The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-07-07
COAL CO. LEHlGH'S DUMMY?'
l.. s. TRIES TO PROVE IT WITH
AMENDED BILL.
Development Of the suit started In zoos
Il Made Possible by supreme Court
Decision Action Against Other Coat
Carrying Roads Regarded as Unlike

NaTTyWS UOuus Uc8urueN ~ uUheD'
| WASHINGTON. July o.-The Depart
ment Of Justice has fled it's amended
bill in the Governments 9 suit against the
l.ehigh Valley Railroad Company under
the commodities clause OF the Hepburn
act.
While there is disposition on the part
OF the Department to re present this action
as u further effort to vitalize the COM
modities clause Of the interstate com
merce law. the general impression here
Is that the case will have little effect
beyond the mere settlement Of the le-
gality Of the relations bet wcen the Lchigh
Valley Railroad and it's coal mining
companies.
! Officers Of the Department OF Justice
themselves admit that it is questionable
whether under the recent decision OF the
Supreme Court on the commodities clause
1t will be possible to proceed against any
of the other big coal carrying railroads.
The amended bill. which was filed
in the United States Circuit Court in Phila-
delphia. was made possible by the de-
cision handed down by the Supreme
Court last April. The new move by the
Department Of Justice il a part 81. or
rather a deyelopne from. the original
suit begun against the Iehigh Valley
Railroad Company 10y the Government
back in 1905
The railroad when this suit was begun.
attacked the constit utionality Of the
commodities clause and the court sus-
tanned its contention and held the legis-
lation TO be unconstitut ional. On appeal.
| 49,. 81.
Court on May 3. 1909. reversed the decree
Of the lower court. held the act to be
! constitutional. construed it and remanded
the case with directions for such further
proceedings as may be necessary to apply
and enforce the statute as We have in
terpreted it"
!; When the cesc wrs roopened by tho Gov
ernment tho Department Of Justice sought
TO file an amended bill in which it was al.
} ie vetl that the INhivh Valley Railroad Com
, pany owned ell the stock Of the Lchigh Cos
, Company and absolutely doninsted itr
s!fsirs and that the officers OF tho LehiGh
Valley Railroad Company were the officers
of tho coal company. and TO use the eX-
4 pressicn of the Supreme Court that the
, Affairs Of the two corporations were
4 -conminVied"
The counsel for the railroed objected
: to the request Of the Government FOR
, perinis sion to fle an amended bill and the
court SUSTAINED Inc CDyfCtTn, Wa
| from this judgment Of tn" lower cour,
:, that an eppcal wes taken To the United
Ste;oS Supreme Court The Supreme
Cour, hold that the lower court erred
n in refusing to allow the Government &c
a flo en- amended hill and the Governmen,
@ .s now moving under the authority .oi
4 tho Supreme Court on this point
, At the time suit was originally insti
u tutcd against the Lehish Valley Compan,
rctions were also begun against the ofhel
n big coal carrying railroads. Tho Govern
{ rient concentrated its attack upon the
, Iehirh because il wss believed to aforC
= better test case. end asked to have it,
! application a. To the other compenie:
4 disrnis sed without "prcjudico"- that is Il
soy. IN 'uch wey as 70 loave tho gete'
: open to the Government TO renew the ap
plication at a later time
The Supreme Court. in its recent deci
. sion. however. d!smifsod the Govern
9 mcn,'s application epeinst all OF the rail
= roeds except tho Lehigh Valley. which
!. prevents the Government from reopcnini
u these Particular cases unlsss thsre is a,
= entirely new showing OF facts
. Tho Supreme Court when tn" commodi
v ties clause first came before it held tina
y stock ownership by railroad companie
in n bona tide corporation. irrespectiv
Of the extent Of such ownership. did no
preclude a railroad company from trans
porting the commodity manufactured
.
porstion. Many believed this was
death blow To the commodities clause
II but in its recent decision when the Ichig
n case came before il again tho Suprem
"a Court held that nothing in its forme
, conclusion forsClosed the right of th
- Government to question the power OF
W rPilroad company TO transport in intel
r. state commerce o commodity manufa,
tured. mined owned and produced by
10 corporation in which the railroad hel
=, stock and in cases whore tho power Of III
- railroad company a. stockholder wa
-, used TO oblits rate all distinction betwes
~ the corporations. The court added:
- That is to say. where the power vi
- cxCrtcd IN such manner AZ to comming z
the ala RS of bot h as by necessary OBJECT
-, y moGe such affairs indistinG q, ishahle au
- therefore cause both corporations to
70 10 one for all the pirposes.'
,or The Supreme Court. in other word
W y. put it up to tho Department Of Justice
= establish that the coal mining corpori
>. ton was a mere dummy of the Lehip
h. Valley Railroad Company IL a successf
prosecution was TO be maintained.
ri That is what the Department OF Justit
is trying to do in its amended bill II
Government contends in its bill that II
NC Lchigh Valley Coal Company and il
ru affiliated concerns are not bona fidC co
Of companies but merely adjuncts to u
he Lchigh Valley Railroad. mere devic
for evading the commodities clause of Il
- Hepburn act,
lyt RRAnKIYN'S Postal kICk