New-York tribune., 1902-05-24
SAYS lNONON IS IN MARKET,
DENIAL THAT ]. 2. MORGAN & co. HAVE
CONTROLLERS CERTAIN THAT IT
WILL BE PURCHASED BY SOUTH
ERN AND L. AND y.
ERN AND l.. AND y.

Facts which developed yesterday in Wall
Street seemed TO make il less certain that it
has ali along been believed that the Louisville
and Nashville and the Southern Railway would
soon Jointly purchase the MonOn and thus
secure a Chicago outlet. An interest close to
J. z. Morgan & co. said yesterday afternoon
that that firm did not hold. has been gen
orally understood. control of the MOnOn, but
that the road was lin the market" He de-
cIared however. that the control of the Louis
Vile and Nashville rested with / P. Morgan
& Co but beyond that statement and the fur
ther remark that il the directors of the
Louisville and Nashville and the Southern Rail-
way Company who had made the offer for the
MOnon he declined to comment upon an article
which appeared in The Wall Street Journal"
and which there is good ground for regarding
as in substance accurate, it appearing from II
that the Morgan control of Louisville and Nash
willie is conditioned upon Mr.. Morgan exercising
his option upon a large amount of Louisville
and Nashville stock owned by syndicates
headed respeC lively by John W. Gates and Ed
win Hawley. The article referred to is as fol-
lows:
The announcement Of the proposed a9T27Pti9n t o
Southern Railway has raised the issue as TO who
can properly speak for the Louisville and Nash
and legal advices are being taken II would aP-
pear that this transaction between the L9HisolIe
india noiis and Louisville road only be con-
stimmated on the basis of Mr.. Morgan eXercisiEg
of the Gates HaWley stock now deposited with J
T. Morgan & co. John W. Gates turned over 20 j.
T. Morgan q Co. 206. 600 shares of stock Tor nm
self and about dozen OF MS aSSoclate teS dWllt
HawIev turned over 10 J. T. Morgan & Co l0No
shares Of Louisville and Nashville. ana MI 'IateS
and Mr. Hawley each took separate C0ltracts OF
the same tenor from J. T. Morgan * >, Morgan
advanced S115 a this stock, and later puI-
chased one-thrd of each. 100000 shares. AZ SD
share. and took option on the balance at sI5S
q share Mr.. Morgan. IL IS understood, also went
into the market and purchased more li4H -
hundred thousand shares of stock SO that IN erect
Mr. Morgan Is to-day the largest owner or LOUIS
owns or controls majority OF the STOCK; except y
rho Inclusion of the 2A.i+0 shares nelpnSlfE 70
McSsrs- Gates Hawley and their assoc lt--S, -,
The two contracts provide that a plan sheh %
formulated by Mr. Morgan within SIX months alLI
n such plan is not acceptable ana Is reJ|cISd uE
the holders Of the stock deposited WIN nlS
Mr. Morgan NAV exercise his option ana take tne
Louisville and Nashville stock at Sla'l. Du IN W
event Of the rejection OF the plan Snd MT Morgan 5
receive back their stock, together with the Clvl-
dendS collected thereon. upon payment or JIe
money advanced and per cent lntfreSt, ILe-eoI5.
the return embrace the eutire l'-'' mares II
would sseuo therefore. that NfT. Morgan mas gone
forward upon the assumption that ne Will exc
else his option II his plans are not aSSeiLtetI 70
ley have assented 10 Jhs plan for the aoSorptlon or
the Monou road II is understood the Nonon road
is held for the account Of Mr. Morgan
Louisville and Nashville stock has arrived n
conSfderab ble quantities from the Other side this
week and IS being returned by the Gates ttaW-
ley people the parties from whom they Dor
Morgan & CO. so it is expected the short interest
in Louisville and Nashville Will soon be eliminated
as a market factor. -
\ report from good sources that the Louisville
Illinois Central per cent guaranty cannot
yet be confirmed in any quarter