The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-09-03
McReynolds Proposes to Profit
By Mistakes Made in Dissolu-
ton of Tobacco and Oil Com
panies By Taft Administra-
ton
BACKBONE OF TRUST
WILL BE ATTACKED
In Effort to Break Reading Con-
troll Over Coal Corporations
Asks That Stock Be Disposed
of to Persons Not Stockhold-
ers

WASHINGTON. Sept 2.--The fed
eral government has renewed Its at
tack upon the so-called anthracite
trust A suit fled in the United
States district court at Philadelphia
today against the Reading. and its
AFFILIATED companies. under the Sher-
man antitrust law. and the commod-
ities clause represents an effort on
the part Of the Wilson administration
to take up this fight where 1t was left
upon the retirement of President
Taft and his attorney general
There is however. one feature
which distinguishes this suit from the
ones brought under the Taft admins
tration, and which is a new depar-
ture in suits under the Sherman an
t.-trust law. Attorney General Nc
Reynolds, in his prayer TO the court
ko break the Readings control over
the Central railroad of New Jersey.
and other corporations, which he con-
bends are engaged in a conspiracy
Agains, the Sherman antitrust law.
asks that the Reading company be
required to dispose of the capital stock
of these corporations TO persons not
Its stockholders. or agents. nor other
wise under it's control or influence"
Settle Vexatious Problem.
This prayer means that Attorney
General McReynolds intends to have
eettIed in advance In this case the
uuest!on that caused so much con-
kroyersy IN the Union Pacific-South-
ern Pacific dissolution case. The at
torney general always has had a very
strong feeling against the charactey
pf the dissolution permitted by the de
partment of justice In the case OF the
standard OIL company. where pro
rata distribution of the stocks of the
Subsidiary companies was permitted
hnong the stockholders Of the parent
concern.
The attorney general also was bit
kerly opposed TO the course followed
bv Mr. Wickersham in the dissolution
rf the Tobacco trust, Involving SINH
ar principle and he was AT logger
heads with the Union Pacific dinec-
tors for long time over his insistence
that the Union Pacific stockholders
should not participate in the enforced
sisfr button OF the Southern PACING
holdings.
The defendants In today's action
are the Reading company. it's presi-
bent George r. Raer. and its direc-
kors, George F. Baker. Edward T.
Efoteseury, Henry e. Frick, F. A f.
Widener. Henry A. DePont Daniel
Willard, II r, Mexican. and Samuel
poixon. and the affiliated corporations
Backbone of Trust.
The attorney general alleges that
the combination attacked In this suit
is the backbone of the anthracite
trust He charges that II controls
kbout two-thirds OF the entire anthra-
rite deposits. and that its supply viii
nutiast by many years that OF any
nther producer. He contends that this
combination. If not dissolved. win in
time own or control every ton or
commercially available anthracite
known TO exist. He adds that only the
aw can afford relief in regard TO this
monopoly: for with the supply linn
kted, ii would not be possible to break
/ by the influx of any fresh capital
The petition filed today traces the
development OF the combination from
is beginning in 1871. II alleges that
The Reading railway company monop-
oliyed the ownership and production
of coal in the Schuylkilt ~ region
through the Reading Coal company
Explains Purpose OF Suit.
NEW YORK, Sept. 2.-Frederick
h Coudert. who was designated spe-
rial attorney general to prosecute the
Heading suit, made a statement to-
dav before leaving for Phiiadefpnia
Ia fiIe the complaint, In which he ex-
blamed the purpose Of the suit. and
hold what the government hopes to
accomplish by It. Mr., Coudert said
THE anthracite coal situation has
long been a matter OF national con-
rern. Anthracite is commodity OF
prime necessity. and Is contained In
Eastern Pennsylvania in an area OF
about 4S3 square mile1. BY reason OF
It's concentration in so small q ter
ritory IL lends itself particularly 10
Efforts to monopolize its ownership
att has come about that six rail-
road companies and the coal mining
companies affiliated with them, own
Dr control about 30 per cent OF the
area of unmined anthracite. Or tnese
the Reading company is by far the
largest. owing or controlling some
~ per cent OF this area. The other
Companies are the Lehigh. Lacka-
wanna, Central Railroad Of New Jer-
ney. Erie. and New York. SusQue-
hanna and Western.
.Bv reason OF the relations between
khe coal mines and the railroads. 1t
was quite evident that the ordinary
prohibitions against rebating In the
Interstate commerce act would prove
nefYectual. A common carrier, own
hing q great quantity OF the comnlo-
dities which 1t transported, was not
hi q position to treat with impartial
hty ali shipments. In order to guar
hntee fair treatment to the indepen-
dent shippers and owners OF coal,
cougress in 1905 enacted the commo-
dities clause OF the Hepburn act, maxi
Ing II unlawful for sny railroad 70
transport any commodity owned in
whole or in part by itself, except
Timber ana it's manufactured products.
History OF Past Suits.
The government then brought suit
hgainst the so-called coal roads, AMI
the lower courts held the law uncon-
etltutional a. being q conffscation OF
khA ntarnArtY OF the railroads by fore