The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-08-26
TEXT OF THE OPINION.
The Combination is u Violation of the
Law of the State.

lots opinion IN the Ieaulng Coal COmD1na
ton suits arrived by mail at the Office of
the Clerk in Chancery in the State House
about three o'clock yesterday afternoon.
1t covers twenty-five pages of legal cap
closely type written.
THE TEXT OF THE OPINION.
The text OF The opinion ii ows:-The
object of the information is to have a GER
tain indenture of lease between the Cen
trial aud Port Reading Railroads. and
also a tripartite agreement between tn e
Central, Port Reading and Philadelphia
and Reading Railroads. decreed to be ul-
ira vi les. and therefore void. aud also
void upon the ground OF public policy, in
that they tend to create a monopoly OF the
anthracite COIL trade in the State by
sitting competition between the contract
lag corporations, and thereby to in crease
the price of anthracite coal to the inhabi-
tants of the State; to effectually destroy
the effect of such lease aud agreement,
and mandatory decree is sought to eDjoin
the Port Reading to surrender and re-
turn to the Central it's corporate franchise
aud property. and a restrictive decree
which shall perpetually rest ain the Port
Reading from hereafter controlling and
intermeddling with such franchises aud
plOpCltff Gu0 OiG l0ECC Apdul6 lEOul
all future combinations which will arbi-
trarily increase OF lend to increase the
lr &c of coal to the people.
history OF II LEASE.
The Chancellor reviews the entire mat
ter at great length, giving the history of
the lease of the Central TO the Port Read
ing, and that Of The Lehigh Valley to the
Philadelphia and Reading. This lense,
says the Chancellor, cannot be sustained,
If clear legislative sanction for it is not
found. 1t is claimed that such sanction
is had in the amendment to the railroad
law of 1880.
1t was commended during the argument
that this act WAS unconstitutional be-
cause of a defective title, but the Chan
cellor holds that it is free from constitu-
tional infirmtty in its title. and is sufi-
cientiy broad in its terms.
When, tbet efore, it appears that such a
COZ poration, unmludfui of it's plaiu
duties. acts preJudiciously to the public
in order to make more gains and profits
for its stockholders, it uses its powers in
a manner not contemplated by law, which
conferS them.
Tn Chancellor then takes up the law
of 1885, which prohibits the leasing OF
domestic corporations without legislative
sanction. AID holds that act is constitu-
tional. IL follows, he says, that tho lease
was. therefore. made not only without
legal sanction, but in defiance of an eX-
pressly ~prohibitory statute. He then
takes up the question whether the At
torney General may invoke the power of
this court to restrain further operations
u der the lease.
ut Is well settled" be says, s'that
where d corporate excess of power tends
TO the public injury or TO defeat public
policy, H-may be restrained liz equity at
his suit" He holds that the Attorney
General has the election in a case of this
kind TO proceed at law to forfeit the
charter, or in equity for a restraint of ex-
cess.
PECULIAR FEATURES OF H DEAD.
There are peculiar features in the trans
action now considered that evince a Du D.
lie danger much more seriou than APP
pears in the mere transfer of corporate
duties to performance by q foreign cor
poration. The parties interested are pro-
ducers of anthracite coal. They consti-
tute two of the six great anthracite coal
carriers. Through the lease of the
Lehigh Valley three of the six great coal
carriers are controlled by The combina-
lion.
The truth shows that there are localities
in this State which formerly had the adj
vantage If competition between these
allied roads, but now are subject to the
monopoly which this lease affords.
1t is true. that the cooperation of the
remaing coal road has not been secured.
By this lease only one competitor is Ii
fenced, and only a little more than one
half of the entire coal region is con-
trolled. II is only the second step in the
direction of monopoly; the first being the
lease of the Lehigh Valley Railroad.
1t is to be remembered, however, that
the Attorney General may have his ill.,
junction when the ultra wires act tends
or is of a nature, to produce a public in
jury. He is not required to wait until all
the monopoly possible Is created, or until
all the injury possible is III process of in
Fiction.
EMISSIONS OF a ANSWER.
But the answers deny that either the
Philadelphia and Reading or the Central
Railroad own any coal aud or produce
or deal III coal. That is true. but at the
sane time 1t is admitted chat the Read
ing road ownsa majority of the capital
stock of the Reading Coal and Iron Com
pany. and that the Central Company
owns the majority Of the capital stock of
the Lehtgh and Wilkesbarre Coal Com
pany. What is this but disguise and
evassonY Whatever may be the nominal
ownership or the legal title, for the sab
%stantial purposes Of the injury appre-
heudeG IN the Attorney Generals com
plant, the railroad companies stand as
owners of the coal lands III this court.
The Chancellor then quotes the language
of the answers c~ouceruiug this. aud says
that, while that may be literally true, their
QeUlalSW lGuCuL 6A IdudL 0nu IN U0e lace
of the facts adyerted to. SAVIOR of an
evasion which diseutitles them to that
force which is usually accorded to the
denial OF responsive answers upon q pre-
liminary hearing.
AN INSULT TO INTELLIGENCE.
Here, then, we have great coal dealers
complaining that they are not sufficiently
paid for the products of their mines, COM
bining So that already they control more
than one-half Of the coal fields upon
which this State depends for fuel, and
look To The corporations of the remaining
anthracite coal producers to effect a
change in the price of their output SO
that they may have more satisfactory re-
turns from their investment. To say
that these conditions do not tend to a dis
astrous monopoly in coal, would be an in
suit TO intelligence. 1t is pc 5sible that
such a monopoly may be Used as the de-
PENDANTS suggest to introdu e economies
and cheaper coal, but 1t does violence to
our knowledge of human nature to expect
such a result.
In conclusion. the Chancellor said:-
The commodities in which these COM
pauies deal are a necessary OF life in this
State. 1t is the principal fuel of its homes
and factories. The slightest increase in
its price is felt by a population of hun
dreds of thousands of persons. for their
necessity compels them to pay that in
crease. If once n complete monopoly be
established by competition. whether that
Te through lease or cooperation, tue pro-
moters OF il and shareholders in it may
have whatever price their cupidlty sug-
gests. 81