San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-08
GRILL PyEATT
At HEARING OF
RAIL MERGER.


building a new line TO the valley he
declared there is not now sufficient
business 10 warrant more than one
line.
1--WE would continue to state our
position to the commission Mr.
Pyeatt said when pressed for an an
swer as TO whether he would oppose
the valley road.
Would Not Divert Traffic.
Mr.. Pyeatt admitted that the 10.
\. is n competitor of his line for
business north of New Orleans
handled by the Illinois Central. but
denied that all traffic would be di-
verted from the I-G. y. in case OF
the merger. He denied that the l-G.
n. could give the Gulf Coast more
business than the latter could give the
former.
Claude Birkhead taking up cross
examination brought out that the
Gulf Coast is a strong competitor OF
the I-G. y. for Mexican business
both freight and passenger.
Asked what route business originat-
ing in the Mississippi valley and deS-
tined for the Rio Grandc valley would
take after the merger he said ut would
be via Houston. l.-G. y. business Tor
the valley now takes that route, ne
said.
The principal source of supply of
refrigerator cras for his line. Mr..
Pyeatt said, is the Illinois Central.
His road owns 40 or 30 refrigerator
cars, he said. He didn't know how
many the I..G. n. owned. He denied
that the I.-G. y. is better equipped
with cars and motive power than his
line. He finally admitted that the
I-G, ". owns more power and cars
than the Gulf Coast. His line has
enough equipment he asserted but ad-
mitted that he has rented engines
from other roads.
Saving Estimate a Guess.
His motive power, he said. IS IN
good condition. He admitted that he
had recommended the purchase with
out having inspected the motive power
equipment or roadbed of the I.-G. y.
Mr.. Pyeatt admitted that his esti-
mate of a 100000 saving at Hous-
ton was a guess and he could not
analyze the figures. One saving. how
eyer, he said. would be the elimina-
ZION of car inspections. Others enumer-
dltu were ydIu I4Sihes sNINNh NheAAA
station expenses and the like.
He admitted that the I.-G. y. is
now building new terminals at Hous-
ton and that the Gulf Coast would
abandon theirs. He denied emphatical-
IL that he had planned TO set aside
the I.-G. n. obligation TO maintain
Palestine offices. He refused to an
swer directly the question, however,
whether he would maintain these Of
fees. He will not keep the presi-
dents and general offices there unless
required by law, as the I.-G. \. now
maintains the presidents office at
Houston. he said.
The merger he admitted would mean
the elimination Of ore president. The
contract provides for the resignation
Of the !. G. n. president and directors
he said. ..rr
Efforts 10 nave the Gulf Coast-Saus-
age contract put into the record failed
when Commissioner Splawn held it to
be a confidential document.
The contract was made subsequent
to the opening Of negotiations for the
purchase of the ]. e. n. Mr.. Pyeatt
said. He admitted. when ordered by
the commission to answer a question
sthat he expected under the contract
TO get more business from the Sausage.
This increased business he admitted
is being taken away from the j, -. \.
but asserted that this would not be
the case when the purchase is made.
BE denied that the Sausage is required
10 route this business over the Illinois
Central to northern points.
Cross examination of Mr.. Pyeatt was
concluded at noon. The Mart cham
Der of commerce filed resolution
favoring the merger.