Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-04-08
u. S. WILL APPEAL
d.. & ". DECISION
May Invoke Aid of Congress to
Overthrow U. S. Circuit
Courts Ruling.
Especial to the Evening star. |

TRENTON, April S.--Immediaate
steps will be taken, it was announced
by the department of justice today,
to appeal from the decision of the
United States Circuit Court. which
yesterday handed down an opinion IN
favor of the Delaware, Lackawanna
and Western Railroad and the Della
ware, Lackawanna and Western Coal
Company. The decision was the re-
suit of charges by the United States
Government against the two concerns
to the effect that they violated the
commodity clause of the United
States statute which forbids railroad
companies from transporting any
articles other than timber which may
have been produced by that COM
pany.
1t was the argument of the govern
ment that the coal company and the
railroad company We're practlcally,
one. and that the one was engaged IN
Transporting coal belonging to the
other. The government also charged
that the stockholders of the railroad
company owned nearly all OF the
stock of the company.
Considerable interest was aroused
in Washington by the announcement
of the decision and the fact that the
court declared that there was no law
to prevent such ownership of stocks
between two allied companies was
taken as the basis for the belief that
Congress would probably pass legis-
lation which would help out the de-
partment Of justice.
The Circuit Courts opinion is not
considered in the light of severe
blow to the efforts of the department
of Justice. Attorney-General NC
Reynolds believes that he will be able
to prepare the arguments for the
case against the two companies dur
ing the fall term.
The stock of the coal company was
originally owned by the railroad
company. but in compliance with
former decision of the United States
courts that the railroad company dis
pose Of it's holdings in the coal COM
pany, the stock of the coal company
was put upon the market and prefer
ence in the sale was given to stock
holders of the railroad company. To-
days decision holds thGt fhe two
companies are being operated indie
pendentfy and that the sale of the
coal company's stock in the manner
indicated was a full compliance with
the requirements under the former
decision.
Yesterdays decision did not go into
the allegations of combination De-
tween the two companies in restraint
of trade, saying that it was under
stood in the argument that the gov
eminent did not press this phase OF
the case. The opinion is in part as
follows:
THE dismissal will be without
prejudice to the rights of the gov
eminent to begin a second proceed
ing whenever it may be so advised.
1--WE may assert with confidence
that since a railroad itself may own
stock in the producing or owning
concern without offending the stat
utes, no oefense is committed, al
though the individual subscriber to
such stock may also be a stakeholder
In a railroad. No act of Congress
or judicial decision has declared it
to be illegal for any individual citi-
zen to invest his money in two enter
prises, merely because these two en-
terprises may be closely connected