The Montgomery advertiser., 1902-04-16
HE ISSUES A STATEMENT
Remarkable Speculation in
 Southern Common.
John W. Gates and Associates Now Hold the Louisville 6 Nash
 vile and are Looking for a Purchaser.

New York. April Especial. .)-There were fresh sensational developments in the Louisville and Nashville situation to- day. and the mystery which has sur- rounded the stock during the past week was practically cleared up, but not en- tirely so. Wall Street witnessed a wonderful rise in Southern Railway com- mon and for a time was unable to ac- count for 1t. A number of statements were issued today by the principals in- terested in recent stock market history. Harris, Gates X Co.,, of which firm the son of John W. Gates is a general part ner. and in which he himself Is interested as a special partner, issued formal statement saying that they had bought control of the Louisville and Nashville Railroad. That statement read as fol- lows:
 I've have bought control of the Louis- vile and Nashville road. We did not buy it for speculation. but for investment, believing absolutely in the present and future value of the property. There will be no corner in the stock. We have placed the entire matter in the hands of Messrs J. P. Morgan & Co.,. and re- quested them to act as arbiters in the situation because of the prominence or the property and our desire not to disturb in any way the general market condi- tions. and because we know they have no interest whatever in the property or Tn recent purchases.
 Southern Not Concerned.
 Samuel Spencer president of the South ern Railway. said this afternoon that his road would have absolutely nothing to do with the Louisville and Nashville in any way. He said at first that he would make no general statement concerning the situation. Then he was asked: When the situation is adjusted will the southern Railway control the Louisville and Nashville?'
 Ut will not" he answered. '"rhe Southern Railway has absolutely no in- terest in the purchase now and it will not have at any other time. You can say positively that Louisville will not pass to the Southern Railway nor will 1t be controlled by the Southern Railway"
 Neither directly nor indirectly?'
 "No, positively. neither directly nor in- directly. in any, shape. manner or form
 Long before 10 o'clock the office Of Harris. Gates & O., was besicged by specua tors eager to gain some news or explanation of the mysterious conditions prevailing in Louisville stock. The as- surances of the firm that there would be no corner were accepted at their face value.
 Louisville had very wide opening to- day, $500 shares selling on the Stock Exchange from 130 1-2 to 13l 1-2, or an extreme rise of , 1-2 points from the closing sale of last night The stock sold down to f25 1-2 and closed at 127 in the afternoon. Evidently efforts were made to keep the stock from resuming it's sensational rise.
 Activity in the Southern.
 A few minutes after the exchange opened. and following a conference of those interested i'll the situation at the office of J. P. Morgan & O., the South ern Railway shares developed phenome- nal activity. with the common stock ad- vancing on record breaking transactions from s4 1-2 up to and over 70 1-2, the high record price for the stock. It closed at 2 7-S. At the same time a record was being made for the largest dealings in an individual stock for a single hour. Strings of stock aggresat- ing 40,000 shares would come out at time, and upwards of 100000 shares were estimated to have been taken by brokers who usually act for prominent banking interests.
 In the first hour. trading in this stock reached the enormous total of 35S,OoO shares, while at F o'clock the transactions reached the remarkable aggregate of 559,- GOO shares. Over S00.O00 shares had been sold by o'clock. The total sales were S77.OO0
 Explanations for the movement in Southern Railway common were in order. | It was then said that the negotiations in progress would result in the passing | of Louisville control from the Gates to 1 the Morgan interests, which already con trol the Southern Railway This opinion l was strengthened by the fact that John | w. Gates and August Belmont of August Belmont X Co, were in confer | ence with George w. Perkins in the of- flee of J. P. Morgan & Co. The result | of their conference has not yet been | made known.
 The sudden entrance of the new con- trolling interests into Louisville and l Nashville reopens the questions as to how l these lines might be operated in the | future.
 Speculations as to Situation. Hence today's extensive advance and !! enormous dealings in Southern Railway | were taken to mean either that the con- trol of Louisville and Nashville had pass ed into hands friendly to the Southern | Railway system or that very definite assurances had been given that there | would be no change whatever in the | friendly relations which have heretofore | been maintained between the two com panies The capital stock of the South ern Railway Company consists of s60e0 Ooo in preferred shares and $l200OO.OOO in common.
 one thing that seems to he apparent in l A review of the situation is that although | inc vesterners dominate the situation | thcv are not too anxious [" force an | issue with those who seek [" steady the ! market. They seem to find il necessary i to the success of tlcir plan 10 join hands with those whose power in the street has always been thrown on the side of con- servatism.
 Many hold to the belief. and it seems to be the most tenable theory that Gates and his associates, who ever they l may be. control Louisville and are anx-