The Birmingham age-herald., 1913-09-03
GOVERNMENTMAKES
SECOND ATTACK ON
HARD COAL COMBINE
Nine Corporations and as
Many Individuals Are
Named as Defendants
i'm the Suit

Philadelphia, September 1.-rAttorney
General McReynolds first and most im-
portant attack on the hard coal trust
was begun here today with the filing
of a civil suit for the dissolution Of
the Reading company's control of coal
mining and coal carrying railroads
the most potential combination in the
anthracite fields.
The Reading company with its sub
sidiary and allied corporations, includ-
ing the Central Railroad of New Jer-
sey and certain of their officers and di-
rectors, are charged by the federal gov
ernment with violating both the Sher-
man anti-trus law and the commodities
clause of the interstate commerce act i'll
an attempt to monopolize the produc-
ton and transportation of anthracite.
Attorney General McReynolds in con-
tiI.uing prosecution of the anthracite rail-
roads for violation of the antitrust law,
makes out strong case for the govern
ment. His arraignments in part as fol-
lows:
present time So per cent of the entire
unmined deposits of anthracite and mar
keting about 30 per cent of the annual
supply, will own or control in time, If not
dissolved, the Attorney General warns,
every ton of commercially available an
tbracite known to exist
The Importance of the suit is empha-
sized with the declaration that in this
case 'only the law can afford relief 1t
is pointed out that in almost every other
industry it is at least possible for a mo-
| nopoly to be broken by the influx of fresh
or,lt tol tod htr oh hlIt
against monopoly of hard coal, the sup
ply of which is limited. there can be no
such protection.
Second Step Against Trust
Today's suit Is the second step of the
department of justice to solve the hard
coal trust situation since the decision of
the supreme court last December can
ceiling the so-called 65 per cent contracts
and ordering the dissolution of the Tenn
pie Iron company The court held the
government had failed to prove general
combination among all the coal carrying
| railroads, and left open to future litiga-
| ton the so-caled minor combination of
whic hthe Reading is the most impor-
| tant
! Former Attorney General Wickersham
filed civil suit along similar lines. 1t
is now pending against the Delaware,
Lackawanna and Western Railroad COM
| pany.
Attorney General MeReynolds is now
considering the question of attack
other alleged combinations of coal carry
| ing railroads and coal mining companies.
particularly the Lehigh Valley and the
| Erie and their allied coal companies. No
decision as to probable action has yet
been reached.
Following corporations and individuals
are named as defendants in the petition
in equity filed today:
| Reading company, capital, s140 0oO, 600;
debt, S190, 900, 900.
| Philadelphia and Reading Railway COM.
pany. capital, s42. 4si, ZOO; debt, $4s, ss5, ,5s2
| The Philadelphia and Reading Coal and
Iron company, capital, ss,o00.00o; debt, s7I.-
576,529.
| The Central Railroad company of New.
Jersey. capital, s27.436sOo debt, s47,s4s,-
| coo
The Lehigh and Wilkes Barre Coal COM
pany. capital. ss.212,5oo debt. $685. CO.,
| The Lehigh Coal and Navigation COM
pany, capital $26,57,95o; debt, $21, ,4O9 333.
Wilmington and Northern Railroad COM
pany capital, s1.5Oo.o0O: debt. 1894, 600
Lehish and Hudson River Railway COM
pany, capital, sl,34O,OO0; debt, SO, ,22s 600
Lehigh and New England Railroad COM
pany capital, $i,oo0,0oo; debt, $4,000.
George F. Baer, Philadelphia; George
F. Baker. New York: Edward r. Stotes-
I.
York; Peter A. B. Widener, Philadelphia;
Henry A. dupont, United States Senator
from Delaware: Daniel Willard Balti-
more; Henry p. Mexican and Samuel
Dickson, Philadelphia.
i Responsible for Holding
| The nine Individual defendants are de-
clared to be responsible for the continu-
| snce of the combination anc monopolia-
tions embodied In the formation of the
Reading Holding company. which is de-
clared to be "in and OF ITSELF combi-
nation in destraint of trade and a monop-
oily.
The commodities clause of the inter-
| state commerce act, the government con-
tends is being violated by the Reading
Railway company in transporting the
coal mined by the Reading Coal company,
owned by the former: by the Central Rail
road Company Of New Jersey in trans
porting the coal of the I.ehigh and
Wilkesbarre Coal company, owned by the
Central railroad; and by the Lehigh and
Susuuehanna Railroad company in carry
ing the coal mined by the Lehigh Coal
and Navigation company, and by the Be-
high and New England Railroad company
in transporting the coal of the Lehigh
Coal and Navigation company InJunc-
tiohs against a continuance of these
lationships are sought.
In furtherance of the alleged mon
opoly, the Reading Coal company is
charged with purchasing from other
producers from 100000 to 400, 900
tons Of anthracite annually, thereby
giving the coal company control OF
upward of SIS per cent OF the total ship
ments of hard coal over the Reading
Railway companys lines.
The. petition In equity filed by Unit
ed States Attorney John c. Swartley.
is signed by Attorney General Mercy
rolds. G. Carroll Todd, assistant to the
Attorney General; and Frederic r. Cou-
dert, and Howard Thayer kingsbusy,
special assistants to the Attorney Gem
era1.
Mr.. McReynolds Is particularly inter-
ested in this litigation by reason of his
long connection with the governments
prosecution of the hard coal trust" Ho
was special counsel for the govern
ment in all the suits previously filed.
Reading Combination Backbone
Washington. September I'm
lstatement tonight discussing the coal
trust" suit filed at Philadelphia, the
department of justice declared the
Reading combination was the back
bone of the alleged monopoly of an
of the entire deposits" the statement
added, "and fits supply will outlast, by
| many years. that Of any other pro-
ducer"
The department declared that the
Reading system If not dissolved would
own all the coal in the ground. result