New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-04-16


ure. George w. Perkins. of ]. P. Morgan & Co..
at Sherry's. just before - O'Clock last night
gave out the following statement:
At the request of Messrs Harris. Gates & Co.
who their own independent account nave re,
Gently made large purchases of Louisville ana
Nashville Railroad stock Messrs- j. T. Morgan
& Co, bankers. have consented 70 take CON-
troll of the stock so purchased and TO receive
the same deposit
They have so consented solely to relieve the
general financial condition. and not for the
benefit of any railway company. The Southern
Railway has interest direct or indirect. pres
ent or prospective, in this stock or IN ltS pur-
chase or deposit.
Mr.. Perkins's statement shown to August
Belmont. at his home. and Mr.. Belmont said
of it:
I have been aware of the negotiations by
which j. p. Morgan & Co. have consented to
take control and deposit of the stocks of the
Louisville and Nashville Railroad Company, pur-
chased by Harris Gates & Co. The statement
by Messrs. ]. p Morgan & Co, just made pub
lie, has my unqualified approval. and there will
be contest for the control of the Louisville
and Nashville Railroad Company.
Messrs. J. P. Morgan & Co. acting with
the cordial assent of Messrs. August Belmont
& Co
These announcements comedies with the ex-
plicit statement made late in the afternoon by
President Spencer of the Southern Railway
Company. but are at variance with statements
made on other high authority in the course of
the day which were that control of the Louis
VILE and Nashville would eventually pass to
the Southern Railway Company
The question of the Louisville and Nashville
control was again yesterday the all absorbing
theme of the Street. The authoritative state
ments in The Tribune and one or two other pa
pers that that control had been offered by the
Gates syndicate to J. P. Morgan & Co were ac-
cepted at their full value in the financial dis
rom
erty would pass to the Southern Railway Com
pany The course of the market tended strong
" to confederation of that Inference. for at the
very opening there was an enormous rush to
buy Southern Railway
At the office of ]. P. Morgan & Co series
of conferences began before 10 o'clock Ihose
present during the morning were George w
Perkins and William Pierson Hamilton. repre-
senting the Morgan interests: August Belmont.
chairman of the board of the Louisville and
Nashville; Samuel Spencer. president of the
Southern Railway Company: Edwin Hawley,
president of the Iowa Central and Minneapolis
and 81. Louis roads and a member of the Gates
syndicate: John w. Gates Talbot J. Taylor
head of the brokerage firm of Talbot j. Taylor
G. Co and son-in-law of James r. Keene. and
Francis Lynde Stetson. Mr. Morgans personal
attorney This conference broke up a little be-
fore II o'clock. Mr.. Gates was among the first
TO leave it, and 1t soon became known that ne
would issue a statement telling of peaceful
solution OF the situation. At 11:23 O'Clock the
amended announcement was given out by the
brokerage firm of Harris. Gates & Co, In which
John w Gates is special partner:
we have bought a large amount of stock or
the Louisville and Nashville road We did not
b,,v /, for specuIation but for investment. be
revins absolutely in the present and future
value of the property There will not be any
corner in the stock. We have placed the en-
tire matter in the hands of j. P. Morgan & Co.
and requested them TO act as arbtters III the
situation because of the prominence or the
nroner+v and desire not to disturb in any. way
the general market condition. and because we
know that they Morgan & Coz have no IN
terest whatever in the property or in recent
purchases
This statement was later changed so that it
read I'VE have bought CONTROL. etc The cor
reotion was made by John F. Harris. who had
inst paid a second visit to the Morgan banking
house.
Mr. ReInoont made another hurried visit TO
T p Morgan & Co soon after the Gates state
r,ant was issued. He declined to say anything.
as did the Morgan representatives Mr. Perkins
who had been most active in the preliminary ne
sotiations seemed at first disposed to make q
statement dealing with the terms arranged oe-
tween the Gates and Belmont factions He
changed his mind however, and announced that
some definite declaration would be made by tne
arbiters late in the afternoon. When that time
came Mr. Perkins decided to withhold the Nor
gan statement until late at night
Representatives of the Gates party were In
and out of j. p Morgan & Co.'S office all day.
NJ, C.ates himself paying at least three visits
Mr. Belmont made a second call there In the
afternoon. and Mr.. Perkins. at $50. called on
Mr. Ralmont for a few minutes Stuyvesant
Fish president of the Illinois Central was an
other caller at the Morgan offices. and MS pres
enca there as we'll the fact of Mr Hawley S
participation in the Gates syndicate, was taken
70 moan that the interests of the Illinois Cen
traI would not he dregarded in any arrange
r,ent which might be made for transferring the
Louisville ard Nashville control from lts oio
holders.
All sorts of rumors were afoat to account lor
the record breaking activity of Southern Kali
rar common The chief buying seemed TO ne
h,, hro,ers usually identified with j. p Nor
CON e. 90 hut the Street failed to understand
NV tho Morgan interests should desire to IN
craasa their holdings of the stock. The colossal
scale on which the buying proceeded seemed 10
negative the idea that any consideraole pdi' vi
the trading was speculative ana 'ie 'ee
gained ground that the Rothscniios' whose rep
rasentatives in this city August Belmont * 20.
are had entered the lists in a determined ef-
fort to regain control of the Louisville and
Nashville through acquisition of the southern
Railway, just as the Union Pacific interests
bousbt Northern Pacific. through control OF
which they would obtain an equal voice with
tho Great Northern in debating the pohcy or
the burlington. The Southern Railway COM
na,v has outstanding S120OoOoo common
,o,x and SfOOOOWO preferred Control
% 10Th classes Is vested in vot