The Montgomery advertiser., 1903-01-17
IT SURPRISED BELMONT
GATEs's PURCHASE OF LOUIS
 VILE & NASHVILLE.
In New York the Interstate Com merce CommissIon Continues Hearing of the L. & N. and
 A. c. L. Merger Matter.

New York. Jan. 16.-The Interstate Commerce Commission continued today the hearing of the charges of the Ken lucky Railroad Commission vs. Atlantic Coast Line and the Louisville and Nash vile had violated the Interstate Com merce act.
 August Belmont testified he was and still is chairman of the board of dlrec- tors of the Louisville and Nashville Rail- road Company.
 When did you first know that Gates and his assistants had secured control of the road?" MT. Belmont was asked.
 Not until they had" MT. Belmont re- piled.
 Mir. 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. He was present at the meeting of the directors which adopted a resolution ap- proving the sale of the controlling interest to the Atlantic Coast Line.
 MT. Perkins. a member of the firm of J. P. Morgan & Co.. said he had no direct interest in the Southern Rail- way. He said that as a result of a con ference before the Louisville and Nash vile stock was transferred to the Att lantic Coast Line Company no action was taken to sell the Louisville and Nashville control to the Southern Com pany. That road was both parallel and competing with the Louisville and Nash vile, while the Coast Line was not.
 Witness learned in April of the Gates acquisition of Louisville and Nashville and that 1t was for sa.e. That was the first intimation any one interested Tn the general market had that MT. Gates had got the stock. MT. Perkins said the Louisville and Nashville seeeured an op- ton on the Monon after the Louisville and Nashville stock was in the hands of J. P. Morgan 6 Co. He did not know whether the Louisville and Nashville and the Southern could control the trafIic of the Monon, but they could use the sys- tenn jointly. The Monon was bought to give the Southern and Louisville and Nashville an entrance to Chicago
 It was brought out at this polnt that J. P. Morgan Co. bought of Gates 102,- 900 shares of Louisville and Nashville at 1.3O and took an option on 20i00O shares at I2. with the agreement that Harris, Gates & Co.,, should have the right to share in any plan adopted.
 Did you seek Harris, Gates & Co, or did they seek you?'' was asked.
 We sought them. We thought the Att lantic Coast Line Company would pur- chase the stock if we showed them it was to their advantage to do so," said Mir. Perkins ,who continued as follows:
 We were anxious as to where the con- trol of the road should finally land. We knew if 1t remained with MT Gates no one could tell what would happen. The Gates people had told me their plan was to pay a high dividend and then dispose of the road in the market. We felt We owed a great deal to the interests of the minority stockholders: that the road had been admirably managed in the past ard If continued in as good or better hands, the future interest Of all would be safe guarded. There were only two places for 1t to go-the Atlantic Coast Dine Ur the Seaboard. The Coast Line was approach ed first, and took the property.
 Mir. Perkins said his imprsssi Dn was that MT Gates paid between l03 Gnd Il0 for 102.000 shares of L. and N., and an average of l26 for the balance. When the Atlantic Coast Line took the sna.es Mir. Gates refused to take the securities over and demanded cash
 George F. Baker, one of the voting trus- tees of the Southern Railway, said he authorized the signing of his name 10 the circular advising stockholders Ct the Southern to make no change in the road management until certain pending ar engagements were completed.
 The commissio adjourned to meet in Chicago on Tuesday next.