The Savannah morning news., 1903-03-28
AFTER NO CORNER
GATES TELLS ABOUT HIS LOUIS
WILLIE AND NASHVILLE DEAL.
WAS READY TO OPERATE
IL HE COULDN'T SELL THE CON-
TROL AT 4 PROFIT.

Again i4OOElhS 1hSo tne Matter Oh
the Acquisition of the Louisville
and Nashville Control by the ~
Iantic Coast Line-RaiIway Mag
mates Give Their Testimony.
Gates Connection With the Deal.
williams 81 Witness.
New York, March 27.-The Interstate
Commerce Commission met here to-day
to investigate the turning over of the
Louisville and Nashville Railroad con-
troll to the Atlantic Coast Line.
Edwin Hawley, an associate of John
w Gates, said he attended several
conferences looking to the sale of the
Louisville and Nashville line to j. P.
Morgan. j. S. Williams had offered
1870 to 1876 for the controlling interest
in the stock of the road. Geo. w.
Perkins, it was said, represented Mr..
Morgan at the conferences, while Mr..
Gates was principal on the other
side.
I'VE have nothing to do with rela-
tions to the other roads," the witness
said. Eve were discussing the posi-
bility of obtaining the Louisville and
Nashville stock and we talked of
nothing else"
John F. Harris, of Harris, Gates &c
Co., said that when the option was
sold to ]. P. Morgan & Co., his firm
controlled 100000 shares, and that the
price was 108 to 40. 1--WE got 100 for
100000 shares and $50 for the remaining
LOG, 000.
John SHELTON Williams.
]. S. Williams, of the Seaboard Air
Line said he asked Mr.. Perkins
whether Mr.. Morgan would sell the
Louisville and Nashville, and that MIR.
Perkins replied that it was not likely
that Mr.. Morgan would sell to any
interests his firm could not contral and
then asked the price of the Seaboard
Air Line. He understood it was Mr..
Morgans plan to sell Louisville and
Nashville to interests that would not
conflict with the Southern Railway.
Mr.. Williams said he made a memo
randum of the interview just after
it occurred and could not be mistak-
en-. The memorandum was read, and
contained a paragraph to the effect
that o. Perkins said J. F. Morgan
& Co. might consider an offer
to buy the Louisville and Nashville as
an independent transaction.
Mr.. Williams said he suggested the
formation of voting trust to run
the Louisville and Nashville, composed
board Air Line and j. P. Morgan &
Co. Neither the Atlantic Coast
Line nor the Seaboard, he said, is
really in competition with the Louis
willie and Nashville. Railroad men con-
sidered them as connecting links.
Asked who controlled the Atlantic
Coast Line, he said he understood Mr.
Walters and his immediate associates,
but there are always rumors to be
discounted"
Young Gates Bought, Too.
C. C. Gates, son of John w. Gates,
said, as a member of the firm. of Har-
ris Gates & Co., he gave or
ders to purchase stock and bought
some himself on the exchange
1t was the intention to sell at profit,
if possible; if not, to operate the road.
1t was not the intention to corner the
stock. The object was to obtain con-
troll of the road and not make any
financial disturbance whatever.
John w. Gates was the next witness.
He testified that besides the 306,000
Louisville and Nashville shares his
syndicate held, they controlled 100000
shares held by Hawley and Davis. Ask
ed as to when he first conferred with
J. P. Morgan & Co. about selling the
control, Mr.. Gates said:
Schwab Tried Gates.
"Well, Mr.. Schwab came to me from
J. p. Morgan & Co. He called me up
at about o'clock in the morning of
April IL, and asked what [ was going
to do. The market had been a little
nervous the day before. l told him
would see Mr.. Perkins in the morn
ing"
He saw Mr.. Perkins next day. and
Mr.. Perkins wanted third of the stock
at cost. 81 told him." said the witness,
II couldn't think of it, Mr.. Perkins
then asked for a price for half the
ctr Mr Cote Sof6 h
consult with his colleagues. He saw
Mr.. Perkins next day and told him he
understood the property was very val
liable and would pay to hold.
Asked as to whether Mr.. Perkins
said anything about the witness be-
ing a dangerous man to handle such
property, Mr.. Gates said:
mo, I've usually found hackers
where / saw a profit"
He had a number of conferences with
his associates and two-hour talk with
Mr. Perkins.
Profits without Risk Trouble.
II told him." said Mr.. Gates, that 1
would recommend my associates to ac-
cept 125 for third, 1870 for one-third
and $50 for the balance of the 100000
shares we controlled, if all were taken.
Mr.. Perkins said the price was too
high"
MIR. Gates said his examination of
had induced him to believe the prop
erty more valuable than it was gen.
orally held to be. There was no rea-
son, he said, why he could not manage
the road as we'll as the August Bel
mont board. but ii seemed wise to
take the profits without any trouble or
risk.
The witness told of making the con-
tract, giving j. p. Morgan & Co. an
option on the property, and said he
was asked for a six-months' extern
sion of time. Something was said by
Mr. Morgan about the formation of
a Southern Securities Company to con-
troll various roads and increase prohts
with the Louisville and Nashville stock
taken by the securities company at
10. 1T was argued" the witness said.
that il would be 10 our mutual in
terests and might be done II the North
ern Securities Company went through"
This ended Mr.. Gates examination
M Corner Was Intended.
President Keppler OF the Stock Tx
change testified that Mr. Gates had
told him that no corner was intended,
ana that Harris, Gates a CO. would
lend the stock 20 enable shorts 70 cover.
lie felt the situation was critical and
called on Mr. Gates for bis opinion. No
formal announcement was made ~