The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-04-16
GATES HAS CONTROL
SITUATION IN L. AND n. CLEARED
UP SOMEWHAT.
SOUTHERN GOES BOOMING.
WALL STREET HAS A RECORD
BREAKING DAY.

The Big Demand for Southern stock
and the Unheard of Sales Almost
Overshadowed Interest in Louis
Vile and Nashville Affairs-Samuel
spencer, George w. Perkins OF
Morgan 4 Co. and August BeE-
mont All Declare That the South
ern Has No Interest in the L. and
\. Deal, and That the Latter Will
Remain an Independent Line.
New York. April 15.-Wall street
passed through one of its most exciting
and sensational periods to-day. The
Louisville and Nashville situation,
which had hung menacingly over the
district for a week or more, was clear
ed by the undisputed statement that
John w. Gates and his associates had
wrested control of the property from
the Belmont party and were in abso-
lutte possession. Accompanying this
statement, which had been discounted
the day before, was one that the Gates
faction had selected J. P. Morgan &
Co., to settle the differences between
the contending interests.
While these events were happening
a movement without parallel in the
history of the Stock Exchange was on
in the Southern Railway. Trading in
Southern Railway common set in on
a tremendous scale and at one time
interest centered almost entirely in
that stock
1t became evident before the open
ing of the market that a settlement
would be reached. At the office of
J. P. Morgan & Co. a series of con-
ferences began before 10 o'clock. Those
present during the morning were
George w. Perkins and William Pier
son Hamilton, representing the Morgan
interests; August Belmont, Samuel
Spencer, president of the Southern
Railway Edwin Hawley, president of
the Iowa Central, and Minneapolis and
st. Louis roads; John w. Gates, Tai
bot J. Taylor, head of the brokerage
firm of that name, and son-in-law of
James X. Keene, and Francis Lynds
Stetson, one of Mr. Morgan's attor-
neys. This conference broke up short
ly before IL o'clock Mr.. Gates was
among the first to leave, and it soon be-
came known that he would is
sue a statement telling of a
peaceful solution of the situation
Shortly before noon the appended an
nouncement was given out by the
brokerage firm of Messrs. Gates & Co..
in which John w. Gates is a special
partner:
MIR. Gates Statement.
I'VE have bought large amount of
stock of the Louisville and Nashville
road We did not buy it for specula-
ton, but for investment, believing abb
sOlutely in the present and the 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 requested
them to act as arbiters in the situa-
ton because of the prominence of the
property and the desire not to disturb
in any way the general market condi
tion and because we know that they
Morgan & c. have no interest what
ever in the property or in recent pur
chases."
This statement was later changed so
that it read, 1--WE have bought con-
troll" etc. The correction was made
by John F. Harris, who had just paid
q second visit to the Morgan banking
house.
Mr.. Belmont made another hurried
visit to Morgan & Co.'S soon after the
Gates statement was issued. He de-
clned to say anything, as did the
Morgan representatives.
MIR. Perkins. who had been most ac-
1--WE IN the preliminary negotiations
seemed at first disposed to say some
thlng dealing with the terms arranged
between the Gates and Belmont fac
lions. He changed his mind, however,
ana announced that some definite dec
iafation would be made by the arbiters
laue IN the afternoon. When that
lline came Mr.. Perkins decided to
wilhhold the Morgan statement until
idte at night. Mr.. Belmont on hear
ing OF this decided to withhold any
tillng he might have for publication
t ultlI the Morgan statement had been
ISSUED Mr.. Perkins and Mr.. Bel
-itonl We're in conference late in the
SIlerhoon. and both said that formal
ppeeeIaratlons would be sent out by them
before midnight.
big Demand for Southern.
l., throughout the day the operations
on "outhern Railway shares continued
W an enormous scale The demand
o,,t.. eAtraordlnary almost from the
S5t SCI Inc common stock advanced
81 a aod the preferred 31a points. Blocks
ma y, anu 1uUUU SHARES were common
sbo mere was one String" of 90, 900
t ro5'a and another of 81, 600 while the
ea "Il'g was at its hight Much of the
gar puylhg was attributed to Nor
e. influence, but it soon became
roor. tiiat the Gates clique as we'll as
bons traders generally were taking a
-'0lIu IN the game.
sbaro me f1rst half-hour fully zoo, 900
chancaS9 Or Southern Railway common
d.
-iouI transactions in this stock alone
p n, a total of over $50. 900 shares.
noon considerably more than half
n Iillion shares changed hands.
,,tdilhgs fell off after that to some
bar MI. but the records for the num-
ona u ~ shares of a single stock sold in
traat iiouT' IN two hours and in one DAYS
Of Sas were all shattered as a result
dav uI 1,,n Railways performance to-
resoL me total sales for the day
tot lCnea total of S64.5 500 shares. The
is aoo udtostanding stock of the company
- Lz0O,O0O shares.
some Former Record SaIes.
60, ON April "a. 1901. there were $50 soo
N Mares OF Union Pacific sold on the
str,,. FORK Stock Exchange during the
rir'assle between the Morgan and Har-
he NJ interests which eliminated in
On ~ isy panic. That record was brok-
no 'o-Gdy. There were complaints that
sbsr oLoer for less than a thousand
sold could be executed. The stock
SAY aIter the opening at
Thero IMPAIRED with S41z last night
fora We're numerous fluctuations be-
reactioraau V sd TO 4O1z and after the