Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-04-16
IS N MORGAN 5 HANDS
The Louisville 6 Nashville Rail-
way Purchased by the
Gates Interests.
Latter Turns the Tangled Affairs
Over to Morgan to
Straishten Out.
Settlement OF the Deal Will
Bring Relief to Stock
Market.

New York, April 16.-J. P. Morgan
& Co. has agreed to take the tangled
Louisville and Nashville matter in
hand and this, Wall street thinks, Is
| q guarantee that no further serious
stock market trouble need be appre-
Ehended This semi official statement
was obtained from an interest repre-
scented at the conferences at j. p. Nor
gan 81 Cos office.
The Louisville and Nashville road
will be turned over to j. p. Morgan
& Co., as bankers, for them to operate
as they see fit. AS soon as the papers
are signed majority of the stock will
be turned over to j. P. Morgan d Co.
August Belmont, chairman of the
board of directors of the Louisville ana
Nashville, is IN sympathy and he VIII
turn over some stock, too.
Mr.. Gates says there will be nc
corner, and that is true. Mr.. Belmont
IL.
there will be no contest for control.
There will be no consolidation,
merger, or lease between the Louis
vile and Nashville and the Southern
railway, nor any closer relations be-
tween the two properties than now
exist. The laws of the states in the
south are even more stringent than
they are in the north regarding con-
solicitations, and no merger will be at
tempted.
MIR. Gates has turned the control
over to Morgan & Co., believing that
the road will be best operated under
their management as bankers. There
may be some delay in the signing OF
the papers for the delivery of the stock
and the signing of the necessary agree
ment, but all parties are agreed to the
step and it will be carried out
The interest that made this state
ment would not say for that period of
time the stock is to be held by Morgan
& Co., or whether there will be vot-
ing trust.
Mr.. Gates expressed the situation
late in the afternoon in this sentence:
I'VE have taken in some new partners
in the l. and n.
Charles G. Gates, his son, who is q
general partner in the firm of Harris,
Gates & Co., made this statement:
MIR. Belmont is perfectly satisfied
and is willing to turn over the property
as soon as the details are completed.
There is no bad blood at all, and no
enmity existing Mr.. Belmont has told
US: You have good property and
all is serene.
Tuesdays developments showed that
Mr.. Gates had got into rather more of
tangle than he had anticipated.
There were conferences between all
the interests going on all day at the
Office of j. P. Morgan & Co. The last
conference was held in the late after
noon Those present included: George
w. Perkins, of Morgan & Co., John w.
Gates, John F. Harris, head of the
brokerage firm of Harris, Gates & Co.;
Edwin Hawley, who is one of. the :nem-
bers of the Gates pool; Samuel Spen-
Ger, president of the Southern railway;
and Francis l.. Stetson of counsel to
Morgan & Co.
The first formal statement made by
Mr. Gates and his friends since the
Carrying thru of their stock market
coup was given out in typwritten form
at the office Of Harris, Gates & Co., 10
Wall street, early in the day. AT 1880
o'clock Charles G.. Gates brought out
copies of this typewriter statement:
I'VE have bought large amount of
stock of the Louisville 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.
I'VE have placed the entire matter in
the hands of Messrs. j. P. Morgan e
Co. and requested them to act as ar
biters in the situation because of the
prominence of the property and our de-
sire not to disturb in any way the gen.
eral market conditions, and because
we know they have no interest what
ever in the property or recent pur-
chases.
"HARRIS, GATES 81 Co." 3
Mr.. Harris had in the meantime gone
again to the office of j. P. Morgan &
Co., and as he was leaving there copy
of the statement, which had been given
out. was handed to him, and he was
asked if he could add anything to it,
Yes" he replied, and with a pencil he
drew line thru the words "a large
amount of stock and wrote in the
word CONTROL" so that the statement,
as changed by him, read:
1--WE have bought control of the L.
and N. road
The Northwestern yardmen at Sioux
City have been granted a substantial
increase In their rates of pay.