Omaha daily bee., 1911-07-07
TEsr CASE OF La Z GnRoAl
Bill is Filed IN Unit Court
in Philadelp
COAL COMPANIES ONLY A DEVICE
Complaint Charges that Railroad
Really Owns Coal Transported
sUBsTDIARrEs PAY no DTvmEED
Thsx Buy Coal and sell if at NSmfaaI
Louu. DependizG UPsa Profit
fro- Freight 70 Make the
Deal Pay.

WASHINGTON. July s-The government
win renew the fight to disazsociate the
greaf coai-carrEing railroads from their
virtual control Of mines and thus vitaliEe
the commodities clause Of the interstate
commerre law. test case against the
Lehigh valley railroad win be filed today
IN the United States court IN Philadelphia
That the Lehigh Valley Railway Coal
company, Cox Bros. Inc: the New York
a Miodlereld Railroad and Coal company
and the Locust Mountain Coal and Iron
company are not bona fIds coal companies,
but merely adiuncts 70 the Lehigh Valley
railroad and are devices for evading the
commodities clause is the governments
principal complaint
II is also Alleged tire Lehigh valley. with
the object Of removing composition has
caused the Letigh Valley Coal company to
contract AZ a loss for the output OF other
anthracite operators. has transported the
coal over its own lines and through the
coal compAny has fixed the prices in New
York and other markets
The govsrnrnenf charges thar although
the buying Of coal from other operators has
been done AZ q loss 10 the coal company IL
has enabled the Lehigh Valley railroad to
transport the coai ever fits lines and profit
from ths freight charges
Coal ComDany n DANNY.
To support its claim that the coal COM
pany 10 merely ths dummy" the govern
nent cites tAat the officers OF the railroad
and ire coal company are the same ami
that cdFtain members OF the directnate
and the axeeusiye COMMITTEES Of the railroad
are members OF the directorate and execu-
Among those named are: Eben 3. Thomas.
George ?. Baer. z 7. stotesbury and
James A. Middleton.
The governments complaint also said
that since the capital stock OF the coal
company had been owned by the railroad
IL has paid no dividends that millions Of
dcllars have been advanced BY the railroad
20 the coal COMPANY whEch have never b-en
uetnndez and tiaf the railroad has pasa
the interest on the coal compansfs bonds.
being esmpensassa the governmenf claims.
by the earnings OF Transportation OF coal
over ifs lines
By proving that the LehiEh Valley rag-
road is actually the legal owner Of the
Lehigh Valley Coal eoEnpany's anthracite
or has q pseuniary interest in A. tine gov-
eminent hopes % bring its case into line
with the recent decision OF the suprezne
court IN the commodity clause case strike
down dummy coal companies and force the
coal carrying railroads from their control
Of mines
Separate fron Coal Case.
while in effect the governments action
is blow az the so-cailed Coal trust. the
case is separate from that suit which is
now On appeal TO the supreme court
In the governments original commodities
clause actions against anthracite roads
which was begun IN la1s the courts held
that 4 ra1lroad company might own stock
IN a coal company and not violate the
commodities clause IL II dia not own or
hare any interest IN the transported coal
Of that company.
With thar decision the commodities clause
was considered by many a dead letter. but
Attorney General Wickersham carried the
case TO the supreme cOurt. where IL was
decided that the government might amend
ifs complaint and involve the question OF
tact as 20 whether the railroad has auv
Interest In the coal which IL transported
Jndge Gray of the United States circuit
court Of the eastern district Of Pennsys-
Vania- signed an order al wilmington,
Del. this morning. permitting the fling OF
the amended complaint The government
is uepresel6ed IN the action By the attorney
general. James A Fowler. hia assistant.
Gnd Edwin p. Gnosvenor. special assistant
sfferney general