The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1902-10-21
KENTUCKY TAKES ACTION
Morgan's Plan to Merge the
Southern Railroads.
Alleged That Defendant Companies
Have Not Filed Copies of Agree
ments and Contracts as Re-
quired by Law.

Washington, Oct. 20.-The Interstate
Commerce Commission today made public
the complaint of the Railroad Commits.
sion of Kentucky against the Atlantic
Coast Line Railroad Company. the Louis
Vile and Nashville Railroad, the South
ern Railway; the Southern Railway in
Kentucky; the Southern Railway in In
diana; the Cincinnati, New Orleans and
Texas Pacific Railway Company; the
Cincinnati Southern Railway Company
and the Chicago. Indianapolis and Louis
Vile Railroad. involving allegations 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. the issuance Of sub
poenas for witnesses IAN inquiry into the
management of the business of these
roads an inquiry as to whether their con-
tracts. ETC., constitute an unlawful COM
bination and q device to enable the roads
to divide the earnings so as to equalize
the earnings of each Of them. and the
general results of the arrangements made
on the commerce of the section involved.
Morgan Dominant Factor.
The complaint says these roads cover
all important railroad points and all rail-
road lines in a territory aggregating 5000
miles, with an operating income Of over
$50 200 annually. and charges that ].
P. Morgan and Company have secured
practical control and management OF the
affairs of all these lines. The transpor-
tation facilities of this territory. the COM
plant charges, practically will become
one system operated by few individuals
and will control the commerce Of Ken
frVat A la tNa n
Georgia, Florida, North Carolina, South
Carolina, virginia and Maryland. The
capitalization of the defendant roads Ii
stated to amount to at least billion dol
lars.
Zone man or firm with a few associates
controlling the Southern Railway" the
complaint alleges, has now secured con-
troll of the stock of the Louisville ant
Nashville Railroad and later OF the stock
Of the Atlantic Coast Line Company and
the Atlantic Coast Line Railway Com
pany and has secured an entrance into
St Louis and Chicago through lines by
which II would be able to force and COM
pel other lines out of Chicago and st.
Louis in that territory to make rates such
az 1t should dictate; and to dictate
schedules. terms and rates Of every kind
to all smaller roads"
The complaint alleges tnat this pur-
chase, consolidation and ownership means
the placing of the commerce OF that en-
tire section under the control and opera
ton of very few men, dominated by
the firm of J. P. Morgan and Company.
Have Not Complied With Law.
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. agree
ments. etc. 1t is charged that such ar
rangements. combination. purchase and
sale for the producing of what Is called
n community of trust is simply an
agreement or combination by which all
treights of all roads named shall be
pooled or controlled or routed so as to
prevent competition. The co nplaint
alleges that as a result the rates Will be
advanced, communities Disseminated
against and freigh twill be routed over
one or another of these lines to maintain
increased earnings and create fictitious
earnings to give fictitious values.
The combination, the commission
charges. is in violation Of both the letter
and spirit of the laws Of the United
States and of the several states involved.
The Interstate Commerce Commission
will Immediately notify all concerned OF
the complaint and probably will arrange
for a hearing not earlier than December.