The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-08-09
THE RAILROAD TRUST.
GOVERNMENT FILES SI-IT
CHARGING TRADE RESTRAINT.
Blow il Struck by Uncle Sam at
Anlal2amatcd Railroad and Coal
Land Control.

Columbus. Aug. 4.-Suit was filed
by the United States government in
the federal circuit court here today
against six railroad companies and
three coal mining concerns. charging
a combination in restraint OF trade
and asking that the combination be
onjoined from continuing business. 4
The government charges that the
Hooking Valley railroad amalgama-
ton ownership Of the capital stock If
the Toledo and Ohio Central, the
kanawha and Michigan ana the
GAINESVILLE and Western roads, ana its
| connection with the mining concerns
named. have crushed competition.
The defendant companies are: Lake
shore and Michigan Southern; Ches-
apeake and Ohio, Hooking Valley. To.
iedo and Ohio Central railroad, Kama
VIVA and Michigan, GAINESVILLE and
Wes,ern, Sunday Creek Coal Com
pany, Continental Coal company,
kanawha and Hooking Coal and Coke
| company.
The government petition alleges
that the combine thus formed affects
the great coal mining districts. name
ly the Pittsburg, the West Virginia
and the Kanawha Valley.
The whole suit hinges on the Hook
ing Valley railroad. The officials Of
this company. it is alleged, were
placed in offices corresponding to
those in the parent company soon
after the Hooking Valley road gained
| control Of the capital Of its sub
salaries and according to the place
instructed to operate the roads along
the same line as the parent company
| had been managed.
| The company then, the government
| charges, set about controlling the
| larger ocal companies and succeeded
in placing the Continental Coal Com
pany, which owns rs, 900 acres of coal
lands in the Hooking Valley district
on its list along with the Kanawha
and Hooking Valley Coal Company,
The Sunday Creek Coal company was
formed. the petition alleges. to per-
init the Lake Shore and Michigan
Southern road and the Chesapeake
and Ohio, along with the four Ohio
companies, to stif1e competition by
merging all the roads and the prin-
cipal companies in the State into one
corporation, while still retaining their
own individuality.
The governments stand regarding
the syndicate is not made plain.
| Five agreements between the rail
roads, the coal companies and the
| Central Trust Company Of New York
are offered in evidence.
| One of these agreements made, the
Continental Coal company and the
Toledo and Ohio Central railroad
stated that in exchange for the coal
company placing its entire capital
stock with the exception Of five shares
In the hands Of j. p. Morgan and
Co. as guarantee Of it's good faith
and subject to the disposal but not
the sale Of, the Toledo and Ohio Cen
tral railroad, the railroad would take a
block of the coal company's bonds
| off its hands.
| In conclusion the government
prays the court to adjudge the COM
| bination between the railroad COM
panies and the coal companies unlaw-
iul and in restraint Of trade and to
grant an injunction, forever enjoin-
ing them from paying each other
dividends on the stock they hold in
| the companies named as defendants
in the suit. The petition also asks
that the companies be forever barred
from voting stock they hold in any
of the defendant companies.
The suit was filed by Sherman T..
Fherson. United States district attor-
ney for the southern district Of Ohio.
The petition. which contains IS pages
was signed by Mr.. Mcpherson George
w. Wickersham, attorney general OF
the United States and +. Harrison.
special assistant to the attorney zen
eral