The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-03-02
'n'REINOlOS TO SET
COAL FIELDS FREE
Said to Be the Real Purpose
of Attorney Generals Move
Against the "Pennsy"
Would Divorce the Norfolk and
Western Even if Court Action
= Be Necessary to Force Sur
render of Holdings.

| WASHINGTON, March 1.-The fact
leaked out here that the real purpose
and Significance Of the Attorney-gen-
erals demand that the Pennsylvania
| railroad dispose OF its holdings in the
Norfolk and Western railway was to
unlock completely the great btu
minous coal supply now tapped only
| by the Norfolk and Western, says the
Baltimore Sun.
The Norfolk and Western is the last
of group OF railroads controlling the
soft-coal output of the East now
dominated by the Pennsylvania If it
is divorced. 1t will be the last line en-
gagged in coal carrying to attain Its
independence Of the interests that ten
years ago absolutely held the bitumi-
nous deposits of the Allegheny section
in their grasp.
1t Ia to free the Pocahontas coal
field. therefore. Of Pennsylvania domi-
| nation that the attorney-general Is
most concerned about. 1t Is true that
the Pennsylvania and the Norfolk and
Western are nominally competitors in
Lie 1lUFciucit VI OLISI Au<1H COai toH
mage, but they are 80 far removed that
this traffic Is not strictly competitive
business any more than the East-to-
West business OF the New York Cen
trail and the Southern railway Is COM
petitive.
Apparent Competition.
In the handling Of coal. however,
the two lines now allied are, theoreti-
cally, in active competition. Each of
hrt i1v - hn M "a u
board and sells 1t in the same mar
kets. Each of them mines coal from
the same general field Each OF them
ships coal to the West. particularly
to the Great Lakes section, and dis
poses of 1t in the same markets there.
In other words, the Norfolk and West
ern and the Pennsylvania, insofar az
their coal traffic Is involved are COM
| petitors of the most pronounced type.
| This Is the phase of the Pennsyl-
vania's control of the Norfolk and
Western that caused Mr.. McReynolds
| to serve notice upon the Pennsylvania
that a peaceful dissolution Of interests
would be desirable. This is the rea-
son why the department OF Justice will
such a proceeding must be resorted
to.
Controlled Coal OF the East.
| Until few years ago the Penn
sylvania controlled the soft coal sup
| ply Of the East as completely as It
now controls the supply of hard coal.
This control was maintained through
stock ownership in tho Baltimore and
| Ohio. the Chesapeake and Ohio and
| the Norfolk and Western. These
three trans-Alleghany lines touched
| the richest Of the soft coal deposits
of the entire United States.
| control uyoa gained nv tho
| Pennsylvania following the receiver
ship into which both the Norfolk and
Western and the Baltimore and Ohio
were plunged fifteen or twenty years
ago. The control OF the Chesapeake
and Ohio was gained on the open
market. Bargains were picked up
when the rich and powerful Eastern
| line decided that its more southerly
competitors could be practically taken
over.
| The first break in this community
Of interest between the Pennsylvania
and its allied lines came when the
Eastern road disposed of large block
| Of its Chesapeake and Ohio holdings
to the interests headed by the late
Edwin Hawley. This was more than
five years ago. and since that time
| the Chesapeake and Ohio has been
operated as a more or less independ
ent property.
Financial Independence.
Six months ago the Pennsylvania
disposed OF its holdings In the Balti-
more and Ohio to the Union Pacific
undS- the> terms OF dissolution de-
cree in the Southern-Union Pacific
suit. This move ended the Penn
sylvania's domination of the Ba'ti-
more and -ohio and restored that
property to a position OF financial in
dependence.
The Norfolk and Western. as has
been pointed out. was the last of tho
lines originally in the Pennsylvania
group The fact that the Norfolk and
Western was go remote rom the
Pennsylvania caused the larger cor
poration to hope that ii would not
be regarded by the department of
justice as competitor.
Mr.. McReynolds has. however. an
dicated very clearly that he regards
the stock holdings In the Southern
line by the Pennsylvania as VIOLA
ton of the Sherman law and has sug-
gested informally that a dissolution
plan be agreed upon out OF court.
The Information in Washington Is to
the effect that the Pennsylvania has
not received the attorney generals
suggestion cordially and may decide
to fight it out in the courts.
Once divorced from the Pennsyl-
vanin the Norfolk and, Western will
assume an advantageous position 'n
the Southern railway field. It has
its Eastern terminal at Hampton
I Roads and its Western terminals at
Toledo and Sandusky. 1t serves the
Pocahontas coal field, than which
there Is no richer in the country, and
is in all respects equipped for strong
competition with its East-and-West
rivals.
But three railroads have crossed
the Alleghanies since the Norfolk and
Western opened Its line from Roa-
noke to Columbus. Ohio. The f1rst
was the Western Maryland. following
the purchase through the Fuller in
terests Of the old West Virginia Cen
trail: the second was the Virginian
railway, built by the late Henry H.
Rogers, and the third was the South
and western. built by the Carter syn
dictate from the Ohio river to Nor
| gantown. North Carolina