The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-07-06
RENEWS IT'S FIGHT
The Government Again Attacks
the Hard Coal Trust
BysMeans of an Amendment to
Former Complaint.
EFFORT TO BE MADE
To Break Up the System of
Dummy Companies
By Which the Supply OF Anthra-
cite Is Controlled.
EFFORT TO BE MADE

Washington, July 6.-The govern
ment will renew the fight to disasso-
ciate the great coal carrying railroads
from their virtual control of mines and
thus vitalize the commodities clause of
the interstate commerce law. A test
case against the Lehigh Valley rail-
road will be filed today in the United
States court in Philadelphia.
That the Lehigh Valley Coal COM
pany, Coke Brothers (inc.), the New
York & Middleheld Railroad & Coal
company and the Locust Mountain
Coal & Iron company are not bona fide
coal companies, but merely adjuncIs
to the Lehigh Valley railroad and are
devices for evading the commodities
cause" is the governments principal
complaint.
1t is also alleged that the Lehigh
Valley, with the object of removing
competition, has caused the Lehigh
Valley Coal company to contract at 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 price in New
York and other markets. The govern
ment 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 Valley rail-
road 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" the
government cites that the officers Of
the railroad and the coal company arc
the same and that certain members Of
the directorate and the executive COM
mittee of the railroad are members of
the directorate and executive commit
tee of the coal companies.
Among those named are Eben B.
Thomas, George F. Baker, E. T. Stotz-
bury and James A. Middleton. The
governments complaint also says that
since the capital stock of the coal
company has been owned by the rail-
road it has paid no dividends, that
millions of dollars have bee advanced
by the railroad to the coal company,
which have never been refunded and
that the railroad has paid the interest
on the coal company's honds, being
comp pensateds the government claims,
by the earnings of transportation of
coal over it's lines. BY proving that
the Lehigh Valley railroad is actually
the legal owner of the Lehigh Valley
Coal company or has Eecuniary in
terest in it, the government hopes to
bring its case into line with the recent
decision Of the supreme court in the
CONNIE odity clause case, strike down
the 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
arate from that suit, which is now on
appeal to the supreme court.
In the governments original COM
modities clause action against anthra-
cite roads, which was begun in 1908,
the courts held that a railroad COM
pany might hold stock in a coal COM
pany and not violate the commodities
clause if it did not own or have any
interest in the transported coal of that
company.
With that decision, the commodities
clause was considered by many a
dead letter, but Attorney General
Wickersham carried the case to the
supreme court, where it was decreed
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 it trans
ported.
Judge Gray of the United States cir
cult court, Eastern district of Penn
sylvania, signed an order a Whining
ton, Del, this morning permitting the
fling of the amended complaint. The
government is represented in the ac-
ton by the attorney general, James A.
Fowler. his assistant, and Edwin P.
Grosvenor, special assistant attorney