The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1892-02-13
The GREAT COMBINE
A Possibility that tho Coal
Deal May be Upset.
TEE LEASE SAID TO BE ILLEGAL.
But Reading Official Says There is Not a
Single Point Against IT,

The Best Legal Talont Employed and tho
Points Carefully Considered Before tho
Negotiations Were Regun--A. j. CHssitt,
Of the Pennsylvania, says the Reading
Lease is "A CIssr ViolstiOn OF the Consti-
tuition OF the state.
PHILADELPHIA, Pa, Feb. l3.-The CON
summation of the great anthracite coal
combination continues to be the absorb.
ing topic Of conversation in financial cir
cles in connection with the rumor that
Attorney General Hensel intends to 20
into court and attempt to prevent the
combination. The opinion is generally
expressed that no legal obstacles can be
placed in the way Of the combination,
President Mcleod of the Reading railroad
is not in the city. Another official of the
Reading said;
"YOu can rest assured that all the
legal points were carefully considered
before negotiations were begun. We had
the best legal advice obtainable, and
there is not a single point that can he
brought against the combination
A j. Cassatt, one of the directors Of
the Pennsylvania railroad company, de
cared the Reading leases to be a clear
violation of the Constitution of the
State.
81 think, " he said, Chat this is the
most audacious and most impudent de
tiance of the law and the Constitution
of the State that has ever been attempted
in Pennsylvania, 1t is not possible that
the people who have made this gigantic
l.;
suit of the litigation growing out of the
proposed purchase by the Pennsylvania
railroad company of the South Penn road
and the Beech Greek road several years
ago.
In this case the Bedford & Bridgeport
Railroad, a corporation controlled by the
Pennsylvania road, was used as a medium
for the purchases but as soon as the in
tention became known the attorneys gem
eral of the State, under GDe direction of
the Governor, interposed and applied TO
the courts for an injunction restraining
the Bedford & Bridgeport Railroad and
the Pennsylvania Railroad from cousu n
mating the purchase, setting up that
provisisn Of the Constitution OF the State
which prohibits any railroad corporation
from leasing, purchasing, or in any way
acquiring the control of a competing
line.
"A lot of litigation ensued, with the
result that the State won at every point
and the Bedford q Bridgeport and the
Pennsylvania Railroad were eujoined
directly or indirectly, or in any way,
carrying out the intended purchase or
control.
In the reports of the Readings trans
actions we are Informed, first, that The
L.ehigh Valley Railroad Company, com
many that competes at a hundred differ
apt points and in thousand different
ways with the Reading, is leased to that
company, second, that The Central Rail-
road of New Jersey, whose lines run
parallel and in sight of the Lehigh Valley
from Phillipsburg to Wilkesbarre, is
leased to a little New Jersey corporation
created by the Reading Railroad Com
pany and now owned and controlled by
that company unless the control has
been coustructively parted with for tine
purpose of giving some color OF legaIlty
10 the lease.
Here is an attempt to create monop-
oily of almost the entire anthracite output
of the State, which amounts to 10000, 900
tons per auuum, and puts 1t in the power
of one man to fix the price of fuel used
by every household in the state
When asked whether the Pennsylvania
railroad company would institute legal
proceedings to prevent the deal from
being carried out, Mr.. Cassat. said he
knew nothing about that, but he then
added
lit happens, fortunately that the Gov
ernor of the State is the same Governor
who so promptly took action against the
Pennsylvania railroad in the case re
ferred to
To suppose the Governor would not
now act would be TO suspect that Gov
Pattison would fail in his plain duty
and he (CassatU was not willing to sup
pose anything of the kind.