San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-09
DELAY IN
lien. MERGER
| HEARING ASKED
Charge Gulf Coast Trying
| to Give Commission
| crush Act"
TACTICS ARE WRONG
Compliments Claim Meth
| DDS care a Little Out
| of Line"
TACTICS ARE WRONG

AuStin, lex. Apru lEal tlc
Gulf Coast Lines are trying to give
the Texas Railroad Commission the
rush act in seeking TO put through
the hearing under stress of time, was
the charge made by Paul ID. Kayser,
one of the attorneys representing OPP
ponents of the proposed purchase by
the Gulf Coast of the I.-G. y. rail-
way this morning.
Mr.. Kayser declared that the lines
tactics are "a little out of line" and
suggested that the best interests of
the public, which is vitality concerned
in the matter, would not be served by
this procedure.
Mr.. Kayser's charge was made when
Frank Andrews, representing the Gulf
Coast Lines, had declined to assent
to a recess Friday end Saturday
which had been requested by Sldge
Nelson Phillips because he was called
TO New Orleans on an important ease.
Mr.. Andrews had based his objec'
ton on the ground that the contract
held by the Gulf Coast Lines for the
purchase of the I.-G. y. expires OF
May II. Unless the Interstate Com
merce Commission can get the cas-,
before, that time. Mr.. Andrews point
ed out, il would interfere with the ne
gotiations. Commissioner Splawn in
Dictated that he would be averse Il
granting the recess from Thursday
night until Monday.
Trying 10 Rush Through.
at seems to me-" Mr.. Kayser spoke
up. that they are trying TO give the
commission the rush act They arc
trying to put the matter through iIn-
public interest it seems TO me that a
short delay would not be objection
able. in fact it might be n good thing
to let the matter stand for another
30 days for further inspection of this
contract"
Mr.. Kayscr pointed out that the
contract provides for an extension and
he suggested that the public's interest
not be sacrificed by rushing il
through. .....
Commissioner Splawn reserved de-
cision, saying, however. if he were
pressed for a decision, now he would
decline to grant recess but would
continue to the end of the week. Mr..
Andrews had previously said he had
four or five more witnesses for the
railroad while Judge Phillips said his
case probably will require three days.
f. =. Gibson, representing the Par
is, Texas, chamber of commerce and
traffic bureau, the first witness. said
the resolution endorsing the I.-G. n
purchase was adopted Mt the Galveston
meeting Of the Texas Industrial Traf-
fic league without n dissenting vote,
He admitted that the secretary had
later sent out letter resembling this
action.
Road In Need OF Cars.
Thornwell Fay. former president OF
the Southern Pacific and executive Of
ficcr for the receivers of the I.-G. N,
said an estimate of the needs of the
road in 1918 showed that it would re-
quire S14 100000 TO nut it in condi-
ton TO meet competition. 1t would
now require about $4,000, 900 he said
TO provide the necessary cars. ballast.
rails and other things. Mr.. Fay said
the road has good motive power but
needs cars. He asserted that the l.
G.. n. needs "strong financial step
father" pointing out that it has been
in the hands of the receiver for one
half of its corporate existence.
Mr.. Fay said the competition be-
tween the I.-G. n. and Gulf Coast
lines for Mexican business was neg
about ~ per cent, he said, and the
Matamoros gateway 8 per cent. lie
admitted that there is some competi'
ton northward, however. Mr.. Fay
asserted that the merger would be OF
advantage 10 the public and roads by
combining the Houston terminal facll-
tiles and could not hurt Houston.
Great Cotton Carrying Road.
Mr.. Fay admitted on cross-examina-
ton that the I.-G. n. is the greatest
cotton carrying road in the state, that
ii made good earnings last year. He
suggested. however, that bad year
might again affect it and with ST.
UOO. 900 in bonded indebtedness, ii
might get into financial straits again.
He also admitted that the Gulf Coast
line has spent more than half its life
in the hands of a receiver.
Judge Phillips brought out that the
Gulf Coast company is only guaran-
teeiny 4 per cent on the adjustment
bonds of the I.-G. y. for four years
and nothing TO the bondholders. hence
the relief afforded might be only TEN
porary. He showed that the I.-G. \.
terminals at Houston are far moro val
liable than those Of the Gulf Coast.
Also that the two roads are highly
on traffic from the ST.
Louis territory.
1t was brought out that the Gull