The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-01-17
BELMONT TEsTIFIES
. BEFORE COMMISSION
First Learned of Gates's Scheme
After He Had Secured Con
troll of the L. & n.
MON0N ROAD IS BOUGHT LATER.
Interstate Railroad Commissioners
Adjourn to Meet in Chicago,
Where Hearing Will Be
Continued Tuesday.
MON0N ROAD IS BOUGHT LATER.

New York, Jan. 1.-the Interstate Com
merce Commission continued to-day the
hearing of the charge of the Kentucky
Railroad Commission that the Atlantic
Coast Line Railroad Company and the
Louisville and Nashville had violated the
interstate act.
August Belmont testified he was and is
still chairman of the Board of Directors OF
the Louisville and Nashville.
when did you first knew that Gates and
his associates had secured control of the
road?" was asked.
Not until they had he replied.
Mr.. Belmont said he had nothing to do
with the appeal. II any had been made. to
]. p. Morgan G. Co. to secure the shares
from, John w. Gates and his associates.
In reply to a question, Mr.. Belmont said It
had not yet occurred to him that the At
lantic Coast Line Company could discharge
the duties of the Louisville and Nashville to
the public better than he could.
Then the change made was due to cir
cumstances beyond your control?" was
asked.
NOTHING COULD BE DONE.
ut was replied Mr.. Belmont. After
Mr.. Gates got control Of the majority Of
the stock there was nothing to be done"
Witness SAID he had the same control now
as before the Louisville and Nashville stock
was converted to the Atlantic Coast Line.
and that his board approved the change in
the holding to legalize the control of the
road by g. foreign corporation.
Mr.. Belmont denied that there was any
agreement between the Louisville and Nash
Vile and the Atlantic Coast Line Company
which in any way conflicts with the inter-
state commerce law. He had assumed the
responsibility of representing stockholders
who lad not given proxies when it was
voted to pass the control Of the Louisville
and Nashville to q corporation which did
not own any track in Kentucky.
P. Morgan & Co., said he had no direct in
terest in the Southern Railway.
,b he saih that as a result Of a conference
transferred to the Atlantic Coast Line
COMPANY. and no action was taken to Sc
Company That road was both parallel and
competing with the Louisville and Nash
vile, while the Coast Line was not.
acquisition of Louisville and Nashville
stock, and that it was for sale. That was
the first intimation any one interested in
the general market had that Mr.. Gates had
got the stock.
COULD USE MoNoN JOINTLY.
Mr.. Perkins said the Louisville and Nash
vile secured an option on the Monon after
the he hands hppdsSt Of j. ah 2. Nas = & SUCK CO., H Hes did id
not know whether the Louisville and Nash
Vile and Southern could control the traffic
VI Az 4lplOu, u luey COulo uS6 TIE byS-
tenn jointly. The. Monon was bought to
give the Southern and the Louisville and
Nashville an entrance to Chicago.
1t was brought out at this point that ].
P. Morgan & Co.: bought Of Gates 10000
shares Of Louisville n Nashville at $50.
and took an option on 1900 shares at 100.
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 your" was asked.
w sought them. We thought the At
the stock Il We Showed them S It was to their
advantage to do so," said Mr.. Perkins, who
continued as follows: we were anxious
as to where the control OF the road should
I'VE knew II it remained with MI. 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 minor
ity stockholders, that the road had been |
admirably managed in the past and II con-
ture interest of all would be safeguarded. |
There were only two places for it to go-the
At:antic Coast line or the Seaboard. The
coast line was approached and took the
property.
DEMANDED CASH FOR THE STOCK.
Mr.. Gates paid between 102 and ITO for 1922 |
900 shares of Louisville and Nashville and
an average of lbs for the balance. When |
the Atlantic Coast line took the shares |
offered, but demanded cash.
George F. Baker. one of the voting trus- /!
tees of the Southern Railroad. said he
authorized the signing Of his name to the
Southern to make no change in the roads
anageme until certain pending arrange
mentS were completed. |
The commission adjourned to meet in Chi /
NaUn on TrIacdav naXf /