The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-10-21
Kentucky Moves Against A.
C. Road and Others.
TO PREVENT THE MERGER
The Interstate Commerce Commission VIII
Notify Morgan and Company ard
0h.rs Concerned and ArrangefE
Hearing in December.
(By the Asgoolated Press.l

by the Associated HfeSS.)
washington, ID. c., Oct 20.-The Inter-
state Commerce Commission today made
public the complaint of the Railroad
Commission of Kentucky against the At
lantic Coast Railroad Company the
Louisville and Nashville Railroad, the
Southern Railway, the Southern Railway
in Kentucky, the Southern Railway in
Indiana the Cincinnati, New Orleans and
Texas Pacific Railway Company, the
Cincinnati Southern Railroad Company,
and the Chicago, Indianapolis and Louis
Vile Railroad Company, involving ale
cations of unlawful combination. The
complaint asks for an investigation of
these roads by the commission, an ex-
animation of the contracts, agreements,
etc. the production of books, papers,
tariffs, contracts, ETC., the issuance or
subpoenas for witnesses, an inquiry into
the management of the business of these
roads, an inquiry as to whether their
contracts, etc, constitute an unlawful
combination and a conspiracy to pool the
freights of the different and competing
roads, and a device to enable the roads
to divide the net proceeds of the earnings
so as to equalize the earnings of each of
them and the general results of the ar
rangements made on the commerce of the
section involved The complaint says
these roads cover all important railroad
points and all railroad lines in their
territory, aggregating 25 900 miles of rail-
way, with an operating income of over
$50, ,O00, 600 annually, and charges that j.
p Morgan & Company have secured
control and management of the affairs
Of ali these lines. The transportation
facilities of this territory, the complaint
charges, practically will become one sys-
tenn operated by a few individuals ana
will control the commerce Of Kentucky,
Tennessee, Mississippi, Alabama. Georgia,
Florida, North Carolina, South Carolina,
Virginia and Maryland.
The capitalization of the defendant
roads is stated to amount to at least a
billion dollars. zone man or firm, with
a few associates, controlling the South
ern Railway" the complaint alleges,
has now secured control of the stock OF
the Louisville and Nashville Railroad.
and later of the stock of the Atlantic
Coast Line Company, and the Atlantic
Coast Line Railway Company, and has
secured an entrance into st. Louis and
Chicago through lines by which it would
be able to force and compel other lines
out of st. Louis and Chicago into that
territory to make rates such as il should
dictate, and to dictate schedules terms
and rates of every kind to all smaller
roads" The complaint alleges that this
purchase, consolidation and ownership
means the placing of the commerce of
that entire section under the control and
operation of a very few men, dominated
by the firm of ]. P. Morgan & Company.
1t is alleged that the defendant COM
panies have not filed with the Inter- State
Commerce Commission, as required by
law, copies of the contracts, agreements,
etc. 1t is charged that such arrange
ment, combination, purchase and sale
for the producing of what is called a
community of interest, constitute simply
an agreement or combination by which
all freights of all roads named shall be
pooled or controlled or routed so as to
prevent competition" This consolida-
tion, joint ownership and joint control it
is charged, are simply to pool Nfreights
between these railways in such proper
tion as those controlling or managing the
combination shall designate and so de-
stroy competition. The complaint alleges
that as a result the rates will be ad-
vanced, communities Disseminated
against, and freight will be routed over
one or another of these lines to main
tain increased earnings and create fictit-
Gus earnings to give fictitious values.
"By this control and operation" says
the complaint, 1.-The commerce of these
States will become subject to the dicta-
tion of a few individuals and by the tre-
mendous combination of powers thus Sc
cured legislation may be had, traffic inn
peded, and business destroyed in part of
this territory. The object" the COM
plant continues, lis to place all the rail
ways under the control of a single firm
or of few individuals: to control and
manipulate railroad traffic and practi-
cally pool all the business of all the rail-
roads in all this territory, to produce
enormous profits, etc, and to place all
the business and products of over 16-
600, 900 people in 422, 900 square miles OF
territory under the control and domina-
tion of single individual" The com
bination the commission charges, is in
violation of both the letter and the spirit
of the laws of the United States and or
the several States involved.
The Inter State Commerce Commission
will Immediately notify all concerned OF
the complaint and probably will arrange
for a hearing not earlier than December.
Mr.. w H. Penny, of the Register Of
Deeds office. went to Apex yesterday to
register and also to attend the county
canvass.