The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-01-16
EXPLAIN TRANSACTIONS.
Louisville G. Nashville and Atlantic
Coast Line Deal Investigation.

Coast Line Deal Investigation.
NEW YORK, Jan. 15.-The inter-
state commerce commission met today
to take testimony in regard to the COM
plant of the Kentucky railroad COM
mission that the interstate commerce
law was being violated in Kentucky by
the alleged merger of the Louisville &
Nashville and the Atlantic Coast line.
The complaint against the Illinois Cen
trail was dismissed at the request of
Attorney General Pratt, of Kentucky.
The companies denied all allegations of
violating the law and counsel said the
books and traffic agreements were omen
to the public. j. P. Morgan and others
interested would appear if wanted.
President Spencer, of the Southern.
identified a copy of the agreement I'M
der which the Southern railway.
through the Louisville & Nashville, cot
the stock of the Chicago, indianapolis
q Louisville, and the document was ad
mltted as evidence. Mr.. Spencer said
the purchase was ito benefit the lines
running out of Chicago" Witness said
ne could not remember whether the
Monon purchase agreement provides
for referring all disputes to J. P. Nor
gan as umpire. The rates of the South
ern had not been affected by any
agreements and business was not done
with view to pooling
Mr.. Spencer said that while the Joint
control of the Monon did not affect
rates 1T did affect the volume of bust
ness In reply to a question as to WHY
the Louisville & Nashville and the
Southern had bought the Monon, he
said:
1T was for sale and we did not want
other interests to control it."
President Irwin, of the Atlantic
Coast, said that that line was owned
by the stockholders of the Atlantic
Coast Line company. He understood
that $4,000 shares of Louisville S
Nashville were delivered by j. P. Nor
gan & Co. to the Atlantic Coast Line
railroad company. Later $35. 600
bonds were issued to pay for these
shares and handed over to Morgan &
Co, in addition to $4,000, 900 in cash.
Henry Walters, chairman of the
board of the Atlantic Coast Line com
pany, said: 1--WE offered to buy Louis
vile q Nashville, having heard that
Morgan & Co. had got control of it and
knowing the bankers could not onerat
It, The witness and Mr. Morgan
reached an agreement to buy the $685.
600 shares of stock. I'VE paid" said
the witness, $10,00O,000 in cash. S35-
100000 bonds, and 100000 stock
The $10,OO0,000 was raised by a sale of
stock and every dollar of which was
taken by our stockholders"
President Elliott, of the Atlantic
NOdSb AlIe COtHpdny, ana counsel of
the same, testified corroborating Mr..
Walters testimony and said: we
bought the controlling stock of the
Louisville & Nashville just as YOU bI1v
a box of candy. 1t was wrapped IN
and delivered to us and we paid SIS
600 for it,
j. Pierpont Morgan said he had moth
ing to do with the purchase of the
100000 shares except to approve the
contract made then. He was never a
director of the Southern, but thought
his partner, Steele, was. A sentence in
q circular sent out by Morgan & Co.
Aug. q, 1902, was mentioned to the
witness.
1t advised stockholders of the South
ern to make no change in the man
agement until efter the settlement of
certain matters which might affect the
development of their lines.
We were trying" said Mr.. Morgan.
In explanation, ''to prevent any one
getting hold of the stock like they got
hold of the Louisville & Nashville and
knocking 1t into a cooked hat"
Witness considered it important to
the Southern to hold together the