The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-19
LEHIGH SUED BY U. 5.
AS COAL MONOPOLY
Injunction Asked TO End Al
legged Combination to Con-
troll Anthracite.
CHARGES OF DECEPTION
Sales Company Called Sham
Baer Resigns rs
Director.

A suit TO break tire Hehirh Valley Rail
roads alleged Anthracite monopoly was
begun BY the Government IN the United
District Court here yesterday In
a petition fled BY Frederic r. Coudert
Special Assistant Attorney General the
Ieh,gh, It's directors and subsidiary COM
panies are accused O. violating the inter-
state commerce act and the Sherman anti
trust law
An Injunction 10 prevent them from
further restraining. ronopo'iz!re or at
tempting to monopolize trade and COM
merce In anthracite coai' % sought The
Government also ASKS that the railroad
company DO enjoined from carrying coal
In which II has an interest. 1t Is a dis
solution suit which II won by tho Gov
eminent will compel the I.eh.gh Valley
Railroad Compeny 10 associate Itself
from the coal companies which. accord
ing to the petition. II controls.
Similar suits against the Lackawanna
and the Reading railroads arc well under
way. II Is expected thet other coal car
riers WIN be sued In consequence o.
decree OF the supreme Cour, that each
group against which monopoly IL chraged
should bs proceeded against separately.
The petition calls special attention to
the Lehigh Valley Coal Sales Company
which was organized after the Supreme
Court upheld the commodity clause o: tho
interstate commerce act forh'dding q
common carrier TO transport coal belong
Ing to corporation whose stock II owns
and whose affairs have been commingied
with i;s own
IN the Governments opinion this CON
pany ~ sham and subterfuge. having
no bona fide separate existence and be-
ing merely an instrument OF the rail-
roads majority stockholders. The profits
OF the sales company are described as
enormous" Since October 81. 1912, It
has paid regular quarterly dividends Of
sis perOcent and last November paid an
extra cash dividend o. % per Cent
The railroad - also accused of charging
excessive freight rates on coal by virtue
OF the alleged monopoly. The railroad
says the petition. completely dominates
the markets at all points not reached by
any other road. and has power TO fix.
has fNcd and does fix without check OF
competition the prices at which anthracite
Is sold at such points"
The defendants in addition TO the Lee
high Valley Railroad Company are the
l.eh!gh Valley Coal Company. the Lehigh
Valley Coal Sales Company. Coke Bros &
Co. Inc. the Delaware, SusQuehanna and
'N'N' ma iaiiaOtu 'OillDaf.y. the New
York and Middle Field Railroad and Coal
Company. the G. II. Markle Company. the
G'rard Trust Company and thes. .nd.vid-
uals Eb.n Il Thomas Lyman u Smith.
Edward 7. Stotesbury. Daniel O. Reid,
Charles Steele. Abram Ncsbt. George r
Baker Georr" +. Raer who resigned
from the L"h!gh directorate Yesterday
Edward r. Smith. William H. Moore, Ed.
ward $. Moore. William Il. Butler. Henry
u. Coke and Fred NJ Kirby
The Lehieh Valley Railroad. says the
petition. has violated the Constitution OF
Pennsylvania in continuing 20 acquire an
thfacite lands and extending It's control
over the production sale ard transpor.a-
tion or coal Through the instrumentality
OF corporations in theory separate but In
fact completely dominated by Il through
stock ownership"
Nearly all the coal lands and stock in
coal corporations formerly held by the
LehiGh Valley Railroad have been trans.
ferred. according 10 the petition. to the
Lehigh Valley Coal Company.