The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-03-28
BIG FlNANClERS ON
THE WITNESS STAND
John w, aates Tells of Securing Con
troll Of the Stock of Tire Road and
Of Selling Il At . Biz Ad- i.8
vancs--Mr. Williams s5l
Suggested : vos- g. 4.
8355 Ing Trust nv 3ss3
M Aaaoniafnd praaall


state Commerce Comm nission nnst hsre3 ~
to-day to investigate tho turnins ovssI
Of the Louisville and Nashville Railroad ~
control to the Atlantic Coast lAns. 855s;
Edwin Hawley, an assistant Of John VI .3
Gates, said he attended several confer-
ences looking to the sale OF the Louis,
Vile and Nashville line to y. z. ] MORGAN
81. s. Williams had offered n3o to s156 y
for the controlling interest ii the stock
tof the road. # Georg gegssYY }. Perkins. IA he
witness said represented Mr.. Morgan8 at
these conf ferences, while Mr.. Gates vas
the principal son the other side.
1--WE had nothing to do with the 7rela-s
tions to the way ylous road y the wi tnesa
said two were discussing the possihllity8
Of Obtaining the Louisville and NashYilless
stock and We talked OF nothing else
f John II. Harris, Of Harris Gates S Co .si
IA "a that when the option vas sold to u IN
Morgan rs Co... his 81 firm control 0lledaat
2oe. 900 Il shares and that the Il price % paid
was $l03 to ST $a. get 81 30 for W N0lS
Line, said he asked ins sW tsal.
Mr. Morgan Il & would SOIL The s$Sl 0u. ~; i1es
and Nashville, aud that M PEI
l5plied that 1t was not N ikel tt rzS $s
Morgan would sell to any int crest Sil.si@
firm could not control, and tn en- rs e,t
lsthes price OF the Senboard Air Line. I. IA w
understood 1t was MIR. Morgan 81 idaaSt az
|gsoll louisville an Nashville to interests
|; that would not 3conf1ict with Z tho South-Sl
,ern Railroad 85 5sgss
MI. Williams said he mad ELL memo
randum OF the In teryiew Just fteri I'll
occurred, +, ana could not be H mistaken. &
The memorandum was read and con AIN
cd L a paragraph \ to the effect that tffs Mr r.SSs
i Perkins said ]. p, I, Morgan & Co., might H
consider an offer to buy the LouiBville5l
and Nashville as an independent trans
sctlon. z gst3t5 Ei5 iS};GG
VOTING TRUST.
S Mr. Williams said he suggested the
formation OF voting trust to run the
louisville and aNash hville compares ot the
Atlantic Coast Line, the Sea boa-Sa Air
Line and J. P. Morgan & Co. Nattherss
the Atlantic Coast Line nor the Sea-
board he said, ID really In compeu ton
with the Louisville and Nashville Rail-.
road. Men consld cred thsm as connects
Ing links Asked who CONTROL ed the sAt-s
lantic Coast Line, he sal dhs und derstoods 4
Mr., Walters and his imnAdiat assocl>S
ates. ,'but there are always ruraors to-
| be discounted"
q, q, Gatos son Of John W. Il Gates &
I said, as a member OF the arm OF Harris
I Gates & Co., he gave ord dere TO purchase 4
stock. and bought gome himselt on the
Exchange. z q Il f ,l .si
|if possible II not to operate the rpad.s N
| It was not the intention to corner the !
stock. Tho object was to obtain control
Eof tho road and not make any hnanclalt
disturbances whatever. q s s5 8f38
John w. Gates was the next witness.
He testified that besides tho 2O6, 900 Louist3
Vile and Nashville shares his syndicate
by IIawley and Davis. Asked 1 as ta 4
when he first conferred with II, r. hIor-T2
gan & Co, about selling the nontrol. Mr.. s
Gates said: s3 5st 81 &
swell. Mr.. schwab came to ma from
lsJ. P. Morgan & CO.. He called me up
At about 3 o'clock in the morning q April
| 18th b and asked what I was glng to-
do. The market had been n little nervona5
| the day. before. told him would see
"a Mr., Perkins In the morning." N
He saw Mr., Perkins next day, md 4
Mr., Perkins wanted q third OF the stock
at cost, s5s&
. told t,'a1, HIM" :, {. sa!a the witness,
Mr.. Perkins then asked for b price
for half the stock. and Mr., Gates saId
ihe would consult with his colleagues! Il
He saw Mr., Perkins next day and told
| him he understood the property was very
| valuable and would pay to hold, ,ss5
USUALLY FOUND EACNERs. 81
Asked as to whether. Mr., Perkins In t,l
ANYTHING about witness being 4 iansst,
ors person to handle such property, Mr.,
| Gates said: 81
"No, I've usually found hackers w!te.a9
T saw profit" He lad n numhpr of BcH;,.5
rersn nces with his associates and :,8twof
holr's talk with Mfr. Perkins.
~ told him." said Mr., Gates, i'tisaS I
would recommend my assoctStep u uccnft 4
la5 f6r one-third. 1870 for one-SAird and 10
| 70. the balance OF the 3ls.olON,haces we
G, ntrollad " all were taken. Mr.. Perkns3
sad the price was too high
Mr.. Gates said his examination of the
Louisville and Nashville accounts had in-
| duced him to believe the property mnfe
| valuable than II was generally held sos
10, There was no reason, he sad, why
II /, could not manage the road ss we'll
a. the August Belmont boari. but o.
, seemed wise to take the profits without
an, trouble or risk, Witness tnk1 &c
making the contract giving : q. M2rsas,s
| and Company an option on the propertya
,.Id said he was asked for a sig 4monih In,
Il ht tury at ~