The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-10-21
ATTACK ON THE MERGER,
Interstate Commerce Commission
Files Complaint
VIOLATION OF THE LAW IS CHARGED.
The Consolidation Of Southern Railway
Lines Is Alleged an Unlawful Com
binstion to Control Rates.

Washington, October 2o-rhe interstate
commerce commission today made public
the complaint Of the railroad commission
" Kentucky against the Atlantic Coast
Liue Railroad company, the Louisville and
Nashville railroad the Southern railroad,
le Southern Railway IN Kentucky, the
Southern Railway IL Indiana, the Cincln.
natl, New orleans and Texas Pacific Rat.
road company, the Cincinnati Southern
Railway company and the Chicago, In.
dlanapolis and Louisville railroad. involy-
Ing allegations Of unlawful combination.
The complaint asks for an Investigation OF
these roads by the commission, an examina
ton u the contracts agreements, etc, the
production OF books, papers. tariffs, con
tracts: the Issuance n suhpoeras for Wit
nesscs, On inquiry into the arrangements
OF the business Of these roads. aud Inquiry
as to whether their contracts, etc, consti-
tuto an unlawful combination OF q device
TO enable the roads 20 divide the earnings
so as 70 equaiizc the earnings of each Of
them. and the general results " the ar
rangemcn;s made on the commerce OF the
section involved The complaint say these
roads cover all important railroad points
aud all railroad lines I'm territory aggIe'
eating 5000 miles, with an operating In
come OF over S3O.OO0OOO annually and
charges that J. Plerpont Morgan Co.
have secured practical control ana manage
incnts " all these lines. The trahsporia-
tiou facilities of this territory, the com
paint charges. practically vii become one
system, operated by a few individuals. and
win control the commerce ~ Kentucky.
Tennessee. Mississippi. Georgia, Ftor!dn,
North Carolina south Carolina. Virginia
and Maryland. The capitalization OF the
defendant ronds Is stated to amount TO at
least a billion dollars.
zone man or MIN with a few associates,
controlling the Southern Railway" the
complaint alleges. 'hus now secured con
troll of the stock Of the Louisville aud Nash
Vile railroad and later of the stock Of the
Atlantic Coast Line company and the At
lRntlc Coast Line Railway company ana
hns secured nn entrance INTO st Louis ana
Chicago through lines by which u would
be able 10 force aud compel other lines out
~ ST. Louis and Chicago Into that territory
TO make rates such as II should dictate;
aud 10 dictate schedules. terms ana rates
Of every Kind to all smaller roads The
complaint alleges that this pErchase. con
sodntion and ownership means the placing
of the commerce NJ that entire section I'M
dor the coutI2l and operation Of very few
men, dominated by the firm Of J. =. Morgan
& Co
II Is alleged that the defendant companies
have not fled with the interstate commerce
commission as required boy law, copies OF
toe contracts, agreements etc " ~
charged that such arrangements, coubiua.
ton. purchase and sale Tor the producing
~ wha, Is called q community of trust
Is simply an agreement or combination by
which MI freights OF nil roads named shalt
be pooled or controlled or routed so Rs to
prevent competition. The complaint al
ioges thnt, MS n result the rates VIII be
advanced communities Disseminated
against aud freight VIII be routed over Que
or another 81 these lines To maintain lG-
creased earnings and create fictitious earn
ings 10 give fictitious values
The combination the commission charges.
Is IN violation ~ both the letter and spirit
81 the lnws Of tho United States and of the
several States involved
The Interstate commerce commission VIII
Immediately notify MI concerned of the
complaint aud probably viii arrange Tor o
hearing not earlier thRn December.