The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-06-01
ADBETT'S GREAT
POPULAR FIGHT,
The Court of Chancery En-
joins the Reading Coal
Monopoly.
DUAL SUITS BEGUN.
The Attorney General Acts for
the State, and w. S. Gum
mere for Private Peti-
tionS.
PORT READINGS WEAKNESS.
No Money, Yet Guaranteeing Huge
Payments-A Great Litiga-
tion in Prospect.
PORT READINGS WEAKNESS.
spscia, to the .Jersey citv Mems.

TRENTON. June /, 1s92.-The Grst legal
steps were taken yesterday against the
coal combine Oh the part of the New Jer-
sey government. They were Of dual
character. The Attorney General began
one writ In the name of the State. Will
lam E. Gummere, special counsel for the
State, began another proceeding in the
name of private parties.
Attorney General John P. Stockton
filed in the Office of the Clerk of Chancery
a petition which asked that an injunc-
tion be granted to prevent the New Jer-
sey Central Railroad from operating. nm
der the lease recently made with the
Philadelphia & Reading. The Chancel-
lor also heard the motion and granted
rule TO show cause and issued tempor-
ary injunction.
THE CHANCELLoR's ORDER.
The full. text of tine order flied by the
Chancellor is as follows:-
Upon reading the information of the Attorney
General of the state of New Jersey on behalf Of
said State in this cause, and the exhibits and
affidavts thereto annexed, and motion of
John P. Stockton, Attorney General, it is on this
3.st day of May A. D., 1892, ordered that the de-
fendanls the Central Railroad Company of New
Jersey, the Port Reading Railroad Company and
the Philadelphia and Reading Railroad Com
pany, show cause before the Chancellor at the
sfss0D H9nss aaT upe next at tae tae
o'clock in the forenoon, or as soon thereaf-
ter as counsel can be heard, why an Injunction
should not issue according to the prayer of the
information, among other things in substance
enjoining and restraining them, their officers
and agents, directors and employees, and each of
them from doing or continuing any act what
ever under and by virtue of the terms. covenants
and conditions contained, and set forth in the
indeuture of lease or in the said tri- partete
agreement of February u, 1892, alleged in said
information or under and by virtue OF any other
instrument which may have been executed and
delivered between the said companies, or be-
tween them and other parties whereby under
or uder color of which the said, the Philedel-
phia and Reading Company pretends, to have
acquired or be empowered to possess, manage
or in anywise control the corporate
franchises, powers, privileges or property
Of the Central Railroad Company
OF New Jersey, its officers and directors, and
commanding the said Central Railroad Company
CT New Jersey to retake possession of and eX-
ercise, manage and control all the corporate
powers, privileges and franchises granted to the
said corporation, and to manage and conduct
the same under the sole authority of the said
Central Railroad Company of New Jersey; and
also enjoining and restraining the said defend
ant corporation their officers and agents from
doing any and all acts, and making any arrange
ments and combinations. by contract or other
wise, having for their object, effect or result,
either to limit or diminish the production OF an
tracite COAL or arbitrarily to increase the force
thereof, or to prevent competition among them
in the production, transportation and sales of
antraeite coal, and from doing any other act or
thing, or making any arrangements or agree
ments to do the same In and about the business
of mining. producing and transporting antra-
cite coal which shall tend TO monopoly of the
same, arbitrarily to increase the price of coal
to the inhabitants Of the State Of New Jersey.
COMPETITION MUST GO ON.
And 1t Ia further ordered that the said de-
fendants their officers and agents, and each and
every one of them, in the meantime and until
the further order of the Court in the premises,
desist and refrain from operating their railroads
in the state of New Jersey, in such manner as
to diminish competition In the trade in anthra-
cite coal aud desiSt and refrain from making,
continuing or acting under any arrangements or
Combinations with each ether, by contract or
otherwise, having for their object, effect or re-
suit either the creation OF an artificial scarcity
of CO al by limitation or dimunition of the sup
ply thereof, despite the natural law of de
mand and supply, or having Tor their
object, effect or result the aroitrary
increase of the price of such coal, or the produc
zion of existing or future, legitimate competi-
ton in the production, transportation or sale or
such coal or from doing any other act or thing
in and about the business OF mining, produclug
and transporting anthracite coal which shall
tend to q monopoly OF the same or arbitrarily
to increase the price Of such coal to the inhabit-
ants of the State of New Jersey.
And it is further ordered that copy or the
said information, exhibits and affidavits. to-
gether with a copy of this order, which copies
PENDANTS respectively, within five days from the
date of this order.
PROCEEDINGS IN COURT.
The Attorney General appeared before
the Chancellor In the morning as inform
ant of the State against the Central Rail
road Company of New Jersey, the Port
Reading and PHILADELPHIA ana Reading
Railroad Companies, defendants, and
said:-"May il please your Honor, 1t is
my duty as Attorney General to hle In
formation against the Central Railroad
Company and others, and ask for a rule
vw,Ex ininnpfinn Sh0uI0
not issue, and at the same time TO ask
YOU for preliminary injuncti on restrain
ing defendant corporations in the mean
time from arbitrarily raising the price OF
coal"
The Attorney General submitted sew
enty-eight pages of information, together
with affldavits of data of the late Reading
combine, the officers connected Herewith,
and n statement of the stocks and bonds
of other corporations owned by the com"
papy making the returns. The latter
show a total par value of S33, 749, O62. IL.
The atlidavits show william fosler 10 oe
the purchasing agent in the operating
department OF the Philadelphia and Read
ing Company.
The bill was printed and copies OF 1t
circulated among the State officers and
the court, 1t states that the corporation
known as the Port Reading Railroad Is
foreign corporation ana formed Ior the
purpose of furthering the coal dsai. ana
that the New Jersey Central has no right
10 lease itself to foreign corporation,
and that the Port Reading is nothing
more or less than the Reading Railroad.
The hill deals extensively with the
Philadelphia and Reading Railroad. aud
declares that they, together with the
Easton and Annoy aud Central hailroau
control GO per cent. of the entire anthra-
cite coal field of the United States. The
ieases were executed SO that they could
control the market in New Jersey
INTENDED TO DEFGAUD THE PEOPLE:
Under The agreement the Philadelphia
and Reading Railroad has actual posses.
ion of all the railroads and branches OF
he New Jersey Central and is operating
,hem, and the Central has no actual pos
,ession of its corporate powers executing
;hat of the franchise to be a corpoSat tion'