The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1903-01-18
BELMONT ON The STAND.
Tells About the Deal for the Louisville
and Nashville.


Kew York January 16 The interstate
commerce commission continued today the
herring OF the charges Of the Kentucky
railroad commission, that the Atlantic
Coast Line Railroad company and the
Louisville and Nashville had violated the
interstate commerce act.
August Belmont testified he was and
still is chairman OF the board Of directors
Of the Louisville and Nashville company
when did you fret know that Gates
and Ms associates had secured cont-o! q
tie road?" NJ. Belmont YVES asked.
met rztl t1cy 1-a," -. Belmont &c
piled
NJ. Belmont sa!d he lad nothing TO 60
WITH the aopea! 4 any was made 10 ]. p
Morgan & CO. 70 secure the shares from
John W Gates and his associates. He
was present AZ the meeting OF the directors
which adopted g resolution approving the
sale OF the controlling interest TO the At
lantic Coast Line.
In reply to question, Mr. Belmont said
It had not yet Occurred TO him that the
Atlantic Coast Line. company could dis
charge the duties Of the Louisville and
Nashville to the public better than he
Then the change made was due to cir,
cumstances beyond your eohtEoi' WIS
asked.
After Mr.. Gates got control Of the ma
jorlty OF the stocE there was nothing 10 De
Wines said he had the same control
now Us before the Louisville and N2@n
vile stock was converted 10 the Atlantic
Coast Line. and that the board approved
the change IN the holding to lega.!ze tLe
control OF the road by g foreign coFpoFs-
lion. MI. Belmont denied that there was
any agreement between the Louisville and
Nashville and the Atlantic Coast Line com
pauy which in any way coGh!cts, WIN tHs
| Interstate commerce law. He had assumed
| the responsibility Of representing stocE-
| holders who had not given proxies WAsI
| Il was voted 10 pass the contro! OF the
NJ perpins. 3 member OF the firm Of
I J. ?. Morgan & Co, said he had no a.
! recr interest IN the Southern railway. re
said that as result OF conference, Lne
! ferred TO the Atlantic Coast Line com
| pany, no action WIS taken 10 sen tSe
! Louisville and Nashville control 70 my
| Southern That road was both parallel anu
/ competing with the Louisville ana Mash
| vile. while the coast Line was not.
Witness learned IN APRIL OF The SaLS7s
acquisition Of the LouisYllle ana TasHE ,li5
the FIRST intimation any one had that MI
Gates had got the stock Wi,
Mr. Perkins said the LouisviNe ana Nbsn
the louisville and Nashville stock wa was Al y
| tbe hands of J. ? Morgan g. CO. He do
| moi know whether the Loulsyille anq
Neshe and The S9gtaeFP Int f0q tSev eodd
| use the system Jointly The Monon W1s
bought TO give the Southern and LoulsNlil'
| and Nashville IN entrance 70 1hicSs2-
II was brought out at this polnt t ny 81 =
| p Morgan G Co bought OF Gates lo-O
shares Of Louisville and Nashville az 70,
| and took an option on 2O4OOO shares az 10y
with fine agreement that Harris Gates
Co should have the right to share IN any
PM 'pJd tfDy YOU seek Harris, Gates Co.. o.
did they seek your was asked a.. 4.
1--WE sought them. We thought the AZ
Ianfic Coast Line company would purcnass
ne stock IN we showed them II was e
their advantage to do So said MT. Fel
| kins who continued; ~, -
eve were anxious ms to where tne con
troI OF the road should hnally land. W
tnew n If remained with Mr., Gates no ON
could tell what would happen Inc ual e
neonle had told me their plan was TO pa
a high dividend and then DISPOSE OF IN
road in the market. We fe!t we oWpl
sTsg deal TO the interests Of the minorit,
stocSholders: that the road had heen h'
mireblv managed IN the past, ana ~ cVI
tinued IN Ms good or better names, Ir "a I'd
tura interests Of NIL would be safeeuardru
Tbnre we're only two places Tor u 70 ~,
mo Atlantic Coast Line or the Setnoa u
The Coast Line was approacneu uISt az
took the property ,...,o,, vros tba
, Nj Gates paid between lU2 ano ~ i rH
10000 shares Of louisyllie anu N Nainr -,
and an average q I23 for tn, the , 6san n
Mnrm Mr. Gates refused to take the 81
erritiea orgerad and demanded cash
George + Baker. one ~ the voting tru'
: tees Of the Southern railway, saia IN ~
o,,tborized the signing az his name 70 20
+ oircniar advising stockholders Of the soutI
e arm n make no chapge In the road s ma