Connecticut western news., 1892-09-01
AN ILLEGAL COMBINE.
CHANCELLOR M'GlLL DECIDES THE
 READING DEAL TO BE so.

He Grants a Preliminary Injunction and Under Its Provisions the New Jersey Central Road Must Resume Control of All Its Properties and Franchises. TRENTON, Aug. 26-Chancellor McGilrs decision in the case of the state against the railroads forming the Reading coal combine has been filed.
 The states contentious that the lease of the Central to the Port Reading is illegal; that the tripartite agreement is in violation of law, and the combine is against the policy of the state, because it tends to the monopo- | y of public necessity, are all upheld and the preliminary injunction prayed for is granted.
 In the course of his decision the chancellor says corporate bodies that engage in public occupations are created by the state upon the hypothesis that they will be public benefit. They enjoy privileges that indi- viduals cannot have While the state con- fers special privileges upon the favorites, it at the same time exacts from them duties which also tend to the public welfare. Such corporations hold their powers in trust for the public veal
 Disguise and Evasion. The chancellor says the attorney general, on behalf of the people, has the election in | a case of this kind to proceed at law to for felt the charter or in equity for restraint of the excess. There are peculiar features 1 in the transaction that evince public dan ger much more serious than appears in the mere transfer of corporate duties to per formance by foreign corporation. The parties interested constitute two of the six | great anthracite coal carriers of the coun- | try. Through the leasing of the Ohio Valley | three of these are controlled by the combi- nation. The proof shows that there are To- calities in the state which formerly had the advantage of competition between these allied roads, but now are subject to the | monopoly which this lease affords. It is true that the cooperation of the | other coal roads has not been secured. By this lease only one competition is silenced, and only little more then one-haf of the entire coal region is controlled. It is only the second step in the direction of monop- oly, the first being the lease of the Lehigh Valley railroad. It is to be remembered, however, that the attorney general may have his injunction when the ultra wires act tends or is of nature to produce public | injury. He is not required to wait until all the monopoly possible is created or until all the injury possible is in process of the in- junction.
 | The answers deny that either the Phila- 5siphia and Reading or the Central owns | any coal lands or produces or deals in coal. That is true; but at the same time it is ad | mitted that the Reading owns a majority of the capital stock of the Reading Coal and Iron company, and that the Central owns a majority of the capital stock of the Le- high and Wilkesbarre Coal company. What is this but disguise and evasionl Whatever may be the nominal ownership or the legal title for the substantial purposes of the in jury apprehended and the attorney gen erals complaint, the railroad companies stand as the owners of the coal land in this court.
 | Disastrous Monopoly.
 The chancellor says that while the denials of this may be literally true, such allega- tions without explanation and in the face of the facts adverted to, savor of an evasion which disentitles them to that force which is usually accorded to the denials of responsive answers.
 Upon preliminary hearings here, the chancellor continues, we have great coal dealers complaining that they are not suffi- cisntly paid for the product of their mines, combining so that already they control | which this state depends for fuel, and look ing to the cooperation of the remaining anthracite coal producers to effect a change in the price of their output so that they may have more satisfactory returns from their investments.
 To say that these conditions do not tend to disastrous monopoly in coal would be an insult to intelligence. It is possible that such a monopoly may be used as the defend ants suggest, to introduce economies and cheapen coal, but it does violence to our knowledge of human nature to expect such result.
 In conclusion the chancellor says: ''The commodity in which these companies deal C . necessary of life in this state. It is the principal fuel of it's homes and factories. The slightest increase in it's price is felt by population of hundreds of thousands of persons, for their necessity compels them to pay that increase. If once 8 complete monopoly be established by the destruction of competition, whether that be through lease or cooperation, the promoters and sharers in it may have whatever price their cupidity suggests. The disaster which will follow cannot be measured. It will per meate the entire community-furnaces, forges, factories aud homes-leaving in it's trail murmurs of discontent with 8 govern ment which will tolerate it, and all the other evil effects of oppression"
 | The Scope of the Injunction. | When, therefore, it appears that such corporation is unmindful of its plain duty and acts prejudically to the public in order to make undue gains and profits for it's stockholders, it uses its power in a manner | not contemplated by the law which con- | fers them. The lease to the Port Reading | was made not only without legal sanction but in defiance of an expressly prohibitory statute.
 The chancellor defines the bounds of the injunction which he grants, saying, 'I will continue the present injunction to final hearing, adding to it, however, the further direction that the defendants, their officers and agents do desist from further perform ing and carrying into effect the lease and tripartite agreement; and that the Port Reading and the Philadelphia and Reading companies do desist and refrain from con- tinuing to control the property and fran chises of the Central, and from otherwise intermeddhng herewith; and that the Gen. tral do refrain from permitting the Port Reading and the Philadelphia and Reading to use, control or operate its roads and franchfses and that the Central do again resume control of all its property and fran chises and performance of all its corporate franchises"
 Crushed by a Falling Boiler.
 CHESTER, Pa, Aug S0.-At the Chester oil works, by the falling of a boiler ant | araffold Barnard Mnllap forarnap pf thf