The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-07-07
DUMMY CONCERNS
USED TOEVADEL LAW
Government Brings Charge
Against Lehigh Valley
Railroad.
BILL OF COMPLAINT FILED
Attorney General Determined to
Separate Coal Mining and
Transportation.

Washington, July 6.-The Lehich
valley Railroad was made the defend
ant in bill OF complaint filed to-day
at Philadelphia having for its object
,he separation of coal mining from
the railroad transportation business
under the commodities clause prohibit
ing railroad companies from TRANSPORT
ins commodities in which they are in
terested. The bill was filed by Ed
( win +. Grosvernor, special assistant 10
me attorney general. and Is regarded
as test case. The government is &C.
ternined TO break up this connection
between railroads and coal mines
That the Lchigh Valley Coal Com
pany. Coke Brothers. Inc. the New
York and Middle Field Railroad and
Coal Company, and the Locust Noun
tain Coal and Iron Company are not
bona hde coal companies. but merely
adjuncts TO the Lehigh Valley Rail-
road and are devices for evading the
commodities clause" is the govern
ment's principal complaint.
1t is also alleged that the Lehish
Valley Railroad. with the object of
removing competition, has caused the
Lehigh Valley Coal Company to con-
tract a a loss for the output of other
anthracite operators, has transported
the coal over its own lines. and
through the coal company fixed the
kets.
The government charges that al
though the buying of coal from other
operators has been done at a loss to
the coal company 1t has enabled the
Lehigh Valley Railroad to transport
the coal over its lines and profit from
Che freight charges.
Officers the Same.
To support its claim that the coal
COMPANY merely
through which the railroad engaged IN
mining, transporting and selling coal
in violation of the commodities clause.
the government cities that the officers
of the railroad and the coal company
are the same, and that certain mem
bers of the directorate and the eXecu-
tive committee of the railroad are
members of the directorate and eA-
ecutive committee of the coal COM
pany. Among those so named are
Eben B. Thomas. George l.. Baker, T..
T. Stotesbury and James 4. Middleton.
Each of them. it 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 of in the interest
and at the direction of the railroad
company. 1t is set forth that the Goa,
company uses the railroad comrany's
Offices and does its business over the /
railroad company's desks.
AS further allegation that the Lc-
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
dollars have been advanced by the !
railroad TO the coal company which f!
have r.ever been refunded, and that |
the railroad has paid the interest upon |
the coal companys bonds. being com
pensated the government claims, by
the earnings from transportation OF
coal over Its lines.
BY proving that the Lehigh Valley |
Railroad is actually the legal owner |
OF the Lehlgh Valley Coal Company's |
anthracite, or has a pecuniary inter !
est In It, the government hopes TO |
bring Its case into line with the re-
cent decision Of the Supreme Court in |
the commodities clause case, strike |
down dummy coal companies. and force /
coal-carrying railroads from their !
control OF mines.
While in effect the governments ac- |
ton is blow at the so-called coal |
trust, the case is separate from that |
suit. which is now on appeal 10 the |
Supreme Court.
In the governments original COM |
modities clause action against the am
thracite roads, which were begun in |
1908. tho courts hold that railroad !
company might own stock in a coal
company and not violate the commodi-
ties clause II il did not own or have
any interest in the transported coal
OF that company
With that decision the commodities
clause was considered by many = dead
letter, but Attorney General Wicker
sham carried the case to IN, Supreme
Court. where It was decrecd that the
government might amend ITS complaint
and involve the question of fact as to
whether the railroad has any Interest
In the coal which 1t transported
Judge Gary, of the United states
Circuit Court OF the Eastern Dstric,
CT Pennsylvania signed an ordc~ at
Wilmington, Del. this m corning per
hitting the fling OF the amended com
pla int