The daily banner. (Cambridge, Md.) 1897-2008, 1913-09-03
GOVERNMENT SUES
HARD COAL TRUST
Action Aimed at Reading Co.
and Allied Interests.
HAS RIGID DISSOLUTION PLAN
Violation of Sherman Antitrust Law
and Commodities Clause of inter-
State Commerce Act Is Alleged.

Philadelphia, Sept. 3.-The federal
government has renewed its attack on
the so-called anthracite trust. A suit
filed here against the Reading and its
affiliated companies, under the Sher-
man antitrust law and the commoGl-'
ties clause, represents an effort on the
the part of the Wilson administration
to take up this fight where it was
dropped upon the retirement OF Presl-
dent Taft and his attorney general.
There is, however, one feature that
distinguishes this suit from the ones
brought under the Taft administration,
and which is a new departure in suits
under the Sherman antitrust law. At
torney General McReynolds, in his
prayer to the court to break the Read.
ing's control over the Central Rail-
road of New Jersey and other corpora
tions, which he contends are engaged
in a conspiracy against the Sherman
antitrust laws, asks that the Reading
company be required to dispose OF the
capital stock of these corporations TO
persons not its stockholders or agents,
nor otherwise under its control or in
fluence."
This means that Attorney General
McReynolds intends to have settled in
advance in this case the question that
caused SO much controversy in the
Union Pacific-Southern Pacific d1ssolu-
tion case.
The attorney general alwayssha had
a very strong feeling against the char
acter of the dissolution permitted by
the department of justice in the case
of the Standard Oil company where
pro rata distribution of the stocks OF
the subsidiary companies was permit
ted among the stockholders of.;the par
ent concern.
Nine coal and transportation conR
panies representing an investment OF
$6O9, ,637, ,394, are made defendants in
the suit, together with President;
George F. Baer and the eight dfrec4
tors. IS.
The companies are the Reading
company, the Philadelphia & Reading
Railway company, the Philadelphia &
Reading Coal and Iron company, the
Central Railroad of New Jersey, the
Lehigh & wilkes Barre Coalsvoc
tbe Iehigh f1ezl.
"a 81
Railroad company tie Lehfeh, & Had
son River Railway company and the
Lehfgh & New England Railroad COM
pany.
It is set forth in the petition that
the combination of railroads, coal
companies and canal companies in the
list of defendants control at the pres
ent time So per cent of the entire un-
mined deposits of anthracite coal, and
market about 80 per cent of the annual
supply It's supply, it is asserted, will
outlast by many years that Of any, SUD
ply now known. ID l.sis..,ss. 80.
In time, it is argued, this combina-
tion, if not dissolved, will own or cQn-
troll every ton of commaf efalfy avail
able anthracite known stossexist. = The
Importance of the case is 4empAas asized
by the statement that "orfly the law
can afford relief. '-ss e,''s W = =
It is pointed out that while IN. al
most any other branch of industry it
is at least possible for monopoly to
be broken by the influx of fresh 7eapi-
tai attracted by high profits there
could be no protection against such q
combination as it is alleged exists in
years to come, when7 ot}fex y known
sources of anthracite coal @shalla have
been consumed.