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Asked as to the reported differences between the
Harriman syndicate and the Morgan-Hill interests, he
said: "That has been magnified a thousand times." On the
same subject a partner in the firm of Kuhn, Loeb & Co.
said: "It would not be wise to make any statement today
because not tending to promote the securing of that
harmony which we all desire." Asked whether this meant
that there actually was a fight on the gentleman in
question merely laughed. James R. Keene, who is credited
with having engineered the "corner," is the Street
declares, "sawing wood and saying nothing."
Appeal To Mr. Morgan
However, whatever the situation, several conferences
were held yesterday and late last night, attended by Mr.
Hill, Mr. Harriman, James Stillman, Vice President
Lamont of Northern Pacific, and several other gentlemen.
What transpired was not disclosed. It is said that Mr.
Morgan, now abroad, has been appealed to settle all
matters in dispute, and that a reply from him in answer
to a cablegram sent last night is expected at any time.
As to what will happen to the stock today that is only
a matter for conjecture. Brokers sum the situation up
thus: "Either the shorts will fail on it, or they will
be given the stock by those who have cornered it."
Coming now to the general market, which broke so badly
in the face of this great rise in Northern Pacific, it
may be said that in large measure this very "corner" was
responsible for the break. It showed, first, that in
some respects, at least, certain of the advances in
prices had been brought about artificially and without
regard to real values. But, above and beyond this,
particularly when the stories of a conflict between
leading financial interests became so persistent, it led
to many reports that certain, far-reaching consolidation
schemes planned and planning would never be carried
through. Specifically it may be said that it was
declared with some positive ness that the Burlington
deal was among those that would never be completed,
principally because of the Northern Pacific development.
From Burlington the story of "clashes" spread to other
railways-to St. Paul, to Missouri Pacific and so on all
through the list. Then, again, it was declared that some
of the larger financiers were "selling out" on one
another. And so the disturbing rumors went on, while the
uneasiness was added to by a sharp rise in call money
rates, at one time to 20 per cent. Where it closed, and
by the announcement of an engagement of gold for export.
London also was reported to have received the "cue" to
sell, and this in a measure was borne out by the much
lower prices sent over by London at the opening here,
all the international stocks being down anywhere from
one to ten points, the big drop being, strangely enough,
in Northern Pacific.
But, as already pointed out, in the early trading Wall
Street operators gave little heed to any of these
disturbing reports or to the lower figures. Instead they
went gaily in and bid the general market up from one to
five points, Union Pacific leading always excepting
Northern Pacific. Burlington, however, lagged, but not
Erie, the latter being understood to be in the
Burlington deal. Soon Burlington developed actual
weakness: but still the market held. Then Erie began to
fall off, and then the rout of the bulls began. They ran
slowly at first, but as the decline grew greater they
ran faster, and thus accelerated their own downfall. In
the end they were in full flight and throwing over their
stocks, though the nature of the purchases suggested
that some of the stronger people were buying at the
sacrifice figures.
Fluctuations In Prices
Prices broke and rose frequently a point and two points
at a time. An extreme case was where one sale of
Brooklyn Rapid Transit was made at 73 and the next at
77-a clear gain of 4 full points. So great, indeed, was
the rush to sell that in the last hour the total
transactions for a single hour probably established a
new record. It is a fact that the tape did not "tick
off" the last transaction until 3:16 o'clock, being a
full sixteen minutes behind. Not only that, but then
came the Government bond sales, which usually are
printed at 2:15 o'clock, but which yesterday were
absolutely ignored until after the market's close. The
last transaction in them was not recorded until 3:25
o'clock.
What Brokers Say
What some representative Stock Exchange brokers think
of the market will appear from these expressions of
opinion. S. V. White- What do I think? Why, what is
there to think? The Northern Pacific "corner" has killed
the market, has sickened it unto death.
Bayard Dominick of Dominick & Dominick-. This market
was the result of over-speculation. Men, women, and
children have had more on their hands than they could
take care of, and the sequence was natural. It was not
unexpected by brokers with any experience in Wall
Street. The market has had a splendid decline, and the
atmosphere has been greatly cleared. A revival will come
after the belated liquidation is over.
H. H. Hollister of Hollister & Babcock- "The Street
feels that there is a battle of giants for the Northern
Pacific, and that if either side got it the Burlington
deal would be jeopardized. That is the reason for the
nervousness. At the same time today there was a kind of
bargain counter here for people who had the money to
avail themselves of a good opportunity.
[END OF ARTICLE]
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