Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-03
AT TER THE COAL ROADS
Early Prosecution Is Considered
Probable.
BONAPARTE GETS REPORT
Alleged Discrimination Against INDIE
pendent Producers.
SOME OF THE FACTS DISCLOSED
Agreement Said to Have Been Made
by the Leading Transportation
Companies of the East.
BONAPARTE GETS REPORT
SOME OF THE FACTS DISCLOSED

1t was stated at the Department of JUS
tice today that report from Messrs. Todd.
and Simpson, appointed some months ago
by the President to investigate both the
anthracite and bituminous coal-carrying
railroads with reference to any violations
of the Sherman antitrust act. had been
received by the Attorney General. Mr.
Bonaparte has given the matter careful
consideration. and it was the subject Of
conference few days ago between him
and Chairman Knapp of the interstate COM
merce commission.
The Attorney General today said that no
action had as yet been decided upon, as it
is intended to submit certain questions Of
Importance both to the law and the
policy of the department to the President
for his consideration.
Action May Begin Soon.
AS to the report of Messrs. Todd and
symptom concerning the roads engaged in
the bituminous trade. the department is
very reticent, but there is reason to believe
that action will be begun within the next
ten days against the Pennsylvania. Phila-
delphia and Reading. Chesapeake and Ohio,
the Atlantic Coast Line, the Seaboard Air
Line and the Beech Creek railway for vo-
lations of the Sherman antitrust act.
The prosecution grows out of the investi-
cation of the bituminous coal-carryng
roads made by the interstate commerce
commission last year, when it was shown
that the roads had pooled their coal
freight and had refused car service, the
construction of sidngs and many other con-
veniences to mines that were not in the
trust.
1t is believed that the Department of JUS
tice has all the material necessary to Sc
cure Il conviction.
This is one of the most important cases
ny nny,a rtr Of InSf
and fines aggregating more than a million
dollars will be imposed if the government is
successful in its prosecution, as the agree
ment between the lines has been in effect
ten years and each violation of the law
constitutes separate offense.
This combination had the effect OF in
creasing the price of coal to consumers,
and it prevented independent coal COM
panies from engaging in business. Only
the mines in which the officers of the various
railroad lines owned stock could secure cars
for the shipment of coal.
The Alleged Agreement.
In the opinion of the officers of the De-
partment of Justice and the members Of
the interstate commerce commission a clear
case has been made out against these rail-
roads. By the evidence submitted to the
Department of Justice by the commission
it is shown that the traffic managers of the
coal-carrying roads held meeting in New
York January T. 1896, at which 1t was
agreed that all the lines represented should
divide the bituminous coal traffic among
themselves. AS basis for the percentage
of division the tonnage for three years was
used. A resolution adopted at this meeting
provided that penalty of 30 cents gross
ton should be paid for tonnage III excess of
the agreed percentages which were to be
fixed by commissioners.
This agreement took effect April 1, 1896,
and it was continued from year to year I'M
til the investigation by the commission was
started. 1t is not known whether the agree
ment is being observed at this time.
The percentage of the bituminOus coal
traffic. which it was agreed at this meeting
should be allowed to the various roads. is
as follows: Pennsylvania, 46.6; Norfolk
and Western. 1S.45: Chesapeake and Ohio,
H. and Beach Creek railroad. Hos. The
association appointed commissioner to
carry out the division Of the traffic.
Cases of Discrimination.
In making its report to the Department
of Justice with reference to these agree
ments the interstate commerce commission
said:
Several instances were developed where
the companies declined to construct sidings
for the accommodation of independent coal
operators 1t was also developed that in no
instance did any of these roads refuse to
construct sidings or. supply cars to the trust
mines, the stock of which was owned by
the railroad officials and employees