The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-08-26
READING DEAL SET ASIDE
Chancellor McGill, of New Jersey, De-
cides 1t to Bean Illegal Combination.
The Injunction Continued Till the Final Hear
ing of the Csss-Meantime the Agree
ment Must Be AbrOgated.

TRENTON, N. J.. Aug. 25.-Chancellor Nc
Gill, late this afternoon, filed an opinion in
the great Reading com bine suit Itcovers
twenty-five pages of closely typewriter
legal cap, and is q voluminous document.
lie grants the preliminary Injunction asked
for by the Attorney general. continues the
restraining order heretofore granted, and
in addition enjoins the Port Reading from
operating the Central Railroad Company.
and ordering the Central company to OPP
crate its own line and retake it's own prop
erty. The decision is q sweeping one In
favor Of the State. The syllabus of the
opinion is as follows:
First-A corporation created by statute pos
sesses no rights, and can exercise no powers
which are not properly given or to be necessari-
second-Such a corporation cannot lease or
dispose OF any franchise needful In the perform
latiye consent.
Third-The act of March, 1880, which amends
the seventeenth section of the act entitled "An
panies and railroad corporations and 10 regulate
the same (R- s., $500, IL free from constitu-
tional inrmity in its title. and IL lie amply broad
in Its terms 10 confer power on the railroad cor
porations chartered by regular law
Fourth-The act OF May, 1885, ENTITLED can
act respecting the leasing Of railroads is cOnst
tutionai Equity looks at the substance and
will disregard names and penetrate DISCUSSES Of
form TO discover and deal with 10.
Sixth-When q corporate excess of power tends
to the public injury or to defeat the public pol
icy 1t may be restrained In Equity at the SUIT of
the Attorney-general
Seventh--A railroad company of this State
leased IL. IF nchses and roads 10 a railroad cor
poratcn of another State. The lease was not duly
authorized. but was expressly forbidden by law
Its effect was TO combine cOal-producers and
carriers, and TO partially destroy competition in
the production and sale or anthracite coal, q
staple commodity of the state: held to be a cor
porate excess of power, which tends to monopoly
and the public injury.
The Chancellor. In the course of his opin-
ion. says:
To say that the conditions do not tend to a dis
astrOus monopoly in coal would be an insult to
intelligence. II is possible that such monopoly
may be used. as the defendants suggest, to in
troduce economies and cheaper coal, but ii does
violence to knowledge OF human nature TO ex-
which these companies deal is necessary
of life in this state. 1t Is the principal fuel
OF its homes and factories. The slightest
increase in the price is felt by hundreds OF thou
sands OF persons, for their necessity c0mpels
them 10 pay the increase IL once complete
monopoly be established by destroying competi.
ton. whether that be through lease Or cO-opera-
ton, the promoters OF 1t and share holders In it
may have whatever price this combination sug-
gests. The disaster which will follow cannot be
measured. It Will permeate the entire COM
munity-furnaces. FORCES. factories and homes.
leaving in its trail murmurs of discomfort with
other evil effects OF operation.
The Chancellor then grants an injunction,
the bounds of which are defined: Il Will,
therefore, continue the-present injunction
TO final hearing. adding TO it, however
that the defendants and each of them.
their officers and their agents o desist and
refrain from further performing and carry
ing into effect the lease aud triparte agree
ment. and that the Port Reading
Railroad Company and the Philadelphia
* Reading Railroad Company do de-
sist and refrain from and continue
to control this road, property and
franchises of the Central and from
further. in any wise. intermeddling there
with; and that the Central railroad do de-
sist and refrain from permitting the Port
Reading railroad or the Philadelphia *
Reading railroad to use or operate it's road
property and franchises. and that the Gen.
trail Railroad Company do again resume
control of all It's property. franchises and
performance of all its corporate duties"