Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1903-02-06
WALL STREET ETHICS
The Methods of Morgan and
r., Gates Contrasted.
LOUISVILLE AND NASHVILLE COUP

What the Westerner Did In That
Deal Has Been Winked at Many
Times by Wall street-New York
Divided Over Great Bankers Crit
icism of His Opponent.
, Kentucky was able to draw from Mr.
J. Pierpont Morgan and his partners,
Mr.. Steele and Mr.. Perkins, or from
August Belmont, no information which
the interstate commerce commission,
whose authority and presence had been
invoked by Kentucky, did not already
know informally, If not officially. The
story Of the swift, spectacular capture
by John w. Gates and another was al
ready known almost by heart both by
the commission as individuals and by
that part of the community which
takes interest in exploits of that kind,
says Holland, the New York CORE
spondent Of the Philadelphia Press.
ohC piCNC VI lio"SNCl,
went upon the records which is the
sole bit of information at this hearing
regarded in New York as of any inter
est. All the rest was ancient history.
And it has been said since the test-
mony of Mr.. Morgan and his partners
and that Of Mr.. Belmont was given
that If John w. Gates does not speak
up, disclose his whereabouts and ask
either to be heard under oath or else
by some public communication author
itatively published by himself make
answer to the statements made to the
commission by Mr.. Morgan and his
partners, then 1t would be regarded as
having been accepted by Mr.. Gates as
truthful characterization that he was
unfit to control that property. 1t would
appear that he would accept the init
nation that he Is dangerous element
In the railway world.
Now there comes information that
those who know Mr.. Gates well were
not in error when they predicted that
he would demand hearing, and that
has permitted Mr.. Morgan and Mr..
Perkins to express an opinion respect
ing Mr.. Gates methods or ability as a
railroad owner, therefore the same
privilege and opportunity be given to
him, SO that he may put upon the rec
ord not only his own defense, but also
some of his opinions and some matters
Of hitherto unrecorded history.
There are some men Of experience
doing business in the vicinity Of Wall
street in the traditional and somewhat
commonplace way who have been
moved by the tendency to accept the
estimate Of Mr. Gates which Mr.. Nor
gan expressed to make certain some
comparisons.
First Of all they say that there was
nothing in law or, so far as they know
In the morals Of Wall street which for
babe Mr.. Gates, If he had the audacity
and ability, to take advantage, if he
cared to, of an opportunity made pos
sible by strange piece either of care
lessness or overconfidence. The direc-
unmindful of the fact that this is the
day when the eyes of the great specu-
lators are microscopic, had left loop
hole Of which any one who possessed
resources and daring could take ad-
vantage and of which it is probable
several seasoned operators whose ex-
perience and training are not of the
SO called western sort would have tax.
en- advantage had they not been occu.
pied with many other things.
Mr.. Gates had the resources. That Is
to say, he knew where he could borrow
and to whom he could turn for accom-
modations, and he must have possessed
large amounts of cash. He knew, too
that the directors of the Louisville ant
Nashville had been selling 50,00(
shares of that stock practically short
They could not make good delivery o.
1t until month had passed. Therefore
Mr.. Gates did something which secret
ly, irresistibly, although unconfessed
ly, every great operator in New Yorl
city has been compelled to admire. HI
rushed In with a sudden, impetuou
charge, captured all the Louisville ant
Nashville stock that was obtainable
bought more and was in a position Il
demand delivery of the stock whicl
could not be delivered, and that mean
q corner.