The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-09
COAL TRUST GETS 90
DAYS TO DISSOLVE
Il. s. Judges in Philadelphia
File Order for Carrying Out
Supreme Courts Decision.
READING UNITS TO DIVIDE
Railroad Companies Barred
Forever from Owning Stock
i'm Fuel Concerns.
Special pespatcn to TILE HrnALp.


PHILADELPHIA, Oct. S.-Tudges Buff
fington, Woolly and Davis filed an
order in the United States District
Court to-day allowing ninety days for
filing a plan for dissolution of the So
called coal trust" comprising the
Reading Company, the Philadelphia and
Reading Railway Company, the Phlla-
delphia and Reading Coal and Iron
Company, the Central Railroad Of New
Jersey and the Lehigh and Wilkesbarre
Coal Company.
The order was made as the result OF
petition filed by the Government on
Thursday for the carrying out of the
Supreme Courts decision which ordered
a separation Of the railroads interests
from their coal companies. After the
plan has been filed thirty days will be
allowed for the Government to file
counter plan or to make suggestions for
effectual dissolution.
An original injunction restraining the
directors of the railroads from voting
the stock for control over its coal COM
panies was modified by the Judges in
their order allowing permission to the
directors of the three Reading COM
panies to perfect their plans at a board
meeting next week and also allowing
the Reading Company. which is the
the stockholders to vote for directors
of the three companies, with the under
standing, however that the directors
of the railway company who are TO be
elected shall not be the same persons
to be elected on the directorate of the
coal and iron company.
In September. 1918. the Government
filed an action in the District Court here
against nine corporations and nine in
dividuals as officers and directors Of the
corporations alleging violations Of the
antitrust law and the commodities
clause of the antitrust law in n COM
binatlon Of railroads under their coal
companies. Circuit Judges Burlington.
Mcpherson and Hunt sitting as the Dis
trict Court. held that the union Of the
Philadelphia and Reading Coal and Iron
Company and the Lehigh and Wilkes
barr Coal Company, through the instru-
mentality of the Reading Company, was
a violation of the antitrust laws. and
ordered a dissolution of the companies
interests in each other.
The companies affected by this runng
we're the Reading Company. Philadelphia
and Reading Coal and Iron Company.
Lehigh and Wilkesbarre Coal Company
and Central Railroad Company of New
Jersey. As TO :he other defendants
named in the BILL the District Court
dismissed the suit of the Government.
but on appeal by the Government the
United States Supreme Court reversed.
in part, the dismissal portion Of the
District Courts decree, and ordered sew
eral other defendants included in the
dissolution.
Under the judgment of both courts,
however, the railroad corporations must
submit n plan which will effectualy
accomplish an absolute severance of re-
lations between the railroad and coal
companies and bar forever the railroads.
either directly or indirectly. through
their offices. directors, agents or en-
ployees. from acquiring any interest in
the stock of the coal companies. This
plan must provide for the disposal by
the railroad companies OF the stocks.
bonds and securities Of the coal COM
panies in such a manner as will be sat
isfactory to the court-so that an abso-
lutte dissolution of interests will be ac-
complished
Should the plan not be satisfactory
the District Court decree provides the
Judges with authority TO appoint re-
ceivers for the coal companies TO carry
out a plan OF dissolution along the lines
desired by the court