Evening journal., 1892-08-26
THE COAL DEAL ILLEGAL
Readings Combine Is in Def.
ance OF the Constitution.
CHANCELLOR meILL 50 DECIDES

nc NHANHAn II AtAAtANtAA0 ANINh'hAtH tttt"
Under It's Provisions the New Jersey
Central Road Must Resume Control o
An It's Properties and Franchises.
TRENTON. Aug. 90. Chancellor McGinl
decision in the case Of the state against The
railroads forming the Reading coal combin,
has been fled
The stato's contentious that the lease
the Central to the Port Reading is Illegal
that the tripartte agreement is in violation
Of law, and the combine is against the policy
Of the state, because it tends 70 the monopo
ly Of q public necessity, are all upheld ane
the preliminary injunction prayed for
granted
In the course Of his decision the chaucello
says corporate bodies that engage in publi'
occupations are created by the state upoi
the hypothesis that they win be public
benefit They enjoy privileges that indi
viduals cannot have. While the state con
fers special privileges upon the favorites, il
At the same time exacts from them dutie,
which also tend to the public welfare. suci
corporations hold their powers in trust fm
the public veal.
When, therefore. IL appears that sucl
corporation is unmindful Of its plain duty
and acts prejudically to the public in order
to make undue gains and profits FOR ih
stock holders, it uses its power in manner
not contemplated by the law which con
fers them. The lease TO the Port Reading
was made not only without legal sanction,
but ia defiance Of an expressly prohibitory
statute.
Disguise and Evasion.
The chancellor says the attorney general,
on behalf OF the people, has the election ~
case Of this kind TO proceed at Law a Tor
felt the charter or in equity for a restraint
Of the excess. There are peculiar features
in the transaction that evinco public dan
ger much more serious than appears Ia the
mere transfer Of corporate duties TO per
Torrance 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-
ralities ia the state which formerly had the
advantage Of competition between these
allied roads, hut now are subject 20 the
monopoly which this lease affords.
Il IS true that the cooperation Of the
other coal roads has not been secured. BY
this lease only one competition is silenced,
and only q little more than one-haf OF the
entire coal region is controlled. IL is only
the second step in the direction OF monop-
ply. the first being the lease OF The Lehigh
Valley railroad. 1t Is 20 be remembered,
however, that the attorney general may
have his injunction when the ultra wires
act tends OF is Of nature 20 produce public
injury. BE s not required 20 wait until an
the monopoly possible IS created on until all
The injury possible Is in process OF the in
Junction.
The answers deny that either the Phila-
deiplia and Reading or the Central owns
any coal lands or produces or deals IN coal.
That Is true; but 40 the same time % Is al
mitted that the Reading Owls a majority
Of the capital stock OF the Reading Coal aud
Iron compaay, and that the Central owns
D majority ~ the capital stock Of the I.e-
high and Wilkesbarre Coal company. What
s this Int disguise and evasioni Whatever
nay De the nominal ownership OF the legal
title Tor 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
SQUIRT
Disastrous Monopoly.
The chancellor SAYS that while the deniais
Of this may be literally true, such allega.
lions without explanation and in the facs
Of the facts adverted 20. OF an evasion
which disentitles them TO that force which 3.
usually accorded 70 the denials Of responsive,
answers.
Upon preliminary hearings here, th,
chancellor continues, we have great Goa
dealers complaining that they are not sum
.iently paid Tor the product Of their mines
combining so that already they coutro
more than one-haf OF the coal fields upoi
which this state depends Tor fuel, and look
hog to the cooperation Of the remaining
anthracite coal producers 20 effect a chang
IN the price Of their output SO that the
may have more satisfactory returns iron
their investments.
To say that these conditions do not ten
10 a disastrous monopoly in coal would b
ln insult 90 intelligence II IS possible tia
such monopoly may be used as the defend
ants suggest, 70 introduce economies am
;ieapen coal, but IL does violence 70 on
knowledge Of human nature to expect sue
result
IN CONCLUSION Iut chancellor SAYS. I'm
commodity in which these companies dei
sa necessary OF life in this state. II is IN
principal fuel OF its homes and factorie
The slightest increase in its price is felt o
tpopulation Of hundreds Of thousands ,
persons for their necessity compels thel
70 pay that increase. II once a complei
monopoly be established by the destructio
81 competition, whether that be throuu
ease or cooperation, the promoters an
ihnrers in 70 may have whatever price the
:upidity suggests. The disaster which wi
lollow cannot be measured. It viii pc
neate the entire communicative
lorges, factories and DEMONSTRATING in !
:rail murmurs Of discomfort with COVER
ment which win tolerate it, and all Il
other evil effects Of oppression"
The Scope OF the Injunction.
The chancellor defines the bounds Of q
injunction which he grants, saying, Il w
continue the present injunction 10 FIN
hearing, adding to it, however, the furth
direction that the defendants, their office
and agents do desist from further perfori
lng and carrying into effect the lease al
ripartite agreement; and that the Pc
Reading and the Philadelphia and Readi
companies do desist and refrain from ca
inuing 10 control the property and fra
,hises of the Central, and from otherw
ntermeddling Herewith; and that the G,
ral do refrain from permitting the p,