Omaha daily bee., 1902-10-11
DEFEND BAER'S CHARTER
Counted Prepares Answer to Bill Asking
Dissolution Of Reading Company.
SAY COAL PRICES WERE NEVER FIXED
CircuIars Not binding and Although
Companies sold at same Rate This
was Due 70 Ordinary Com
mercial Causes.

PHILADELPHIA. Oct. 10.-Counsei for
the Philadelphia and Reading Coal and Iron
company have prepared an answer to ths
application Of w. r. Hearst TO the attor-
ney general Of New York for the Institution
CT an action against the company under The
anti trust laws Of the state. The answer
will be filed In New York.
The answer AYERS that the respondent is
a corporation OF Pennsylvania created
primarily to purchase; sell, transport and
mine coal and incidentally to acquire such
lands as II may deem expedient and to pur-
chase the stocks Of any railroad or Other
corporation. II Is denied that the corpora
tion has authorized or sanctioned any COM
bination with another corporation contrary
TO the laws Of New York state:
It is further averred that all railroad and
canal companies, created by or organized
under the laws OF Pennsylvania, are ex,
pressly authorized by the statute law Of
the said state to purchase and hold the
capital stock or corporations authorized by
law to develop the coal. iron, lumber OF
other material interests of the said com.
monwealth. and especially is any railroad
or mining company OF Pennsylvania author
lied by p~csitive statute to purchase and hold
the capital stock of the Philadelphia end
Reading Coal and Iron company.
COaI Prices Not Fixed.
The answer further denies that the
prices for the coal sold and shipped By the
respondent were ever determined by agrees
ment, contract, combination or orange.
ment with the other corporations mention 81
in the application, or with any person
whomsoever. 1t is admitted that officers
OF the company have occasional meetings
with others in a like business with the
view OF exchanging and considering stalls
tical information and data as to the state
Of available supply and the probable de-
mands OF future markets. in order that
measures may be taken to supply their re-
quirements.
The respondent also denies that the
prices fixed by 1t in March, 1901, or at
any other time, were determined at an al
legged meeting Of the board of directors of
the Temple Iron company or that a uniform
price for coal was agreed upon with other
companies.
II other parties in the trade announced
the same prices It was because they could
not reasonably expect to obtain or de-
mand greater prices from their customers
than the respondent announced its willing
ness to sell for, and, in the absence of
special facts and circumstances, were doubt
less unwilling to accept less. Moreover,
the circulars have never been regarded as
binding upon anybody. nor even upon the
parties who may have issued them.
Having shown, the answer concludes, that
it has not done or participated in any act
contrary to the provision Of the New York
laws, IL submits that no further inquiry
should be made into the allegations cited
in the application.
The Reading company and the Temple
Iron company will make answers denying
any connection or completely with any or
ganization or combination as set forth In
the allegations of the Hearst bill.
Action TO rSevOke Charter.
HARRISBURG, Pa, Oct. l0.-There wal
received at the attorney generals depart.
ment today a petition by Frank H. Thomp'
son OF Philadelphia. asking that the attor
ney general grant the use OF .he name o
the commonwealth in a suit against thu
Reading Railroad company, to show VIII!
it's charter should not be revoked for al
legged violation OF the state constitution
which prohibits a coal-carrying compan!
from engaging In mining. In the absenc,
OF Attorney General Elkin and his deput!
the attaches OF the department declined 4
make the application public. The a~ttorne!
general Is expected to take some action IL
the matter when he returns to his Office
next Wednesday.