The Indianapolis journal., 1903-01-16

Action by the Interstate Commission.
The Interstate-commerce Commission
met in New York yesterday to take tes-
timony in regard to the complaint of the
Kentucky Railroad Commission that the
interstate-commerce law was being violated
in Kentucky by the projected merger of
the Louisville & Nashville and the Atlantic
Coast line. The complaint against the Illi-
nois Central 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 reports were open to the
public. j. p. Morgan and others interested
will appear If wanted. President Spencer,
of the Southern Railway. identified a copy
of the agreement under which the South
ern Railway, through the Louisville &
Nashville, got the stock of the Chicago,
indianapolis & Louisville, and the docu-
ment was admitted as evidence. Mr..
Spencer said the purchase was ''To benefit
the lines running out of Chicago" Wit
ness said he could not remember whether
the Monon purchase agreement provides for
referring all disputes to j. p. Morgan as
umpire. The rates of the Southern had not
been affected by any agreements and busi-
ness was not done with view to pooling.
troll of the Monon did not affect rates it
did affect the volume of business. In reply
to 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. -
]. Pierpont Morgan began his testimony
by saying he was the head of his firm and
that the firm had ten or twelve members,
he not sure how many. He had moth
ing to do with the purchase of the 306000
shares except to approve the contract made.
NJ M0SSrS
Perkins and Steele when he returned from
Europe last spring. Mr.. Morgan presumed
a conference was held with Mr.. Gates
about the Louisville & Nashville stock sale.
but he was not present at ii. He was never
a director of the Southern, but thought his
partner. Steele, was. Mr.. Morgan did not
remember the preliminaries of the Monon
purchase, though he might have known all
about them at the time. a sentence in a
circular sent out by Morgan & Co. Aug. q.
1902 was mentioned to the witness. 1t ad-
vised stockholders of the Southern to make
no change in the management until after
the settlement of certain matters pending,
which might affect the development of their
lines. I'VE were trying" said Mr.. Morgan
in explanation ito prevent any one get
ting hold of the stock like they got hold
of Louisville q Nashville and knocking it
into a cooked hat" Witness considered it
important to the Southern to hold together
the Louisville & Nashville. The option on
the Gates stock was got April Is and he
did not know i'm August who would buy it.
"Mr Gates had the stock, said Mr. Nor
gan land operated the pool who controlled
It. No one knew what he was doing
took the stock away from Gates and put Ii
where ii would not hurt the Southern. AT
the time we sold it we held it for others.
Let me tell you the story. We found
that Mr. Gates and his associates had con-
troll of the Louisville e. Nashville. When
Gates came to us we found he had control
of COG, 600 of the shares That gave him con-
/! troll .Hr Morgan added. 1.-The Northern
Pacific experience of the year before made
| us aware of the danger to the Southern
| stock and so we made arrangements with
| Gates. / knew the sale TO the Atlantic
Coast Line Railroad would not be a dis
| turbipg element to the railroads of the
| South
Mr. Morgan said at one time he came
| near returning the Louisville g. Nashville
stock TO Gates and the others. Continuing,
| the witness said his interest in the whole
| transaction was merely a banker. He
denied that the Southern had anything to
do with the purchase or sale of the Louis
| vile & Nashville stock. His desire was for
| the maintenance of the general business
| situation in the South and he deemed it
unwise that the stock of the Louisville &
| Nashville. which was for sale. should be at
| the mercy of stock specializing firms
| did you recommend the Southern Rail-
stock?'' asked Commissioners Prouty.
why, no, SIR, Mr. Morgan said ''They
could not hold it. They are parallel and
competing lines.
Mr. Morgan said he did not believe that
| any one interested owns as much as per
| cent. of the stocks of the Southern Rail-
A