As Gates continued to search for a way to get back at Morgan for cutting him out of U. S. Steel, he found a vulnerability in Morgan's railroad holdings in 1902 and began buying large numbers of shares in Morgan's Louisville and Nashville Railroad. When it was decided to add another short line to the L&N system, its board of directors voted to issue 50,000 new shares of stock to finance the new line. A clerical error offered the stock for sale before it could be listed on the New York Stock Exchange. Gates saw the offering and purchased the shares prior to their listing; he also continued buying all the Louisville and Nashville stock he was able to. Gates had enough shares of the railroad to duplicate the panic that ensued the year before with the Great Northern Railway shares. J. P. Morgan learned of the events in April 1902 and found that Gates now owned more than 51 percent of the Louisville and Nashville's stock. Morgan decided to act to stop another Wall Street panic, and asked what Gates' terms of sale would be. Gates wanted US$150 per share of stock, an offer which Morgan initially rejected. He then dispatched his aide, George Walbridge Perkins, to talk to Gates and make the best possible arrangements. Perkins called on Gates in his Waldorf-Astoria suite at 1:30 am. The deal for the Louisville and Nashville cost Morgan US$43 million, with Gates making a more than US$15 million profit from the transaction.