San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-09
SAYS COMBINE
WILL FOIL W
SALE Of L.-C.N.
Representative Of Texas &
Pacific Favors
Merger.
CALL PYEATT BACK
Endeavor to Prove Texas
Traffic League Favored
Merger.
CALL PYEATT BACK

purchase of the l.-G.. y. by the Gulf
Coast Lines ultimately would result
in the purchase of the combined roads
by the Missouri Pacific and their
consolidation into Group 10, was
brought out late yesterday in the
hearing before the Texas Railroad
Commission. Judge Il. J. Freeman,
representing the Texas Pacific in
favor of the purchase, said that he
hoped" that this would be dene.
Another interesting development in
the afternoon proceedings was an at
tempt by the Fort Worth Chamber
of Commerce and Fort Worth Freight
Bureau to get into the record a reso-
luton adopted by the Texas Indus
trial Traffic League at meeting ut
Galveston recently, but later rcpu-
dated, favoring the purchase project.
A letter to c. 3. Yandell of the San
Antonio Chamber of Commerce. and
signed +. A. Loeffingwell, stating
that the resolution had been rescinded
and that the league would take no
stand in the matter, was read by
Claude V. Birkhead.
The testimony of Judge Freeman.
attorneys for the protcStantS believe.
las finally disclosed the real reason
for the proposed purchase of the L.
G. n. by the Gulf Coast Lines. Judge
Freeman testified that the Missouri
Pacific, through an exchange of
bonds, has acquired control OF the
Texas Pacific. The logical step to fol-
low. he said. would be the purchase
by the Missouri Pacific of the com
bined I.-G. N.-Gulf Coast Lines.
This. he asserted. would carry ont out
the conventional consolidat plan
for Group 10.
Says 1t Is Logical.
ais the Missouri Pacific-Texas
Pacific behind this move to bug the
1.-G. NJ" Judge Nelson Phillips ask
ed Judge freeman.
Not to my knowledge" witness re-
piled.
Judge Freeman also denied knowl-
edge of any contemplated purchase of
the combination.
1t is the logical thing to DO. how
ever, isn't it," Judge Phillips in
CURED. E
FssIt is" witness answered. SsN
sWhen ought it to be done:" Judge
Phillips asked.
When the money is availabic,r
Judge Freeman answered, adding that
the Missouri Pacific might get the
money in n year.
1t was brought out that the Mis-
souri, Pacific had opposed the pur-
chase of the 1.-G. y. by the Frisco
some time ago. Judge Freeman would
not admit. however. that unless the
Missouri Pacific was satisfied that it
could later purchase the combined
roads. that it would be against the
present project. The Missouri Pac-
fic in that case, he said, would be
indifferent"
Questioned closely rs to his atti-
tude toward the Texas constitutional
provision prohibiting the consolida-
ton of Texas roads with foreign
roads, Judge Freeman declared that
he is in favor of overriding the con-
stitution in this instance and that he
believes an act Of Congress is higher
statute. He said he is still a citizen
of Texas.
Would Reduce Expenses.
Judge Frceman's argument in sup
port of the proposed purchase was
that it would reduce operating costs.
with a direct benefit to the public
and would give the I.-G. y. additional
tonnage.
4. ID. Byers. representing the Fort
Worth Chamber of Commerce and
Freight Bureau, offered in the record
the resolution he said had been adopt
ed by the Texas Industrial Traffic
League. He admitted that there had
been some opposition TO it but said it
expressed the views of all the traffic
men present at that meeting.
Did the league authorize you to
present this document" Mr.. Byers
was asked on cross examination.
NO" he answered. Il offered it as
a basis for my opinion in the matter
OF the purchase. 1T was the opinion
of every traffic man present that the
project is reasonable"
Letter Is Read.
Claude Birkhead then read the let
ter TO Mr.. Yandell. Mr.. Byers assert
ed that U. S. Pawkett. secretary of
the San Antonio Freight Bureau, was
present at the meeting.
How did he vote?" Mr.. Birkhead
asked.
Il don't know, but he didn't vote
no." Mr.. Byers replied.
Mr.. Yandell said later that Mr..
Pawkett had gone to the meeting with
instructions to oppose any endorse
ment of the I.-G. n. purchase.
}. ). Pyeatt, president of the Gulf
Coast Lines, was recalled TO the stand
during the afternoon and questioned
more closely with regard to the con-
tract between the Gulf Coast and
Sausage.
isn't it fact that the Sausage
agreement is subject TO cancellation
within 30 days? Isn't it a fact that
the contract requires the Sausage to
give up its refrigerator car contracts?
Isn't it true that it binds the Sausage
to use its influence to route freight
originating thereon via Odem instead
of San Antonio?r were the questions
put to the witness by Mr.. Birkhead.
Refuses 10 Answer.
He refused to answer. Mr.. Pyeatt
said. however. that the contract would
not affect the routing of business via
San Antonio instead of Odem in case
the purchase is approved.
Mr. fyedtl auHulteu agdlH lhat Nv
Is opposed TO another line into the Rio
Grande valley from San Antonio. one
peason being that it went into Gull
Toast territory. When the time comes
that there is sufficient bushes TO jus
tify another road. Mr.. Pyeatt indl-
Gated that he would not oppose it.
when the time comes that there is