| Show JL4 luLLi ± yvis OUT MorganHill Interests Control Northern Pacific Stock and the Burlington Merged Is Accomplished I KuhnLocfc Crowd Discovers That TwoThirds of Northern Pacific Is Not Necessary to Close Deal Will Unload Their Stock to Shorts at 150 Morgan Co GiveShorts Freedon at Same Price Panic Is Therefore Averted S Now York May Tonight an imll vltliml who has been a party to the conference relating to the strained conditions con-ditions In Wall rlrcet this week made statements and explanations which give to the contest In Wall street a different differ-ent construction than was generally accepted down town today lie said SHORTS GET FREEDOM Tomorrow morning Kuhn Locb Co will publish a notice saying they will let out their Northern Pacific to shorts at SlfiO A positive statement Is made tonight that tomorrow J P Morgan Mor-gan Co will notify shorts that they will be released on short obligations to Morgan Co on the basis of 160 This will be the penalization The shorts will get no stock from Morgan Co They will get only freedom TURLINGTON DEAL SETTLED The Burlington deal will be known tomorrow ns an accomplished fact It has already been accomplished The MorganHill Interests control the Northern Pacific stock and the board of directors has absolute power to close the Northern PaclflcBurllngton merger without the consent of twothirds of Northern Pacific stock The old laws of the Northern Pacific prescribed that twothirds of the stock should assent to such a transaction as the present deal This provision still printed In the manual accepted as authentic has misled mis-led the opponents of MorganHill plans because In the reorganization the two thirds provision was abolished and the power vested solely In the board of directors di-rectors S TRANSACTION ACCOMPLISHED The board had stipulated that when twothirds of the Burlington stock had been deposited In a designated trust company the Northern PaclflcBurling ton deal should thus be automatically closed The stock has been deposited and the transaction Is consummated KUHNLOEB CROWD MISTAKEN Meanwhile the KuhnLocb interests believing rL twothirds stock consent in Northern Pacific necessary to consume mate the deal have striven to absorb enough Northern Pacific to prevent twothlrda consent with results seen In Wall street this week this after they discovered that twothirds consent of Northern Pacific stock was not jieces sary to the HillMorgan deal and that they had acted on wrong Information on that point PAPER CONTRACTS EMPTY Moreover they learned late today that while the Northern Pacific scrip i they hold and their paper contracts made the aggregate timC < y had sought the paper contracts were In part empty for the shorts could not get the stock they had agreed to deliver MORCANIIIDL HAVE GOODS Conviction was compelled that Mor ganHIH Intercsl3 had the real goods the scrip and therefore that the accumulation ac-cumulation of Northern Pacific In the hands of Kuhn Loeb Co was strategically valueless Hence according to a statement mado by one of the KuhnLoeb group this evening the Northern PacificBur lington deal is sure and safe NO USE FOR LOAD This being true Kuhn Loeb Co have no tactical use for their load of Northern Pacific and will therefore let It out tomorrow to shorts at 150 and discharge makers of tfaper contracts to deliver stock they could not get on the same basis WILL BELIEVE TENSION The action makes logical the stated 1 i 1 P ri ii iisii ui < KJI hUlL ii iu IIUL LU umivur Northern Pacific to shorts though shorts may purge themselves of their short obligations at 160 This release by MorganHill and the letting out of actual stock no longer useful to them to the opposing Interests is expected to relieve the tension and smooth out the complications In Wall street tomorrow In the light of these facts and conditions con-ditions it becomes apparent why Mor ganHI Interests declined the propositions proposi-tions of their opponents to loan stocks to shorts pro rata SCIIIFF IS QUESTIONED Jacob H Schlff refused to see reporters report-ers at his residence tonight concerning the stock market but a series of ques lions was written and sent to him with the request that he answer aa many of them as consistent with bin interests These questions covered the ground as to whether any permanent plan of settlement or an agreement between be-tween the opposing Interests in Northern North-ern Pacific affairs had been reached and if he anticipated any change In the situation when the stock exchange opens tomorrow morning WIIITTEN7 ANSWER MADE Mr Schlffs written answers lo the questions follow As far us the stocks coming to Kuhn Loch Co uro concerned con-cerned which the parties owning delivery de-livery have declared themselves unable lo procure from any other source thov have been notified that they can close their contracts at 51GO per share JIM HILL BUSY James J Hill i president of time Gieat Northern railway took dinner with his 30i at the Metropolitan club tonight When seen concerning the struggle In time stock market he said When I hate spoken at all 1 have tried to make people understand that I have had nothing at all to do with this market transaction I have been busy all daylong day-long buying locomotives for the road I have not been In the street and I have neither bought nor sold a share of Northern Pacific RUSSELL SAGES OPINION Russell Sage when seen tonight at his home and asked hlo opinion of the istock market said have been asso elated Intimately with transactions In Wall street for half ii century and I cin truly say that the last two days have been the mpst remarkable T have ever seen Fictitious and Inflated yalucs have prevailed and the smash that was inevitable has come I knew It would come and predicted it True thousands will go to the oil but that Is only uu Incident in the fight r This whole thing got Its origin In an attempt to divert traffic from its i natural and central course toward the I woat In Omaha to the Northern route an unnatural route Yesterday Wednesday was absolutely unprecedented unprece-dented In the hlstorv of the financial world worldHowever However I do not anticipate serious results By tomorrow Friday things Will Jiave begun to settle and the general gen-eral common sense of people will put things to rights The prosperity of the country is too great to permit of this crash affecting us seriously |
