The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-04-05
COAL CARRYING ROADS
MUST SUPPLY PURCHASE
CONTRACTS. AND BOOKS
Interstate-Commerce Commission
Upheld by the United States
Supreme Court.
DECISION BY w. r. DAY
That Tends to Knock Out Secret
Agreements-Ruling in the
Chicago Gas Case.

WASHINGTON, April 4.-The case of the
Interstate-commerce Commission VS.. Baird,
commonly known as the anthracite coal
case, was decided by the Supreme Court OF
the United States to-day in favor of the
contentious of the commission. the decision
of the United States Circuit Court for the
Southern district of New York being
versed. This is the case instituted before
the commission by W. r. Hearst, of New
York, who alleged discrimination by the
railroad companies which reached the an
thracite coal mines in Pennsylvania.
In handing down the opinion of the court
Justice Day said that the case had grown
out of complaint of William Randolph
Hearst, filed in 1902 with the Interstate
commerce Commission, against the Phila-
delphia & Reading, the Lehigh Valley, the
Delaware & Lackawanna. the Central
Railroad Company of New Jersey and
other railroad companies, and that it came
TO this court from an order made In the
Circuit Court of the United States for the
Southern district of New York In the mat
ter of the petition of the commissioners for
orders requiring the testimony of witnesses
and the production Of certain books and
papers in pursuance of the requirements of
the interstate-commerce law.
The first point decided was that of juris-
diction which the court decided it had un-
der the law of 1908 regulating interstate
commerce and therefore refused to enter
tain the motion to dismiss. which was
made by the railroad companies. The
court also held as rrevelant and inappli-
cable the point made in behalf of the rail-
road companies that Mr.. Hearst. the COM
plainant, had suffered no damage in the
case. saying that under the mandatory pro-
vision of the law the commission could not
do otherwise than investigate.
COAL PURCHASE AGREEMENTS.
Coming to the specific items of testi-
mony which the Circuit Court in dismiss
ing the petition considered irrelevant, the
court first considered the coal purchase
contracts. These contracts were made with
coal Companies owned principally by the
railroad companies and fixed the price of
anthracite coal shipments TO be made as
called for by the purchasers. While the
contracts were produced for inspection, the
witnesses refused to permit them to be
point Justice Day said ''The railroads are
all engaged in interstate commerce, and
into their affairs and methods of doing
business the commission sought to, and is
lawfully authorized by the commerce act
to make Investigations. The commission
has the right to know how interstate traf-
| fic is conducted, the relations between the
carriers and the rates charged and col
| lected. We see no reason why contracts
| of this character. which have direct rela-
| ton to a large amount of carrying trade
| can be withheld from examination as evil
dence by the commission" He added: 1T
| is to be remembered that are not deal
| ing with the ultimate fact of controversy
or deciding which of the contending claims
will be finally established. This is a ques-
| ton of relevancy of proof before a body
not authorized to make final judgment
| but to investigate and make orders which
may or may not be finally embodied in
| judgments or DEGREES of court 1t may be
| that the commission or the courts will ul-
| timately find that the contracts do not fix
| the compensation received by the carriers
| and that, as claimed, the full rate is paid
| by these purchasing companies. and il
| there is a loss these contracts it is
CONTINUED ON PAGE 5, COL.7D