New-York tribune., 1901-06-06
MORGAN IN THE ATCHISON.
A MEMBER OF HIS FIRM ELECTED TO
THE BOARD.
POSSIBLE BEARING ON THE COMMUNITY
OF INTEREST SITUATION IN THE
WESTERN RAILWAY FIELD

Wall Street had a fresh sensation yesterday
IN the election by the board of directors OF the
Atchison, Topeka and Santa Fe Railway Com
pany of Charles Steele, of ]. P. Morgan & Co.,
as director. succeeding the late Aldace F.
Walker; of j. w Kendrick, who for several
years has been second vice-president of the
Northern Pacific, third vice-presdent of the
Atchison, in place of j. n. Parr. resigned, and of
Victor MorawetZ. the we'll known corporation
lawyer. chairman of the executive committee,
a post created yesterday. The office of chair
man Of the board was abolished and D. L. Gal
lup elected acting vice-chairman of the
board, with headquarters in this city.
The Street promptly drew the inference from
these selections that harmony had not. after
all. been re-estabished in the relations of the
powerful groups of interests dominating the
Western railroad situation. and that Mr.. Nor
gan had made a strategic move of great inn
portance. securing foothold If not virtual con-
troll in the AtchsOn. the only road reaching the
Pacific Coast which has up to the present oc-
cupied wholly independent position This in
ference, however. explicitly declared yes
terday afternoon by President Ripley of the
AtchisOn To be incorrect.
we did not elect Mr. Steele because he was
member of the firm of J. P. Morgan & Co." he
said. We chose him simply because wanted
to add to board strong and experienced
man of just his type. Nor did elect Mr.. Ken
drick to the third vice presidency because he
was officer of the Northern Pacific. We
elected him on his merits AS for Mr.. Morawetz.
he has always been Atchson man. and his
relations with J. P. Morgan & Co. have been no
closer than with various other banking houses
Asked whether or not there was any ground
for the report that the AtchiSon might be leased
to the Union Pacific Mr.. Ripley answered: The
matter has never been discussed in the Atchison
councils, and I don't think il has been by the
Union Pacific
From other responsible sources also came de-
malls yesterday that the action Of the AtChison'S
board reflected a change OF control of the road
or impairment of the principle of com
munity of interest" Mr. Morgan. 1t was pointed
out. was not averse to having members of his
firm elected directors of leading railway com
panies, every such selection tended to in
crease the prestige of the house. 1t is not Gus
tomary, however. for a newly elected director
10 be placed at once on the executive COM
mittee. and the fact that Mr.. Steele was yester-
day made a member of the executive committee
of the Atchison led not few persons to credit
the report that the Morgan-HH party had be-
come large investors in the common stock of
the road, and that they might pool their hold
ings with those of the Pennsylvania Railroad
Company.
1t is not believed in influential and well in
formed quarters however, that there will be
any recurrence OF the recently threatened con-
fiict among the railways Of the Far West, even
though Mr. Morgan and the Pennsylvania inter-
estS should gain control of the AtchsOn: for, II
is argued. their supremacy in that system would
be a balance TO the control OF Union Pacific and
Southern Pacific by the Hartman Kuhn, Loeb
party. But. as already noted. sufficient evidence
has not yet been found TO make II by any means
certain that Mr.. Morgan has secured COM
mandinG place I'm the management of the Atchi-
son.
Atchison common yesterday made a new high
record in the stock market, reaching OIL The
close was ssh, net advance for the day Of
ia per cent The preferred closed at 10i. a net
gain of II per cent.
Local officials OF the AtChison road deny the
truth of the report from Chicago that the COM
pany has made a contract with the Pacific Mail
Steamship Company for ocean business on terms
similar to those under which the Southern Pa
cific company operated.