1915 Ban Johnson Letter to Yankee Owner re Federal League. Yankees were having trouble signing Wally Pipp (who was replaced by Lou Gehrig) and Andy High - who are at the time were being pursued by the Federal League. In Fact, MLB was "subsidizing" the team for players ($1,500 and $5,500). The letter is typed and signed by Ban Johnson. The Federal League, founded by Ban Johnson, was formed in 1913 and became a third major league in 1914/15. This letter pre-dates the U.S. Supreme Court decision of 1915 that held the Sherman Anti-Trust Act did not apply to major league baseball, thus validating the reserve clause.