|
|
 |
Who these Northern Pacific losers are is only a matter
of conjecture, but rumor is busy with many names. John
W. Gates is credited with being short no less than
60,000 shares of the stock 50 points below the close of
last night, while a number of Western " plungers" are
also declared to be rather heavily involved. Mr. Gates
smiles when asked about these stories, and declares that
he is not short of the stock, and in fact, was never
short a share of stock in his life, except some Sugar,
which he was glad to cover without profit. In the
meantime, however, he has postponed his European trip.
Isidor Wormser, also credited with being short of the
stock, was seen by a New York Times reporter yesterday.
"They say you are heavily short, Mr. Wormser," ventured
the reporter. "Oh, do they? You don't mean to say so!"
was the answer. And then, as he turned to go away, "I
have nothing to say."
As for the stories of fortunes made, they are many.
According to one report, ex-President Cleveland through
a "tip" from Mr. Lamont, had rounded out a cool half
million of dollars, while other of Mr. Lamont's friends
had also done well. If this is so, it does not agree
with the report that the Hill people had sold their
stock, for Mr. Lamont is very close to Mr. Hill.
However, all this is more or less gossip and cannot be
verified. One certain gainer is known. He is John
Manning, a well-known broker on the floor, who sold the
2,000 shares of stock yesterday at 180-sold it short, at
that-and in less than a minute had bought it back at
160, a clear gain of $20,000.
The amount of money lost by the short side in the stock
is variously estimated at from $40,000,000 to
$75,000,000. As for actual figures, these will not be
obtainable for some time, if ever. Mr. Keene is credited
with having enriched himself to the extent of $3,000,000
by the corner. To what extent the syndicate have
profited nobody ventures an opinion. Some idea of the
added worth of the shares may be gained when it is
pointed out that they have enhanced just $50 per share
since last Saturday. At a conservative
estimate 600,000 shares have been traded in the first
three days of this week, so that with an increase of $50
per share the long side of the market finished business
yesterday about $30,000,000 richer than on Saturday.
Great Fight For Control
As for the talk telling of a great fight for control of
the stock between the Morgan-Hill interests on the one
side and the Harriman-Kuhn-Loeb-Standard Oil people on
the other, nothing definite can be learned. In some
parts of the Street the talk of a fight and of a great
clash between these powerful interests is credited. In
other parts it is ridiculed. One story has it that over
100,000 shares more than the actual capital stock of the
company have been bought by the opposing syndicates, and
that it is as yet uncertain where control lies.
In this connection a Wall Street news bulletin
yesterday published the following as "on authority." "
The Northern Pacific situation is this: The Morgan Hill
interest some time ago sold a considerable amount of
stock. The Harriman syndicate gradually acquired a very
large amount of stock, nearly, if not quite, control.
Notice was given that this stock had been bought not for
war, but to promote harmony. The Morgan-Hill interests
did not accept the proposition, but immediately began to
buy and have bought in the last few days a very large
amount of stock.
"The two interests, Hill-Morgan on one side and
Harriman syndicate on the other, have bought more than
100,000 shares more Northern Pacific than there is in
existence. It is impossible to tell with certainty which
interest has control until it is known which party gets
most certificates, and which gets most of settlement of
contracts. Obviously one has voting power and one has
not.
"Pending developments, stock is being loaned to
legitimate borrowers and assurances are given that the
books will not be closed immediately, giving time for
arbitrage dealers to adjust their balances. Large
arbitrage settlements have been made in London, which
will materially reduce the borrowing demand from that
source."
This, however, is altogether in conflict with the
statement of Robert Bacon, a partner of J. Pierpont
Morgan, who to a reporter of The New York Times said
yesterday: "The Hill-Morgan interests in Northern
Pacific are intact." Mr. Hill himself, seen coming out
of J. P. Morgan & Co's office at half past 1 o'clock
yesterday, and asked about Northern Pacific, replied: "
I have not bought a share of Northern Pacific in six
months.
[Continue on next page]
|
|
|
|
|
