The McCook tribune. (McCook, Neb.) 1886-1936, 1886-11-04
COAL coNsPIRAToRs.
The Law Brands Them as fuoHs
Offenders and Crfmtnals-An Out.
rageous Monopoly.

combination is beyond the reach VI aL
law is now an issue of vital Importance
not only to the commonwealth OF fenn'
sylyania, but to the entire coalconsum'
ing community. Gov. Pattlson mas
taken the stand that the law is violated
and must be enforced. The coal poo
defes the state and the courts. 1t IN
sists that the authorities are poweriess
to prevent the combination from regu-
Iating the sale and fixing the price OF
coal to suit Its self.
The PENNSYLVANIA supreme court has
already decided this question, and. de-
cided it adversely to the combination.
The decision, though rendered fifteen
years ago still stands a an expression
of the law of the commonwealth as IN
terpreted by its highest court. The
facts in the case then decided and the
legal principles involved present a re-
markable likeness to those now IN issue.
A combination of five companies was
formed to control the sale and NIX the
price of the bituminous coal production
of northern Pennsylvania. The COM
panies forming the combination repre-.
sented almost the entire bituminous
coal region in that part of the state.
They had the power to control the
market in the state of New York and
to effect the market elsewhere. A dis
quite arose between two members
of the pool as to their respective
schares of sales and profits. The pool
ING agreement was made in New York
and was to be carried out in this state,
the chief market being here. The
parties were within the jurisdiction OF
the courts of Pennsylvania. where the
coal was mined. and the suit was
brought there. On one side it was
contended that the combination was
against public policy and therefore il
legal. On the other it was claimed
that its purpose was to lessen expenses.
to advance the quality of the coal, and
and to market it in the best order to
the consumer.
The supreme court of Pennsylvania
decided that the agreement to combine
was a contract against public policy,
and therefore illegal, void, and not to
be enforced. The court went further,
and held that the combination was a
criminal conspiracy under the law OF
New York, which makes it 4 ms.
demeanor for two or more persons to
conspire Ito commit any act in
furious to trade or commerce" and
also 4 criminal conspiracy by the conn.,
mon law in Pennsylvania Here
is what the court said of the character
and nature of the combinations:
The important fact that these COM
panies control this immense coal-field;
that it is the great source of supply OF
bituminous coal to the state of New
York and large territories westward;
that by this contract they control the
price of coal in this extensive market,
and make it bring sums it would not
command if left to the natural laws OF
trade; that it concerns an article OF
prime necessity for many uses; that its
operation is general in this large re-
gion, and affects all who use coal as a
fuel, and this is accomplished by a COM
bination of all the companies engaged
in this branch of business in the large
region where they operate. The COM
bination is wide in scope, general in it's
influence, and injurious in effects.
These being it's features the contract is
against public policy, illegal, and there
fore void.
The court then cited numerous
authorities to show that a comb nation
to create Il corner in n necessary of
life and to advance its price to the con-
sumer is 4 conspiracy pun shable by
the criminal law, and proceeded as fol-
lows:
The restrictions laid upon the pro-
duction and price of coal can not be
sanctioned as reasonable in view of
their intimate relation to the public in
~terests. The field of operation is too
wide and the influence too general.
Singly each member of the combina-
tioa might have suspended deliveries
and sales of coal to suit his own inter-
ests and might have raised the price,
even though this might have been det-
rimental to the public interest. There
is a certain freedom which must be al
lowed to every one in the management
of his own affairs. When competition is
left free. individual error or folly will
generally find a correction in the con-
duct of others.
But here is a combination of all the
companies operating in the Blossburg
and Barclay mining regions and con-
trolling their entire productions. They
have combined together to govern the
supply and the price of coal in all the
markets from the Hudson to the Miss
issippi river, and from Pennsylvania 10
the lakes. This combination has q pow
er in its confederated form which no
individual action can confer. The pub
lie interest must succumb to it, for it
has lett no competitor free to correct
its baneful influence.
When the supply of coal is suspend
ed the demand for it becomes impor-
tunate, and prices must rise. Or if the
supply goes forward the price fixed by
the confederates must accompany it.
The domestic hearth, the furnaces of
the iron master, and the fires of the
manufacturer all feel the restraint.
while the many dependent hands are
paralyzed. and hungry mouths are
stinted. The influence OF a lack of
supply or a rise in the price of an
article of such prime necessity can not
be measured. If nermaataO tho o,+;ro