The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-01-20

State Commerce Commission met here
today TO take testimony in regard to
the complaints of the Kentucky rail
read commission hat the Interstate
Commerce law was being violated In
kentucky by the alleged merger of the
Louisville and Nashville and the At
lantic Coast Line.
The complaint against the Illinois
Central was dismissed at the request
Of Attorney General Pratt of Ken
tucy.
The companies denied all allegations
of violating the law and counsel said
the books and traffic agreements were
open to the public.
President Spencer, of the Southern
railway. identified a copy of the agree
ment under which the Southern rail-
way, through the Louisville and Nash
Vile, got the stock Of the Chicago, i'll
dianapolis ana Louisville and the doc
ument was admitted as evidence. MIR.
Spencer said the purchase was Ito
benefit the lines running out OF Chi
cago." Witness said he could not rs
membe whether the MOnOn purchase
agreement provides for referring a.
disputes to j. P. Morgan as umpire.
The rates of the Southern had not been
Effected by any agreement n bust
ness was not one with a view OF
POOLING. Mr.. Spencer said that while
the Joint control of the MOnOn did not
affect rates, it did affect the volume
Of business. In reply to a question as
to why the Louisville n Nashvili-
and the Southern had bought the
Monon, he said, 1T was for sale and
we did not want other interests to
control it,"
President Erwin. of the Atlantic
Coast Line, said the Atlantic Coas,
Line railroad was owned by the stock
holders of the Atlantic Coast Line
Company. He explained the difference
between the Atlantic Coast Line Com
pany and the Atlantic Coast Line Rail-
road Company. He understood that
100000 shares Of Louisville and Nash
Vile were delivered by ]. P. Morgan
and Company to the Atlantic Coast
Line Railroad Company. Later s35,-
COO. 600 bonds were issued to pay for
those shH pes and handed ove to Nor
gan & Company, in addition to $40,
600. 900 cash.
Henry Walters, chairman of the
board of the Atlantic Coast Lin Com
pany. said that hat company owned
a controlling interest in six or more
small lines operated as the Atlantic
Coast Line Railroad Company. Five
directors of the Atlantic Coast Line
Company were also directors of the
Louisville and Nashville. Witness
said. I'VE offered to buy the Louisville
and Nashville. having heard that Nor
gan & Company had got controI OF 1
and knowing bankers could not operatt
It," The witness and Mr.. Morgan
reached an agreement to buy the 306.
900 shares Of stock "Wn paid" sait
the witness, $50. 900. 900 cash and $685.
100000 bonds and $50 0 900 stock. every
dollar of which was taken by u owl
stockholders. Practically three hold
ers own the stock of the Atlantic Coas
Line Company: Michael Jenkins anC
his family: Walter Newcomer n hi
family. and myself. / do not thinl
Mr.. Morgan owns any of the stock"
The witness said that in certain cir
| cumstances he might vote for a rat'
war with the Southern. There is n,
| agreement conditioned on securing
! control of the Louisville and Nashvili'
and no understanding or contract b.
which the Atlantic Coast Line. Louis
vile and Nashville and Southern ar
! operating in harmony Or under on
control.
President Elliott, of the Atlanti,
Coast Lin Company ami counsel 70
the Atlantic Coast Line Railroad Com
| pany. testified corroborating Mr.. Wa
ters testimony and said:
I'VE bought the controlling stock o
| the Louisville and Nashville just a
would buy a box of candy. 1t Wa
wrapped up and delivered to us an'
wa roid $50 on0,o0n for it. A portion o
the shares was controlled by Nv. "
ley and Mr.. Gates and the a~cceptanc
| re O,,~ rcfar 1-ac c,,hiant 70 thn nv
prevail of Hawley and Gates
J. P. Morgan began his testimon,
by saying he was the head of the firm
n that the firm had ten or twelv
members, he was not sure how many
He had nothing to do with the pur
chase of the 100000 shares, except t
approve the contract when made. TIL
deal was explained to him by Messrs
Perkins and Steele when he returnet
from Europe last spring. Mr.. Morgal
presumed a conference was held wit
Mr.. Gates about the Louisville an
Nashville stock sale, but he was no
present at it. He was never a directo
Of the Southern. hut thought his part
ner, Steele was. Mr.. Morgan coul
not remember the preliminaries Of tn
Monon purchase, though he Nigh
have known all about them at tn
time. A sentence in a circular sen
III by Morgan & Company, August q
1903. vas mentioned to the witness. /
advised stockholders of the Souther
to make nc change in the management
until after the settlement Of certai
matters pending, which might affec
the development of their lines. "W
were trying said Mr.. Morgan in ex
PLANTATION, ito prevent n one get
ting hold Of the stock like they 60
hold of Louisville and Nashville an
knocking 1t into a cooked hat" Wit
ness considered 1t important to tn