The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-04-17
RAILROAD NEWS.
Rock Island Apparently Out of
L. 6 n. Deal.
True Status of the Road is Still
in Doubt.
MIR. BELMONT DENIES.
Claims That He is Still in Con-
troll of the Situation.
&, s 1T
MR. BELMONT DENIES.
Statement Made by President
Spencer of the Southern.

Indications are now that the Rock
Island route has not as yet acquired
any interest in the Louisville & Nash
vile railroad, which has passed into the
control of J. Pierpont Morgan & CO.
When it was first announced that the
l. & N. had been sold. it was believed
in railway circles that the Rock Island
was the real purchaser.
Some claim that the L. & n. is to be
absorbed by the Southern; some think
it is the Seaboard Air Line. The 1lli-
nois Central and other roads have also
been mentioned as the possible pur-
of the big deal. however, the dispatches
have indicated that the Rock Island has
as vet not secured control
SEABOARD IS INTERESTED.
Baltimore April LIT was learned
today from a seni-ofacial source that
the Sea board Air Line railroad figures
in the general understanding reached IN
New York in connection with the
Louisville & Nashville sale This, 1t IS
stated. assured the continuance of the
friendly relations existing between the
Seaboard and the Louisville & Nash
vile,
1t is understood that conferences
have been held between the Morgan in
terests and representatives of the Sea-
board. President Shelton of the latter
and President Samuel Spencer of the
conferences. It has been expected that
some understanding would be reached
with the Sea board with the idea of Sc
curing its cooperation with the COM
munity of interests plan There is a
disposition in local circles close to the
Seaboard to think that the Gates party
contemplated making a bid for the
Seaboard, and that the Morgan plan
to secure a general understanding in
tervened and stopped this movement.
BELMONT STILL DENIES.
New York, April l7--August Belmont
had nothing to add today to his brief
stated. however, that the Belmont in
terests do not admit having lost con-
troll of the i, & n.
The statement of Harris, Gates & Co.
that they bought control of the Louis
vile & Nashville implies that they
practically hold physical possession of
over 800 600 shares of the stock, incIud-
ing the stock now out on time" con-
tracts and deliverable some two to
four weeks off. Efforts to get a def
mite statement from the Gates inter
ests regarding this phase of the situa-
ton were futile. This naturally gives
rise to the suggestion that some
changes may soon take place in the
L. & \. board-that Mr. Gates will be
permitted to name several directors.
From the highest possible source, how
ever, comes the statement that no
change is likely to be made in the L.
& N. directorate until Mr.. Morgan's re-
turn from abroad Mr.. Morgan is not
expected back until the early summer.
One of the latest versions of the L.
& n. situation is as follows:
The Gates holdings have been divided
into three parts, J. P Morgan & Co.
taking One-third and Messrs. Gates and
Hawiey the remainder. Morgan & co.
have taken this interest on the under
standing that the L. & N is to be op-
Grated in harmony with Morgan inter
ests in the same section of the country.
Yesterdays movement in Southern
railway is attributed to Mr.. Gates de-
sire to secure an interest in that prop
erty- He is reported to have been in
formed that the best way to get it was
to go into the open market, which he
and his followers are reported to have
done to the extent of about zoo, 600
shares.
The substance of these reports was
outlined to Samuel Spencer, president
of the Southern. He appeared to be in
terested but made no comment.
Mr. Spencer and Mr.. Stetson, attorney
for j. p. Morgan, spent considera BILE
time at Morgan & Cos this afternoon
comforting with Mr. Perkins All in
of the agreement between Mr.. Gates
and Mr. Belmont nor could it be
learned when the terms are likely TO
be made public
PRESIDENT sPENCER'S VERSION.
President Spencer of the Southern Rail
way sent his telegram to s M. Mann. one
bef Of the executive board.
me J.. x N situation is simply this.
Mf- tTateS and his associates, apparently
without any consultation with any rail
road interests in the south or elsewhere.
and entirely on their own account bought
in the open market large blocks of T.. &.
~ stock and claimed now to be q clear
majority.
BY reason Of large short interest.
partly out Of the sale by the L. & n com
pany Of $1,000 shares-an authorized addf-
uonal issue Of treasury stock-Which was
not listed and not therefore q good deliN-
cry on the exchange, a serious corner was
HnInluent- j. +. Morgan & Co was APP
Sucn a disastrous condition. After two
days negotiations this has resulted in an
agreement by which the Gates stock viii
De deposited with and placed under the
control OF j. = Morgan & Co, as bankers
ana not as representing any railway in
terest and with no purpose except to con
serve in the best possible way the general
financial and business situation and avoid
the serious complications which have
threatened.
had no interest directly or indirectly pres
ent or prospective, in the purchase of the
stock or IN its deposit as above with J.
+. Morgan & Co. There is no contest for
the control Of the L. & n. by any other
railway company and not likely to be
certainly not by the Southern
(Signed) ''SAMU SPENCER
WANTS TO BORROW $4,000.
Arthur E. stilwel is Dickering With
Wichita Business Men.
Arthur E. Stillwell is trying to per
suade Wichita to loan him $4,000 to
build his Orient road from Wichita to