The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-01-18
BELMONT AND PERKINS ARE
BEFORE THE COMMISSION
Perkins Tells of the Passing Of the L. and n.
Into the Hands of the atlantic
Coast Line.
(By the Associated Press.)


New York Jan. 16.-The Interstate
| Commerce Commission continued today
| the hearings of the charges of the Ken
| lucky Railroad Commission that the
Atlantic Coast Line Railroad Company
and the Louisville and Nashville had
violated the Inter State Commerce act
| August Belmont testified he was and
still is chairman of the board of directors
| of the Louisville and Nashville Rail
| road Company.
when did you first know that Gates
and his associates had secured control
of the road?" Mr.. Belmont was asked.
mot until they had" Mr.. Belmont re-
piled.
Mr. Belmont said he had nothing to do
with the appeal if any was made to j. p.
Morgan & Co, to secure the shares from
John W. Gates and his assistants.
Witness said he had the same control
now as before the Louisville and Nash
willie stock was conveyed to the Atlantic
Coast Line, and that his board approved
the change in the holding to legalize the
control of the road by foreign corpora
ton. Mr.. Belmont denied that there
was any agreement between the Louis
vile and Nashville, and the Atlantic
Coast Line Company, which in any way
conflicts with the interstate commerce
law.
Mr.. Perkins, a member of the firm of
J. T. Morgan & Co., said he had no direct
interest in the Southern Railway. He
said that as a result Of a conference be-
fore the Louisville and Nashville stock
was transferred to the Atlantic Coast
Line Company no action was taken to
sell the Louisville and Nashville control
to the Southern Company; that road was
both parallel and competing with the
Louisville and Nashville, while the Coast
Line was not. The witness learned in
April of the Gates acquisition of Louis
Vile and Nashville stock and that it
was for sale. That was the first intlma-
ton any one interested in the general
market had that Mr.. Gates had got the
stock. Mr.. Perkins said the Louisville
and Nashville secured an option on the
Monon after the Louisville and Nashville
stock was in the hand of j. =. Morgan
& Co. He did not know whether the
Louisville and Nashville and Southern
could control the traffic of the Monon,
but they could use the system jointly.
The Monon was bought to give the South
ern and the Louisville and Nashville an
entrance to Chicago 1t was brought out
at this point that J. p. Morgan d GO.
bought of Gates 102, 600 shares of Louis
Vile and Nashville at 100, and took an
option on 2040 900 shares at $50, with the
agreement that Harris, Gates Co.
should have the right to share in any
plan adopted.
ibid you seek Harris, Gates Il Co.,
or did they seek you?" was asked.
1--WE sought them. We thought the
Atlantic Coast Line Company would
purchase the stock if we showed them
it was to their advantage to do so, SAID
Mr.. Perkins 1--WE were anxious as to
where the control of the road would
finally land We knew if it remained
with Mr.. Gates no one could tell what
would happen The Gates people had
told me their plan was to pay high
dividend and then dispose of the road in
the market. We felt we owned a great
deal to the interests of the minority
stockholders, that the road had been ad-
mira bly, managed in the past, and If con-
tinued in as good or better hands, the
future interest of all would be safeguard
ed There were only two places for it
TO go-the Atlantic Coast Line or the
Seaboard The Coast Line was approach
ed first and took the property
MIR. Perkins said his impression was
that Mr.. Gates paid between 102 and t10
for 102 600 shares of Louisville and Nash