The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1902-04-17
ENORMOUS SOUTHERN RAILWAY
DEALINGS ON NEW YORK
STOCK EXCHANGE.
OVER 100000 SHARES SOLD
All Previous Records Of Single Days
Trading Shattered by the Perform
ance-LouisviIe and Nashville Road
Passes Under the Control of J.. p.
Morgan G. Co., Who Are Acting as
Arbiters.

ATOIIGFSs
New York, April 16.-Wall street
passed through one Of its most excit-
ing and sensational periods during the
lay. The Louisville and Nashville
situation, which had hung menacingly
over the district for a week or more,
was cleared by the undisputed state
ment that John w. Gates and his as
sociates had wrested control of the
property from the Belmont party and
were in absolute possession. Accom-
panying this statement, which had
been discounted the day before, was
one that the Gates faction had selected
j. P. Morgan & Co. to settle the differ
ences between the contending inter-
ests.
While these events were happening
a movement without parallel in the
history of the Stock Exchange was on
in Southern Railway. Trading in
Southern Railway common set in on
tremendous scale and at one time
interest centered almost entirely in
that stock
ing of the market that settlement
would be reached. At the Office of J.
P. Morgan &; Co. series of confer
ences began before 10 o'clock. Those
present during the morning were
George w. Perkins and William Pier
son Hamilton, representing the Nor
gan interests; August Belmont, Sam
uel Spencer, president of the Southern
railway; Edwin Hawley, president of
the Iowa Central and the Minneapolis
and st. Louis roads; John Gates, Tai
bot j. Taylor, head of the brokerage
Stetson, one Of Mr.. Morgan's attor-
neys. This conference broke up
shortly before II o'clock. Mr.. Gates
was among the first to leave and it
soon became known that he would is
sue statement telling Of a
Peaceful Solution of the Situation.
Shortly before noon the appended an
nouncement was given out by the
brokerage firm of Harris, Gates & Co.,
in which John w. Gates is a special
partner:
eve have bought a large amount of
stock of the Louisville and Nashville
road We did not buy it for specula-
ton, but for investment, believing alb
solutely in the present and future
value of the property. There will not
be any corner in the stock. We have
placed the entire matter in the hands
Of J. P. Morgan & Co. and request
them to act as arbiters in the situation
because of the prominence of the prop
erty and the desire not to disturb in
any way the general market condition,
and because we know that they (Mor-
gan & Co.. have no interest whatever
in the property or in recent pur-
chases.''
This statement was later changed
so that it read: I'VE have bought
CONTROL" etc. The correction was
made by John F. Harris, who had just
paid a second visit to the Morgan
banking house.
Throughout the day operations in
Southern Railway shares continued
on an enormous scale. The demand
was extraordinary almost from the
outset. The common stock advanced
32s and the preferred 31a points,
Blocks Of 5000 and 10000 shares were
common, and there was one string
OF 10000 shares and another of $4,000
while the trading was at it's height.
Much of the early buying was attrib-
uted to Morgan influence, but it soon
became clear that the Gates clique
as we'll as room traders generally were
taking hand in the game.
All Previous Records Broken.
In the first half hour fully 100000
shares of Southern Railway common
changed hands. By the end of the first
hour transactions in this stock alone
reached total of over 100000 shares.
BY noon considerably more than $780,
900 shares had changed hands.
Dealings fell off after that to some
extent, but the records for the number
of shares of a single stock sold in one
hour, in two hours and in one days
trading were all shattered as a result
OF Southern Railways performance.
The total sales for the day reached
864,500 shares. The total outstanding
stock of the company is 100000
shares.
On April "a, 1901, there were 662, 300
shares of Northern Pacific sold on the
New York Stock Exchange during the
struggle between the Morgan and Har.
riman interests which eliminated in
the May panic. That record was
broken during the day.
There were complaints that no order
for less than 1000 shares could be
executed. The stock sold after the
opening at 34h. There were numer
Gus fluctuations before it advanced to
40A. About this same time there
was marked strength in Illinois Cen
trail and Chicago, Indianapolis and
Louisville (Monon) based, presumably
on the belief that these roads would
benefit in some way by the selection oil
Morgan and Co. as arbiters of the sit
uation.
The widest rumors and reports were
circulated to account for the record
breaking activity Of Southern Rail
way common. Veteran brokers failed
to understand why Morgan interests
should want to increase their holdings
in this stock. Later, when it was seer
that the Gates crowd and spectators
generally were buying in Southern
common the movement partook of {
Purely Speculative Character,
and, although the stock continued phe
nomenally active throughout, heav,
profit taking sent it below the hig1
laval IN cnMo Of punooro11c offo,,on+.