The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-04-16
EXCITING DAY IN WALL STREET.
Gates Finally Alters Statement to
Declare Control of l.. & N


Declare Control of L. & N.
NEW YORK, April Is. - Wall street
passed through one of its most exciting
and sensational periods today. The Louis
vile & Nashville situation which had
hung menacingly over the district for
week or more, was cleared by the undis-
pnted statement that John W. Gates and
his associates had wrested control of the
property from the Belmont party and
were in absolute possession. Accompany
ing this statement, which had been dis
counted 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
movement without parallel in the history
of the stock exchange was on in South
ern railway. Trading in Southern rai.-
way common set ip on tremendous scale
and at one time interest conferred almost
entirely in that stock.
II became evident before the opening Of
the market that a settlement would be
reached. At the Office of j. p Morgan &
Co. a series of conferences began before
10 o'clock. Those present during the
morning were George w. Perkins and
William Pierson Hamilton. representing
the Morgan interests; August Belmont,
Samuel Spencer, president of the South
ern railway; Edwin Hawley, president Of
the Iowa Central and the Minneapolis &
st. Louis roads; John w. Gates, Talbot
j. Taylor, head Of the brokerage firm of
that name, and son-in-Iaw of James r.
Keene, and Francis Lynde Stetson, one
of Mr.. Morgan's attorneys. This confer
ence broke up shortly before II o'clock.
Gates Issues IA Statement.
Mr.. Gates was among the first to leave,
and it soon became known that he would
issue a statement telling of a peaceable
solution of the situation. Shortly before
noon the appended announcement was
given out by the brokerage firm Of Har-
ris, Gates & Co, in which John w. Gates
is special partner:
I'VE have bought a large amount of
stock Of the Louisville & NashvilIe road
We did not buy it for speculation, but for
investment, believing absolutely in the
present and future value of the prop
erty. There will not be any corner III
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 situation because of the promi-
nence of the property and the desire not
to disturb in any way the general mar
ket conditions and because we know that
they Morgan & Coz have no interest
whatever in the property or in recent
purchases"
This statement was later changed so
that it reads: 1--WE have bought control
etc. The correction was made by John
E. Harris, who has just paid a second
visit to the Morgan banking house.
Mr.. Belmont made another hurried visit
to Morgan 81 Co. soon after the Gates
statement was issued He declined to say
anything, as did the Morgan representa-
tives. Mr.. Perkins, who had been most
active in the preliminary negotiations.
seemed at first disposed to say some
thing dealing with the terms arranged be-
tween the Gates and Belmont factions.
Morgan Declaration Withheld.
He changed his mind. however, and an
nounced that some definite declaration
would be made by the arbiters late in
the afternoon. When that time came MI
Perkins decided to withhold the Morgan
statement until late at night
Mr.. Belmont, on hearing of this. de-
cided to withhold anything he might have
for publication until the Morgan state
ment had been issued. Mr. Perkins and
Mr.. Belmont were in conference late in
the afternoon, and both said that formal
declarations would be sent out by them
before midnight.
Throughout the day operations in
Southern railway shares continued on an
enormous scale. The demand was ex-
traordinary almost from the outset The
common stock advanced 35s and the pre-
ferred 312 points. Blocks of 5000 and TO-
600 shares were common, and there was
one string of 10000 shares and another
of $1,000, while the trading was at its
height. Much of the early buying was
attributed to Morgan influence but 1t
soon became clear that the Gates clif@e,
as well as room traders generally. We're
taking a hand in the game.
In the first half hour fully 100000 shares
of Southern railway common changed
hands. BY the end of the first hour
transactions in this stock alone reached
a total Of over $4,000 shares. By noon
considerably more than 100000 shares had
changed hands.
Days Trading Record Broken.
Dealings fell off after that to some ex-
tent, but the records. for the number OF
shares of a single stock sold in one hour
in two hours, and in one days trading
were all shattered as result of Southern
railways performance today. The total
sales for the day reached a total Of Sea-
500 shares. The total outstanding stock
of the company is 12OO,bOO shares.
April "a, 1901, there were 662.S00 shares
OF Union Pacific sold on the New York
Stock Exchange during the struggle be-
tween the Morgan and Hartman inter-
'ests which eliminated in the May panic.
That record was broken today.
Tnere We're complaints that no order for
less than a thousand shares could De
executed. The stock sold after the open
ing at 3412, compared with 34A last night.
There We're numerous fluctuations before
it advanced to 401k and after the re
actions. from the top figures. About this
same time there was marked strength in
Illinois Central and Chicago, 1ndianapo-
lis & Louisville (Ionon) based, presum-
ably on the belief that these roads would
benefit in some way by the selection Of
Morgan & Co. as arbiters Of the situa-
tion
The widest runners and reports were
circnlst ID to acccu t for the rec ord-break-
ing activity of Southern RAILWAY COM /