The Birmingham age-herald., 1903-03-28
l. & N. MERCER CASE
 GIVEN \ HEARING
Williams, Gates, Perkins and
 Others on the Stand
VOTING TRUST SUGGESTED
MT. Williams Says Neither the Sea board Nor the Atlantic Coast Line Are Really In Competition
 With the L. & N.

New York, March 27.-The interstate commerce commission met here today to investigate the turning over of the Lou lsville and Nashville control to the At lantic Coast Line.
 Edwin Hawley, an associate of John w. Gates, said he attended several confer ences looking to the sale of the Louis- ville and Nashville line to J. P. Morgan. J. S. Williams had offered 1So to l35 for the controlling interest in the stock of the road. George W. Perkins, the wit ness said, represented Mr Morgan at the conferences, while Mr Bates was the principal on the other side.
 We had nothing to do with the rela- tions of the road to the various roads, the witness said. We were discussing the possibility of obtaining the Louis- vile and Nashville stock, and we talked of nothing else"
 John F. Harris, of Harris, Gates & Co.,, said that when the option was sold to J. P. Morgan & Go. his firm controlled zO6,0OO shares and that the price paid was 10S to no. We got 1sO for 100000 shares and 15o for the remaining 100000"
 Williams on the Stand. J. s. Williams of the Seaboard Air Line said he asked Mir Perkins whether MT Morgan would sell the Louisville and Nashville, and that MT. Perkins re- piled that 1t was not likely that Mir Nor gan would sell any interests his firm would not control and. added the presi- dent of the Seaboard Air Line, he under fa the road so that 1t would not conflict with the Southern railroad.
 MT. Williams said he made a memoran- dunn of the interview Just after 1t occurr- ed and could not be mistaken. The mem- orandum was read and contained a para graph to the effect that MT. Perkins said J. P. Morgan & O. might consider an offer to buy the Louisville and Nashville as an independent transaction.
 MT. Williams said he suggested the for nation of voting trust to run the Lous- vile and Nashville composed of the Att lantic Coast Line, the Seaboard Air Line and J. P. Morgan & Co. Neither the At lantic Coast Line nor the Seaboard, he said, are really in competition with the Louisville and Nashville railroad Rail- road men considered them as connecting links. Asked who controlled the Atlantic Coast Line, he said he understood MT.
  But there are always rumors to be dis counted"
 Gates Gave Orders to Purchase.
 c. G. Gates, son of John w. Gates, said that as member of the firm of Harris, Gates & Co.,, he gave orders to purchase stock and bought some himself on the ex- change.
 It was the intention to sell at profit, If possible. not to operate the road. It was the intention to corner the stock. The object was to obtain control of the road and not make any financial disturbances whatever.
 J. w. Gates was the next witness. He testified that besides the 206,000 Louis- vile and Nashville shares his syndicate held, they controlled 100000 shares held by Hawley & Davis. Asked as to what he conferred with J. P. Morgan & Co., about selling the control, MT. Gates said "Welb Mir. Schwab came to me from J. F. Morgan & Co. He called me out about o'clock of the morning of April Il and asked what I was going to do The market had been little nervous the day before. l told him I would see Mr. Perkins in the morning He saw Mir. Per kins next day, and MT. Perkins wanted a third of the stock at cost. l told him,' said the witness, T could not think of it. MT. Perkins then asked for a price for half of the stock and MT. Gates said he would consult with his colleagues He saw MT. Perkins next day and told him he understood the property was very valuable and would pay to hold it.
 Can Find Backers.
 Asked as to whether MT. Perkins said anything about witness being a danger ous man to handle such property Mfr Gates said: T have usually found back CTS where I saw a profit"
 He had a number of conferences with his associates and a two-hours' talk with MT. Perkins.
 T told him. said MT. Gates, that I would recommend my associates to accent l25 for one-third, 130 for one-third and l5O for the balance of the 306O 600 shares we controlled if all were taken. MT, Perkins said the price was too high"
 Mir Gates said his examination of the Louisville and Nashville accounts had in- duced him to believe the property more valuable than it was generally held to be. There was no reason he said why he could not manage the road as well as the August Belmont board, but 1t seemed wise to take the profits without any trouble or risk. Witness told of making the contract giving J. P. Morgan and company an option and said he was asked for six months extension of tme Some thing was said by MT. Morgan about the formation of a southern securities com pany to control various roads and in crease profits with the Louisville and Nashville stock taken by the securities at 10 cents.
 Tt was argued" witness said, that it would be to our mutual interest and might be done if the Northern Securities company went through"
 This ended Mr. Gates examination
  Atlantic Coast Line had sworn to the deposition which he made when the nrn.