Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-04-16
LOUISVILLE G. NASHVILLE
Bought by Gates for Investment, Not
for Speculation.

New York. April 15.-Wall street pass a
through one of its most exciting ana sen
s2tIonai periods. TODAY. me LON 3 ,..l,.
Il Nashville situation. which had hung
menacingly over the district for Il week
or more. was cleared by the undisrut"d
statement that John w. Gates and his as
sociates had wrested control of the prop
erty from the Belmont party and were
in absolute possession. Accompanying
this statement. which had been discount
ed the day before. was one that the
Gates faction had selected j. p. Morgan
Il Co. to settle the differences bztw, l
the contending interests
Wnlle THESE events were happening.
trading in Southern Railway common set
in on a tremendous scale and at enc time
interests centered almost entirely in that
stock.
1t became evident before the opening
of the market that a settlement would
be reached. AT the office of J. p. Nor
gan * Co a series of conferences began
before 10 o'clock. These conferences
broke up shortly before II o'clock. Mr..
Gates was among the first to leave ana
1t soon became known that he would issu2
q statement telling of a peaceful solution
Of the situation. Shortly before noon the
appended announcement was givea out
| by the brokerage firm of Harris, Gates 4
CO., in which John w. Gates is speci,
partner:
We have bought control of the Louis
| Vile x Nashville road. We did not bay
| ii for speculation but for investment. be
| lieving absolutely in the present and fu-
| ture value of the property There will
| not be any corner in the stock. We
| have placed the entire matter in the
hands Of j. p. Morgan IL Co. and request
| ed them to act as arbiters in the situa-
| ton because OF the DrOminen nee of The
property and desire not to disturb in any
| way the general market condition ana
because we know that they Morgan 4
Coz have no interest whatever in the
property or in recent purchases
throughout the daV oppratinps In
Southern Railway shares continued On
an enormous scale. The common STOCK
| advanced 32s and the preferred -
| points. Blocks of 5000 and le 600 share;
| Were common and there was che ''string
| of 10000 shares and another of 81 100
shares, while the trading was at its
| height
In the first half hour fully 200 600 shares
of Southern Railway common changed
hands. By the end of the first hour
transactions in this stock alone reach Il
| a total of over $4,000 shares. BY noon
considerable more than 5iU.trU shares had
| changed hands. Dealings fell off afte.
| that to some extent, but the records fo..
| the number of shares of a single stock
sold IN one hour, in two hours. and in
one days trading We're all shattered as n
result of Southern Railways perform
ance, today. The total sales for the dav
reached a total of SCI, $50 shares. The to-
tai outstanding stock of the company is
| 10000 shares.
The widest rumors and reports were
| circulated to. account for the record
| breaking activity of Southern Railway
| common.
Louisville & Nashville shares advanced
at the opening but fell off almost as soon
| as the bulge" in Southern Railway
| came. Transactions in Louisville & Nash
vile aggregated about 5000 shares. the
stock closing at 127, a net loss for the
day of one point.
| President Spencer when asked as to the
| future relations of Southern and Louis
| vile & Nashville, made this statement:
| The Southern Railway had no interest
| in the purchase and it will have no inter-
| est in it at any time in the future. Louis
vile & Nashville will not pass to tbs
| Southern Railway
George W. Perkins, a member of the
banking house of ]. Pierpont Morgan
& Co, gave out the following state
| ment tonight:
| AT the request of Messrs. Harris
| Gates 4 Co, who on their own indie
| pendent account have recently made
! large purchases of Louisville & Nash
vile Railroad stock, Messrs. J. p
Morgan & Co. as bankers, have con-
scented to take control of the stock sc
purchased and to receive the same or
deposit.
| They have so consented solely to re-
lieve the general financial condition
| and not for the benefit of any railway
| company. The Southern Railway has
no interest, direct or indirect, presen;
| or prospective, in this stock or in its
purchase or deposit. Messrs. j. p
Morgan & Co. are acting with the cor.
dial assent of Messrs. August Belmont
e CO..
| On this statement being shown tc
| August Belmont at his residence he
| read it over carefully and then gave
out the following typewriter state
ment:
| Il have been aware of the negotia.
lions by which J. p. Morgan & Co. have
consented TO take control and deposit
| of the stock of the Louisville & Nash
willie abroad Co, purchased by Harris
Gates & Co. The statement by Messrs
j. Z. Morgan & Co. just made public
has my unqualified approval and there
will be no contest for the control OF
the Louisville & Nashville Railroad
Co."