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THE MINNEAPOLIS JOURNAL
PRICE TWO CENTS.
How the Situation Was Ren
dered Less Insufferable.
GILDERSLEEVE DID IT
Issued an Order Restraining Both
Factions in Northern Pacific.
THE ORDER WAS NOT SERVED
Bat It Had the Effect of Suddenly
Brlnying the BelliifcrcutN
Wew York Stir, Sacciaf Sorvlcm.
New York, May 10.—Court proceedings
smashed the Northern Pacific corner, and
not a desire on the part of the financial
giants fighting for the property to avert a
general jianic. The speculative interests
which had become involved by a battle of
the Morgan-Hill and Harriman-Kuhn,
Loeb & Co., syndicates and who had un
wittingly participated in bringing about
a condition of affairs which they least of
all desired, were amazed at the efforts of
their own handiwork as evidenced in the
market. One of the parties to the suit,
whose name was kept secret, told how the
crisis was reached. He explained it as
Early yesterday these gentlemen applied to
both Messrs. Kuhn, Loeb & Co. and J. P.
Morgan & Co. for authority to relax the ten
sion In Northern Pacific so as to stop the
panic in the general market. For an hour
tLe representatives are said to have pleaded
■with the representatives of both firms, but In
vain. Neither would yield an inch. Then the
gentlemen who had done the pleading went
in haste to consult their counsel, Messrs.
Henry L. Scheurman and Herbert R. Ljm
burger of the firm of Hoadley, Lauterbach &
Johnson. The lawyers did not hesitate long
In expressing an opinion, and wasted a still
shorter space of time in acting in behalf of
Order From Jadge Gildemleeve.
In an hour the pleaders again appeared at
the offices of Morgan & Co. and Kuhn, Loeb
<t Co. They produced an order which had
just been obtained by Messrs. Scheurman
and Lilmburger from Justice Gildersleeve, sit
ting in the supreme court. The names of the
plaintiff and the broker cannot be disclosed.
The defendants in this suit, in addition to the
broker in question, were Messrs. Harriman,
Hill, Kuhn, Loeb & Co., J. P. Morgan & Co.,
Hudolph Keppler as president of the New
York Stock Exchange, and the New York
The order provides as follows: It was or
dered that the defendant brokers be re
strained from purchasing any stocks of the
Northern Pacific Railroad company in order
to close the account of the plaintiff or for
tay other purpose on behalf of the plaintiff
cr on account of the plaintiff, and all the de
fendants other than Rudolph Keppler and the
New York Stock Exchange are restrained and
enjoined from making any transaction what
soever with respect to the stock of the North
ern Pacific Railroad company on behalf of
the plaintiff, and Rudolph Keppler and the
Xew York Stock Exchange are restrained
from ordering, directing or requiring the
purchase o! any stock of the Northern Pacific
company by or on behalf or on account of the
Stviidk a Club.
The gentlemen at whose instance this order
■was procured stated to Mr. Schlff and Mr.
Ban'on, representing the respective contending
interests, that unless immediately relief was
granted, the order would be . served, and
similar order would follow on behalf of all
other houses short of the stock before 2:15
Confronted with this situation, the contend
ing forces were not long in reaching a decis
ion. At 12:30 notices were, by request of the
parties in interest, sent to the stock exchange
officials over the ticker to the effect that de
livery of Northern Pacific stock would not be
required. The promise was also exacted by
the parties who controlled the injunction pro
ceedings that formal announcement should
be made upon the opening of business to
morrow that all houses short of Northern
Pacific could cover their stock at a uniform
price of $150 a share. A further promise was
exacted that the money rate, which was then
ruling at 70 per cent, should be reduced to 6
per cent by the advancing of any amounts
necessary for that purpose.
All the conditions of the agreement price
of $150 a share have been complied with, anj
that stipulation is to be performed on or be
fore 10 o'clock this morning, pending which
the injunction paper remains unserved in the
possesison of counsel. The injunction was
obtained at the instance of David Lamar, but
it Is stated that the main moves in the effort
to save the market and the corner and raise
the rate of interest to the legal rate, thus to
come extent at least restoring confidence,
Inspired by .la in en R. Keene.
On Monday last J. P. Morgan & Co applied
>o certain speculative interests to purchase
secretly on their behalf 100.000 shares of North
ern Pacific stock, which this firm desired to
purchase for the purpose of Insuring their
absolute control and ownership of the ma
jority of the capital stock of the Northern
Pacific Ralway company, which control this
firm and its principal associates, J. J. Hiii,
believed to be in peril. The speculative In
terests referred to upon the understanding
that the transaction was an entirely legiti
mate one and intended only for the afore
said purpose, consented to perform the serv
ices, and the amount of stock desired by
Messrs. Morgan & Co. was quickly purchased
at an advance of only eight points.
Upon the following day it was developed
that the interests represented by Messrs. E.
H. Harrlman and Messrs. Kuhn, Loeb & Co.
had acquired an enormous amount of pre
ferred and common stock of the company,
Also for the purpose of control. It further
developed that a portion of the stock Sold to
each of the contending Interests was what
Js commonly termed "short" stock, and that,
In addition to a considerable amount l>ad
been sold by arbitrage houses against stock
held in Europe.
Some Question arose between the parties as
to the date upon which the books would
close. No satisfactory determination of this
question was reached, and as a result, each
of the contending forces became Imbued with
tbe idea that the immediate possession of the
stock purchased must be had. The result
was a corner of tbe stock.
It Was Bernard Smith.
New York, May Judge GiWersleeve
said to-day that the order to show cause
In' the" Northern -Pacific- case was issued
by him at his house last night on the ap
plication of counsel for Bernard Smith.
The plaintiff. Smith, claimed to have sold
100 shares of Northern Pacific "shore"
to a broker. He alleged that the broker
was acting for parties who held all the
itock at the time and that the party to
whom he sold the stock knew it was im
possible for the plaintiff to carry out his
contract to deliver it. vUnder these cir
cumstances Smith asked that the person to
whom he; sold the 200 shares of stook bs
enjoined from enforcing his claim for, its
Th£ usual bond to be given Dy the plain
tiff to indemnify the defendants from loss
. should the injune'ion not be continued,
-was not filed, and no steps to serve the
preliminary Injunction'on the * defendants
rsvere taken.- BBHBS9I]
Supreme Court Again Re
verses Judge McGee.
THE POLES MAY GO UP
City Ordinance of Is Held Not
LOVELY WRITES THE DF si-jN
Chief Justice Start Dissent*—Oi-
The supreme court has again reversed
Judge McGee In the Northwestern Tele
phone company case. The opinion on re
hearing was filed this morning, and bears
the signature of Judge Lovely.
The case involves the right of the city
to order telephone wires pieced under
ground. The city council in 1899 passed
an ordinance extending the underground
limits to about ten times their former size.
The telephone company, ignoring the
ordinance, proceeded to string wires with
in the proscribed limit. It -was stopped by
the police, and the company's attorneys
applied for an injunction to restrain the
city from interfering with the -work. The
injunction was demurred to by the city,
and Judge McGee sustained the demurrer.
The company appealed to the supreme
court. The company's attorneys main
tained that, under .the charter, the com
pany had been given the right to string
its wires, and that the grant constituted
a contract. It also urged that th 3 state
law gave the company a right to the use
of city streets as well as of rural high
The supreme court reversed the lower
court, but a rehearing was secured.
The decision filed to-day upholds both
contentions of the company, but with the
important proviso that the city has the
right to regulate the placing of poles and
wires in Its streets and to compel the
companies to put their wires in conduits
"when reason, convenience, or the good
government of the municipality requires.
Judge Start dissents from, the court's
reasoning, but concurs in the conclusion
that the complaint states a cause of ac
The decision knocks " out the ISO 9 or
dinance, and makes it necessary for the
council to establish new limits consistent
with "reasonable regulation."
The syllabus is as follows:
The Northwestern Telephone Exchange Com
pany, appellant, vs. City of Minneapolis et
First—HeM. that under the genera) laws of
this state, section 28, chapter S4, revision of
1566, as amended by chapter 73 of the General
! Laws 1881, section 2641 General Statutes 1894,
that telephone companies are given the right
to erect poles and wires within the urban
ways and streets of this state as well as
upon- rural highways.
Second That the provisions of the charter
of Minneapolis confers upon that city no au
thority to arbitrarily order removal of such
; poles and wires, but only the right to regu
late the plac:rg of the same in its streets
and to compel the telephone companies to put
their wires in sub-surface conduits when
reason, convenience or the good government
of the 'municipality requires. Order reversed.
Lovely, J. \
Judge Lovely in his opinion, says:
We are led to the conclusion that tho plain
tiff had a right to use the streets of the city
under proper regulations and restrictions by
the municipality. What such power of regu
lation in the city imposed in its relation
to che plaintiff is still to be considered. Since
the first argument in the case section 2641 of
the general statutes of 1834 has been judicially
construed by the United States circuit court
of this district, and the conclusion expressed
above find authority therein as well as the
necessary deduction that any ordinance of
the city interfering with or impairing the
vested right thus conferred upon the plaintiff
by the stats violated constitutional rights and
Judge Lovely further says:
We think much misunderstanding has aris
en from the previous opinion through a fail
ure to realize what was actually determined.
We have not held and do not hold that the
city had the power to confer upon the plain
tiff vested rights to irrevocably occupy its
streets in violation of any reasonable right
therein by the city. We hold that the only
power delegated by the state to the city un
der any of the charter provisions referred to
is the power of regulation and the necessary
control incident to such power. We held in
tho former opinion, and now hold, that the
only contracts entered into by the city with
the defendant was with reference to the man
ner and method of placing its poles and
wires. Such contract was within the police
power of the city, and the defendant having
acted "upon the contract as the ordinance of
1883 as to how it should place its poles and
wires, the city cannot without reasonable
cause In the exercise of its power of regula
tion, revoke its contract as to such matters
and order a different arrangement.
The solution of the question involved In
this case is not difficult, and is consistent
with every reasonable interest that belongs
to the people of the city of Minneapolis. The
plaintiff has the right to use Its streets iv
the way prescribed, but such right is subject
to regulation, and if the use of any street
for overhead wires or any other placement
of its lines is injurious to public safety, con
venience, comfort or utility in the arrange
ment of city affairs or inconsistent with rea
sonable comfort, order and good government,
the city has the power under the law and Its
charter provisions to compel a removal of
such poles and wires from the streets and
compel them to be placed in subsurface con
duiu, or to otherwise regulate the business
of the company, so that the use of Its streets
shall not interfere with the rights of Its citi
zens, but subserve their welfare in the inesti
mable service which the telephone renders to
commerce, civilization and the happiness of
its people. We have determined no facts, but
have only assumed that to be true which de
fendant has admitted.
Chief Justice Start says:
I cannot assent to the conclusion reached
by the court upon several vital questions in
this case. He does not concur in the view
that the state law overrides local ordinances,
and gives the companies right to use of the
streets as well as other highways. Their
rights depend on charter provisions and ordi- '
nances of the city. The city council Is the
jvdge of the necessity of regulation in any
particular rase. He holds that the ordinance
is valid unless the plaintiff can establish that
the city council did not enact the ordinance
in the exercise of fair discretion.
.In short the chief justice disagrees with
the course of reasoning, but he concurs
with the conclusion of the court, that the
complaint states a cause of action.
I Up to a late hour this afternoon, City
FEIDAY EVENING, MAY 10, 1901.
WHERE IS THE N. P(ea)?
The Man From the West Seems to Have Known Where It Was All the Time.
Attorney Healy had not been officially ap
prised of the court's decision. But if it
followed the conclusions in the former de
cision it was plain to him that the city
would be no use of now proceding to try
the case on its merits, as the city could
hope for no other result.
Supreme Court's Decision Please*
General Manager C. P. Walnman of the
Northwestern Telephone company was
naturally elated when informed of the de
cision of the supreme court, but was not
unduly jubilant as he had felt confident
of victory from the first.
It is likely that the company will begin
active work soon with a large force of
men. There has been some talk that the
company would take advantage of the city
and fill all streets with pole lines and
overhead wires. Mr. Wainman scouts this
idea. The report that it was preparing to
put 1,500 men at work as soon as the de
cision was handed down is denied.
The biggest bit of work the company has
in contemplation Is the construction of a
subway on Third avenue S from Seventh
street to Twenty-sixth street, where the
"South" station Is located. This will need
the services of about two hundred men.
Nothing will be done until the decision
has been fully digested and the company
has come to some understanding with the
The company will willingly accede to
any reasonable extension of the old con
duit limits, says Mr. Wainman. As a
matter of fact it has constructed thon
sands of feet outside of the limits sim
ply for its own convenience.
LA FOLLETTE'S 'NO'
Hagemeister Primary Bill Rejected
by the Executive.
HE SCORES THE OFFICEHOLDERS
Senate's Stalwarts Stand Pat and
Nearly Pom the Bill the Veto
• Not withstanding.
Special to The Journal.
Madison, Wis., May 10. — The Hage
meister substitute primary election bill
passed by the legislature, was sent back
to the. senate to-day by Governor La
Follette with a veto. In his message, the
governor reviewed at some length the pri
mary election agitation, coming down to
its course through the legislature.-, .He
took occasion to score the opposition for
some of the methods employed to defeat
the original bill and referred to the fed
eral office holders and their work against
it. The governor said he could not ap
prove it under his oath of office.
One of the governor's objections brought
out a point that has not been generally
realized, that the law, If enacted, would
not take effect until after the next general
On motion of Senator "Long" Jones im
mediate action was taken on the veto.
The stalwarts held their forces together
and came -within two votes of passing the
bill over the governor's veto, the vote
being 17 to 11. .
. Another veto . was sent in by the gov
ernor of the bill lepealing a law authoriz
ing a dam on Lost river.
• The Lenroot.antitrust bill was killed in
the senate without the formality of a dis
cussion or roll call. The Hall three
cornered poison bottle bill was also re
fused concurrence by the .sennit. The
senate reconsidered its vote killing the
bill taxing ice shipped out of the state,
and advanced it 'o third reading
There was a lively discussion in the as
sembly over the bill pased by the senate
cutting off the payment of fees at the uni
versity. It was killed—6o to 9.
The senate finally passed the anti-pass
resolution from its hiding place, and last
evening it was passed under suspension of
the rules, with eight votes against, Sen
ators Burns, Eaton, Green, Knudsen, Mc-
Donough. Morse, Reynolds, Stebblns. :. This
ends the anti-pass question, so far as the
legislature is concerned, ,i At .the next
state election it will be voted upon, and If
adopted become a part of the .state consti
The lower house advanced the bill regu
lating state accounting, with the amend
ment increasing the office force, which
bad bene lost the day before by one vote.
Buffalo, K. V., May 10.—Eighty men em
ployed . In. and about the * roundhouse; of the
Lackawanna Railroad company struck to-day
out of "sympathy? for U» Scraatoa atrlkm; ""•'
Tender of the Post of Minis-
ter tc China.
A FINANCIAL SACRIFICE
This Is What Such a Change for the
Minnesotan Would Be.
EVANS THE PROBABLE APPOINTEE
The Present Pension Commit
Ilia Become Weary of
Trom The Journal Bureau, Boom AS, Fort
Washington, May 10. —On unquestion
able authority the statement iB made that
Secretary Hay, with the knowledge and
consent of the president, made an indirect
offer to John ■Goodnow, while he was in
the United States recently, of the position
of minister to China to succeed Conger,
and that Goodnow declined. The matter
was then dropped. The minister to China
receives $7,500 salary and Is required to
maintain a good deal of state. Little if
anything can be saved out of his salary.
The consul general at Shanghai, on the
other hand, receives in salary and fees,
between $20,000 and $25,000 per year. As
Goodnow is said to have stated the caste:
"While the position of minister would
be a decided promotion so far as the dig
nity of the office is concerned, it would
be anything but promotion from the finan
cial point of view. lam not yet so fixed
as to make the step advisable."
Both Secretary Hay and President Mc-
Kinley, however, regard Goodnow as an
excellent man for the position, and it may
be will offer it to him again, this time
directly when Conger steps down. That
there is to be a change of ministers is
very generally believed in Washington,
notwithstanding Conger is apparently
making arrangements to return to Peking
when his leave of absence expires. He
may be allowed to return, say the gossips,
in order to prevent the impression from
going abroad that the administration was
anxious to be rid of him, but should he
return, it will only be for a short stay.
Of course his nomination for the governor
ship of lowa would ,be a very happy solu
tion of the problem for all concerned.
After Goodnow it is said that Henry
Clay Evans is the man most likely to
succeed Conger and there Is a growing
impression that Evans will finally be ap
pointed. During the last campaign the
republican managers tacitly agreed with
prominent Grand Army men that there
should be a change in the office of pen
sion commissioner. Mr. McKinley, al
though having the utmost confidence in
Evans and fully indorsing his pension
policy, is presumably prepared to live up
to this agreement. It is well known that
Evans is tired of the pension commis
sionership and is anxious to close his ca
reer in an important diplomatic position.
The China mission seems to be the de
sired opportunity. Evans would undoubt
edly acept it if offered. Goodnow, it is
said, would again decline.
While the matters here referred to have
hardly gone beyond the gossip stage,
there are many well-informed men here
who have full faith in their coming out
as indicated. No matter what may be
done, however, It is admitted that Con
ger's successor will be a man in whom
the administration has the utmost con
fidence, both as to his ability and his
discretion. The appointment will be
made with the utmost care, and no po
litical "pull" will have any weight in de
termining it. Affairs in China for some
time to come will be of such world-wide
importance that only a man of approved
ability will be considered at the White
House. Doth fivaa* and Goodaow come,
well within the qualifications on which
the president will insist.
—W. W. Jermane.
Washington Small Talk.
Rural free delivery service has been ordered
established al Fruitlaud, Muscatine county,
lowa, June 1, with B. H. DeCamp as car
The controller of the currency has approved
the application of M. J. Evans, E. N. Bally,
L. W. Felter, Lottie Felter and M. H. Evans
for authority to organize the First National
Bank, of Ruthton, Minn., with a capital of
A statement given out at the postofflce de
partment shows that the postal receipts at
.Minneapolis aggregated $65,146 Is April, as
against $53,625 for tbe corresponding period
of last year—an increase of $11,521, or 21.4
per cent. The St. Paul receipts for the two
months, respectively, was $46,526 and $39,091—
an increase of $7,435, or 19 per cent-
Director of the Census Merriam has writ
ten a 3,500-word article for the Saturday
Evening Post entitled '"An Experiment in
Government Patronage." In it Governor
Merriam tells how he secured a force of
three thousand employes outside the civil
service list, the major part of which proved
to be as good, if not better, as clerks and
operators, than those secured through the
civil service commission. The article will
appear in the Issue of next week or the week
Further changes in the salaries of presi
dential postmasters in the northwest, In ef
fect July 1, were announced to-day, as fol
lows: Minnesota—lncreases—Lake City, $1,900
to $2,000; Lake Crystal, $1,200 to $1,300; Lanes
boro, $1,000 to $1,100; Leßoy, $1,100 to $1,200;
Long Prairie, $1,400 to $1,500. Decreases—
Lamberton, $1,200 to $1,100; Madelia, $1,700 to
$1,600. Wisconsin—lncreases —Marinette, $2,400
to $2,500; South Superior, $1,100 to $1,200;
Stanley, $1,300 to $1,400; Stoughton, $1,800 to
$1,900: Tomah, $1,600 to $1,700; Two Rivers,
$1,500 to $1,600; Viroqua, $1,600 to $1,700; Wa
terloo, $1,200 to $1,300; Waupaca, $1,800 to
$2,000. Decrease—Albany, $1,000 to fourth
class; South Milwaukee, $1,500 to $1,400. lowa
—Increases—Monona, $1,100 to $1,200; Morn
ing Sun, $1,100 to $1,200; Murray, $1,000 to
$l,200& Xeola, $1,400 to $1,500. Decreases—
Odebolt, $1,600 to $1,500; Ogden, ' $1,400 to
FABM MACHINE DEAL
Further Light Thrown Upon the
CAPITAL, SEVENTY-FIVE MILLIONS
Ninety Per Cent of the Leading Man
ufacturers to Go Into the
<? Enterprise. '
Special to The Journal.
New York, May 10. —Officials connected,
with the formation of the big farm im
plement and machinery consolidation
state that negotiations are now approach
ing a stage at which the financial syndi
cate in. charge feels assured . the deal
will be carried throughh. Options have
been secured on a large number of plants
both east and west, and arrangements are
being made with a New York syndicate to
finance the deal. ■ Several meetings have
been recently held in which George W.
Young, of the U. S. Mortgage and Trust
company, J has taken a prominent part.
Associated with him are Charles R. Flint
and Archibald S. White, the president and
organizer of the National Salt company.
Various estimates have been made as to
the amount of the capital stock. t When
the deal was first spoken of it wa3 be
lieved that a capitalization not exceeding
$50,000,000 would be decided uj>on. :J; Since
then, however, important representatives
of the farm implement trade have con
sented to join and the capitalization will
be at least . $60,000,000 or ' $75,
--000. .Fully 90- per cent of the
prominent manufacturers have decided to
enter. For the . last few weeks, future
contracts have been made with the con
solidation in view and not a few of the
large concerns have recalled : their sales
men, who were about to start for foreign
HIS~LIFE FOR ANOTHER
Ben Wood Drowned While 'trying
to Save a Boy.
Special to The Journal. .
Marshfield, ■ Wis., May 10.—Ben Wood, a
young farmer of the town of Bakerville,
was drowned in Yellow river. to-day while
trying- to rescue a boy from the water.
His body, has not been found.
' KITCHENER NEVER ; SAID IT.
; London, May 10.—The war office here denies
the i statement ■; published in New York, that
Lord r'J Kitchener .. has '■ telegraphed advising
yielding to all the demands of the;Boers,with
the : exception ; of' independence,: owing ;to his
conviction I that t they, cannot jbe j forced to ; lay
down their arms .without a long continuation
16 PAGES-FIVE O'CLOCK.
STOCK TRADING PEACEFUL
But the Public Refuses to Buy, and Securities
Actually Go Begging.
Morgan and Hill Control Northern Pacific, but
Pierpont's Eye Is Blackened.
Speculation Killed for Months to Come—To
day's Prices Are Steady.
Special to The Journal.
New York, May 10.—Professional Wall
street is picking its way through the ruins
of yesterday's cyclone. While confidence
has been restored to a great extent, and
while brokers believe the situation has
become reasonably clear, the public has
not come to the front as many believed
would be the case to buy low-priced
stocks. Securities to-day are going beg
ging. Not that prices have declined, but
there is nobody in the street to take the
stocks that are offered at prevailing fig
There is no doubt that yesterday's
break will pretty effectually kill specula
tion in stocks for months to come. Now
that the smoke of battle has to some ex
tent lifted, It leaves the position of the
contending forces practically as it was
Morgan and Hill Control.
Morgan and Hill undoubtedly control
the Northern Pacific, though Kuhn, Loeb
& Co. assert in most positive terms that
they own a majority of the stock. Ap
parently, Kuhn, Loeb & Co. are counting
on the delivery of short stocks to give
them a majority, for Morgan & Co. say
positively that the control rests in the
hands of themselves, Mr. Hill and their
associates, who can absolutely be de
pended upon to act with them. Last
night, when the announcement was made
that the shorts would be permitted to set
tle at 150 was looked upon as an admis
sion by Kuhn, Loeb & Co. that they had
been whipped; but this morning they com*
up smiling and say that control is in their
hands, although they are very careful to
supplement this with the statement that
they will make no fight to prevent the
Burlington deal being carried through.
Help From the Bankem,
The prompt action of bankers in ex
tending aid to some of their crippled cus
tomers has so far prevented any failures
of consequence. The bankers who formed
a pool for the lending of money in th€
street have given notice that any one in
legitimate need of money will be sup
plied, and it is probable that as a result
of this the several big firms which were
on the verge of bankruptcy yesterday will
be able to pull through.
While Morgan and Hill are to retain
control of the Northern Pacific, there is
no question that Mr. Morgan' 3 position in
financial New York has received a set
back. His overhanded method of dealing
with those people with whom he came in
contact in his recent combinations in rail
roads and in the steel business has gained
for him a good deal of criticism, and it
was this which brought on the fight be
tween him and the Rockefeller-Stillman
Mr. Stillman has come out of it with
his plumes somewhat draggled, and the
National City bank is being openly criti
cized for its action in calling loans and in
refusing to extend credit to stay the
panic of yesterday.
The Worst Over.
The presidents of the largest banks in
the city to-day declared that the worst
is over, and that there need be no fear
of a repetition of yesterday's stock mar
The consensus of opinion is that the de
pression in security values will not affect
general conditions of business in the
least. They are convinced that the call
iDg in of loans on the part of out-of
town banks yesterday was partially re
sponsible for the demoralization of the
market. Interior banks have more money
loaned in this city on call than ever be
fore in the history of Wall street, and
the avalanche of telegrams demanding
that loans be called created endless con
fusion. Boston, Philadelphia and Chicago
banks called in loans by the wholesale.
A Nassau street bank reports that a
western bank had $1,500,000 out on call.
"I was ordered to call in every cent of this
amount," said the banker. "Had I done so
another failure would have been added to
the list. As it was, I took $750,000 of the
This was only one case in many that
can be cited. The local banks have been
taught a lesson and will see to it that they
are not caught again. The news that a
banking syndicate had been formed with
$20,000,000 to loan at the market created
fear among interior bankers, and they
seemed as anxious to loan money as they
were to call it in the early part of the
Exchanges at the clearing house to-day
aggregated $598,537,410, exceeding the pre
vious high record by about $40,000,000.
Bankers are not inclined to forecast the
probable showing of to-morrow's bank
statement. The confusion that has pro
vailed will have a tendency to upset all
preliminary calculations. Many are of the
opinion that the heavy liquidation that haa
been going on foreshadows a heavy
shrinkage in loans.
Morgan9 * Bine Pencil.
The Harriman-Kuhn-Loeb purchase of
Northern Pacific stock was made on the
belief that the terms of reorganization of
the Northern Pacific provided that the as-'
sent of thirds of the stock was neces
sary in order to execute any additional
mortgage guaranteeing a bond issue. Mor
gan & Co. say this is not true. When the
reorganization plan was prepared :it con
tained - such provision, but Pierpont > Mor-.
gan personally revised the plan and ?out
out this ■ provision. .* All * statements oX the
railroads give this as a part of the plan,
and the Harriman buying was started on
the theory that it was effective. Mor
gan now says absolutely that the pro- 1
vision was cut out and that a majority
only is necessary to vote approval of the
Burlington deal and authorize a bond
issue. • Kuhn, Loeb & Co. say-they are
familiar with this provision and they 1
were buying to obtain a majority of stock.
Wall street believes the first purchases
were on the theory that one-third only '_
was required to block the deal and that
the buying which followed the' discovery
that the majority rules was responsible
for the corner. In the terms of settle
ment agreed upon between Morgan, Hill \
and Harriman, the Union Pacific is ;to, be •
taken; care of. No obstacles • are to be
thrown in the way of' the completion of
the Burlington lease to the Great JMorthern
and Northern Pacific. ,
"Keep Cool," Says Sage. ' -
Russell Sage said' to-day:
I repeat to you the advice .which, I: gave to '
the public once before in a period of excite
ment; that is, keep cool. . Don't lose i your
head. Keep.cool. The end of the world isn't
coming yet. , .
: Still In the Dark. ]
The Commercial-Advertiser says:>>.j£
Kuhn, Loeb & Co. were settling with- th«
Northern Pacific shorts to-day. :J. P. Morgan
& t Co. were not. There seemed to'- be some
hitch, so far as the Morgans were concerned, '
about the agreement made yesterday to settle |
at 150. The Morgans said: "We aren't worry
ing about short contracts; we are interested
in Northern Pacific stock. Kuhn, Loeb & Co.
have the shorts; we have the Northern Pa
cific stocks." ; ■ -
That was the point, but no one can tell ■
who has the control. till the shorts have been
settled and the contract parties find out:',
how much of their holdings are stock and
how much are short contracts. Some people
here think only the show-down at; the meet
ing of Northern Pacific stockholders can an
swer that question. . • ' ..
The injunction granted yesterday by Justice
Gildersleeve of the supreme court in behalf of •
a person who ' has. remained unnamed, re
straining [ Harriman and 3 his brokers, \J. • P. B
Morgan £ Co.. Hill and his representatives,
Kuhn,*"L6eb** & Co., and the New--York* Stock I
Exchange, from * making any ■ transaction
•whatever in Northern Pacific, does not appear -
to have been the direct cause of adjustment
by which the short* were to be allowed to
settle at $150 a share. Kuhn, Loeb & • Co.
were settling on that basis with the aborts
to-day, but they denied that they wer«
brought to It by the threat to serve the order.
No statement could |be I obtained from -J. P.
Morgan & Co. as to what they -were doing or
whether they would settle In the same way a*
Kuhn, Loeb & Co. A representative of the
house said that the granting of the order was -
news to him. ' ■ •■"'..
Herbert D. Llmburger, 'of counsel' for "the
mysterious plaintiff, said this forenoon that
he had the order of Justice Gildersleeve in
bis desk but that he had been Instructed by
his client, inasmuch as a settlement had been ;
arranged, not to say anything about the pro
ceedings. Ed Lauterbach, also of counsel for;
the plaintiff, said when asked if he would" ,
state the legal grounds on which the order
was sustained: *
"Any contract that is impossible of fulfill
ment at the time it is made or becomes bo .
after •it is made through ■ actions of the -
promise is null and void."
. "Who is ..he plaintiff?"
"That you tvill never know."- \ '.-
Northern Pacific shares sold 150, then 160,
then 200 each The stock has unlimited value
still, though the short contracts are worth
cnly 150. Stocks. generally recovered. Union :
Pacific,'which was down yesterday from 114
to 76, rose to 112 by 2 o'clock to-day.
Effect of Jndge Gildersleeve's Order.
There was a further clearing of the
financial atmosphere when it was an
nounced that an order to show cause ob-
tamed in the supreme court directing cer
tain persons to show cause why they
should not be'restrained from trading in
Northern Pacific would not be served, the ;
agreement to settle at 150 having been ac
cepted, as satisfactory.
Arthur R. Linburger, who obtained the
order, said that in the light of the settle
ment made with the shorts the. order
would not.be served and that the matter
would be allowed to drop. <
Most of the buying this morning was
believed to be for Investment account as
commission houses deprecated.trading on
margins for the present
Elbert Thomas Jackson and Samuel C.
Jackson, doing business as stock brokers,. -
to-day assigned for the benefit of their
HOW THE TRADING WEST .
Decidedly Tame Compared With
. Thursday's : Bedlam.
New York, May 10.—The first quotation
on the ticker tape recorded a sale of
Amalgamated Copper at 108, a : rise of
3 points, and this was followed by a sale of
Reading, first preferred, at 71%, as against ;
70 at . yesterday's close, and as sale after ;,
sale of various stocks showed higher
prices, the traders felt that the worst was
' The anxiously-looked-for opening of
Northern Pacific was a transaction" of 300 V
shares. at 150, . and this was taken as in
dication that all ;of the minor holders of
the stock had decided to settle with th»
shorts at the figures , agreed upon ;by J. ;
Pierpont Morgan & Co., and Kuhn, Loeb »
& Co. Amalgamated Copper rushed up )to "•,
110%, and St., Paul # sold at 155, United ■
States Steel preferred at 92, r Louisville at \"
99%, -Union Pacific at 95, Atchison pre
ferred at 95, < Burlington *at 188 and Mis- c
souri Pacific at 100, all of these figures in
dicating substantial improvements from ;
;%In- spite of the better tone, however,
the : market was very feverish, and price ;
changes, after the first spurt, - became v
wide ! and. erratic. . There was ; much • doubt l
in ", tho street <as lto whether the decision ;
• JofJtii^^oidSrs ot JNorUiarn Pacific tojb« ?