The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-02-09
Charged With Violating the
Antitrust Law.
BIG UNDERTAKING.
Proceedings Probable Against
Most Roads in the Country.
Gossip and Matters of Interest
in Railroad Circles.

tice for violation of the ANTITRUST law
as result Of their alleged action in
farming out the coal lands of the coun-
try and sitting competition bids fair to
overshadow the action of congress in
connection with the reguIatioS of rail
road rates.
When Attorney General Moody re-
turns to Washington from Chicago,
where he is directing the prosecution of
the beef trust, he will be urged by Rep
resentative Townsend of Michigan to
initiate proceedings under the antitrust
law against the combination alleged to
exist between the Pennsylvania railroad
company, the Pennsylvania company,
the Norfolk and Western railway COM
pany, the New York Central and Hud-
son River railroad, the Baltimore and
Ohio railroad, the Chesapeake and Ohio
railroad. and the Philadelphia and
Reading railroad. This prosecution, if
it be initiated, viii be the beginning Of
proceedings against practically every
railroad in the United States.
Representative Gillespie of Texas pre-
scented in the house last week a resolu-
ton calling upon the president to report
all the facts in the knowledge of the in
terstate commerce commission in re-
gard to the so-called Pennsylvania
merger. simultaneously, Senator Till
man presented in the senate a letter
from Logan NJ. Bullitt, president of the
Red Rock Fuel company of PennsyI-
vania, stating that his company was
/ the owner of more than 1000 acres of
valuable coal lands on the line of the
| Baltimore and Ohio, that that line had
been directed by the interstate COM
merce commission to desist from dis
eliminating against the Red Rock Fuel
! company in favor of other shippers, and
in favor of ITSELF or to furnish by De-
/ cember % last a connection between
( the tracks of the Baltimore and Ohio
/ railroad and its side tracks. The order
! Of the commission has not been COM
I piled with and the Baltimore and Ohio
1 has announced that it will not 40 so.
/ The president sent to the house a
/ report from the interstate commerce
| commission in answer to the Gillespie
/ resolution, but 1t has failed to satisfy
/ either Republicans or Democrats. Per
fhaps this is the reason why Repre-
/ sentative Townsend has. taken such an
interest in the matter. Representative
/ Esch. who with Mr.. Townsend pre-
\ pared the original Esch-Townsend rail-
road bill, is understood also to be
among those who believe the alleged
4 Pennsylvania merger should be made
the subject of judicial proceedings by
the government. Mr.. Gillespie offered
/ a resolution Tuesday requesting the
! president to direct the interstate COM
! merce commission to Investigate the
! merger and report the facts to the
house. Chairman Hepburn of the in
terstate and foreign commerce COM
mittee said yesterday that he was in
| sympathy with the purposes of the
| resolution, but he did not propose to
permit his committee to be used by
men who had grievance. But with
the Democrats and Republicans agreed
that action should be taken upon the
Gillespie resolution, tn ere is little doubt
that Mr.. Hepburn will have to give way
and that his committee will consider
the Gillespie measure just as soon as
some other hearings already fixed are
concluded
Proceedings by the department OF
justice would, of course, tend to dis
pose congress to go slow in taking leg
iSlatiVe action. Representative Town
send said yesterday that if the facts
are as stated in a memorandum fur
nished by Mr.. Bullitt to himself and
Mr.. Gillespie, there is no doubt that q
violation of the antitrust law has oc-
CURED.
President Roosevelt intends to taIb
with Attorney General Moody wher
the latter gets back to Washington ir
regard to the posi- bility of prosecute
ing the Pennsylvania merger and any
: other railroad combination which is ir
{ violation of the antitrust law The
department of justice has not beer
aware of the combination of railroads
named in the Gillespie resolution O1
inquiry. That resolution, it may be
said, was not carefully prepared. i
asked the president to report to con,
gress the facts known to the interstate
commerce commission respecting the
roads named. The thing that lies il
the background, and which is not GOV
cred by the resolution, is that at tn,
same time the Pennsylvania. railroad
acquired an interest in the CheSape kt
5 7 e he al .aJe -
/ quired practically equivalent interest
, so that the New York Central and tn
I Pennsylvania system together are IN
2 derstOod to have an absolute contro
! of the Chesapeake & Ohio.
/ There is perhaps some ground, in tht
Z opinion of conservative public men, fol
< saying that the whole purpose of the ar.
]. rangement was to more or less contro
s the bituminous coal output south ant
t east of the Ohio river; and the opinion
: is further advanced that the object o.
T the arrangement really was to Obtain
] market control rather than the trans
s pOrtation control of the rate.
The Chesapeake & Ohio was carryin,
= coal from a certain region to tide water
= The Baltimore & Ohio was transport
t ing it from another region to tide water
r This was likewise true of the Pennsyl
S vania system. Naturally these road
which own the coal properties did no
< | want to cut each others thrOats eithe
a on the market price or the transporta
t ton rates. At the same time. with tn
q management of the roads acting in uni
|. son, or under one bead, it was possibl
e to stifle competition on the part of in
e dependent producers and between them
: selves.
= The interstate commerce cOmmissio
s claim it can do nothing more than it ha
g done. 1t made a thorough investigator
= of the complaint of Mr. Bullitt, and
= issued an order to compel the BaItimor
& Ohio to furnish the facilities require
a by the Red Rock Fuel company. Tn
/, Baltinaors & Ohio having refused {
e comply with the order of the commits
l. sion. Mr.. Bullitt in accordance wit
!, the law, instituted proceedings in tn
a. circuit court to compel observance TIL
It commission would have taken this az
u ton had Mr. Built failed to do so. Tn
y lc.r.arraisssnr, has nothing to do. Of cours