The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-02-14
DEALERS IN
HARD COAL LAW
CONTINUED from Page ~

company in turn takes "ostensible
possession Of the COAL" it is added,
and causes most of it To be transport
ed in interstate commerce by the de-
PENDANT railroad. This arrangement.
the petition contends. does not divest
the railroad Of all interest in the coal
purchased from others or produced at
its mines before accepting it for trans
portation as required by the COM
modities clause.
Purpose Enriching Shareholders.
1.-The affairs Of BOTH" l. is charged.
have been carried on in complete
accord, and with the purpose and eff
feet of e%nriching their common share
holders"
At least So per cent of the shares Of
both companies, the petition declares,
are in the hands of common stock
holders. Twenty-Five Of these r said
to own a majority of stock of both
companies the affairs Of which are
controlled "by a still smaller number
acting in a concert" Immense profits
have been made by the coal company.
1t is added, dividends at the rate Of
10 per cent per annum having been
declared and a surplus exceeding so
per cent Of the capitalization having
been accumulated in less than three
land one-half years.
The contract between the defend
ants the government charges. tends to
keep the railroads. freight rates un-
duly high.
Applies Act in New Manner.
New York. Feb. 14.-Purposes Of
the suit brought at Trenton by the
federal government against corpora
tons alleged to be members of the
hard coal trust" we're explained by
James. G. McReynolds Of counsel fol
the government in the suit.
The case Is brought in two as
pects." MIR. McReynolds said. first. te
have the court pass upon the question
whether parties in control OF a rail.
road company can organize amongs,
themselves a corporation which con-
tinues under their control and through
the form of a contract escape the pro-
hihitions Of the commodities clause
of the interstate COMMERCE law, while
retaining TO themselves all the bene-
fits Of the old arrangement.
Secondly. to apply the Sherman
lact so as to restrict railroads to the
venting them from entering into con-
tracts or arrangements with reference
Ito outside matters which interfere
with the performance Of their duties
as such carriers to the public.
This. l believe" Mr.. McReynolds
added. "is the first attempt to apply
the Sherman act to such arrange.
ments."
Mr.. McReynolds would not discuss
the probability of similar suits being
brought against other roads and their
allied coal companies.
Washington. Feb. 14.-By the hard
coal" suit instituted the government
has gone more deeply into the anthra.
cite situation than ever. according tc
officials. 1t vas said action agains'
other alleged combinations of rail-
roads and coal companies is expect.
ed.
The reason the government recent
~ requested and secured the dismiss.
al of the suit under the commodities
clause against the Lehigh Valley rail-
road at Philadelphia was to permit,
it is understood certain question OF
proceedings against the company un.
der both the commodities clause and
the ANTITRUST act.
In its recent decision in the general
hard coal rust" the supreme court
trhew out without prejudice. the
charges against several alleged COM
hinations of coal CARRYING railroads
and coal companies.