Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1903-01-16
On Stan
BIG RAILWAY MENSsTE5sTIFY5A==BE Be
FoRE INTERSTATE COMMISSIONS.
THE I. & Ma c. L. MERG

tcompa nj es Deny. Al. Allegations of
violation of Law-spenccr,sIr Irwin.
waters, Elliott, .. =. MORGAN and
steele, Tell what they Know.
54 NEW YORK, January 15.-The Inter- Inter
state Commerce Commission met here to-
day Ito take testimony in regard to the
complaints Of the Kentucky Railroad
Commission that the interstate commerce
Slaw was being violated in kentucky by
the alleged merger Of the Louisville ana
Nashville and the Atlantic Coast Line
The complaint against the Illinois Cen
trail was dismissed at the request .iof
Acknowledgement Pratt, Of Kentucky.
Tie companies denied all allegations or
violating the law, and counsel said the
books and traffic agreements We're open
to the public.
President Spencer, of the Southern rail
way, identified a copy of the agreement
under which the Southern railway
through the Louisville and Nashville. got
the stock of the Chicago, lndianap polls,
and Louisville road, and the document
was admitted as evidence. Mr.. Spencer
lines running out of Chicago. Witness
| said he could not remember whether the
! Monon purchase agreement provides for
referring all disputes Ito J. p. Morgan as.
/, UNI ire The rates of the Southern had
not been affected by any agreement, and
! business was not done with view 10
| pooling.
Mr.. Spencer said that while the joint
| control of the Monon did not affect rates
off he 0f hlSinPSS.g In
/ reply to a question as to why the Louis.
Vile and Nashville and the Southern had
! bought the Monon, he said: It was Tor
sale, and we did not want other inter.
I; ests to control it,
A. C. L. AND A. G. y. COMPANY
President Irwin. of the Atlantic-Coast
Line, said the Atlantic-Coast Line rail-
road was owned by the stockholders OF
1 the Atlantic Coast Line Company. He
explained the difference between the
Atlantic-C Coast Line Company and the
! .Atlantic-C Coast Line Railroad Company
He understood that 600 shares OF
/ Louisville and Nashville were delivereu
/ by J. p. Morgan & Co, to the Atlantic
! Coast Line Railroad Company. Later.
I ss5 600, 600 bonds were issued to .pay for
those shares and handed over to Morgan
& Co.. in addition to 600 cash.
! Henry Walters. chairman OF the board
! OF the Atlantic-Coast Line Company,
said the company owned a controlling
| interest in six or more small lines, oper-
| ated as the Atlantic-Coas Line Rail-
i road Company Five directors of the
i Atlantic-Coa Line Company We're also
I directors of the Louisville and Nashville.
i Witness said: I'VE offered to buy the
! Louisville and Nashville. having heard
that Morgan & Co had got control of it,
| and knowing the bankers could not oper-
/ ate it,
The witness and Mr. Morgan reached
J! an agreement to buy the SOC, 600 shares OF
| stock.
/ I'VE paid said the witness SO. 900. 900
cash and s35, 900 bonds, and IS. goo. GOO
stock The s1O.0OO.Ooo was raised by sale
/ Of stock every dollar of which was tax
en- by our stockholders. Practically three
holders own the stock of the Atlantic
Coast Line Company-Michael jenkins
/ and his family, Walter Newcomer. and
his family. and myself. I do not. think
4 Mr.. Morgan owns any of the stock"
(. RATE WAR WITH SOUTHERN.
The witness said that in certain Cir
1 cumstances he might vote for a rate wal
with the Southern. There is. no agree
/ ment conditioned on securing control OF
the louisville and Nashville, and no I'M
4 derstarcing or contract by which the At
l lantic-Coast Line. Louisville and Nash
/ vile and Southern are operating in har-
nony or under one control. >
President Elliott, of the Atlantic-Coast
i Line Company. and counsel for the
Atlantc-Coas st Lire Railroad Company
testified, corrobnrating Mr.. Walters's tes-
4 timony and said: 1--WE bought the con-
!. trolling stock Of the Louisville and NASH
! vile just as you would buy a box OF
. candy. It was wrapped up and delivered
to US, and we paid $50 ,Oo0 for 1t. "A
q portion Of the shares was controlled by
4 Mr.. Hawley and Mr.. Gates and the ae.
4 ceptance of our offer was subject to the
4 approval of Hawlevs and Gates"
4 NIORGAN'S TESTIMONY.
i J p. Morgan bega his testimony by
/ SAYING he was the head Of the firm. and
THAT the firm had ten or twelve members
1 he was not sure how many. He ha6
4 nothing to do with the contract Wher
1 made. The deal was explained to him By
Messrs. Perkins and Steele. when he re.
q turned from Europe last spring. Mr.
i Morgan presumed a conference was hel(
with Mr.. Gates about the Louisville anf
I Nashville stock sale, but ne was not pres
ent at it. He was never director of the
Southern, but thought his partner, Steele
was. Mr.. Morgan could not remember
the prelninaries of the Monon purchase
4 though he might have known all abou
them at the time. A sentence in a circu
lar sent out by Morgan and Company
y august II, lUz, was mentlOne0 = TO tnt
= witness. It advised stockholders Of thu
g Southern to make 10 change IN thu
ma n, cement until after the, settlement o
= certain matters pending, which might af
4 feet the development of their lines.
we We're trying. said Mr.. Morgan. II
explanation, ito prevent any one from
getting mold of the stock, like they go
hold fiof Louisville and Nashville. ant
knocking it INTO a cooked hal.
Witness considered it important to tn
Southern to hold together the Louisville
! !, and Nashville. The option on the Gate
. stock was got April 18th. and he did no
:now in August who would buy it.
& ITO PREVENT HURT TO SOUTHERN.
Mr.. Gates had the stock." said MI
Morgan, and operated a pool which con
. trclled it. No one knew what he wa
. doing. II took the stock away from
I Gates. and put it where it would not hur
. the Southern. At the time we Sold. W
held it for others.
LET me tell You the story. We foun
1 that Mr. Gates and his associates ha
control of the Louisville and Nashvill
Railroad When Gates came to us "
q found he had control Of S06,000 Of tn
!, Shares.
: ..Tllat gave him the control, Mr.. Nor
. gan added. The Northern Pacific expe
! lSrience of the year before made us Eawar
: of the Gangersto the Southern stock, an
i we made arrang enents with Gates.
/. knew the sale to TIE Atlantic Coast Rail