San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-15
SEES DISCRIMINATION
AGAINST THIS CITY
Continued from page one.)

West leAuS. Ge Clteu figures 10 SUD
stantiate this claim. He also told
, of the opposition found to the merger
in the valley where every town ex-
cept Brownsville opposed it.
Taking up President Pyeatt's an
nounced opposition to a road to the
Rio Grande Valley, Mr.. Yandell de-
clared that II the Gulf Coasts policy
of waiting for a country to be de-
veloped before building a line the
whole country west of the Mississippi
would be a bowling wilderness"
A protest of 10 members of the
San Antonio Manufacturers Associa.
ton against the merger was intro
duced in evidence. The applicants
yesterday had introduced a resolution
adopted by the directors of the as
ISOLATION favoring the merger.
Questioned by Paul Kayser of Hous-
ton, Mr.. fandeil said the I-G. n. is
pursuing a constructive policy of de-
veloping the Southwest, sending agri-
cultural experts into the territory to
advise with the farmers as to the
most improved methods of planting
and harvesting,
A Vicious Project.
That the merger Of the Gulf Coast
Lines and I-G. n. would be a "vic-
ious' project, destructive to COMPETE
ton now existing between the roads
and would result in the "manipula-
ton" of the I-G. y. by the former
was the assertion made Monday af-
ternoon by Jesse H. Jones, million
aire business man of Houston, appear
ing as a witness in the hearing be-
fore the Texas railroad commission.
Mr.. Jones declared the proposed mer-
ger is not in good faith.
Previous TO this Commissioner
Splawn in propounding hypothetical
question to ]. A. Brown, general
freight agent of the Gulf Coast Lines,
had drawn the admission that if the
Interstate Commerce Commission in
grouping the various railroads under
its proposed plan, sought to maintain
an independent line ms bridge" be-
tween consolidated lines, that the J.
g. n. is the logical road to be select
ed. Commissioner Splawn mentioned
proposed groupings as the NJ. X. &
T.-Gulf Coast Lines. the Missouri Pa
cific-Gulf Coast and the Illinois Cen
tral-Gulf Coast also the Gulf Coast
Santa Fe.
Says It Is Malicious.
Mr.. Jones in opening his statement,
declared emphatically against the
merger. Characterizing it as "mali-
cious," he pointed out that it would
destroy the competition now existing
between the I-G. n. and Gulf Coast
Lines for San Antonio-Laredo bust
ness: that the Gulf Coast Lines would
divert Houston-Galveston port bust
ness to other ports; that it would
give the Gulf Coast Lines too much
power in trading and traffic arrange.
ments and that it would mean the
abolishing of one set of officers.
Under the proposed merger. he as
serted, the Gulf Coast Lines would
"manipulte' the I-G. n. as foreign
roads are doing other Texas roads.
that it would become "pawn to an
inferior road, whose directors are
more interested in making money for
their stockholders than serving the
public The Brownsville road. he
asserted. is grossly maintained. while
the T. & y. o., the parent line of the
Gulf Coast is paying dividends, de-
spite the fact that the road "needs
millions to make it serviceable and
safe for the public"
Mr.. Jones attacked particularly the
purchase contract wherein the Gulf
Coast would not guarantee the adjust
ment bonds of the I-G. n. He also
declared that the merger would dis
courage the building Of new road
to the valley. He detailed the i'm
proved conditions OF the I-G. y. of
which he is director and stock and
bond holder and asserted that il will
be able to finance itself in the future
without the aid of the Gulf Coast
Lines.
There Is Competition Now.
Asked on cross examination in what
way he thought the contract for the
purchase vicious" Mr.. Jones de-
clared that it makes it possible for
the N. o. 7. & NJ. 10 so manage
the 1-G. n, as to affect its earnings.
divert them to the n. o. T. & NJ, and
in that way the property would ulti-
mately find its way back to the re-
ceivers. 3
Answering questions of Commits
sioner Splawn regarding groupings.
Mr.. Brown declared that he didn't
believe the railroads of the country
! are going to voluntarily comply with
the plans Of the Interstate Commerce
Commission. Questioned on the DOS
sible purchase Of the merged Gulf
Coast-I-G. n. by the Missouri Pa
cific. Mr.. Brown said he would favor
it If the Interstate Commerce Com
mission works out its plan for
Group 10.
J. W. Shortran. traffic manager Of
| the Vaughn Lumber company OF
:.ouston. testified that there is "keen
competition" between the Gulf Coast
and I-G. y. for San Antonio and
Laredo business.
The applicants rested their case al
4 O'Clock Monday afternoon.
Says Houston Gets Service.
Mr.. Yandell on cross examination
denied that he dictates the policy OF
the directors of the San Antonio Cham
Der of Commerce or that he "domi
mates" the situation there.
I'm not a Bolshevik and I've M
desire to McAdoo the railroads ol
| America" Mr.. Yandell said.
Mr.. Yandell insisted that the rea
son Houston gets 60 per cent of TIL
valley business to San Antonino's u
is that the Gulf Coast lines giv'
Houston better service.
Although subjected to a grillini
| cross examination Mr. YnndplrS tps