The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-04-17
Wall Street Says He Turned Over
Roads Control for That
Amount.
BOARD MEETING is CALLED.
Bold Operator Declares "J. P.'s
the Salt of the Eartl'-Presi-
dent Spencer Explains
the Situation.


REPUBLIC SPECIAL
New York, April 16-The greatest inter-
est was manifested to-day in the outcome
of the purchase by John W. Gates of the
control of the Louisville and Nashville
Railroad Company, and his turning over
the control TO j. 2. Morgan & Co. That the
road probably would be operated in future
in common with the Southern Railway and
other lines controlled by J. p Morgan &
Co. was generally asserted.
In usually well-informed circles it was
said that Mr. Gates was practically settled
with yesterday on cash basis. and that
the result was net profit to him and his
association of s5,0J0.eoo In consideration Of
that sum, 1t was said. he turned over all the
l.. & n. stock he had and all the contracts
for stock TO be delivered, and agreed to
certain terms which practically eliminate
him as factor in the future management
OF the road, and as possible disturber OF
the future peace of the railroads of the
South.
August Belmont declined to add anything
to the formal statement of last night. eX-
rectors of the company had been called for
Tomorrow in this city. but as the directors
were very much scattered 1t was doubtful
If quorum could be got together.
Watching the Western Crowd.
John W. Gates was buboling over with
good spirits this forenoon.
You seem particularly happy, NJ.
Yes. 1 feel good Everything looks all
right, doesn't it," was the reply.
There is some talk of your driving a
hard bargain with ]. =. Morgan yesterday.
1t is true, Mr.. Gates?"
"Oh, no. My relations with ]. p. are real
good. j: = Was always good friend OF
mine j. P.'s the salt of the earth, ard
don't you forget it l drive a hard bargain?
Not on your life. There's no necessity J.
p has always been a good friend of mine.
l tell you. ard he's a good friend to-day
Mr.. Gates would not discuss the heavy
purchases of Southern Railway yesterday
or disclose the purposes for which the large
sales were made. Nor would he discuss the
terms upon which the Morgans had taken
over the l.. & n.
They say you will clear from $3.50. go
TO s3.CyOp0 on your L. & y. purchases. and
that the stock is to be turned ever on
Mr.. Gates winked and laughed. and then
emphasized and repeated his statement that
j; P is the salt of the earth
All sorts of reports We're in circulation to-
day about Mr. Gates's relations to the firm
of j. p. Morgan * Co. and while ii is
admitted everywhere that the actually dis
tur6lns features of the situation have been
eliminated vet no one would be surprised
to find Gates and the So-called Western
crowd prepared to spring another coup.
which, from its nature, might not be so
easily settled as the one of Yesterday.
Mr.. Gates, reckless as he is known to he
at times and bold as he alwaysDis is admit
tedly stronger than the Gates of several
years ago. He is an adept in locating Strag-
Cling and scattering stock. and those who
know him best sa! that his system of ex-
ploration in this line is marvelously COM
plete.
SPENCER on THE SITUATION.
Atlanta, Ga. April 16.-Presdent Samuel
Spencer of the Southern Railway sent the
telegram to-day TO S. NJ Inman.
a director of the Southern. and a member
of the Executive Beard:
The Louisville and Nashville situation is
simply this: Mr.. Gates and his associates.
apparently without any consultation with
any railroad interest In the South or else
where. and entirely on their own account,
bought in the open market large blocks OF
Louisville and Nashville stock and claimed
now to be a clear majority.
by reason of a large short interest,
growing partially out of the sale by the
Louisville onG Nashville Company of 5D,00O
shares. an authorized additional issue of
treasury stock which was not listed. and
not, therefore. a good delivery on the ex-
change, serious corner was imminent. J.
p. Morgan & Co. were appealed to to use
their influence to prevent such disastrous
condition. After two days negotiations
this has resulted in an agreement by which
the Gates stock will be deposited with and
placed under the control of j. p. Morgan &
Co, as bankers, and not as representing
any railway interest, and with no purpose
except to conserve in the best possible way
the general financial and business situa-
ton. and avoid the serious complications
which have been threatened.