New-York tribune., 1903-01-16
THOUGHT GATES UNFIT.
Continued from first page.


mercy of stock speculating firms
Did you recommend the Southern Railway to
secure the Louisville and Nashville STOCK!
asked Commissioner Prouty.
why no, sir Mr. Morgan said. They could
not hold it,.
"Why?"
They are parallel and competing lines
Replying to Commissioner Yeomans, Mr.. Nor
gan said he did not believe that any one in
terest owned as much a per cent of the stock
of the Southern Railway Company This ended
Mr. Morgan's examination.
The next witness was Charles Steele. of ]. P.
Morgan & Co. Questioned by Mr.. Young, Mir.
Steele said there was great anxiety about the
situation early in April last, and it was feared
that corner in Louisville and Nashville stock
planned.
Mr. Steele learned that Mr.. Gates had control
of large amount of the stock, and sent for
him There was a conference, and it was
thought wise that the road should be in con-
servative hands. AS result Of this conference
an agreement was entered into with Mr.. Gates
and his associates that a certain amount of
stock was to be obtained and held.
SAY THERE IS NO AGREEMENT.
'It was confidence in Mr.. Walters and his
associate that led you to seek them to take
charge of the Louisville and Nashville?"
1T was. We interested in the COM
mercial situation and we wanted the railroad
situation in the South conservatively handled"
Mr. Steele said further that J. P. Morgan &
Co. were anxious that interests inimical to
the Southern Railway Company should control
the Louisville and Nashville.
What profit did J. P. Morgan & Co. make on
the transaction" Mr.. Young asked.
at has not been worked out yet" answered
Mr.. Steele, laughingly. There may be loss.
It was late in the afternoon when Mr.. Morgan
took the witness chair, and Mr.. Steele was the
last witness of the day. Among those who are
expected to testify to-day are August Belmont,
George F. Baker and George w. Perkins.
The witnesses who preceded Mr.. Morgan were
Samuel Spencer president OF the Southern Rail
way Company; R. G.. Erwin. president of the
Atlantic Coast Line Railroad Company, and
Henry Walters, chairman of the Board OF the
Atlantic Coast Line Company All the mem
bers of the Interstate Commerce Commission
were present when the hearing opened at II
o'clock Attorney General Pratt, of Kentucky,
opened the proceedings, by asking that the COM
plaint be dismissed against the Illinois Cen
trail. Commissioner Knapp ruled that unless
the counsel for the road objected that action
would be taken Mr.. Stetson replied that the
counsel had no objection. They considered Mr.
Pratt's motion most appropriate.
Mr. Young conducted the examination of Mr.
him for copy of the agreement under which
the Southern Railway, through the Louisville
and Nashville acquired the stock of the Chi
cago. Indianapolis and Louisville Railway Mr..
Spencer identified the paper, and 1t was ad-
mitted in evidence.
o.-what the object of the purchase of ma fnat
line? A.-To benefit the lines running out OIL Sih-
cago. .,.. ,4oo- ~.
Iher sharp po 3ba snd NasR
ville-I mean, there was A.-There was ana Is
Replying to other questions Mr. Spencer sa1d
the Louisville and Nashville did not compete
with the Southern in North Carolina There
were other lines which might act as feeders
of the Louisville and Nashville, but the South
turned over great deal or business 10 tiie
Louisville and Nashville.
Replying to questions by Mr.. Stetson. Mr..
Spencer said that so far as he knew, the rates
of the Southern Railway had not been affected
by any agreements with other roads No tran
sactions of his company he declared, were taken
with any view to pool with the interests of
any other company.
why did Louisville and Nashville and the
Southern go into partnership to buy the Mo-
non?" asked Commissioner Prouty, as Mr.. Spen-
Ger was leaving the witness chair
1T was for sale Mr.. Spencer answered. "and
we did not want other interests to control it,
Did your control of the road affect the
rates."
Not at ell; but it does affect the volume of
business"
Henry Walters. chairman of the Board of the I
Atlantic Coast Line Company, replying TO
questions from Mr.. Young said that he wasain
England when he heard that j. P. Morgan &
Co had gained control of the Louisville and !
Nashville He knew the bankers could not
operate the railroad, and Immediately returned
from abroad to see if he could get it for his
company.
Charles Steele. told him understood the Louis; Louis;
vile and Nashville vas for sale and that we would
until later that met Mr.: Morgan. We
Of STOCK We paid for them $0oOO000 in cash, s35-
0OOG9O in bonds. and s5,o0ooo0 in stock.
Q.-Then Mr.. Morgan got $5UO.OOO in stock of the
Atlantic Coast Line Company? A-That is as L
OGWhere did you raise the s10,0o0GO0 cash? A
By sale of stock Of our own company am pleased
TO say every dollar of it was taken by our own
o.~Who owns the stock Of the Atlantic Coast
Michael Jenkins and his family, Walter Newcomer
and his family, and myself 49,. -
o.-Sor any of his firm? A-Not my knowl-
o...was there not agreement that If you Sc
and the
be such result and hope there viii lli''s "'D'u
the soSeT6 Ra%ay wan Wt
not + nsls there s 5houS m be any NECESSITY for such
but the relations have ALWAYS been friendly.
Q. Cby Mr.. BaXterl1Have you any knowledge
there is any agreement. und .rstandng or contract
ad a Ra and the soahern rms aRead fhe ars n
Grating in harmony or under one control? A |
There is no such agreement or contract
W. G. Elliott, president of the Atlantic Coast |
Line Company. and counsel for the Atlantic |
Coast Line Railroad Company. gave testimony
hat Of DvoIt