Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1903-02-06
JOHN w. THURSTON.

Now, If the directors of the Louis
vile and Nashville had in the first
place exercised the prudence which Is
deemed to be essential for the manage
ment Of great railway system they
would not have sold $4,000 shares I'M
less they had them or knew where they
could get them. So, in this COMPARE
son, which has been made between Mr..
Gates ways and those of other men, 1t
was said if he is really unfit to be in
control of railway system what shall
be said Of directors of system who
through their own laches make it pos
sible for an unsafe influence to get
controls?
Then, again, it is said that if there is
to be criticism of those who rush in
and by reason of their command of
great resources, unusual ability and
possession Of all the qualities that
make great generalship, can thereby
secure at one stroke vast railway prop
critics, the criticism reaches many 9TH
ers than Mr.. Gates. There was really
no difference between the capture of
the Louisville and Nashville by Mr.
Gates and the capture of the Burling-
ton system by Mr.. Hill and others, ex-
cepting that the Burlington directors
had left no weak place in their fortifi-
cation. Yet this Burlington purchase
developed corner on May 8, 1901,
which is to pass into the list of great
traditions of Wall street. That cor
ner was a fact. The corner which
Mr.. Gates might have caused was pre-
vented through negotiations with him
carried on by J. 2. Morgan & Co. and
others.
The answer to those who make this
comparison Is that Mr.. Gates bought
Louisville and Nashville not in good
faith, seeking to enter the field of rail
way direction, but purely as a specula-
tive transaction, whereas Burlington
was bought 50 that it might facilitate
the purposes of those who aim to Sc
cure an absolute monopoly of railway
transportation in the far northwest.
And yet as rejoinder to those who
make this answer it is said that the at
torney general Of the United States
and the authorities of the state of Min
nesota have declared that this purpose
Of those who control the two Pacifcs
OF the northwest Is an illegal one
whereas no one can question the per-
feet legality Of the transactions with
which Mr.. Gates was identified.
Therefore the distinction seems to be
that Mr.. Gates did legal thing which
was against the code established by
some who are in authority in Wall
street. He broke what may be called
the moral law of the great financiers
while in no way infracting the statutes
OF any state or of the United States
On the other hand, according to this
reasoning, those who bought the Bur
ington and afterward organized the
Northern Securities corporation were
in perfect sympathy with the moral or
business code, but are believed by the
federal and state authorities to have
violated the statutory laws.
Mr.. Gates was accused of having said
that after he obtained possession of
the Louisville and Nashville he pro
posed to declare large dividends and
then unload his stock upon the public.
While 1t must be said that not at any
time in the career Of Mr.. Morgan or
Of any Of the banking houses of which
he is the chief partner has code Of
that kind been tolerated, nevertheless
it is code which has been wlnked at
over and over again in Wall street
Mr.. Gates is great man, worthy
general, a satisfactory leader, or the
reverse, according to the point of view.
There is a suspicion here that some of
the shafts of criticism which have been
leveled at him by others who have
been playing the game just as he has
done have been inspired by the fact
that Mr.. Gates has been able by sin
gle maneuver that required courage
ability and detailed knowledge to plan
and carry out an attack which netted
him In the course Of few months q
profit possibly as much as $7,000,O00
possibly as little as $5,000,O00. 1t is
still the opinion of many who have
looked askance at Mr.. Gates since he
came to New York that the day is com
| ing when he will recollect amid the
ashes of disappointment and complete
defeat the triumphs Of his little day.
Not SO, however, do those who know
Mr.. Gates predict They are of the
opinion that the man who was able tt
lay down the fundamental principle!
upon which the steel trust organization
was based possesses abilities which arr
greater than those of the mere opera
tor. 1t is said Of him that he is in
stinctly magnificent gambler in Sc
curities or properties, and that til,
greater the risk, provided it be coupled
with equally great possibilities, thel
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