New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-08-26
THE COAL COMBINE ILLEGAL.
CHANCELLOR MNiIIL, AT TRENTON, DE-
CIDES AGAINST THE RAILROADS.
AN INJUNCTION GRANTED RESTRAINING The
READING, NEwJERsEY CENTRAL AND
PORT READING RAILROADS FROM
OPERATING TOGETHER.
BY TELEGRAPH TO THE TDbUSE.:

|
the railroad companies, ms II grants the preliminary
Injunction asked for TO restrain the roads rom opera
ting together under the lcases entered into ast VIII
ter breaks up the celcbruted rpartte agreement for
bids the Philadelphia and Reading and the Fort heao'
Ing from operating the Central, and directs that the
latter resume control Of its own property, franchises
ETC. The courts decree is to hold until the judgment
| upon the final hearing is rendered.
In the OF the decision the Chancellor says:
Corporate bodies that engage IN public occupations
are created by tho State upon the hypothesis that
they will be public benefit. They enjoy privileges
that individuals cannot have. While tho state con
crs special privileges these favorites, it at tho
same time exacts from them duties which also tend
TO the public welfare. such corporations hold their
powers In trust for the public veal When therefore,
10 appears that such corporation unmindful OK IT'S
plutn duty, prejudclaly 10 the public In order
to make gains and profits for It's stockholders. 1t uses
Its power in a not contemplated BY the law
which cOniers IT,, The Chancellor takes up the
law Of 1885, which prohibits the leasing Of domestic
TO foreign corporations without legislative sanction,
and declares It to be constitutional. II follows, he
says that the lease the Port Reading made, not
only without legal sanction but In defiance Of an ex-
prcssly prohbitory statute, The Chancellor says
the attorney general behalf Of the people, may IN
woke the power OF the court 10 restrain further opera
lions under the lease. i Is we'll settled, he says,
that whore corporate OF power tends to the
public injury, to defeat public policy, may be
strained In equity ut his suit lie holds further that
the attorney general has the election In case Of
this kind proceed law to forfeit the charter or
In equity for restraint OF the excess.
There peculiar features In the transaction that
evince public danger much more serious than APP
pears In the mere tnnsfer OF corporate duties to
performance by a foreign corpora ion. Tie par1los
Interested constitute two OF the six great anthracite
coal carriers Of the country Through the leasing OF
the Lehgh Valley three Of these are controlled by the
combination. The proof shows that there are local
itcs In this state which formerly had the advantage
Of competition between these allied roads, but now
subject the monopoly which this lease afords
IL Is true the cooperation OF tile other coal roads mas
not been secured By this lease ong one competitor
IS silenced and only little more than onehalf OF
the entire coal region Is controlled 1t is only the
,econd step IN the direction Of monopoly, the first
being the lease Of the Lchieh Valley Railroad. 1t Is
bc remembered. however, That the attorney general
may have his lnjunc ION when the ultra Wires act
tends Is OF nature TO produce public injury. lie
s not REQUIRED 10 wait until all the monopoly possible
Is created, until all the Injury possible Is In
process Of innictIon. The deny that either
the Philadelphia and Reading the Central owns
any coal lands, produces deals In coal That is
true. but at the time 1t Is admit cd that the
Reading a majority Of the capital stock OF the
Reading Coal aud Iron Company, and that the Central
owns n majority OF the capital stock Of the Lehigh
and Wlkesbarrc Coal company. What is this but dis
guse and evasioni Whatever may be tho nominal
ownership or the legal title for the substantial pur
pose Of the injury apprehended and the attorney
generals complaint, the railroad companies stand as
tho owners Of the coal land In this court
The Chancellor says that, while the details Of this
may be literally true, such allegations without ex
PLANTATION and In the face OF the facts. adverted TO
Of evasion which dsentitles them to that
force which is usually accorded TO the denials Of
responsive upon preliminary hearings. The
fhunr 1lprg q No baVn
complaining that they are not sufficiently paid for
the product OF their Mines combining that already
they control more than one half Of the coal fields
upon which this state depends for fuel and looking
20 the Cooperation ~ the remaining anthracite coal
producers 10 effect change I'm the price OF their
output. that thcy may have satisfactory
returns from their Investments Tn say that these
conditions DO not tend to disastrous monopoly in
coa would bc insult 10 Intelligence II IS possible
that such monopoly may be nsed as the defendants
suggest. 10 introduce economies and cheaper coal,
but It does violence 10 knowledge Of human |
nature 10 expect such rcSlt7 In conclusion the |
Chancellor says "Thc commodity In which these |
companies deal is necessary Of life I'm this state
1t is the principal frc OF It's homes and factories
Tie sNchcs, increase IN is price Is felt by popu
latiOn oi hundreds 81 thousands Of persons for their
necessity comp"s them TO pay that Increase. II |
once a complete monopoly he established by the |
destruction OF competition whether that be through
lease operation. the promoters and shnrcs In
It may have whatever price their cupldy suggests
The disaster which will follow cannot be measured |
1t Will pcrmcate the entire community furnaces |
FORCES, factories and homes leaving In It's trail |
murmurs ~ discomfort with n Government which |
will tolerate II. and all the other evil effects Of
oppression
The Chancellor define, tho bounds Of the injunc |
ton which he grants. saying: 81" will continue the |
present Injunction to final hearing adding 10 IT, |
fur,ho h.sap
their officers and agents. Do desst from further per-
@ mS n h 0 ss @ eais "n%
the Philadelphia and .ieading companies do desi,,
and refrain from continuing TO control tho property
aud franchises OF the Central and nom otherwise In
t"rmcfdlins herewith and TINT the Central do 70 !
Tain from permitting the Port Reading and the |
LnIndclpha and n'ad'ng to u': control or opcr,ie
resume control OF all lis property and franchises and
he 1 pc fs"%S q a. 1,sS SS q s.
rl'on . l. corporation crcaed by stalpt. po,sc'ses
no s ana slc can o eAe o no psc which .c nS
such corporation cannot lca~c or dispose Of any |
from. o nss'la State {" wo t,nse Of ITS As
The act Of March II, 1880, which amends Section Il |
Of the thu. nrt untitled AN at to authorize the formation
from CONSTITUTIONAL hS nf,nony In II. thlc. and Is
s' s TO iS" sn.c R9"Hr np1n
The act Of NAY =, l.s3. entitled An net inspecting
looks At ic substance and vii nom. gan a,
penetrate disgscs of form 10 discover and deal with
H. D. Wnrre corporate excess OF power tends IN |
Tho public injury or 10 defeat public policy IL NAV
be restrained In equity the suit Of the Attorney
General. \ railroad company OF this state leased lis
franchises and roads 10 n railway ntion OF an
other Sieic The Lease was not only horzed but
wns expressly forbidden by law. Its effect was Ia |
combine coa producers and carriers and 10 partially
destroy competition IN tho prodnHion ana sale Of |
anthracite cOnl, staple commodity OF tho state
Held 10 bc n corporate excess OF power which tends
70 monopoly and the public injury
The news OF the decision of Chancellor McGln did
reach Wall Street until after the closing OF the
Stock Exchange and so no opportunity afforded |
for measuring It, market value. There rimors
all day long that the decision would be handed In |
Yesterday, and some selling OF Rendns stock was In