The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-01-20

Southern to hold together the Iou,s-
vile and Nashville. The option on the
Gates stock was got April 18th and
ne did not know in August who would
ouy II: MI Gates had the stock"
Said Mr.. Morgan. and operated a pooI
which controlled it. No one knew
hat he was doing. l took the stock
away from Gates and put il who're IF
would not hurt the Southern. At the
time we old We held it for other
Let me- tell YOU the story. We found
that Mr.. Gates and his associates had
control of Louisville and Nashville
railroad. When Gates cane 70 US we
found he bod control of 500. 600 of the
shares That gave him control" Mr..
Morgan added. The Northern Pa
cific experience of the year before made
US aware Of the danger to the South
ern stock and so we made rrang
ments with Gates. / knew the sale to
tho Atlantic Coast Line railroad would
not be a disturbing element to the rail-
roads of the south"
Mr.. Morgan said at one time he came
nHar returning the Louisville and
Nashville stock to Gates and the
others Continuing, the witness safd
his interest in the whole transaction
was merely &c a banker. He donioo
that the Southern Railway Comnany
had anything to do with tho purchase
or sole Of the Louisville and
stock. His desire was for tho main
tonance of tho general business situa-
ton in the south and he deemed it UNI
wise that the stock of the Louisyiile
9nd Nashville which was for sale,
Snnuli bn "at the mercy of stock spec
ulat1ns firms"
Did Won recommend the Southern
r'ilrO7d to secure the Louisville and
Nashville stock?" asked Commission
err P~0ntv.
why no., sir" Mr.. Morgan said.
They could not hold it. They are
parallel and connecting lines" MIR.
Morgan sold he did not believe thar
any one interest owns as much az five
per cent. of the stock of the Southern
Railway Company.
Charles Steele. one of Mr.. Morgan's
partners was the next witnesses. 1t
gnttations by which the Louisville and
Nashville stock was secured and later
sold to the Atlantic Coast Line Com
nanY. Questioned by Mr.. Young. Mr..
Steele said there was great anxiety
about the situation early in April last
and it was feared hat a corner I'm
Louisville and Nashville stock was
planned. Mr.. Steele learned that Mr..
Gates had control of a large amount
Of the stock and sent for him. Mr..
Steele said there was a conference, and
il was thought wise that the road
should be in conservative hands. AS
II result Of this conference an agree
ment was entered into with him and
his associates that a certain amount or
stock was to be secured and held.
The following questions were then
asked:
1T was confidence In Mr.. Walters
and his associates that led you to seek
them to take charge of the Louisville
and Nashville?'
1T was. We were interested in the
commercial situation and we wanted
the railroad situation in the south con-
servatively handled.
MI. Steele said further that ]. P.
Morgan & Company were anxious that
no interest inimical to the Southern
railroad should control in Louisville
and Nashville.
What profit did J. P. Morgan &
Company make on the transaction -
Mr.. Young asked.
1T has not been worked out yet"
replied Mr.. Steele, with a laugh.
There may be q loss"
There were no other witnesses in at
tendance and the commission adjourn
ed until tomorrow morning.
Among the witnesses called for to-
morrow's session are Augut Belmont,
George F. Baker and G. w. Perkins.