The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1902-04-16
Confirmation Of Gates Control
Of the |, & \. Causes
Wild Response
ENORMOUS DEALINGS
BROKE ALL RECORDS
President Spencer Says the Southern
Ry Has No Interest Whatever In
the Purhase of These Holdings.
Many Conferences Held.

- " EW YORK, April 15.-Wall street
skAA has passed through one of its
" most exciting sensational periods
today The Louisville and Nashville sit
uation, which had hung menacingly over
the district for week or more, was
cleared by the undisputed statement that
John w. Gates and his associates had
wrested control of the property from the
Belmont party and were in absolute pos
session. Accompanying this statement,
which had been discounted the day before,
was one that the Gates faction had select
ed ]. P. Morgan & Co. to settle differ
ences between the contending interests.
While these events were happening a
movement without parallel in the history
of the stock exchange was on In Southern
Railway. Trade in Southern Railway
common set in on a tremendous scale and
at one time interest centered almost en-
tirely in that stock.
1t became evident before the opening
of the market that a settlement would
"A
gan & Co. series of conferences began
before 10 o'clock. Those present during
the morning was George w. Perkins and
William Pearson Hamilton, representing
the Morgan interests; August Belmont,
Samuel Spencer, president of the South
ern Railway; Edwin Hawlet, president of
the Iowa Central and Minneapolis and
st. Louis roads; John W. Gates, Tabor
J. Taylor head of the brokerage firm OF
that name and son-in-law of James r.
Koeile. and Frances r. Lindsay Stetson,
one of Mr.. Morgans allies. This confer
ence broke up shortly before II o'clock.
Mr.. Gates was among the first to leave
and 1t soon became known that he would
issue a statement telling of a peaceful
solution of the situation.
Gates Made Statement.
Shortly before noon the appended an
nouncement was giver ou- by the broker
age firm Of Harris, Gates & Co., in which
John w. Gates is a special partner.
I'VE have bought control of the Louis
vile and Nashville Railroad. 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 cornering Of the stock. We have
placed the entire matter in the hands OF
/ P Morgan & Co. and requested them
10 act as arbitrators in the situation be-
cause of the prominence of the property
and the desire not to disturb in any way
the general market conditions, and be-
cause we know that they have no interest
whatever in the property or in recent
purchases
6rr,, Of 7 Morgan & Co..
out the following statement:
AT the request of Harris Gates & Co.,
who on their own account have recently
made large purchases OF Louisville ana
Nashville Railroad stock, Messrs. }. +.
Morgan &, Co. as bankers have consented
10 take control of the stock so purchased
and to receive the same on deposit.
.orhey have so consented solely to re-
i;ex,e the general financial condition, ana
not for the benefit of any railway COM
many The Southern Railway mas no IN
terest, direct or indirect, present or pros
pective, in this stock or IN its purchase
or deposit.
18th the cordial assent of Messrs. August
Belmont & Co.
Belmont Approves Statement.
On this statement being shown to Au-
s,1st Belmont at his residence, he read 1t
80, carefully and then gave out the
So1loving typewriter statement:
- have been aware of the negotiations
-, which ]. P. Morgan & Co. have con-
sented to take control and deposit the
s+ock of the Louisville and Nashville
panroad Company purchased by Harri-
Gates & Co The statement by
Sqassrs T. p Morgan e. Co. just made
ltlc has my unqualified approval. and
share will be no contest for the control or
she I,ouisvillU and Nashville Railroad
Company.
Mr. Belmont made another hurried VISIT
10 Morgan & Co. soon after tne oates
t,+arnent was issued. He declined TO say
snvtbing. as did the Morgan representa-
80 Mr.. Perkins. who had been most
aotive in the preliminary negotiations,
saenned at first disposed to say something
dea1ing with the terms arranged pe-
+yreen the Gates and Belmont factons.
We changed his mind however ana an
nounced that some dennite oeciaralion ~
would be maze ny 'he al D''i
the afternoon.
u7te,, that time came Mr.. Perkins de-
,5d IN withhold the Morgan state
aant until late at night. Mr.. Belmont
on hearing of this decided to withhold
anvthing he might have for pub
,.t;o, until the Morgan statement
ne tics',o haan iss1led. Mr.. Perkins and Mr.. Bel
.-ao,,+ wore in conference late hl the after
- and both said that for all declara-
t,ons would be sent out by them before
midnight.
Operations On Enormous Scale.
Throughout the day operations in
southern Railway shares continued on an
anornous scale The demand was extra
ordirary almost from the outset. The
oon.non stock advanced 35s and the pre-
ferred half points. Blocks of 5000 and TO-
900 shares were common and there was
one "string' of 10000 shares and anoth-
or of 1000 while the trading was at its
height Much of the early buying was
attributed to the Morgan influence but
1t soon became clear that the Gates
c,,oue as wsil as room, traders general
Iv are taking hand in the game.
In the first half hour fully 10000 shares