San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-30
Thinks Sausage Likely to
Build If Sale Not
Consummated.
CHARGE HIGH RATES
Contends Gulf Coast Pre-
vents S.A.U. &C. From
Declaring Dividend.

International-G Great Northern Railwa,
by the Gulf Coast Lines would be ,
serious blow to Texas industry and t,
Texas ports, and that with the con
summation of the sale, the possibili
ties of obtaining n competitive rail
road to the Rio Grande valley woult
be practically killed, insofar as tn,
entire territory will be held in tn,
power of the discriminating policies
Of the Gulf Coast Lines"
T. A. Eldridge, part owner Of the
8. A. U. & G.. Railway, and owner OF
the Sugarland, stated in an interview
Saturday that if he did not own q
railroad, he would oppose the pro.
Gulf Coast Lines on the ground that
the Gulf Coast has Disseminated
against competitive roads in its past
history.
"The merger would be a death blow
to the harbor at Corpus Christi" Mr.,
Eldridge stated. "Houston and Gal
yeston would suffer almost as much,
because freight to which these two
ports are entitled would be carried on
Gulf Coast rails to New Orleans on
the preferred long haul"
Mr.. Eldridge stated that the s. A.
U. & G. is the best chance San Anto-
MO will have in the near future to OBJ
tain a competitive road from this city
10 the valley, but with the merger in
effect, the possible extension will not
be made.
"Since the S. A. U & G. has already
suffered from the policies of the Gulf
Coast, it would not be to the advan-
tage of the road to build the extern
sion contemplated from San Antonio
TO the Rio Grande valley, especially
since the Gulf Coast has announced
that it would strongly oppose the
building of any other competitive road
from San Antonio TO the valley sec
tion," Mr.. Eldridge stated.
While Mr.. Eldridge stated that it is
not in his power TO forecast that the
). A u. & G.. will build a road from
San Antonio to the valley as part of
It's plans for the immediate future, he
said that the $. A. U. 4 q. represents
this city's best chance to obtain a
direct line to the Rio Grande, and
limited that such an extension of ser
vice might be perfected unless the
merger Of the Cuff Coast ana the H.
". y. was made.
Should the merger go through, Mr..
Eldridge stated, that 1t would not be
possible to build an extension on the
5. A. U. & q. TO the valley, as the
Gulf Coast is largely charging arbi-
trary prices for use of its rails south
of Odem.
Says Charge COnfiscatory.
Speaking of this charge, q. Il. Yam
dell, general manager of the San An
tonic Chamber of Commerce, stated
that the arbitrary charges made by
the Gulf Coast on the S. A. U. 6 &.
railroad were constituencies and
without precedent" in the history of
railroads in the United States.
During his last conference with
the executive committee handling San
Antonio's case against the merger,
Mr.. Pyeatt, president Of the Gulf
Coast Lines, admitted that his COM
pany is charging an arbitrary price
amounting to IS per cent of all pas
senger hauls, on the Gulf Coast rails
south Of Odem, to the Sausage Rail
way" Mr.. Yandel said, land it is
stated on good authority that the
Gulf Coast also handles the s. A. U.
& G. freight south of Odem for an ar
bitrary charge of 20 per cent of the
entire amount. This charge is with
out precedent in the history Of rail-
roads in America"
Would Stifle Texas Industries.
Mr.. Eldridge conferred with Mr..
Yandell Saturday afternoon, and with
several San Antonio men, for the pur-
pose of encouraging the leaders of the
opposition in their fight.
As a railroad man Of Texas 1 can
safely state that the Gulf Coast Lines
have operated in the past to the de-
triment of Texas in favor of Louisiana
interests" Mr.. Eldridge said. in
fact, believe that the article recently
appearing in the New Orleans Bureau
of Commerce organ, stating that New
Orleans would be benefited materially
By the sale of the I.-G. n. to the
Gulf Coast, proves that New Orleans
interests have received assurance in
some manner that they would be bene-
fitted to the disadvantage of Texas.
The Gulf Coast Lines evidently in
tend to open Southern, Eastern and
Central Texas TO New Orleans indus
try, in spite of the fact that this
would destroy more than one home in
dustry that depends on these markets
for existence"
In regard to the arbitrary charges
that are being made by the Gulf
Coast to the Sausage, Mr.. Yandell
stated that since the conference with
Mr.. Pyeatt it has been said that the
passenger charge alone amounts to
more than SGO.000 yearly, which prob
ably represents some of the earnings
of the company that the Gulf Coast
has acquired for the purchase Of an
other road. Mr.. Eldridge stated that
lie is positive that the books of the
$. A u. & G. Railway would verify
this statement. as far as the amount
represented by the total arbitrary pas
senger charge of the Gulf Coast to
the Sausage is concerned.
Mr.. Eldridge does not claim to
speak for the sentiment of the $. A.
Z. & G.. railway. as he is only one
of the three stockholders. but he said
that as an individual he is strongly
opposed TO the merger. after observing
the policy of the railroad that for
some years past has. it is claimed.
Disseminated unjustly against the
only independent road to the valley.
The fact that the s. A. U. & G. has
not paid dividends for the last five or
six years is partly due to the arbitrary
charges and unjust policies Of the
Gulf Coast. according to Mr.. FL
bridge. as it has been difficult to cope
with the almoSt-mOnOnoly exercised
at present by the Gulf Coast in the
valley region.