New-York tribune., 1903-01-16
THOUGHT GATES UNFIT.
SO SHEARS j. p. MORGAN
Decided Broker Should Not Haze
Control of L. & ".


Commerce Commission consider the COM
plaint of the Railroad Commission of Kentucky
that the Interstate Commerce law is being vio-
lated in that State through mergers and COM
binations of capital TO pool their freight inter
ests the part Of the Atlantic Coast Line
Company. the Atlantic Coast Line Railroad
company. the Louisville and Nashville Railroad
Company, the Southern Railway Company, the
Cincinnati. New-orleans and Texas Pacific Rail-
way Company, the Cincinnati Southern Railroad
Company. the Illinois Central Railroad Com
psny and the Chicago, Indianapolis and Louis
VILE Railway Company.
The examination OF Mr. Morgan con-
Quoted by Bennett H Young, of counsel for
the Kentucky Railroad Commission.
What had you to do with the purchase of
these 100000 shares OF Louisville and Nash
VILE stock?' Mr.. Young asked, in opening
Nothing. in Europe at the time /
merely approved the contract when made, Mr.
Morgan answered.
Mr. Morgan said he knew nothing of the deal
before he returned from his European visit
last spring. 1t was explained to him by his
partners. Mr.. Perkins and Mr. Steele
Odd You come in contact with the oflcials Of
the Atlantic Coast Line Company A. olo met
Mr. Elliott Mr. Walters and Mr.. jenkins.
o-You are one of the voting trustees of the
Southern Railway Company? Ayes have oeen
cEpo YOU know anything bout circular ods1 sent
Yes. if it is signed with our name, ,o,. 4,a sale
f~,be f,,,isviile and Nashville stock? Al was
rot hare. 7 presume conference was helo "l'ii
'iSin- Are Won a director of the Southern Railway?
A-No: and never was 1 think steele Is
RESPONSIBLE FOR CIRCULAR
A., ,ro-,ar disclaiuned any remembrance of
The negotiations preliminary to the purchase OF
the Noncn stock but admitted that he might
have known all about them at the time MT
Young was anxious TO have Mr. Morgan eN-
plain The exact meaning of a certain sentence
in the circular. Mr- Morgan insisted that II
meant exactly what it said. He could not tell
who wrote it. but said he was satisfied TO as
sumo all responsibility for it,
The particular sentence advised the STOCK
holders TO make no change in the management
% .ro southern Railway until after certain
,,,estions then pending. which might affect the
5a,-eIonr77ent of their lines should have been
settled.
o-Does that refer to the projected sale of the
Louisville and Nashville? At refers to nothing
oob You just put it in for amusement? af43t, boid A
" rS ~f eoE LITE Ike 10 fe got hold Of LOUISVILLE and
Nashville and knocking il into a cooked hat s6+rr
Railway 10 hold together the Louisville and Nash
We a~Ren TSRRaPh dd you YOU get option the stock
pHAnd your circular is dated dated, in IA August: A
& .3iisf5ed T nir in the neWspapers I didn't the
1fnne know If it had been sold to Mr. Waters that
ha would not buy up the SogtheTn m Raiiway. way +,er
,,e,5i,ig? YES Nir Gates Lad the stock and no
one knew what he was doing. He operated pool
o-You tcok away the stock from Gates and his
wouidnt hurt the Southern Railway? Al did.
a. ~ ttJ fl lra o, tbe Story We found out that Mr..
Gates and his associates had control Of the Louis
fact that they could deliver 10000 shares Of the
SOCK. ahq dhal i,ii We s ang Nashyiiie company.
When Gates came to US We & found @ ne him nae coGfro
Q.-Nho conducted the negotiation with waters e
a,-d Gates? Al. P. Morgan & Co was III h"-
QWhy had YOU fears concerning the as soqa9eT afor
win the Northern Pacific that made aware OF
nrTanrenente m Is With Gates and the Others
QAnd YOU placed the Louisylile anS MashTlif @ d,Sin
Q.-Were at any time extensions Of the Southern d
Eailroad contemplated? A--Not that knew OF
Put if the board Of directors G.dn 90 rlsh' 'heS
0|who wrote the circular? Airs difficult
a{{er 70 b,t s1y m ssnme nS fbe responsibiiity for
QWhat matters at that time had an a, I'M tmp@TI@nt Ta
lar? A-That's what I've been telling you % asUuI ,3
can't tell YOU all the details concerning le ciiCu-
lar ] suppose Mr.. stetson knows all about It,
--r-or-GHT GATES UNFIT FOR CONTROL
o-F5o,y about the rnanag cement of the Louisville
and Nashville road? Al didn't know anything
G@EGt YOU knew that the ownership Of the
$500 shares would change me nanagstIel -,scad
] did. and that is why ] wanted the shaFes Pl@ceD
o-Whv did you think that its sale to the AT.
iantc Coast Railroad would be IN the lntereet & 0
ihe southern Railway & rdiroads k in the South
o-Did YOU fear Gates would disturb me S2hhh- S,iL
err raiIfoad stuation2 Al did dldh | .i ilIllh
6 fiy m did YOU mink Gates would injure South
- raiiroads? Al don't know exactly. Knew
7-is me- fad no experience in handling railroads
ana / didn't think his people the proper men ,,
Odd you ever have any lGet % tr rs ms ~
C'rsssf1Ie' and Nashville stock TO Gates ahd ihe
tthers Al. % 7 %1lSssessed in the possession of the
,1s-ies - M most interested thought my moral re
SlSS41g I1e,g sd Won GO 10 Europe? A-The latter
,,aS, - Ma-rF and i returned on August 20
~ . syndicate about taking over the stock
80 ~ / oIIisIiile and Nasnville2 A--Not that
81 call your attention a letter dated Sep
teo,;ar. - 1902 IN which you speak OF a plan LOT a
ey-njicate taking that stock? AT oouou rs
f-rn of I p Morgan Co and Mr. Walters ana
his associates
Mr. young produced a duplicate OF the syndl-
ca,e agreement under which the money was
raised TO buy out John ". Gates
This WAS issued from your office" asked /
counsel.
..No would not say it was issued replied
Mr. Morgan I'm.
..weu. it was distributed TO the public by
you?" u,s
IL was not said Nr Morgan. with consld-
cradle emphasis. 1T was prepared at our oiiioe
FOR those who wanted TO sign.
Mr. Morgan explained how the "VoV'o SHARES
were obtained from the Hawley & DAVIS parry
Harris Gates & Co. and others de decNheo TO
give the names Of those VINO hao siS''eU '''e
agreement -,
-.Bow much did J. p Morgan * -" sun
scribe2r MIR Young asked.