Perth Amboy evening news., 1911-07-07
OPEN FIGHT ON
LEHIGH VALLEY
Government Takes Action to
Separate Coal Company
and r. r. Cooperation.
DEVICE TO EVABE LAW
Connection Between the Two
Concerns Is SGT Forth in
the Complaint.

Washington, July Tine OHiLeu
States government yesterday renew
ed it's fight against the anthracite
coal roads under the commodities
clause of the Hepburn rate law and
Assistant Attorney General Grosve-
nor filed In the circuit court an
amendment to the bill of complaint
against the Lehigh Valley Railroad
to compel 1t to release its interest in
it's coal companies.
The amended complaint sets forth
that the defendant continuously fer
several years past has been the own
er Of the entire stock of the Lehigh
Valley Coal Company, with coal
mines situated in Carbon, Lehigh,
Luzerne and Wyoming counties, in
Pennsylvania, and the coal mined by
the coal company is carried by the
defendant railroad company over its
lines of transportation. The toal
company is so organized and controll-
ed by the defendant, f is alleged,
that its affairs are conducted merely
as an adjunct or department Of the
railroad coUFany.
Have Same Officers.
For long time past the officers of
Tic TdlllOdua COlll pduy Adfc DCSA hhC
principal officers of the coal com
pany, and it is alleged, these officers
of the coal company were appointed
through the influence of the railroad
company, and as a result merely act
on behalf of and under the instruc-
tions of the railroad company.
OF the six directors Of the coal
company, George F. Baker and E. T.
Stotesbury are directors of the de-
fendant, and ]. A. Middleton and L. D.
Smith are respectively first vice-pres-
ident and assistant to the president
of the defendant. E. B. Thomas, E.
T. Stotesbury and George F. Baker
are on the executive committees of
both companies.
Through t. S41, nfficl lis, It is claim
ed, the defA0 ilroai company
determines how much coal the coal
company shall mine, dictates the
shipment and transportation of the
coal over its own lines, and fixes and
determines the price at which the
coal companies shall sell tie coal al
the Atlantic seaboard and other
places to which 1t has been trans
ported over the lines IF the Gefen-
dant
Contracts With Opera tors.
1t is claimed that under GaulI
structions II the railroad cdN4!
the coal company has entered into
contracts with other producers and
miners of coal tributary to the lines
of the railroad company, for the pur-
chase of coal mined by these produc-
ers. This coal is shipped by the de-
. = fc
alleged the coal company, as a rule,
loses money on these transactions as
the amounts received by 1t for the
coal which has been bought from
other companies and individuals gen
orally do not equal the price paid by
it for the coal plus the cost of trans
portation to market.
"The purpose of the defendant
says the bill, 'in compelling the coal
company to enter into such contracts
with other coal companies and indi-
viduals Is thereby to remove the COM
petition which would otherwise exist
between the coal mined and sold by
such companies, and the coal con-
trolled by the defendant through the
coal company, and, furthermore, tc
enable the defendant, by means ot
these contracts to dictate the trans
portation of it's coal over its own
mines and to obtain the freight
charged for it.
"Device For Evading Law"
"The operation of the coal COM
pany by the defendant in effect mere
ly Is a device for evading the law and
more particularly the provisions OF
tbo eaid nonp1 odIffac c1ausa The
coal company is not a bona fde min
ing company, but is merely an ad-
junct or instrumentality Of the de-
fendant.
The government repeats the ale
cations made respecting the Lehigh
Valley Coal Company and the rela-
tions of the railroad company to it
and make the same applicable to the
Coke Brothers & Co. (Inc.) the New
York & Middle Field Railroad & Coal
Co.. and the Locust Mountain Goa
& Iron Co. These companies, it is
charged, are not bona fide corpora
tions separate from the Lehigh Val
| ley Railroad Co, but also mere ad-
juncts and instrumentalities of the
defendant. Accordingly 1t is con
tended by the government that the
railroad company has at the time OF
transportation an interest, direct OF
indirect, In the coal of these con
Germs, and that the transportation Of
this coal by the railroad company un-
der the circumstances is in violation
of the law.
HOUSE TO LET.
Wit