Evening star., 1902-04-12
Southern Railway Said to Be
1.-The Purchaser.
MERGER In THE SOUTH
ROCK TSLAND ALSO SAID TO BE
INTERESTED.
The New Deal Was Engineered
by John w. :
Gates.

NEW YORK. April 12.-As a result Of
several conferences held today there is a
very general conviction that control of the
Louisville and Nashville road has passed
or will pass to the Southern railway.
Representatives of the Louisville and
Nashville and Southern roads and a men,
her of the Gates faction were In consulta-
ton early in the day, and later John w.
Gates was closeted for almost an hour with
George w. Perkins at the office of J. r.
Morgan Co. Neither Mr. Perkins nor
MI Gates would say what passed between
them, but It was admitted that the Louis
vile and Nashville situation was discussed
IN Its several phases.
Ihe most authoritative report dealing
with the recent course of Louisville and
Nashville is substantially as follows:
Some time ago Southern railway interests,
alarmed at the increasing strength and
prosperity of Louisville and Nashville made
an oner for majority interest. The offer
was declined. so report has it, by foreign
holders of Louisville and Nashville, who
heid the balance of power
Increase Of Capital Stock.
Recently when Louisville and Nashville
increased its capital stock by s., 900, 900 MIR.
Gates and his associates saw an oppor-
tunity to squeeze" the insiders by buying
Louisville in the market and creating q
scarcity of the stock. To what extent the
Gates faction succeeded is still matter
of conjecture, but it is not doubted that
they were in a position to swing large
block OF stock either way.
Conditions seemed ripe for an attempt to
gain control of Louisville and Nashville,
and Southern railway interests, as repre-
sented by Morgan and company, authorized
the Moore Brothers to acquire as much
OF the stock as possible in the open mar
ket. with the understa nding that this stock
would be taken over by the Southern road
Banking interests in which the Moores
are especially prominent have been heavy
buyers of Louisville and Nashville, and one
bank in particular is said to have called a
number of loans this week so as to ac-
cumulate the money for it's purchases of
Louisville stock. Wall street believes that
some sort of a community of interest
deal between Rock Island and the South
ern railway will follow the change in Louis
vile and Nashville ownership.
The Evening Post, discussing the situation
in Louisville and Nashville says:
Evening Posts Views.
"All indications seem to point to the fact
that the control of the Louisville and Nash
vile railway Is now so held that 1t can
be turned over to the Rock Island railway.
The matter had not been determined at the
close of business today and facts are as
lacking as they have been since the excite-
ment in Louisville and Nashville shares
began. some days ago. Opinion in Wall
street is In a nebulous condition as to who
now controls the company, but there is
conviction that control has passed from
the Belmont interests, and that John w.
Gates has been factor in its passing.
There appears to be good foundation
for the opinion that Mr.. Gates may now
be in a position. by throwing his stock
one way or the other, to decide what in
terest" shall hereafter control Louisville
and Nashville. Not much doubt is felt that
the Moore interests will secure his proxies
or the stock he holds"