San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-08
GRILL PYEATT
At HEARING Of
RAIL MERGER
Cross Examination Brings
Out Opponents
Views.
HIS PLANS
Wants I.-G. N. for Its
Strategic Position for
Mexican Business.

Austin. Tex. April S.-That the
Gulf Coast Lines are on record as
opposing the building of n new line
from San Antonio to the Rio Grande
valley at this time was brought out
in the cross examination this morn
ing of J. 5. Pyeatt. president of the
Gulf Coast, at the hearing before the
state railroad commission of its sppli-
cation to purchase the I.-G. y. Mr..
Pyeatt expressed the view that there
is not yet sufficient business to JUS
.tify another line.
While Mr.. Pyeatt would not say
definitely that he would oppose such
a line. he said that his company would
furnish TO the Interstate Commerce
Commission facts concerning the sit
uation. Mr.. Pyeatt proved rather
unwilling witness on cross examina-
ton and at one stage Commissioner
Splawn was compelled to instruct him
TO answer a question.
Cross examination of Mr.. Pyeatt
was concluded at noon and other wit
nesses for the Gulf Coast Lines will
take the stand IN the afternoon.
Seek Hidden Hand"
Claude v. Birkhead Tuesday morn
| ing filed an official protect from the
lefty Of San Antonio against The mer-
iger and also. that Of ~ individuals
from Rio Grapde City. Mr.. Birk-
head, on his cross examination also
brought out very conclusively that
the I.-G. y. which the Gulf Coast
Lines would buy. is one of the strong
est competitors of the latter road in
the Mexican traffic.
Efforts TO discover what attorneys
allege is the hidden hand back of
the proposal to consolidate the I.-G. n.
with the Gulf Coast Lines were made
at the hearing. Under questioning by
Judge Nelson Phillips. representing a
group Of those opposed TO the mer.
ger. President j. S. Pyeatt of the Gulf
Lines. said some of the stock of his
lines was owned by W. A. Hartman
and Company. Blair and Company and
Potter and Company. New York in
terests. but he denied any knowledge
that the Hartman interests or any
other railroad was in control of the
Gulf Lines.
Gossip for Ten Years.
He said he did not know what was
in the minds of the bankers. when
asked what they proposed to do with
the lines after the merger and when
questioned as to what the bankers had
to do with it, replied that they rep
resent certain groups OF stockholders
as agents.
Asked whether there were any ne
gotiations pending for purchase of
his own line. he declared there had
been gossip for ten years about pur-
chasing the Gulf Lines. but that he
knew of no present negotiations.
Attempts also were made to have
the witness tell what competition his
lines expect to meet by the merger
and also what they intended to do
with the officials and offices of the
I.-G. y. He said since the I.-G. y. is
the best road for Mexican business as
it touches Laredo. in his opinion the
best Mexican gateway. the merger
would give the combined roads the
strongest possible bid for Mexican bus
mess.
"You intend to strengthen your po-
sition by destroying the connection
of the I-G. n, is that it?' asked
Judge Phillips.
I'VE will strengthen our position
by making one strong railroad system
out of the two," Mr.. Pyeatt replied.
The hearing opened Tuesday morn
ing in the Senate chamber before
Commissioner Splawn. Claude Birk-
head filed the official protest of the
city of San Antonio, that of Taylor
and 81 individuals Of Rio Grande
City.
Mr.. Pyeatt, resuming cross examin-
hn tc G.s1
a share for 10000 shares of the l.
G. n. capital stock and guaranteeing
4 per cent on its 6 per cent adjust
ing bonds. Nothing is guaranteed on
the first mortgage bonds. He denied
emphaticallv that the purchase is be-
ing made for the purpose of resale.
There are no negotiations on to sell
either the I-G. n. when bought or
the Gulf Coast Lines.
I-G. n. His Competitor.
He admitted that the I-G. y. is in
"fair condition" and very valuable
from strategic standpoint and the
best road in Texas for Mexican BUSH
ness. In that respect he said it is
a competitor of his line. He denied
that the purchase of the road would
entirely destroy the competition for
Mexican business as there would still
be other lines.
Judge Nelson Phillips asked if
the company planned to maintain of
fees and officers where the law re,
auires. Mr.. Pyeatt said he would
comply with the law.
do you expect TO make these Of
fees mere figureheads?n Judge Phil
lips asked. I'VE will comply with
the law" witness replied. Mr..
Pyeatt said he could combine certain
offices i'm Houston. and move others
where the law permitted.
Asked IL hr wasn't oUposed 10