New-York tribune., 1912-02-28
TRUST BLAME ON MORGAN
Government Says He Planned
CoaI-RaiIroad Combination.
HAS MONOPOLY IN 8 STATES
Dsfendants Assert There Has
Been Rivalry Since Dissolu-
tion of the Merger.

,-.,,r,bus Ohio. Feb 27.-With the gov
.,an,,s entire case before the court in
49, fo~ro Of depositions taken by special
a,,,i,,nr an half score of cities. and the
..tinq Of testimony on behalf of the de-
fence scheduled 20 begin tomorrow Ihe
.,,or,rent's antitrust suit against the
chesapeake & Ohio. the Lake Shore
michigan Southern, and other railroads ana
ooaI companies in the United states us
.rc, Court here adjourned late to-day un'ii
tomorrow.
Following the presentation ot the gov
eminent case and the opening statehel'
Of n T. Harrison, special assistant 10 Az
,orney General WickeTsham, attorneys Ioi
,hA defence stated that the working OF the
coo, companies and railroads in harmony
nas a perfectly legitimate proceeding,
LAWYERS representing the two principal
roads involved, the Chesapeake ONO
and the Lake Shore g. Michigan Southern
which control the other companies as
serted that much rivalry has existed be
tween the roads and the coal companies
since 1910. when a decision OF tile Uhlleu
States Circuit Court called for dissoiu-
tion of the combination supposed TO exist
IT that time,
At present according 10 facts brought
out in court to-day. the Chesapeake Y Onlo
cen+rols the Hooking Valley ana the
r5anawha & Michigan roads, while the
lake Shore e. Michigan Southern contois
the GAINESVILLE & Western and the Ioieno
& Ohio Central railroads.
In his statement 20 the court on behaH
~ the roads. and especially the Hooking
Valley Railroad, Lawrence Maxwell salo
the Hooking Valley Railroad at the present
time makes no effort to dictate policies OF
tho roads Il controls through ownership OF
the capital stock,
+. o. Harrison, of Washington. IN MS
opening statement accused the banking
firm of J. p. Morgan & Co. or having
eSolyed the plan by which the Hooking
VALLEY. Railroad is alleged TO have gained
control of the other defendant railroad ana
coal companies and perpetuated the
monopoly which the government claims
exists to the present day.
II shall prove for the government SAID
Mfr Harrison. that the defendants have
ever since 1929 maintained monopoly IN
restraint of trade and have conspired 10
crush competition. Previous 10 1909 the
ToIedo & Ohio Central, the Kanawha q
Michigan and the Columbus, Sandusky q
Hooking railroads owned large fields OF
coal. The Hooking Valley Railroad gained
control Of the stock of these roads. and
the whole were operated under a. manage
ment known as the Ohio Central Lines
Mr. Harrison said that the fSm OF ). T.
Morgan & Co. promulgated plan by which
a. purchased for the Hooking Valley the
capital stock OF the Boston Coal, Dock ana
Wharf Company which controlled the west
Duluth Dock Company. This firm, he SAID
also arranged a plan by which the STOCK
holders of the Hooking Valley Railroad set
aside s2oOOOOOO Of its stock and adopted
resolutions. which, with the approval OF j,
= Morgan, would permit the purchase OF
y controlling interest in several other ONO
coal CARRYING lines. That the plan sue
,,edAd ana the Hooking Valley gained con-
trol OF the roads was stated by Mr. Harri-
son.
In 1903. Mr Harrison. declared, the Fenn-
svNania. Erie New York Central, Baitl-
more & Ohio and Chesapeake Ohio raai-
rosds Jointly acquired control OF the capi-
tai stock Of the Hooking Valley, ana the re-
suit was the trunk line syndicate as the
roads were known, completed their alleged
MONOPOLY Of the ohio, Pennsylvania anc
West Virginia coal fields.
In 1905. he charged, all the coal proper
ties owned and operated by the various
roads were merged in one property known
as the Sunday Creek Coal Company.