The Butte inter mountain. [volume], May 09, 1901, Image 1

About The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912

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The Only Paper In The State of Montana That Dares to Print The News.
The Butte Inter Mountain.
VOL. XXI. NO. 43
Probably Showers Tonight
BUTTE. MONTANA, THUUSDAY EVENING, MAY 9. 1901.
Cooler Tom
PRICE FIVE CENTS
Wild Panic on the New York Stock Exchange
Northern! Pacific Sells fr. SI,000 a Share
THE STANDARD OIL DECLINES
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X New York, May 9, 12:25 a. m.—
X Standard Oil declined to 650 a
X share. A drop of 171 points.
X
X
X
X
X
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SIXTY PER CENT FOR MONEY
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X X
X New York, May 9, 9:40 a. m.— X
X Sixty per cent is bid for money X
X on call loans. X
X X
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The story of the great Northern Pacific corner reads like a romance. In
revenge for the interference of the Hill-Morgan interests in the Southern
Pacific, the Oould-Harriman combine quietly bought up a controlling interest
of the Northern Pacific. With $80,000,000 of the stock in the market,
they cornered practically all of it, and today are asking their price. The
crash will doubtless end the financial career of hundreds of brokers who sold
short. The rest of the stock market is demoral.zed, and the inflation of
the past few weeks is disappearing like a bad dream.
All stocke are suffering from the commotion, many of them losing all
they had gained in the weeks of riotous speculation.
The corner on Northern Pacific is regarded as the greatest deal of the
kind in the History of the country.
(By Associated Press.)
New York, May 9.—The great excite
ment and heavy decline in practically all
securities except Northern Pacific which
began on the stock exchange yesterday
afternoon continued today.
From the moment of the exchange's
opening the trading was furiously active
GEORGE J. GOULD,
Who Is Fighting J. J. Hill.
and for the first half hour at least ap
parently without support, although
Northern Pacific rose higher and higher
on bidding of the frightened shorts.
This stock rose rapidly from 170 to 190
and then almost without a pause the ad
vance kept on until at 10:35 o'clock $300
was paid for 500 shares for immediate de
livery. At the same time 100 shares for
tomorrow's delivery were sold for $230.'
All this time as fast as Northern Pa
cific went up other stocks were going
down. The opening declines in New
York Central, Missouri Pacific, Louis
ville and Atchison ranged from two to
five points and it seemed for a time as
If orders were being given to sell with
out regard to prices.
This wildness was uninterrupted until
about 10:40, when It seemed that for the
moment at least there was a disposition !
to steadiness.
The steamships Majestic and Servia.
which arrived from Europe last even
ing, brought in their mails large blocks
of Northern Pacific common for the ac
count of arbitrage houses, which were
delivered to them In the early mails this
morning.
Where the Interest Was.
Stocks were sold for instant delivery
en the stock exchange, but apparently
there was not a drop in the bucket, for
the frantic demand for the stock was
not effected,
All Intereèt centered In the reports
that conferences were being held to
patch up a truce preliminary to a per
manent basis of agreement between the
rival interests in Union Pacific and
Northern Pacific. It was generally ac
cepted by the street that the Burling
ton deal would go through but that It
would be arranged on some basis satis
factory to the Kuhn, Loeb company and
Harriman people. Indeed it was said
that the Harriman syndicate was in a
position to dictate terms but that it did
not wish to proceed arbitrarily In the
matter. It was denied by Kuhn, Loeb
and company and their associates in the
deal that they had any desire to
"squeeze" tlfe shorts, all of their buying
having been simply to secure Northern
Pacific stock for voting purposes and not
es a speculative manoeuver.
At the stock exchange clearing house
It was said the balance of Northern
Pacific common to be delivered was 80,
U00 shares; practically all of which was
to be delivered at 150. The largest stn\'e
lot was 18.000 shares by a large Inter
national banking house, and there are
large lots from seven to twelve thousand
fthares.
The floor of the exchange at the open
ftig showed the most excited throng of
brokers seen in years, and among those
present were many members who are
rarely seen in the trading crowds.
The opening was chaotic. The one de
sire seemed to be to sell—sell to anybody
who was willing to take stock and give
money for it. When tt appeared that
the ''cornei'" operators were determined
to have their pound of flesh from the
people caught in their net, everybody
felt that he must free himself from his*
load of stock and stand from under,
lest worse should happen.
They had hoped that before the open
ing of this morning same announcement
might be made that the Northern Pad- !
fic shorts, would escape on good terms, ]
!
but the first sale of the stock dispelled
the illusion.
The most prominent figures in the fin
ancial world were vitally interested in
the outcome of the unprecedented sit
uation disclosed by the Harriman peo
ple for control of Northern Pacific and
throngs, crowded the officers of J. Pler
pont Morgan and company, Kuhn, Loeb
and company, the First National and the
National City banks, eagerly awaiting
news. There many conferences of vari
ous financial leaders were held through
out the morning.
It was learned from an authoritative
source that up to 11 o'clock no com
promise had been agreed upon, but that
the situation was more hopeful than it
had been.
Efforts to arrange conferences between
the conflicting interests were resumed
this morning and while no definite steps*
have been takn it seems certain that
there will be a meeting and with it
peace.
Kuhn, Loeb and company, who openly
declare that they have a majority of tha
Northern Pacific stock, said to-day that
their policy is a conciliatory one, and
that they have reached out with all the
strength of their position and influence
In an effort to protect Instead of crusffi.
The offer to loan Northern Pacific
stock to the shorts, made to J. P. Mor
gan & Co. yesterday, was renewed by
Kuhn, Loeb & Co. today, and a readiness
Indicated to lend in proportion to the re
spective holdings. The latter feature of
the offer would, it 4s known, force Kohn,
Loeb & Co. to advance the greater num
ber of shares.
A man high in authority in the street
and close to the Harriman-Kuhn, Loeb
& Co. group of financiers, said:
"We will continue to seek a settle
ment upon a responsible basis. We
do not wish to see innocent men
suffer, and have no disposition to
A. J. CASSATT,
Président of the Pennsylvania.
!
]
m
WILD SCENES DURING PANIC ON NEW YORK STOCK EXCHANGE
PRESIDENT HILL MAIES A STATEMENT.
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New York, May 9.—President Ji~J. Hill, of the Great Northern road,
made this statement this morning:
"I never bought or sold a share of Northern Pacific stock on the
floor, and what is more, In six months I have neither acquired nor
gotten rid of Northern Pacific stofck or any other stock. When the
fog of battle lifts and the air becomes clearer, as I believe it soon
will, people will see many things in a much clearer light than they
do' now.
"We never have had control of the Northern Pacific road: we
don't control; we are not trying to get control, and under the law we
could not retain control, if ever we got It."
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JAMES J. HILL,
President ISbe Great Northern.
'
dictate uqfair terms. The offer of
Kuhn, Loeb & Co. to loan stock to
the shorts is still open.. The firm's
policy is conciliatory. It would pro
tect rather than destroy. There are
efforts afoot to get the conflicting in
terests together and I am hopeful as
to the immediate future."
It is positively stated that the Bur
lington deal will go through, but It Is
felt that the 'onditions of its new
ownership will vary materially from this
in view when the Great Northern first
submitted its offer. The trading in
Northern Pacific became so wild and
excited toward 11 o'clock that prices
changed rapidly 25 and 50 points at a
time. A sale at $530 was recorded, and
almost immediately another came out
on the tape at $700.
This was for tomorrow's delivery and
not a cash sale, as some of the earlier
ones had 'been, thereby indicating a be
lief on the part of the purchaser that
tfie short commitments were so large
that the stock to come from Eurojie
would afford little or no relief.
The great qxcitement in the stock and
the frantic efforts to buy would seem
to show that the short sales were much
larger than were supposed yesterday.
Shortly after 11 o'clock ail support
-
seemed to be withdrawn from the stock
market and prices began falling many
points between sales. Union Pacific went
down rapidly and 4,000 shares of the stock
were sold at 85. The same amount 1,000
shares of Missouri Pacific were sold at 97.
People's Gas of Chicago, Brooklyn Rapid
{Transit, Amalgamated Copper, the
Atchison and St. Paul fell off and made
sensational declines, the like of which
had not been seen for many and many
a year.
St. Paul sold down to 145, Missouri Pa
cific to 63, Erie to 29, United States Steel
pfd. to 89, Atchison pfd to 85, Southern
Pacific to 45, Western Union to 87 and
then almost immediately Amalgamated
copper fell to 97, Erie to 27, Atchison
common to 57. Union Pacific 86, Rock Is
land to 148; Missouri Pacific to 8S and
Louisville to 99.
Then the^ape recorded the sale of 1,
MO shares orUnion Pacific at 80. In rap
ir succession came sales of Union Pacific
a 81, then a rally to 85, Pennsylvania
sold at 139, New York Central 143, Peo
ple's Gas 103 1-2, Atchison 65, Erie 25 1-2,
B. && O pfd 86 1-2, United States Steel 39,
Missouri Pacific 73, Amalgamated Copper
97. 'Manhattan 85, Southern Pacific 38,
Atchison pfd 72, Louisville 90 Brooklyn
Rapid Transit 72, Rock Island 141,
STOCK BROKERS VENT BROKE
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New York, May 9.—The assign- X
ment of Charles B. Streckeis,, stock X
broker, is announced. X
Steel pfd 85, Baltimore & Ohio
96 3-4 and People's Gas 101.
It was stated by a man close to the
successful interest in Northern Pacific
that members of the syndicate deprecated
of the third large interest in the stock
in taking enormous profits from the
shorts and that one of the motives in
seeking an agreement was to defeat the
speculative pool.
At 11:45 the statement was made that
J. P. Morgan and company and Kuhn,
' 6Loeb and comp any had just agreed not
to enforce deliveries on Northern Paci
fic stock today. With this announcement
there came a rally in prices throughout
the general lists, Atchison common sell
ing up to 61 1-2, the preferred to SO, Man
hattan to 100 and others in smaller pro
portions.
The rally did not hold for more than
a moment and United States Steel com
mon sold at 25 1-2; St. Paul 138; North
west 190 1-2; Pennsylvania 138 1-2 and
United States Steel pfd 70. Atchison,
however, became firmer and 1,500 shares
of the stock . ,'d at 64. Western Union
sold at 85 1-2, sugar 135; Southern rail
way at 21; Southern Pacific 29; Chesa
peake and Ohio 38 and Brooklyn Rapid
Transit 68 1-2.
There has been apprehension that
large funds of money . light be called
from New York by the country banks,
but so far there has been no evidence in
support of this theory. On the other
hand, money is being forwarded to New
York largely by bargain hunters from
all over the country, who wish to securî
cheap stock.
After noon there seemed to be more
steadiness to prices and Southern Pa
cific rose to 38%., Louisville to 97, Man
hattan to 106, United States preferred to
80 and St. Paul to 153. United States
Steel common, after selling to 46.
Burlington sold at 179 for 2,000 shares.
Then there was a rally in Steel ptiferred
up to 88, Union Pacific following to 90,
Baltimore & Ohio sold at 89, Missouri
Pacific 90, American Tobacco 105 and
Missouri Pacific at 95.
Then came an official announcement
In the tape by Street & Norton that
they would not demand delivery today
of 80,000 shares of Northern Pacific com
mon to them.
This announcement was followed by a
rally in Manhattan to 108, Steel to 43
Burlington to 182, Southern Pacific to
43%, Atchison to 63 and Steel preferred
to 98.
At 12:25 Northern Pacific common sold
*8
WILLIAM K. VANDERBILT,
The Railway Magnate.
$1,000 FOR NORTHERN PACIFIC
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5 *
X New York, May 9, 11:15 a. m.— X
X —Northern Pacific sold at $1,000 a X
X share for cash. X
% X
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at 700 for cash. At this time the market
seemed to have a better tone than at any
period during the day, and the price
changes between sales were not so wide
as they had been during the wild flurries
of the early part of the session.
Even Standard Oil declined to 650 a
share, a drop of 171 points from last
night's close.
Northern Pacific almost disappeared
from the record as the announcement
was made that its delivery would not
be demanded today, which was the ef
fective cause of allaying the extrema
nervousness. There was a transaction
in 100 shares at 500 shortly before F
o'clock. At 1 o'clock the failure of W.1
H. Brower of 60 Broadway and J. T. Leg
of 62 Broadway were announced on thé
Consolidated exchange.
Rumors were circulated affecting the
credit of several stock exchange houses,
but they were soon officially denied.
WILLIAM ROCKEFELLER,
A Director of Several Railroads.
Shortly after lo'clock A. M. Houseman S(
co. loaned $1,000,000 at 6 per cent, and 1(
was said that other strong firms weva
lending their available funds in effort.?
to check the decline in prices. The
banks on the other hand became con
servative and decided to loan only to
their regular customers. Some borrow
ers were forced to pay fom 10 to 40 per
cent for money.
A more hopeful view was strengthened
by semi-official statements that the lead
ers in the financial world has assisted,
and that the Harrlman-Morgan-Hill peo
ple had come to an agreement in order
ta relieve the situation. The sensational
decline of 60 points in Delaware & Hud
son was followed by a jerk recov
ery of 50 points, and United Slates
Steel stocks seemed to hold their own
for a time. Southern railroad sold up
to 26, then reacted to 24%. Reading be
came firm around 27%, Amalgamated
Copper around 108 and Atchison preferred
at from 90 to 91. Continental Tobacco
kept a firm front at 46. Atchison then
reeled off to 65%; Missouri Pacific to 97;
St. Paul to 140; Steel to 41; Manhattan
to 110; Erie to 30%, and other stocks de
clined somewhat in sympathy.
Brokers Go Broke.
The feature of the situation was the
closing up for the day of a number of
small brokerage concerns, not because
of financial embarrassment, but because
they deemed it unwise to do any busi
ness at all in such a market as to
day.
At 1:30 p. m. prices seemed to be fair
ly steady; United States Steel finding
support around 40 and the preferred
around 90. At this time there was some
activity in bonds with apparently good
absorption of standard iss,ues.
A clearing house notice was sent out
at 1:30 saying that all transactions in
Northern Pacific common would be ex
clearing house until further notice. This
means; that sellers of the stock will not
be called upon to deliver it at present.
Sixty Per Cent Interest for a Day.
After money had gone to sixty per cent
it was reported on the street that a num
ber of bankers went into conference with
the object of making arrangements to
lend $ 16 , 000,000 on the stock exchange at
low rates. J. P. Morgan and company
wore lenders of large sums today at six
por cent.
Notwithstanding that Kuhn, Loeb & Co.
claim the control of Northern Pacific, It
was said at the ottice of J. p. Morgan
& Co., that their firm has contracts for
delivery of stock sufficient to give them
a majority.
The Evening Post quotes an eminent
authority of the railroad world as fol
lows:
• It will be recognized when the field of
battle clears that the balancé of railroad
power must not be seriously disturbed.
Interests at stake are too tremendous
and too powerful to be aroused. It only
means retaliation of a disastrous nature
which can be avoided by checking reck
less ambition and leaving the great rail
roads of the country free from alliances
and open to all their connections. Fur
ther unit!, a tien of gr.at railways and
forming of trans-continental systems'
wiil be ill opped as plans will be recog
niz. 1 as toroing compeiiiiutt but on a
gigantic scale.