Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-06
Mr.. HAWKEN NAMED STARTS TEST G.
Appointed Assistant United Fight on Railroad Contrt
States Attorney. Coal Mines Resumed.
SUCCEEDS c. H. TURNER PICKS OUT LEHIGH VAL
Court Clerk Will Assume New Du Government Will File Paper
ties September 10. o. s. Court at Philadelphia
GRADUATED IN LAW IN 1905 DUMMY ALLEGATION
Lived Several Companies Said to Be
Here Since 1sse-Receiving Which Railway
Many Congratulations Commodities Clause
Fight on Railroad Control of
Coal Mines Resumed.
PICKS OUT LEHIGH VALLEY
Government Will File Bapers in
U. s. Court at Philadelphia.
DUMMY
~ ALLEGATION MADE
Several Companies Said to Be De-
vices by Which Railway Evades
Commodities Clause.

The government VIII renew the fight
to dissociate the great coal-carrying
railroads from their virtual control Of
mines. and thus vitalize the COM
modities clause of the interstate COM
merce law. A test case against the
Lehigh Valley railroad will be filed in
the United States court in Philadel
phia.
That the Lehigh Valley Coal Company.
Coke Bros. Incorporated, the New
York and Middle Field Railroad and
Coal Company and the Locust Mountain
Coal and Iron Company are not bona
fide coal companies, but merely adjuncts
to the Lehigh Valley railroad, and are
devices for evading the commodities
clause is the governments principal
allegation.
1t is also alleged that the Lehigh Val
ley railroad, with the object or removing
competition, has caused the Lehigh val
lev Coal Company to contract at loss
for the output of other anthracite opera
tors has transported the coal over It's
own lines and. through the coal COM
pany, fixed the price In New York and
ether markets.
Profits by Freight Charges.
The government charges that although
the buying of coal from other operators
has been done at a loss to the coal
company, it has enabled the Lehigh Val
ley railroad to transport the coal over
its lines and profit from the freight
charges.
To support it's claim that the coal COM
pany is merely the dummy through
which the railroad engaged in mining,
transporting and selling coal in violation
of the commodities clause, the govern
cit hot ha
road and the coal company are the same,
and that certain members of the directo-
rate and the executive committee OF the
railroad are members of the directorate
and executive committee of the coal COM
pany. Among those SO named are Eben
b. Thomas, George F. Baker, F.. L.
Stotesbury and James A. Middleton,
Each of them, 1t 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 of and
at the direction Of the railroad COM
pany. 1t is set forth that the coal
company uses the railroad company's
offices and does it's business over the
railroad company's desks.
Paid No Dividends.
AS a further allegation that the Le-
high Coal Company is an adjunct of
the Lehigh Valley railroad. the gov
ernment's complaint says that since
the capital stock Of the coal company
has been owned by the railroad 1t has
paid no dividends. that millions Of dol
lars have been advanced by the rail-
road to the coal company which have
never been refunded. and that the
railroad has paid tht interest upon the
coal company bonds. being compensat-
ed, the government claims. by the
earnings from transportation Of coal
over it's lines.
BY proving that the Lehigh Valley rail-
road is actually the legal owner of the
Lehieh Valley Coal Companys anthracite,
or has a pecunary interest in it, the gov
ernment 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
action is a blow at the so-called coal
trust, the case is separate from that
suit, which is now on appeal to the Su-
preme Court.
In the governments original commodi-
ties clause actions against the anthracite
roads, begun in 1905, the courts held that
a railroad company might own stock in
coal company and not violate the COM
modities clause If it did not own or have
any interest in the transported coal Of
that company.
Might Amend Complaint.
With that decision the commodities
clause was considered by many dead
letter, but Attorney General Wickersham
carried the case to the Supreme Court.
where it was decreed that the govern
ment might amend It's complaint and in
volve the question of fact as to whether
the railroad has any interest In the coal
which it transported.
Judge Gary of the United States CTR
cult court for the eastern district of
Pennsylvania signed an order at Will
mington, Del. this morning permitting
the filing of the amended complaint. The
government is represented in the action
by the Attorney General James A.
Fowler. his assistant. and Edwin p. Gros-
venor, special assistant attorney general.