New-York tribune., 1902-04-17
STOCK MARKET CALMER.
EFFECT OF THE MORGAN AND
BEL MONT STATEMENTS.
BELMONT INTERESTS Do NOT ADMIT
LOSING CONTROL OF L. AND n
PROBABILITY OF CHANGES
IN THE BOARD.
IN THE BOARD.

The statements issued late on Tuesday night
bv George w Perkins of j. P Morgan & Co.
and August Belmont chairman of the board OF
the Louisville and Nashville Railroad Company
declaring that the Southern Railway Company
not to take over the Louisville ana NASH
Vile. and that there would be no further con-
test for control of the latter property, hao
quieting effect the market movement yester-
day of the stocks of the two roads. There were
again heavy dealings in Southern Railway conf
mon about $50 900 shares being sold; but the
trading was within narrow range, between
3S1h and 81. the close being at the latter figure.
net decline of 1s per cent. Louisville ana
Nashville on sales of $1,000 shares. declined l1s
points closing at 12Jk. That truce, II not
indeed permanent peace, had been reached py
the parties contending for the control OF the
Louisville and Nashville was proclaimed by the
Perkins and Belmont statements; Dut tnose Ut
terances in the view of the Street, left some I'M
portant and interesting points unelucidated Oh
those points no information could be obtaheo
Yesterday. One of the unsolved mysteries was
the identity of the principals in the enormous
huving of Southern Railway common on
Tuesday Many believed that this buylng
was for account of the Rothschd- Belmont IN
terests while others were inclined to credit
story-tbat Mr. Gates had expressed desire 10
have an interest in the Southern Railway, ana
acting upon a suggestion from high quarter
that the market was the best place to get IT,
had directed the heavy purchases on which the
stock advanced so materially.
A second point much discussed yesterday re-
lated to the probable changes in the Louisville
and Nashville board, it being taken Tor granted
that. having assumed control of the stock ac-
CURED by the Gates syndicate. J. p. Morgan q
Co would reorganize that body by placing In 1t
a ma iority of directors representing their own
polfCies-those policies, far as the southern
field is concerned. being those which dominate
the Southern Railway-it being agreed, however
that no change would be made before the re-
turn from Europe of Mr. Morgan
dispatch from Louisville yesterday said
that directors there had been summoned TO at
tend a special meeting of the Louisville and
Nashville board to be held to-day In this city.
August Belmont when asked for what purpose
the meeting had been called, answered: Thls
meeting is only one of the regular monthly
meetings of the board. No quorum is likely.
owing to the absence of some of the directors.
In any event there will be no change IN the
personnel Of the board officers.
Mr. Belmont declined yesterday to add any
thing to his brief statement of the preceding
night 1t may be stated. however that the Bel
mont interests do not admit having lost control
of the Louisville and Nashville.
It was made evident yesterday afternoon that
J. + Morgan & Co. have decided to regard the
Louisville incident rs closed. and that there
would be no further public statements on the
matter from them. Asked for some details as
TO the deposit Of stock under the arrangements
announced Mr.. Perkins said that all such
questions we're ridiculous, and would not be an
swered In any way. The Louisville matter is
a closed and sealed thing now, he added
Three statements We're given out yesterday.
which was a larger number than you might
have had and I think that the newspapers and
the public ought 10 he satisfied
John W. Gates was in conference again yes
terday morning with ]. p Morgan & Co. as was
President Samuel Spencer OF the Southern Rail
way Company The former in the same
jocular humor as on Tuesday. but neither man
added to what he had said for publication.
Mr. Gates when asked in the afternoon about
n report that representatives of the Gates syn
dicate would enter the Louisville and Nashville
board at the directors meeting to-day, an
swered: NO that is not true. We have no such
desire Mr.. Belmont called on me just now
He is very nice gentleman. and we had very
nice talk"
When asked whether there was any basis for
a rumor that J. Z. Morgan & 60. had taken
one-third interest in the syndIcates holdings Of
Louisville and Nashville stock. Mr. Gates saun-
tered into another room.
Atlanta April 16-Samuel Spencer presi-
dent of the Southern Railway Company. sent
the following telegram to-day to :. NJ lnman
one of the directors of the Southern and mem
ber of the executive board:
The Louisville and Nashville situation is
simply this: Mr.. Gates and his associates, ap
parently without any consultation with any
railroad interest in the South or elsewhere. ami
entirely on their account, bought in the
open market large blocks of Louisville and
Nashville stock. and claim now 70 mold a clear
ma jOrIty.
BY reason of large short interest, growing
partially out of the sale by the Louisville and
Nashville Company OF fifty thousand shares
an authorized additional issue of treasury stocks
which was not listed and not therefore good
delivery on the Exchange. n serious corner
imminent J. Z. Morgan & Co appealed
TO to use their influence to prevent such dis
astrous condition.
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 rep
resenting any railway interest, and with no pur-
pose except to conserve in the best possible way
the general financial and business situation and
avoid the serious complications which have
Threatened The Southern Railway Company
has had and has no interest. directly indi-
rectly present prospective. in the purchase
of the stock or in it's deposit above with J.
P. Morgan & Co. There is no contest for the
control of the Louisville and Nashville by any
other railway company. and not likely to be, GER
tainly not by the Southern.
SAMUEL SPENCER
Baltimore April 16-It learned to-day
from a semi-official source that the Seaboard
Air Line Railway figures in the general under
standing reached in New-York in connection
with the Louisville and Nashville sale. This it
is stated assures the continuance of the friend
~ relations existing between the Seaboard and
the Louisville and Nashville.
1t is understood that conferences have been
held between the Morgan interests and repre-
tat nft he Jphn