San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-23
PYEATT MAKES
STATEMENT ON
A|LPURCHASE
Says Financial Strength Of
Gulf Coast Needed to
Build Up Ign.
BIG HELP TO HOUSTON
Claude Birkhead Says An
swer Of Pyeatt Avoids
Question at Issue.

]. g. Pyeatt, president Of the Gull
Coast Lines has issued the following
statement regarding the proposed pur.
chase of the I.-G. n. by his road:
There have been raised certain OBJ.
jections to the purchase by Gulf Coast
Lines Of the capital stock of the In.
ternational-Great Northern Railway
Company, authority for which is being
sought from the Interstate Commerce
Commission. The nature of these op-
jections and the fact that they are
based upon erroneous assumptions
prompt that the public should be nc.
quainted with the reasons for the pro-
posed purchase and be advised as tn
the true facts with respect to the mat
ter.
1T goes without saying that the
private interests Of the owners of the
Gulf Coast Lines should not be con-
trolling. Unless the bringing together
Of these two comparatively small rail-
road systems will result in strengthen
ing them to the end that they may
better serve the public they are de-
signed to serve, then no justification
exists for the proposal. Furthermore.
il the unification of the two systems
into one will result in weakening
either 50 that It would be less capa-
bic Of rendering efficient and effec-
tive transportation service to the pub
lie, then the purchase would be I'M
justified. 1t is our view that both
lines will be strengthened by the
common ownership and that the bring
ing together of their resources Will
give a much more substantial credit,
a decidedly more economical admins
tration and operation and a vastly
increased gross and net earning power
for each. Those having even small
knowledge of transportation matters
recognize that economies in operation
determine In net earning power of
transportation companies and that the
net earning capacity of such compan.
les determine the amount of credit to
which the transportation company is
entitled and the cost Ct that credit.
Cites History Of Railroads.
'oThe history of transportation IN
the United States concIusively estab-
fishes that the most economical and
efficient transportation has not been,
and cannot be, provided by small in
dependent railway lines. The trans.
portion that has served the public
necessities best and that has met the
requirements Of the public Is that
provided by the larger systems that
have been brought together by the uni
fication of smaller systems. By this
means gross earnings have been large
~ increased, funds have been made
available in amounts and at rates
which have justified improvements
and additional equipment and facil-
tiles necessary to increase the gross
earnings and decrease operating costs.
By such means, and such means only,
have the transportation companies in
the past been able to increase their
net operating revenues, and become
able to serve the public with the eff
ficiency and effectiveness required in
modern times. Not only is this IL
Illustrated by the larger transportation
systems throughout the United States
but IL is equally true in our own state.
THE st. Louis, Brownsville and
Mexico, The Beaumont, Sour Lake
and Western and the New Orleans.
Texas and Mexico have been brought
into the union Of the various lines
constituting the Gulf Coast Lines and
the facts speak for themselves. Each
line has been made stronger financial
", has been built up physically, has
been more splendidly equipped and
made more efficient and capable in
the service Of the territory served BY
them than they were before. The
Southern Pacific was constituted by
combining among others the T. 4 n.
o., and M. L. & T., G. II. & S. A.,
II. q. 4 W. T. and the II. & T. G.
Is Is history in Texas that each of
these lines has been made more eff
cient In Its service to the public by
the union. Furthermore, the South
ern Pacific's east and west lines arc
parallel and competing in large
way with the Gulf Coast. The addi-
! ton to those lines Of the Fl. & T. c.
and the Fl. f. & W. T. was a move
in all respects similar to the present
proposal to add the I.-G. n. properties
to those Of the Gulf Coast Lines. The
addition Of the north and south lines
referred to the Southern Pacific Sys-
tenn not only made the Southern Paci-
fic system stronger than they original
~ were but has been Of more decided
benefit to the II. & T. G. and H. e.