Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1892-08-26
THE ARGUS.
FRIDAY, AUGUST 90, 1892
ENJOINED A TRUST.
a Halt Called on the Great
Coal Combine.
LAW DEFIED IN THE READING DEAL

The Statutes Interpreted in Way to
Make the Anthracite Bosses Feel Mel
ancholy-The CoaIers Restrained from
Operating Under the Disputed Leases
Points from Chancellor McGilI's De-
cision-American Bar Association on
Outrages to Aliens and the Remedy
Therefor.
TRENTON, Aug. 26-Chancellor Nc
Gill's decision in the case of the state
against the railroads forming the Read
ing coal combine was filed at late hour
yesterday afternoon. The states conten-
lions 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 monopoly of pub
Nc necessity, are all upheld and the pre-
liminary injunction prayed for is granted.
In the course of his decision the chancel-
Tor says that 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 individuals cannot have.
Done in Defiance of Law.
While the state confers special privi-
,eges upon he favorites it at the same time
,xacts from them duties which also tend
TO the public welfare. Such corporations
hold their powers in trust for the public
veal. When, therefore. it appears that
such corporation is unmindful of its plain
duty and acts prejudiciaily to the public
in order to make undue gains and profits
p, for its stockholders, it uses its power in IA
manner not contemplated by the law
which confers them. The chancellor takes
up the law of 1885, which prohibits the
leasing of domestic to foreign corporations
without legislative sanction, and declares
il to be constitutional. 1t follows, he says,
that the lease to the Port Reading was
made not only without legal sanction, but
in defiance of an expressly prohibitory
statute
Building Up Great Monopoly.
After deciding that the attorney general
has all the power to bring suit that might
be necessary, the chancellor goes on to say
there are peculiar features in the Reading
transaction that evince public danger
much more serious than appears in the
mere transfer of corporate duties to per-
formance by II foreign corporation. The
parties interested constitute two of the
six great anthracite coal carriers of the
country. Through the leasing of the Lee
high Valley three of these are controlled
by the combination. The proof shows
that there are localities in the state which
formerly had the advantage of competi-
ton between these allied roads, but now
are subject to the monopoly which this
lease affords.
Not Bouud to Wait Completion.
1t is true that the cooperation of the
other coal roads has not been secured. By
this lease only one competition is silenced,
and only a little more than one-half of
the entire coal region is controlled. 1t is
only the second step in the direction of
monopoly, the first being the lease of the
Lehigh Valley railroad. 1t is to be re-
membered, 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.
simply Diguise and Evasion.
The answers deny that either the Phila-
delphia and Reading or the Central offers
any coal lands or product or deals in coal.
That it is true; but ut the same time 1t Is
admitted that the Reading owns a MAORI
ty of the capital stock of the Reading Coal
and Iron company, and that the Central
owns a ma jority OF the capital stock of the
Lehigh and Wilkesbarre Coal company.
What is this. but disguise and evasion
Whatever may be the normal ownership
or the legal title, for the substantial pur-
poses Oh tine INJURY apprehenueu anu eho
attorney generals complaint the railroad
companies stand as the owners of the coal
land in this court.
Doesn't Believe 1t Means Cheap Coal.
Upon preliminary hearings here, tho
chancellor continues, we have great coal
dealers complaining that they are not suf-
ficiently paid for the product of their
mines, combining so that already they
control more than one-half of the coal
fields upon which this state depends for
fuel; and looking to the cooperation OF
the remaining anthracite coal producers to
effect a change in the price Of the output