Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1895-05-16
COAL coNsPlRAToRS.
The Law Brands Them as Public
Offenders and Criminals-An Out
rOgeous Monopoly,

rugeous Monopoly
Whether the great anthracite coal
combination is beyond the reach OF all
law is now an issue OF vital Importance
not only to the commonwealth of Penn
sylvania, but to the entire coal-consum-
ing community. Gov. Pattson has
taken the stand that the law is violated
and must be enforced The coal pool
defies the state and the courts 1t in
sists that the authorities are powerless
to prevent the combination from regu-
lating the sale and fixing the price Of
coal to suit its self Z
The Pennsylvania supreme court has
already decided this question, aud de-
cded it adversely to the combination.
The decision, though rendered fifteen
years ago, still stands Us an expression
of the law of the commonwealth as iT-'
| terpreted by its highest court Tbs
facts in the case then decided and the
legal principles involved present re-
markable Likeness to those now in issue.
A combination of five companies was
formed to control the sale and fix tho
price of the btuminous coal production
of northern Pennsylvania, The COM
panies forming the combination repre-
scented almost the entire bituminous
coal region in that part OF the state.
They had the power to control thS
market in the state of New York and
to effect the market elsewhere. A dis
pute arose between two members
of the pool as to their respective
schares of sales and profits The pool
ing agreement was made in New York
and was to be carried ont in this state,
the chief market being here. The
parties were within the jurisdiction OF
the courts of Pennsylvania, where the
coal was mined, and the suit was
brought there. On one side it was
contended that the combination was
against public policy and therefore il
legal. On the other it was claimed
that its purpose was to lessen expenses.
to advance the quality of the coal, and
and TO market it in the best order to
the consumer.
The supreme court of Pennsylvania
decided that the agreement to combine
was a contract against public policy,
and therefore illegal, void, and not to
be enforced The court went further,
and held that the combination was
criminal conspiracy under the law Of
New York, which makes it u mis-
| demeanor for two or more persons to
conspire 'to commit any act in
furious to trade or commerce" and
also criminal conspiracy by the com.
mon law in Pennsylvania. Here
is what the court said of the character
and nature of the combination:
The important fact that these COM
panies control this immense coal-iield;
that it is the great source of supply OF
bituminous coal to the state Of New
York and large territories westward;
| that by this contract they control the
price of coal in this extensive market,
and make it bring sums it would not
! command if left to the natural laws of
trade; that it concerns an article OF
prime necessity for many uses; that its
operation is general in this large re-
| zion, and affects all who use coal as
| fuel, and this is accomplished by a COM
bination of all the companies engaged
in this branch of business in the large
region where they operate. The com
binaton is wide in scope, general in its
influence, and injurious in effects.
These being its features the contract is
against public policy, illegal, and there
fore void.
The court then cited numerous
authorities to show that u combination
to create a corner in n necessary OF
| life and to advance its price to the con-
sumer is conspiracy punishable by
the criminal law, and proceeded as fol-
| lows:
The restrictions laid upon the pro-
duction and price of coal can not be
sanctioned as reasonable in view of
their intimate relation to the public in
terests. The field of operation is too
wide and the influence too general.
Sngly each member of the cOmbna-
ton might have suspended deliveries
and sales of coal to suit his own inter-
ests and might have raised the price,
even though this might have been det-
rimental to the public interest There
! is a certain freedom which must be al
lowed to every one in the management
of his own affairs. When competition is
left free, individual error or folly will
generally find a correction in the con-
duct of others.
But here is combination of all the
companies operating in the Blossburg
and Barclay mining regions and con-
trolling their entire productions. They
have combined together to govern the
supply and the price of coal in all the
markets from the Hudson to the Miss
issippi river, and from Pennsylvania to
the lakes This combination has pow
err in its confederated form which no
individual action can confer. The pub
lie interest must succumb to it, for it
has left no competitor free to correct
its baneful influence.
When the supply of coal is suspend
ed the demand for it becomes impor-
tunate, and prices must rise. Or if the
supply goes forward the price fixed by
the confederates must accompany it.
The domestic hearth, the furnaces of
the iron MASTER and the fires of the
manufacturer all feel the restraint,
while the many dependent hands are
paralyzed, and hungry mouths are
stintcd The influence of lack of
supply or rise in the price OF an