Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-03-19
GOVERNMENT SUES
THE LEH|GH VALLEY
Accuses Railroad of Not Divest-
ing Itself of Coal Holdings.
Relating Charged.

WASHINGTON. March 19.-Pro-
| ceedings in equity We're instituted
against the Lehigh Valley Railroad
subsidiaries and sixteen individuals
yesterday in the United States Dis
| trict Court of New York to compel
the company to dispose of it's anthra-
cite coal lands.
United States District Attorney
| Marshall filed the suit, which charges
the defendants with being parties to
conspiracy in restraint of trade and
monopolization by attempting to
harass the production, transportation
and sale of anthracite coal other than
their own.
1t is claimed that the defendants
have been and are attempting to
monopolize the production. TRANSPORT
alton and sale of coal from mines
along their lines. This being done, 1t
is stated, by the railroad acquiring
control of such mines and lands by
acquiring control Of the output of in
dependent producers and by exerting
the power of the Lehigh Railroad as
carrier to give undue preference
and advantages to the coal producing
ana trade companies controlled by IL
and to discriminate against COM
petitors.
Baer's Resignation Follows
Following the fling of the BRIEF
at o'clock, the Department of
Justice was informed of the resig-
nation of George It. Baer, presi-
dent of the Reading Railroad Com
pany, from his office as director of the
Lehigh Valley. The action of Mr..
Baer was attributed mainly to the
impending suit against the anthracite
coal trust, in order to dissolve inter-
locking directorates
Besides Mr.. Baer, the following
others are named in the brief for dis
solution: Eben b. Thomas, Lyman
D. Smith, Edward Stotesbury. Daniel
c. Reid. Charles Steele, Abram Mes
bit, Edward b. Smith, william H.
Moore, Edward s. Moore, William r.
Butler Henry 3. Coke and Fred M.
Kirby
The subsidiaries Of the Lehigh Val
ley are the Lehigh Valley Coal Com
pany, Lehigh Valley Coal Sales Com
pany, Coke Brothers and Company,
Inc, Delaware, SuSquehanna and
Schuylkill Railroad Company: New
York and Middle Coal Field and Rail-
road Company; the G. B. Markle
Company, and the Girard Trust Com
pany.
Giving Rebates Charged
The suit is filed under the Hepburn
commodities clause of the railroad
rate bill and charges giving rebates
by paying the coal companies named
various sums, the largest being $4,O54,-
274. This sum is said to have been
paid out on March 1, 1912.
The defendants in the brief are
called parties to a combination and
conspiracy to restrain and monopo-
lie interstate and foreign trade and
commerce in anthracite coal" In Sc
curing such q monopoly as described
the brief alleges the railroad affects
it's perfection by buying all of its
property from the Lehigh Coal Com
pany, thus sitting competition. In
this respect II s said to have not only
violated the Federal laws, but also to
have gone against the provision OF the
Constitution of the State of Pennsyl-
vania.
The entire capital stock of the Lee
high Coal Company, which owns the
capital stock of other organizations,
is sa to be owned by the Lehigh
Valley Railroad Company. Under
long term leases the defendants
named operate 81, 701 acres of land in
the anthracite coal regions, and in
the year 1912, which is taken as cri-
terion, produced 100000 gross tons
of coal.
The brief states that of the total
tonnage hauled by the Lehigh Valley
Railroad in the year 1913 practically
So per cent. was coal owned by the
railroad.