The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1913-02-14

TRESTON. n. j. Feb. 13.-Further
prosecution OF the hard coal trust"
was begun here today by the federal
government In a civil suit against the
Lackawanna and Western
railroad Company and the Delaware,
Lackawanna n Western Coal Com
psny. charging violations OF both the
sherman antitrust law and the com.
modities clause OF the Interstate
Commerce act
II is understood hat this move
may be followed by one or more SINH
lar suits against other anthracite car
rylng railroads and other allied coal
companies. The governments petit
ton In equity alleges that the coal
carrying roads and their affiliated coal
companies, including the defendants
make and control the (. o. b. prices OF
anthracite at the. terminals OF New
York. the chief distributing center,
which regulates the prices in other
markets.
Arrangements and contracts be-
tween the defendant corporations,
which have practically common stock
holders, are declared to be simply
devices to avoid the prohibitions OF
the Interstate Commerce Act and are
SAID TO have resulted In giving the
coal company a monopoly OF the s.
OOO. 900 to 9.00O. 900 tons OF coal an
nuaIly produced along the lines OF the
L.ackawanna railroad.
The United States District Court
Is asked TO enjoin the railroad from
by IL and from delivering such coal
10 the coal company under existing
agreements which the court is petit
TONED to ad1udge as constituting a
combination in restraint of trade.
Nine anthracite carrying railroads
and the great coal companies united
or AFFILIATED with them. the govern
ment declares, have long engrossed
the output OF the coilieries. Each
road directly or through n or more
coal companies have contrived to gain
control over the output OF most OF the
n served by il and the sale of
the same.
This is especially true OF coal NOV
ing TO New York hHrbor and as a con
sequence T. o. b. prices of anthracite
az h various terminals there are
made and controlled BY the defendant
railroad or other railroad companies
n their affiliated coal companies.
h prices or their averages are re-
ported monthly by the sellers to a
bureau OF statistics sustained by them
ointly. and the result is then sent out
to all Of them
Practically all of the annual out
pat OF $4,000. OcO ons of anthracite
produced m the great fields of Penn
s%ylyania is carried aWay. the govern
ment says, by the following nine rail
roads:
Reading. Jersey Central. Lehigh
Valley. Lackawanna. Erie Susque-
%quehanna and Western. Delaware and
Hudson. Pennsylvania and Ontario and
Western.
With the exception OF the Delaware
and Hudson, all these roads. il is add
ed, reach New York Harbor.
railroad coal rates TO New York
Harbor. upon which the price of coal
SC largely depends. are declared long
10 have been and now 10 be excessive.
MEN YORK. Feb l3-PuTposes OF
the suit brought az Trenton today by
Inc federal government against cor
poratlons alleged 10 be members Of
the hard coal trust were explained
tonight BY James o.. McReynolds. uT
counsel Tor the government in the
suit.
The ease is brought in two as
poets. said Mr.. Mcieynolds. first.
10 have the court pass upon the ques-
ton whether parties IN control Of a
railroad company can organize among
themselves a corporation which q n
tlnles under their control and through
the form of a contract c the pro-
nibitions Of the commodities clause OF
the interstate commerce Law. while
retailing tn Themselves all the bens-
nts OF the old arrangement.
Secondly. 90 apply the sherman act
so a. TO restrict railroads TO he bust
ness Oh common carriers by prevent
me ihem from entering into contracts
or arrangements With reference 70 out
site matters which interfere with the
performance ~ their duties AZ such
carriers 20 the public.
This. beii-ve." Tr. NcRcyno;ds
added. is tn" first attempt TO Apply
inr sherman act Go sUch arrange
Useuts.
Mr McHeynoids would not discuss
~" probability ~ similar suits being
brought against other road and their
allied coal companies
WASHINGTON. Feb I2-By the
hard CuaI' suit irst.tUtcd TODAY. the
government has zone. more deeply in
The anthracite sitratlou than before.
according to officials. Ns 90 result o.
an Investigation by JpWes G NcIteyu-
cld-. 70 special assistant TO the attorney
general. iu charge ~ the ease. action
against oth"r alleged combinations Or
r1''-o1Is and cool companies Is cX-
pcctcd
The reason tho government ~rncc'nly
r-qurEt'd Iui .-cLr'3 the dismissal
~ che sui, under the c0mmod tics
ciarn against tle Lehigh Valley
rniiToad 800 Philadelphia. was 10 permit.
~ t- understood. e confederation 90
ne question pf ~Irucori.Hg aEaiu.' tha
r"Wrtr. under irfh ~. commodities
cirr5" and tho antitrust act
lu ifs recent d"ri. un iu the general
hard coal trust -uif. fho auurems
U .Trf threw out Ifh.lf rrnfut.r the