San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-08

strong system, sought to build up thu
! I-G. n, weaker system. The pur
chase. Mr.. Kell declared, would moi
materially affect the Sausage, except
| that il might have TO work harder
| 10 control its tonnage. If the Gull
Coast sought TO harm it, he said. he
controls much tonnage in North Tex
as which he could withhold and thus
retaliate. He declared that much ton
mage from the valley now moving
through Houston would come via San
Antonio. Other traffic from the
north also, he said, would then move
over the I-G. N.-Sausage through San
Antonio.
Mr.. Kell declared that the merger
would hasten the building of a road
to the valley.
Hasten Valley Extension.
IF the Gulf Coast Lines acquire
the I-G. NJ" he said, "they will take
business they are now giving other
roads and give it TO the I-G. \. The
other roads will then be compelled
TO build into the valley"
The logical extension, he said,
would be the Sap or Sausage. Mr..
Kell declared that his line now has
an application with the Interstate
Commerce Commission for permission
to extend a line from Fowlerton 10
Miranda on the Tex-Mex, and thus
connect with Laredo.
On cross examination. Mr.. Kell
admitted that 7. A. Eldridge, who
owns As per cent of the Sausage stock
is not in favor of the purchase. al
though he declared it was because it
"would hurt somewhere else" Mr..
traverses a better territory than the
Gulf Coast Lines. Mr.. Kell was
questioned closely as to the effect the
merger would have on the. Houston
and Galveston ports, and admitted
that New Orleans is the chief export
port now for the Gulf Coast Lines.
He declared himself in favor of re-
pealing a law which would prevent
the merger when informed by Judge
Nelson Phillips that the state con-
stitution prohibits the consolidation
of a Texas road with one Of another
state. He also admitted that all of
his interests are in North Texas. He
declined 10 explain what he meant
when he had said that he had pur-
chased the As per cent of stock ION
contract" ,
Mr.. Pyeatt resumed the stand and
explained the relative benefits for the
two roads from public standpoint.
He said the merger would give the
l-G. y. strong financial support and
enable it to get money at a lower
rate. His company, he said, plans
to bring un the physical condition OF
the I-G. y. to a standard with its
competing lines. The road, he said,
needs new steel and new equipment.
Mr.. Pyeatt also declared that his
company plans to help build up Cor
pus Christi and other Southern ports
and that il plans to carry out all
contracts and obligations of the l.
G.. y.
Taking up specifically the San An
tonic situation, Mr.. Pyeatt declared
that the merger would result in ma
terial benefits to San Antonio. and
that he could see no disadvantage.
No new situation | can foresee, :"
he declared, could possibly be used
to the detriment of San Antonio.
Building up the &c. n. would mean
much TO the city. 1t would enable
the railroad TO do more fer the city
IN many ways. I've never been able
to see how it could be used to the
detriment Of the city. Certainly we
have nothing of that sort in our mind,
rather directly opposite. There has
been much criticism, based largely on
lack of understanding our policy"
Mr.. Pyeatt declared that the merger
would in no way affect the prospects
of another road from San Antonio
TO the Rio Grande Valley, asserting
that the Interstate Commerce Commits
sion would not be influenced by any
railroad in deciding the necessity for
new line. Mr.. Pyeatt asserted that
the new plan would increase the
passage of traffic through San An
tonic. The traffic of the Sausage,
he said, since his lines entered into
contract with it last year. had
doubled and it would be further in
creased.
He stated specifically that his
company would not abandon the op-
grafton of the Sunshine Special but
by perfecting the road bed and i'm
proving the equipment and connec-
tons would make it better.
Mr.. Pyeatt devoted much of his
testimony to his plan for S1O,000.000
expenditure for port and terminal
facilities at Houston. He also said
the company planned to carry out any
decisions or obligations relative to the
keeping of the shops and general of
fees of the I-G. n. at Palestine. He
admitted having refused to give Pales-
tine citizens a written statement to
this effect.
Mr.. Pyeatt is TO resume the stand
at . o'clock Tuesday morning for
further cross examination by Judge
Phillips and Claude Birkhead.