Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-09-22
CRIMINAL PROCEEDING
AGAINST COALBARONS,
PLAN OF GOVERNMENT
Hundred Million Dollar Rebat-
ing to Be Charged if United
States Wins in Present
Civil Action
coMPETITIoN CRUSHED

WASHINGTON, Sept. 22.-The Reading
...i 'barons" have laid themselves open
~ rerlous charges by alleged illegal prefer.
.ecea and rebates amounting to more than
sseo 900 600 granted TO the Reading Coal
ro,npany by the Reading Railway and the
Reading Company.
In the event the Government is victorious
4, Its civil suit In the Supreme Court of
~. United states, these alleged violations
~ the act 20 regulate commerce are to be
taken urf and the advisability Of instituting
crgn,inal proceedings In the Federal courts
n Pennsylvania is to be considered by the
Attorney General.
Although Department of Justice oficsrs
are reticent about outlining their plans for
ne future, the fact that criminal prosecu-
lions under the law against rebates are
hsine considered was admitted by one Of
the departments highest officials. IL Is
~. contention of the Government that
mol only have the rebates in "a manner
and an amount unparalleled In the COM
Ynercial history of the United States"
been granted to the Reading Coal Com
psny in the past but are being granted at
this time
covERNMENT EXPRESSES WONDER
The Government, In its brief. expresses
wonder that any independent shippers of
anthracite coal have survived the practices
Of the coal ''barons."
IL declares tnat Tor a rdllTOa0 company
20 supply one shipper with current working
capital while refusing that advantage TO
others is manlfestly a discrimination in the
interest of the one, even though the current
rate of interest be charged. The Govern
unent to show the advantages given the
Reading Coal Company by the Jointly owned
railroad, recalls the former practice OF the
railroad Of furnishing each morning to the
reneral coal agent of the coal company a
~ Of n Qii
ments transported over its lines and rS-
eeived by II at Philadelphia during the
previous day. 1t recalls also that independ-
ant shippers have been required to pay
cash TO the Reading Railway. whereas the
Reading Coal Company, while the current
account of the coal company has averaged
more than 81 1,000, 900 continuously for six
years and ION this indebtedness no interest
d ever paid or expected"
All of these alleged violations of the act
10 regulate commerce are cited by the
Cover nment to show the dual relationship
Of the Reading companies in the anti
trust suit, and II is Dhese facts that the
Government will base criminal prosecu-
tons II such measures are decided upon
after the disposal of the pending case.
The Governments attorneys believe that
with such an array Of facts to present no
court would hold these illegal methods could
be carried on without the full consent and
knowledge Of the company's directors, and
under the commerce act would seek to hold
them liable personally.
The provisions In the act to regulate
commerce, providing for the fine or impris-
onment, or both. of railroad officials found
guilty of granting rebates to favored ship
pers, were taken from the old Elkins re-
batting act, approved February 10, 1903
These drastic measures were fra2ned by
Senator Elkins when he was chairman OF
the Senate Committee on Interstate Com
merce. and in 1906. when the amending law
was framed, they were incorporated.