Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-04-27
READING COMPANY
ORDERED To GIVE
Up FUEL HOLDINGS
Supreme Court Declares
Combination Of Railroads
and Mines Was Used in
Restraint of Trade

WASHINGTON, April 26-The
government today finally won one
of the famous anthracite, coal cases
when the supreme court decided thatl
the Reading company must give up
holdings in various coal companies
and in other roads.
The coal combination of the rail-
roads and mining concerns was held
to be violation of the antitrust
law
The court declared the whole COM
bination be dissolved.
The decision was a complete vic
tory for the government, the court
emphatically denouncing the combi-,
nation of the railroads and the coal
companies and declaring that the
great power obtained had been used
to restrain commerce.
The merger of the Reading, the
Central Railroad of New Jersey antsy
the Lehigh and Willlesbarre Coal
Company were declared a plain At
tempt to eleminate competition ana
to virtually control the anthracite
coal supply of Pennsylvania.
4. Combination Dissolved
The decree dissolves the combina-
ton of the Reading Holding Com
pany, the Philadelphia and Reading
railroad, the Philadelphia and Read
ing Coal and Iron company the Cen
trail Railroad of New Jersey and the
Lehigh and Wilkesbarre Coal com
pany.
The decision of the court was four
to three, Justices White, Holmes and
Van Devanter dissenting. Justices
IMcReynolds and Brandeis took no
part in the decision.
The courts opinion, was delivered
by Justice Clarke.
The decision came on appeals BY
the government and cross appeai
by the Reading company, the judg
ment of the lower court being un
satisfactory to both parties
"This court holds that the grea
power lodged in the Reading holdin&
company, which is the combination
of the railroads and the coal com
panies, is a fragrant violation of the.
J ",
opinion Said.
The suit grew out of the financial
reorganization of the reading and as
sociated lines in 1896.
Called Evasion of Law
I The court held that the organiza.
ton of the holding company was an
attempt to evade the antitrust law
and the constitution of Pennsylvania
THE great power of the combine
was used In plain violation of the
antitrust laws" the court said.
1T is difficult to imagine a clear
er case of violation"
The suit was filed by the depart
ment of justice charging a number
OF railroads and coal cmpanies with
restraining and monopolizing the
trade of coal. 1t was filed against
the Reading company and others
known as the anthracite coal com
olli1t loh' september 2, 1911 The
case was argued in the supreme
court october, 1916, restored to the
docket for re-argument May, 1917;
re-afgued November 1917; restored
TO docket for re-argument June. 1918
october, 1918, continued at the re-
quest of the government on account
of war conditions.
HOW STOCK IS HELD
BY READING RAILROAD
NEW YORK, April 26.-The Read
ing railroad, which, by order of the
supreme court, was forced to dis
Philadelphia and Reading Railway
company totalling $42,481,7O and Of
the Philadelphia and Reading Coal
ana Iron company, amounting to
! $S'OOO,O0O, according to the Dow
Jones financial news agency. The
company also owns $14,504,000 opt Of
"a total of $27,436,8 800 stock of the
Central Railroad of New Jersey.
Wchic, in turn, owns $8,489, 400 out OF
total of $9,210,OO0 stock of the Lee
high and Wilkesbarre Coal company,
the report declared.
The railroad company also own
equipment used by the Philadelphia
and Reading railway, carried on the
Reading company's books at s43,890-
AIS, besides floating equipment at
$4,331,267 and equipment pledged un-
der struct certificates at $2O.yS.
The road holds real estate valued on
its books at $16,721423, consisting
mostly of water front property ia
| Philadelphia.
Aside from it's stock interest in
! the coal and iron company, the Read
ing company holds an open book &C
count debit against that company.
which on December 81, 1919, was
| $50, 919,770.
The reading company's other Sc
curity holdings include $2O,00O,O00
bonds of the f. P. e. r. railway and
S24,587, 500 bonds of other companies.
! mostly leased lines and subsidiaries
| Of the Philadelphia and Reading
! Railway company. 1t has also chare
| nCl J. l, ;,1s p