The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-08-05
Government Says Rail
road and Coal Compa-
MES Viz late Law.
sui is FILED IN
FEDERAL COURT
Chesapeake and Ohio One of De-
PENDANTS in Hooking Valley
Arnalgamation Alleged to Be
in Conspiracy to Stifle Com
petition-Ohio Coal Oper-
ators Back of Fight.

Columbus. O.. August 4.--Suit was
filed By the United States government
in the Federal Circuit Court to-day
against six railroad companies and
three coal mining concerns. charging
combination in restraint of trade
ana asking that the combination be
enlo!ned from continuing business.
The government charges that the
Hooking Valley Railroad amalgama-
tons ownership OF the capital stock
Of the Toledo and Ohio Central. the
kanawha and Michigan and the Zanes-
Vile and Western roads and its con-
nection with the mining concerns
named has crushed competition. The
defendant companies are LAKE shore
and Michigan southern Railroad. Ches-
apeake and Ohio. Hooking Valley. To-
ledo and OHIO Central. hanawna and
Michigan, GAINESVILLE and Western
railroads. sunday Creek Goa! Com
nawha and Hooking Coal and Coke
Company.
Affects Four Great Fields.
The governments petition alleges
that the comb!natio thus formed
aHects four OF the great coal
mining fields. namely, the Pittshurg.
the " est Virginia. the kanawha VAL
leg and the Hooking Valley.
1t is alleged that the six railroads
are affiliated. and that the three coal
companies are also. not only among
themselves. but with the railroad COM
panies.
The Hooking Valley. the Toledo and
Ohio Central, the kanawha and Michi
gan and the GAINESVILLE and Western
were un ii recently under control of
the trunk line syndicate. The sunday
Creek Coal Company is a holding COM
pany, controlling the Continental Coal
Company and other compa MES owning
properties in Virginia. West Virginia
and Ohio.
The governments purpose is 10 pre-
vent the change of ownership agreed
on last year when the trunk line
syndicate turned over the four rail-
roads and their affiliated coal COM
panies TO the Lake Shore and Mich
igan Southern and the Chesapeake
the Hooking Valley, which is the prin-
cipal one OF the four roads.
To Break Up Combination.
The suit seeks further to break up
entirely the alleged combination be-
tween the four roads and the sunday
Creek Company and its subsidiary coal
companies, which had been complained
OF by Ohio coal operators for two or
three years, and which has been the
basis for nnumerable suits brought
in county and United States courts IN
Ohio.
Back OF the fight has been the Ohio
Coal Operators Association. of which
Howard Manningt6n, of Columbus. is
secretary. He LAID the case before the
Department of Justice and President
Taft more than a year ago. and urged
that action be brought, and the gov
crnment has been investigating condi-
tions since that time.
The whole suit hinges on the Hook
ing Valley Railroad. The officials Of
this company. 1t is alleged. were
placed in offices corresponding to those
held in the parent company soon after
the Hooking Valley Road gained con-
troll of the capital stock of its sub
salaries. and. according to the petit
ton. were instructed to operate the
roads along the same lines as the
parent company which had been main
tanned The company then sublet con-
tracts to the larger coal companies and
succeeded in placing the Continental
Coal Company, which owns $4,000
acres of coal lands In the Hooking
Valley District, on its list along with
Kanawha and Hooking Valley Coal
Company.
The sunday Creek Coal Company
was formed as a blind. the government
charges. 20 permit the Lake Shore and
Michigan Southern Railroad and the
Chesapeake and Ohio. along with the
four Ohio roads. to stifle competition
by merging all the railroads and the
principal coal companies in the State
into one corporation while still retain
ing their own individually.
Turned Over to Trust Company.
The majority of the capital stock of
the Sunday Creek Company was held
by the Hooking Valley Railroad a the
government petition. but was later
turned over to the Central Trust Com
pany. of New York, in order to avoid
prosecution under the Hepburn law
The consideration in this transfer was
81 and a mortgage for the full value
OF the stock.
Five agreements between the rail-
road companies. the coal compa MES
and the Central Trust Company. Of
New York. are offered by the govern
nent as evidence in Its petition.
In conclusion. the government prays
the court to adjudge the combination
between the railroad companies and
the coal companies unlawful and in
restraint of trade and to grant an
Injunction forever. enjoining them
from paying each other dividends on
the stock they hold in the companies
named as defendants IN the suit
The suit was fled by Sherman T. Nc
Pherson, United States District Attor-
neY for the Southern District of Ohio
The petition was signed by Mr.. Nc
Pherson, George w. Wickersham. At
torney-General OF the United States: r.
A. Fowler, assistant to the Attorney