
The struggle Of financial giants
which broke the most remarkable
movement that American stocks has
ever had dated back about fortnight
b. II. Hartman and his associates,
so they relate the story In the street,
discovered that brokers representing
J. p. Morgan & Co. were buying
Union Pacific. Hartman at once be.
gan increasing his own holdings, buy.
Ing on market that rapidly ad-
vaned, and when sure Of control sub.
mltted proposition for some basis
OF agreement as to the control of
Burlington. just acquired by the Great
Northern and Northern Pacific. That
offer was rejected. On Monday last
there began a sensational 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 deliy.
cred. 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 to 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
opportunity to control. The shorts
learned Wednesday that they were
severely cornered and made frantic
efforts to secure stock. The move.
ment for their relief began Wednes.
day night. but the failure of the lead.
ers to. agree left them in desperate
straits. There was some consolation
In the extension Of time for delivery,
but that after all was merely deferr.
Ing the reckoning. Kuhn, Loeb & Co.
Thursday morning renewed their of.
fer to loan the stock they held, but
1t was stated that the Morgans, for
some reason. did not care to enter
the compact The reckoning is to
come today. and despite the promis.
ing features Of the closing hours
Thursday doubt fingered as to the
eject OF the Northern Pacific situa-
tion upon the whole market today.