Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-07-07
Government Files Action
Against Coal Carriers
To YiiaIize Clause Of Inter
state Commerce Law.
Test Case Against Lehigh Valley
RailFoad--The Complaints.

Washington, July 1.-THE govern
ment viii renew the fight to disasso'
ciate the great coal carrying railroad;
from their virtual conttol of mines anc
thus vitalize the commodities clause
of the interstate commerce law.
test case against the Lehteh Valley
Railroad will be filed today in the
United States district court In Phila
delphia
That the Lehigh Valley Coal Co.
Coke Brothers. Incorporated. the New
York and Middlefield Railroad and Goa
Co. and the Locust Mountain Coal and
Iron Co. are not bonafide coal com
panies but merely adjuncts to the Lee
high Valley Railroad and are devices
for evading the commodities clause" is
the governments principal complaint
1t is also alleged that the Lehigh
Valley Railroad, with the object of re-
moving competition. has caused tht
Lehigh Valley Coal Co. to contract at
loss for the output of other anthra
cite operators. has transported the coal
over its own lines and through the
coal company fixed the price in New
YORK and other markets.
The government charges that al
though the buying of coal from other
operators has been done at loss to
the coal company It has enabled the
Lehigh Valley Railroad to transport
the coal over its lines and profit from
the freight charges.
To support its claim that the coal
company is merely the "dummy''
through which the railroad has en-
gagged In mining. transporting and
seliing coal in violation of the COM
modities clause. the government cites
that the officers of the railroad and
the coal company are the same and
That certain members of the director
ate and the executive committee of the
railroad are members of the director
ate and executive committee of the
coal company. Among those so named
are Eben b. Thomas George F. Bak-
er =. L. Stotesbury and James A.
Middleton.
Each of them, ii is charged. has been
named to his position in the coal COM
pany because of his position with the
railroad, thereby enabling all of them
to act on behalf. in the interest and at
the direction of the railroad company
II is set forth that the coal company
uses the railroad company's Offices
and does its business over the rail-
road company's desks.
The governments complaint says that
since the capital stock of the coal com.
pany has been owned by the railroad IL
has paid no dividends, that millions OF
dollars have been advanced by the rail.
road to the coal company which have
never been refunded and that the rail
road has paid the interest upon the coal
company's bonds being compensated the
government claims. by the earnings from
transportation of coal over its lines
BY proving that the Lehigh Valley Rail-
road is actually the legal owner of the
Lehigh Valley Coal Cos. anthracite, or
has pecuniary interest in it. the govern
ment hopes to bring it's case into line
with the recent decision of the supreme
court in the commodities clause case,
strike down dummy coal companies and
force the coal-carrying railroads from
their control of mines.
While in effect the governments actor
is blow at the so-ealled coal trust. tn,
case is apart from that suit, which il
now on appeal to the supreme court
The government is represented in tn,
action by the attorney general, James A
Fowler. his assistant. and Edward P
Grosvenor, special assistant attorney gen
eral