Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1916-05-09
SMITHS TESTIMONY
IN |. & N. HEARING
CONCERNS GEORGIA
Frank Disclosures of Railroad
Magnate Make Plain His At
titude Toward the Western
and Atlantic
(By Associated Press,)

(By Associated PressD
WASHINGTON, May 6.-The so-calIed
Pizarro-Cortez conference at Kennesaw.
Ga, in October, 1896, at which Milton H.
Smith, president of the Louisville ana
Nashville Railroad company, and the
late Samuel Spencer, president of the
Southern railway, discussed plans for
dividing the railroads of the south De-
tween them, was explained in detail In
the closing hours today of Mr. smith s
cross-examination before the interstate
commerce commission.
In correspondence which was alleged
TO have passed between Messrs. Smith
and Spencer thereafter the writer's lik-
ened themselves to Pizarro and Cortez,
Spanish explorers who met to divide
North and South America. At today 8
proceedings Joseph W. Folk, counsel for
the commission. read the stenographer's
transcript of what was said at the Ken
nesaw conference, and asked Mr.. Smith
if the alleged agreement was carried
out
IF you want TO know all 1 recollect
about it," the witness replied. III say
this: When we purchased the Lexington
and Western railway. Arthur Carey, Its
president, called the Pizarro-Cortez mat
ter to my attention. He said that
George NJ. Davey, Louisville attorney,
had said in some court proceeding, l
think, that Spencer and Smith were
Pizarro and Cortez, one taking North
America and the other South America"
TO PASS TIME AWAY.
Mr.. Folk asked if proposals made at
the conference that each road purchase
lines touching it, and not the other road,
were carried out.
THAT sort of stuff did very we'll for
the time being the witness replied, Ito
pass the time away, but practically no
attention was paid to 1t. In 1901 or
1902 there was antagonism between
Pizarro and Cortez, and they didn't get
on together at all. No attention was
then paid to that conference in acquir-
ing or disposing of roads,"
WAS there ever any variation from
this plan to divide the Southern"
mo consideration was ever given to
it,"
who arranged that conference?" Mr..
Folk asked.
IT may have done It," Mr.. Smith re-
piled. Spencer and I were friendly for
years, and seemingly we met to spend a
day or two"
I'm what way was your arrangement
with Mr.. Spencer departed from?"
THE L. & n. didn't acquire any of the
roads" Mr.. Smith said. The only thing
covered in that memorandum on which
we had an understanding was the line
from Atlanta to Knoxville, and that was
never acquired"
FOLK HAS MEMORANDUM.
Mr.. Folk read from the memorandum
of the conference an extract quoting Mr..
Smith as asking whether the L. & N. or
the Southern should control the p. T. &
A., the Tennessee Midland, the Decatur,
Chesapeake and New Orleans, the Ches-
apeake and Nashville and the Nashville
and Knoxville roads.
Were these roads finally disposed of
in accordance with your conference?' he
asked.
THE P. T. & A. and the Tennessee
Midland seem to have been acquired by
the l.. & NJ" the witness said
Those lines were of no possible use
TO the Southern railway. They could
not well go anywhere else than to the
i. & N. unless possibly to the Illinois
Central"
Mr.. Folk, reading from the memoran-
dunn, quoted Mr.. Spencer as saying that
he assumed the Memphis and Charles
ton would go to the Southern.
81 couldn't go anywhere else" Mr..
Smith interrupted. THE l.. & N.
couldn't use it,
did the Southern railway take it
over in accordance with your confer
ence! asked MT. DIX.
We'll, they did acquire it," Mr..
Smith testified.
Mr.. Smith said he had read over the
stenographer's transcript of the con-
ference within the past year or two.
He was asked if it were correct and
il not wherein it was incorrect
ACTUALLY MUST DIFFER.
The whole thing was speculation,
he replied. Between what was pro-
posed and what actually happened there
was great deal of difference"
Mr.. Smith said that he would. admit
the memorandum was correct as Mr..
Folk read IT. 1T is not matter of any
Importance whatever as l view it," he
declared.
Mr.. Folks questions. asked on re-
direct examination, followed questions
asked by e. S. Jouett. of the L. & n.
counsel. on cross examination as to the
\. & Ms. holdings in the Nashville,
Chattanooga & st. Louis railway, which
the L. G. n. controls.
1--WE hold 134,160 shares of stock in