The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-10-21
Fears the Great Southern Combina-
ton VIII Injure the Bluegrass
State and Indiana.
TESTIMONY OF JAMES J. HILL
FIRST WITNESS FOR DEFENSE IN
NORTHWESTERN MERGER CASE.
Absorption of the Burlington Road
Defended on the Ground that It's
Acquisition Was Necessary.

WASHINGTON, Oct. 20.-The interstate
commerce committee to-day made public
the complaint of the railroad commission
of Kentucky against the Atlantic Coast
Line Railroad Company. the Louisville &
Nashville Railroad, the Southern Railway.
the Southern Railway in Kentucky. the
Southern Railway in Indiana, the
Cincinnati, New Orleans & Texas Pacific
Railway Company, the Cincinnati Southern
Railroad Company and the Chicago. Indi-
annapolis & Louisville Railroad Company in
volving allegations of unlawful combina-
ton.
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. tar
ifs, contracts, the issuance Of subpoenas,
for witnesses, inquiry into the manage
ment of the business of these roads, and
inquiry as to whether their contracts. ETC.,
constitute an unlawful combination and
conspiracy to pool the freights of the diff
ferent and competing roads and device
to enable the roads to divide the net pro-
ceeds of 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. The COM
plaint says these roads cover all important
railroad points and all railroad lines In
territory aggregating 25.00O miles. with an
operating income of over $O.OO0,OOO annu-
ally, and charges that j. +. Morgan &
Co have secured practical control and
management of the affairs of all of these
lines The transportation facilities of this
territory the complaint charges, practic-
alIy will become one system operated by
few individuals and will control the COM
merce of Kentucky. Tennessee, Mississippi,
Alabama, Georgia. Florida. North Caro-
lima, South Carolina, Virginia and Mary
land The Capitalization of the defendant
roads is stated to amount to at least
billion dollars.
controlling the Southern Railway" the
comnlaint alleges, has now secured con-
troll of the stock of the Louisville & Nash
Vile Railroad and later Of the stock of the
Atlantic Coast Line Company and the At
Iantic Coast Line Railway Company and
has secured an entrance into ST. Louis and
Chicago through lines by which 1T would
be able to force and compel other lines
ont of ST. Louis and Chicago into that ter
ritorv TO make rates such as IL would indi
cate and to dictate schedules, terms and
rates of every Hnd 10 al smaner MAJ ~ roaos.
consolidation and ownership means the
placing of the commerce of that entire sec
tion under the control ana operation OF
very few men dominated py the Hrm oI y.
n is alleged that the defendant COM
nanies have not filed with the Interstate
Commerce Commission. as required by law,
comics of the contracts, agreements, etc. 1t
is charged that such arrangements. COM
binat.cn, purchase and sale for the pro-
ducing of what is called a community of
interests'' is simply an agreement by which
ali freights of all roads named shall be
nooled or controlled or routed so as to pre-
vent competition This consolidation, Joint
ownership and Joint control, Ii is charged
is simply to pool freights between these
railways in such proportion as those con-
trollinp, or managing the combination shall
designate and so destroy competition. The
complaint alleges that as result rates
will be advanced. communities discriminat-
ed against and freight will be routed over
one or another of these lines II maintain in
creased earnings and create fictitious earn
ings TO give fictitious values.
@Ry this control and operation" says
the complaint, 1.-The commerce of these
states will become subject to the dicta-
ton of a few individuals and by the tre-
mendous combination OF powers thus Sc
cured legislation may be had, traffic i'm
NEEDED and business destroyed in parts of
This territory. The object. the complaint
Continues is to place all the railways un-
der the control of a single firm or OF a
few individuals: to control and manipulate
railroad traffic and practically pool all the
business of all the railroads In all this
territory. to produce enormous profits. etc.
of over 100000 people In $4,000 square
miles OF territory under the control and
domination OF a single Individual. The
combination the commits 'on charges. Is In
violation OF both the letter and spirit Of