The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-03-28
Interstate Commerce Com
mission Inquiry.
MANY MAGNATES TESTIFY
Men From the A. c. L., Southern and S. A, L.
Roads Before the Commission
ument 10 be Heard Later in
Washington

New 4OFh, MdFCn Zl.-1ne Inter state
Commerce Commission met here today
to investigate the turning over of the
Louisville and Nashville Railroad control
to the Atlantic Coast Line.
Edwin Hawley, an assistant of John
W. Gates, said he attended several con-
ferences looking to the sale of the Louis
willie and Nashville line to j. p. Nor
gan. j. s. Williams had offered 1870 to
1876 for the controlling interest in the
stock of the road. George w. Perkins,
the witness said, represented MIR Morgan
at these conferences, while Mr. Gates
was the principal on the other side
'We had nothing to do with the rela-
tions to the various roads," the witness
said. I'VE were discussing the possibil-
ity of obtaining the Louisville and Nash
vile and talked OF nothing else"
j. H. Harris, of Harris, Gates G. Conn
pany. said that when the option was sold
to J. P. Morgan & Company, his firm
controlled 100000 shares and that the
price paid was 108 to 10. I'VE got 1870
for 100000 shares and $50 for the re-
manning 100000
y. S. Williams, of the Seaboard Air
Line, said he asked Mr.. Perkins whether
Moran would sell the Louisville and
Nashville and that Mr.. Perkins replied
taht 1t was not likely that Mr. Morgan
would sell to any interests his firm
could not control and then asked the
price of the Seaboard Air Line. lie un-
derstood it was Mr.. Morgans idea to
sell Louisville and Nashville to interests
that would not conflict with the Southern
Railroad. Mr.. Williams said he made a
memorandum of the interview just at is
occurred and could not be mistaken.
The memorandum was read and con-
tanned paragraph to the effect that Mr.
Perkins said J. p. Morgan & Company
might consider an offer to buy the Louis
Vile and Nashville as an independent
transaction.
Mr.. Williams said he suggested the
formation OF voting trust TO run the
Louisville and Nashville composed of the
Atlantic Coast Line, the Seaboard Air
Line and j. p. Morgan & Company.
Neither the Atlantic Coast Line nor the
Seaboard, he said, is really in compet-
tion with the Louisville and Nashville
Railroad men considered them as con-
Meeting links. Asked who controlled the
Atlantic Coast Line, he said he under
stood Mr.. Walters and his immediate
assistants, but there are always rumors
to be discounted.
G. G. Gaes, son of John w. Gates.
said as a member of the firm of Harris,
Gates & Company, he gave orders to
purchase stock and bought some him
self on the exchange.
1t was the intention to sell at a profit
if possible; if not to operate the road.
1t was not the intention to corner the
stock. The object was to obtain con-
troll of the road and not make any finan-
cial disturbance whatever.
John w. Gates was the next wit
ness. He testified that besides the 206,-
600 of Louisville and Nashville shares
his syndicate held, they controlled 1O0,-
600 shares held by Hawley & Davis.
Asked as to when he first conferred with
J. p. Morgan & Company, about selling
the control, Mr.. Gates said:
"Well, Mr.. Schwab came 20 me from
]. p. Morgan G. Company. He called me
UP at o'clock in the morning April
II, and asked what | was going to do.
The market had been little nervous the
day before. I told him l would see Mr..
Perkins in the morning"
He saw Mr.. Perkins next day and Mr..
Perkins wanted a third of the stock at
cost. 81 told him." said the witness, II
could not think of it, Mr.. Perkins then
asked for a price for half the stock
and Mr.. Gates said he would consult with
his colleagues He saw Mr.. Perkins
4 nd fpI1 h.,
pi operty was very valuable and would
pay to hold.
Asked rs to whether Mr.. Perkins said
anything about witness being a danger
Gus man to handle such property, Mr.
Gates said:
mo, I've usually found hackers whore
1 saw a profit" He had a number of con-
ferences with his assistants and a two
hour talk with Mr.. Perkins.
81 told him." said Mr.. Gates, that
I would recommend my assistants to ac-
cept 125 for one third, 130 for one third
and $50 for the balance of the 100000
shares we said if all were taken. Mr..
Perkins said the price was too high"
Mr.. Gates said his examination of the
Louisville and Nashville accounts had
induced him to believe the property
worth more than il was generally hell
to be. There was no reason, he said,
why he could not manage the road as well
as the August Belmont board, but il
seemed wise to take the profits without
any trouble or risk Witness told of
making the contract, giving j. p Nor
gan & Co., an option on property, and
said he was asked for six months eX
tension of time. Something was said By
Mr.. Morgan about the formation of
Southern Securities Company to control