The Saint Paul globe., 1902-04-13
LOUISVILLE & NASHVILLE TO co IN
SOUTHERN SYSTEM AND ROCK
ISLAND TO JOIN
J. W. GATES IS THE ARBITER
New Community of Interest VIII
Control at First 31,349 Miles of
Road Beside Arrangement
with the Southwest Line
GEORGIA MAY FIGHT COMBINE

NEW YORK, April 12.-As a result Of
several conferences held today, there is a
very general conviction that control of
the Louisville & Nashville road has pass
ed or viii pass to the Southern railway.
Representatives of the Louisville &
Nashville and Southern roads and a mem
sultation early in the day and later John
W. Gates was closeted tor almost an
hour with George w. Perkins at the of
flee of J. P. Morgan & Co. Neither Mr.
Perkins nor Mr.. Gates would say what
passed between them, but it was admitted
that the Louisville & Nashville situation
was discussed in its several phases
The most authoritative report dealing
with the recent course of Louisville &
Nashville is substantially as follows:
Some time ago Southern railway inter-
ests, alarmed at the increasing strength
and prosperity of Louisville & Nashville,
made an offer for a majority interest
The offer was declined, SO report has it.
by foreign holders Of Louisville & Nash
vile, who held the balance of power
Recently, when the Louisville & Nash
vile increased it's capital stock by S., COO
OeO, Mr.. Gates and his associates saw an
opportunity to squeeze" the insiders by
buying Louisville in --le market and Gre
ating a scarcity in the stock. To what
extent the Gates faction succeeded in still
a matter Of conjecture, but it is not
doubted that they were in a position to
swing large block of stock either way.
Rock Island as the Leader.
Conditions seemed ripe for an attempt
to gain control of Louisville & Nashville,
and Southern railway interests, as pre-
ant cd Iry CA
the Moore Brothers to acquire as much
of the stock as possible in the open mar
ket, with the understanding tnat this
stock would be taken over by the South
ern road.
Banking interests in which the Moores
are especially interested have been heavy
buyers of Louisville & Nashville, and one
bank in particular is said to have called
number of loans this week so as to ac-
cumulate the money for it's purchases of
Louisville stock
Wall street believes that some sort Of a
community of interest" between Rock
Island and the Southern railway will fol-
low the change in Louisville &, Nashville
ownership.
The Evening Post discussing the situa
tion in Louisville & Nashville says:
All indications seem to point to the
fact that the control of the Louisville &
Nashville railway is now so held that
it can be turned over to the Rock Island
railway. The matter had not been de-
termineo at the close of business today,
and facts are as lacking as they have
been since the excitement in Louisville
q Nashville shares began some days ago.
Gates VIII Decide Roads Fate.
Opinion in Wall street is in nebu-
lous condition as to who now controls
the company, but there is a conviction
that control has passed from the Bel
mont interests, and that John w Gates
has been factor in its passing.
There appears to be good foundation
for the opinion that Mr. Gates may now
be in position, by throwing his stock
one way or the other, to decide what
interest shall hereafter control Louis
vile & Nashville Not much doubt is
felt that the Moore interests will secure
his proxies, or the stock he holds'
According to the Evening Post, the
Choctaw road was purchased for the
Moore interests by Speyer & Co., as
part Of the plan for Rock Island extern
sion.