The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-05-06
A DISPUTED CHARTER.
MARrnAxD's LITIGATION AGAINST THE CON.

MARYLANDS LITIGATION AGAINST THE CON-
soLIDATIoN COAL COMPANY.
Investigation now being made into the history or
prominent corporation whose are daily quoted
at tho New York Stock Exchange and The Indications
are that the charter obtained by fraud. in that
the hundreds OF thousands OF persons bought
small OF stock. In the belief that their liability
was limited 10 the sum they hold, will find that The
concern was really nothing more than partnership
and that each OF them responsible to his last
dollar for tho liabilities Of the company The corpora
ton referred is the Consolidation Coal Company
One month ago It's stock selling in tho ncehbor
hood Of fifty, which considered very low for five
per cent stock with such emnently respectable
board OF directors Tue stock has since rapidly de-
cned and sold yesterday for forty. Tho cause OF this
decline traced action OF the session OF the
Maryland Legislature reducing tolls coal over
the Cumberland and Pennsylvania Railroad one cent
per ton per mile
The company had been for years using this railroad
for Transporting COAL but 1t then became known for
the first time that II owned It, The road in question
had been charging the high OF four cents per milo
for the transportation Of coal This was brought
the notice Of the Legislature OF Maryland as con-
trary the law OF 1865 reducing the rates. on the
1lth OF March last amendment was made to the
charter OF tho road in question reducing rates
tour cents ton per mile for distance OF four miles
less, three cents per mile for distance OF more
than four and loss than ten miles, and two cents per
mile for than miles. The company were to
furnish transportation for coal for tho local trades TO
furnish and use them they would their own In
all particulars as 10 rates, despatch locomotives aud
the like. This amendment further amended so
that n the Cumberland Railroad did comply with
these conditions any other corporation nigh, own
their own locomotives and transport coal their own
cars AT the new and lower rates.
The Consolidation Coal Company thereupon pro.
duccd deed showing that II owned the Cumberland
Railroad and claimed the right 10 charge cents per
ton per mile. according 10 ITS own original charter. A
petition then presented 10 the Governor of Mary.
land asking that the Attorney General shonld be in
sructcd to inquire the validity the transfer OF
the railroad and tho legality OF i,s adhcrns 10 lis old
OF tolls very bitter tight Instituted be-
tween the company and the Independent mining nter-
The managers OF the latter claimed that a rcduc-
ton OF rates was mcravey necessary enable them
10 continue 10 work their mines with profit. and IL Is
said that work actually stopped in several mines In
consequence OF the alleged extostonatc rates
Those parties who opposed the Consolidation Coal
Company furnish from the last annual report Of tina,
body good reason for rs disregard OF the njnctons
of The bill requiring reduction Of the rates The
pany paid dividend september 10. 1875, of $256 $50
II mined aud delivered IRON ils own mines In 1873
4I> u23 tons of coal decrease OF Is 600 OF
coal compared with the previous year. They trans
ported over the Cumberland and Pennsylvania road IN
ISIS l91l, 16d tons of coal. and on The Cumberland
branch 2l6 60 tons. making altogether Ass 1856 tons
OF coal over ts railroads Now rs u mined only
s4s 1913 tons It's railroads GOO tons OF conI
mined by other comrnncs. Therefore, they say t
can be readily whence the bulk the companv's
derived. and why u became vitality neccs
sary for u to preserve the old ratio n possible. re.
dGction accordance with the terms OF the bill passed
by the Legislature tho rates OF coal not only wipes
out all surplus earnings whatever but, IL may BE-
readily inferred tho company itself The Cumberland
and Pennsyvania Railroad comprises altogether about
thirty nht miles road and for dividend pur-
poses the Consolidation Coal Company, It Is claimed.
might be considered simply the Cumberland and
Pennsylvania Railroad. The company has a capital OF
$40 ~. 00o and It's total funded debt amounts TO
81, gS2. 500
ASTOUNDING srArrSExr.
The Legislature was appealed 20 against the alleged
tyranny ofthe Consolidation Company aud In response,
II adopted amendment TO the general railroad Jaw,
nu norzng the Governor instruct the Attorney Gen.
orai institute quo corranio proceedings ,mmcJ,
atcy any lniracton OF tho railroad law should be
brought 10 his In with this amend
mcnt The Governor of Maryland las, week instructed
Attorney General Gwynnc 20 proceed against tfN Con-
sDlldation Coal Company to decide the legality Of the
sale the latter to'y Of the Cumberland and Penn
sylvania Railroad 81 course al this contention aud
litigation led rigid examination Of the charters Of
the companies and u " claimed ny the oprcacnts
OF the Consolidation Coal Company that the %
The latter was obtained by fraud forgery. Tho
charge originated tar the writer could ascertain
during tho last session, with NJ. W. r. barnard, who
was member OF The Maryland Legislature IN lSt0.