Omaha daily bee., 1903-03-28
Vainly requests Gates TO Surrender Soaring
stook at Purchase Price.
CHICAGO cRoESUS HOLDS FOR PROFIT
Finally Sells Large Block at Fifteen to
Forty Points Advance
ALLEGED SOUTHERN MlRGER is PRoBED
Trust Kings Elm nate Dangerous Holders
by Acquisition.
lLLEeEO SOUTHERN MLRGER IS PROBEO
FEAR llINOlsANs MEAN TO CORNER
scbwab Acts rs Go-IIetween, Ringing
Principal BHyer Up on Telephone
Rt Three In Morning 90 Make
appointment.

NEW YORK. March 27.-The Interstate
Commerce commission met today to |
investigate the turning over Of the Louis !
Vile q Nashville railroad control to the |
Atlantic Coast line
Edwin Hawley, an associate OF John W. |
Gates. said he attended several conferences
at which the sale OF the Louisville & Nash |
vile line to J. P. Morgan was discussed. |
George W. Perkins, the Witness said, rep |
resented Mr.. Morgan at these conferences |
while Mr.. Gates was the principal on the |
other side.
I'VE had nothing to do with the relations
to the various roads," the witness said !
I'VE we're discussing the possibility Of OBJ |
tanning the Louisville & Nashville stock
and We talked OF nothing else"
One member OF the Arm said that when
tho option was sold to ]. p. Morgan & Co. /
his firm controlled 206 900 shares which |
they purchase at from sos to sll0. I'VE got
$3.50 for 100000 shares and $3.50 for the re-
naming 100000"
J. S. Williams OF the seaboard Air line
said he asked Mr.. Perkins whether Mr..
Morgan would sell the Louisville & Nash !
Vile and that Mr.. Perkins replied that It
was not likely that Mr.. Morgan would sell
to any interests his nrm could not control,
and then asked the price of the Seaboard
Air line. He understood 1t was Mr.. Nor
gan's idea to sch Louisville & Nashville
10 interests that would not conflict with the
Southern railway
Mr.. Williams made a memorandum of
the interview Just after It occurred and
could not be mistaken.
Suggests Voting Trust.
Witness suggested the formation Of a
voting trust to run the Louisville & Nash
Vile. composed Of the Atlantic Coast line,
the Seaboard Air line and J. p Morgan &
Co. Neither the Atlantic Coast line nor
ths seaboard. he said, are really In competi-
tion with the Louisville q Nashville. Rail-
road men considered them as connecting
links. Asked as to who controlled the At
lantic Coast line, he said he understood
Mr.. Walters and his immediate associates
@. q. Gates, SON Of J.sw. Gates. said as a
member Of the firm OF Harris, Gates a Co
be gave urdefg 10 purchase stock and
bought some himself ON the exchange.
II was the intention to sell at a profit II
possible, and II not to operate the road.
II was not the intention to corner the
stock. The object was to secure control Of
the road and not make any financial dis
turbance whatever.
John w. Gates said that besides the
100000 Louisville & Nashville shares his
syndicate held they controlled 100. 900 held
he frst conferred with J. p Morgan Co.
about selling the control Mr.. Gates said:
well, Mr.. Schwab came to me from ].
P. Morgan & Co. He called me up about
on the morning Of April IL and asked
what was going to do. The market had
been little nervous the day before. told
him would see Mr. Perkins in the morn
ting"
Morgan Seeks Free Cash.
He saw Mr.. Perkins. who wanted third
Of the stock at cost. II told him." said the
witness, II could not think OF It," Mr. Per-
kins then asked for a price for half the
stock and Mr.. Gates said he would con-
suit with his colleagues. He saw Mr.. Per-
klns next day and told him he understood
the property was valuable and would pay
TO hold
Asked whether Mr.. Perkins said any
thing about witness being a dangerous
man to handle such property Mr.. Gates
said: mo, I've usually found hackers
where 1 saw a proht." He had a number
OF conferences with his associates and a
tWo-hour talk with Mr.. Perkins.
II told him." said Mr.. Gates, that 1
would recommend my associates TO accept
125 for one-third. 1SO for one-third and
$50 for the balance Of the 300 900 shares
we controlled, II all were taken Mr.. Per-
Mr. Gates said his examination OF the
Louisville & Nashville accounts had in
duced him to believe the property more val
liable than It was generally held to be.
There was no reason why he could not
manage the road we'll as tho August
Belmont board. but II seemed wise to take
the profits without any trouble or risk.
Witness told OF making the contract giving
J. p. Morgan Co. an option on the prop
~ la e. aIw
months extension Of time.
Something was said by Mr.. Morgan about
tho formation Of q Southern Securities
company to control various roads and in
crease prohts, with the Louisville & Nash
willie stock taken by the securities com
pany at no 1T was argued" witness
said, "that It would be to our mutual In
terests and might be done II the Northern
Securities company went through"
Offers 20 Lend stock.
President Keppler OF the Stock exchange
said Mr.. Gates had told him that no eornel
was intended, and that Harris. Gates 4
Co. w5ula lend the stock 20 enable sherti
70 cover. He felt the situation was critiea
and called on Mr.. Gates OF bis own volition
No formal announcement was made OF whA
Mr.. Gates said, but he spoke OF It to sew
sral persons and It soon became puhli
property.
j. NJ. Culp once president OF the South
I ern, said the Coast line and the Louisville
4 Nashville were regarded more as feeder
to each other than competitors.
C. B. Compton. trafne manager OF tn
Louisville 4 Nashville. gave similar sVi
denee He added that there has been n
Increase in rates since the Atlantic COas
line Interests secured control OF the Louis
vile 4 Nashville.
HarrinAn OutwitS KssAs.