Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-10-30


which is believed to be absolutely new
in rebating has been discovered by the
Ohio legal authorities and they are
looking up, in Washington, evidence
with which they hope to proceed
against the great Hooking railroad
coal trust in that state. Here's this
new rebate scheme:
Suppose a big shipper sending many
thousands of cars of coal per annum,
gets a bit short of cash and doesn't pay
it's freight bills promptly; keeps for
ever in arrears; allows the arrearages
to grow larger and larger till it
amounts to millions; the railroad not
insisting on payment, making no effort
to collect it. evidently not needing the
money.
And suppose the railroad never does
get that arrearage? Its accounts are
kept to show the claim; show it as an
asset; but it is never collected.
is that q method of giving rebates?
That's the way the Sunday Creek
Coal Company owes two millions or so
legal representatives of the state of
Ohio, who are on the trail of their coal
trust think they have started some
thing that will unravel a remarkable
skein when they get to the bottom OF
the whole affair
Ohio Coal Trust Wonder.
The Ohio coal trust is one of the
wonders of finance. The Big -Four, B.
& o., C. & o., Lake Shore and Erie
railroads jointly own all the stock of
the Hooking Valley railroad; the Hook
ing Valley railroad controls long list
of subsidiary railroads; and it also con-
trolls the Sunday Creek Coal Company
This company in turns controls long
series of mining companies. many
| thousands of acres of coal lands, and a
tremendous output of coal. The whole
coal region fabric is thus inextricably
woven in and out with the interests
of the most powerful railroads in Ohio
| The charge is made that this pow
erful combination of railroad and coal
interests, which was started by the
way, In the office of ]. P. Morgan &
Co., has grown so powerful that no.
body else can mine coal in Ohio. The
railroads furnish cars, in preference, Il
the concerns in which they are inter
ested Independent operators simpl,
have no chance at all. Rate adjust
ments are so arranged that an indie
pendent can't compete, even If he coul,
get the cars, which he generally can't
Until now, it has not been general.
4 supposed that the railroads were, il
addition to these various discrimina
tons. actually rebating in favor of tn
Hooking Valley-Sunday Creek combi
nation; but that is the latest charge
and the process by which it is elaine
rebates were given, is that which ha
been described, of simply collectin
only a part of the freight bills, an
then carrying on the books perpetua
claim" for the rest
Situation Grows WarIike.
This Ohio situation has for severa
years been assuming more and NOR
/, warlike aspects. Since the suprem
court knocked out the commoditie
q clause of the Hepburn act, the Obi
. authorities have been casting about fc
some method TO smash the com ina
ton in their own courts. The dis
covery of various sorts of evidence
: Washington, among the records of tt
: Interstate commerce commission, ns
rejoiced the trust busters. who expe'
TO put huge crimp into the combine
= ton.
What is proposed now is an actio
u under the states anti trust law, to di!
) solve the entire combination. This wi
: cause most complicated situation {
arise. The Big Four road owns tw,
2. sixths of the stock Of the Hooking Va
<, ley railroad, which is the real holdiI
It company: the other roads hold on
e sixth each. The Hooking Valley
: turn holds the stocks of the railros
4. and coal concerns. 1t is powerful
e politics and business in Ohio, and
e. extremely unpopular because OF Il
g Widespread belief that it has been r
sponsible for the destruction of comp
II tition and Independent opportunity
J. the coal business, as well as for hi;
ia prices of coal.