The Birmingham age-herald., 1910-12-09
Federal Court Says There Is Conspiracy But COIn-
 pany Is EnjOined
RAILROADS MUST DROP
 THEIR COMBINATION
Defendants Will Not Be Compelled te Change Present Prices of Coal. Case Will Be Carried to
 Supreme Court

supreme GouIa Philadelphia, December S.--The United States circuit court for the eastern dis trct of Pennsylvania today decided that there is no general conspiracy among the anthracite coal carriers railroads or coal companies, to restrain trade or commerce.. or 10 monopolize the trade or to main tain certain prices but it did decide that the Temple Iron company is a combina- tion of anthracite coal carrying railroads in violation of the Sherman antitrust
 law and granted the prayer of the gov ernment for an injunction restraining that corporation from continuing a violation of the act. The sum and substance is that the government wins only one or several points, !, at in the Temple Iron company casa I1d the defendants will not be compelled 10 change the present prices of coal as a result of the courts decision. The case was heard by Judges George Gray. Joseph Burlington and William M. Lanning last February. Three opinions were handed down late this afi- ernoon and each differs from the other Judge Gray dismisses all of the govern ments charges except that relating to the Temple Iron company, which he sus- tans.
 | Judge Burlington disrnisses all the charges except the one against tho Tem- pie company and the one relating to the | Co per cent contract existing between the big corporations and the independent coal companies, he sustaining the charges of violation of law on these points
 Judge Lanning dismisses all the con tentions made by the government.
 Suit Filed In 1902
 The suit was filed in June 1907. during I President Rnosevelt's administration. Tho defendants include tho Reading coinpsnv,
 Philadelphia and Reading railway, Le- high railroad. Delaware. I.ackawanna an1
 Western railroad, Central Railroad of New Jersey. Erie railroad, New York. Susquehanna and Western railroad. Philadelphia and Reading Coal and Iron company, Lehigh Valley Coal company. Lehgh and Wilkesharre Coal company Pennsylvanla Coai company, Hillside Coal ard Iron company, New York. Susque- hanna and Western Coal company. Tenn pie Iron company and about 10 iudivid- ual or so-called independent coal com panies The three other anthracite coal carriers were not involved in the suit as they were not competitors in carrying anthracite to tidewater.
 They are the Pennsylvania railroad, | New York, Ontario and Western, and tho Delaware and Hudson.
 The theory of the governments case | was that all the defendants had long been parties to a general combination and conspiracy which stifed competition and | obstructed trade and commerce in anfhra- | cite coal. to which the separate acts | charged in the suit against various groups | of the defendants were steps toward the common goal, and that the separate acts of the various groups were independently | in violation of the Sherman antitrust | act.
 Governments Plea | The government asked that the court adjudge and decree that: | l. The defendants are parties to a com bination and conspiracy in restraint of trade. and that they be enjoined from continuing the combination. | 9 That they be enjoined from continu- | ing the 65 per cent contract existing be- tween the big companies and the inde- | pendents.
 g. That the acquisition by the Erie rail l road of the capital stock of the New York. | 5usquehanna and Western railroad and of the Pennsylvania Coal company and | the Delaware Valley and Kingston road was Illegal under the antitrust act. | f. That acquisition by the Reading com | pany of the capital stock of the Jersey | Central was also illegal.
 l g. That the acquisition by the Lehigf Valley railroad of the capital stock of | Cox Bros x Co. was also illegal. l G. That the Temple Iron company be de- | clared combination of the defendant roads in violation of law and that the combination be dissolved
 Independent Companies | The independent coal companies were brought into the case through the so- called 65 per cent contract transaction. l The independents sell their product to the big companies for Go per cent of the price the big companies receive for 1t at tide- water. The government contended that | the independents were forced Into making | the contracts because there was no other way to get thier coal to market if the | coal companies chose to discriminate 1 against them in the matter of cars and rates. The opinions of the three members 1 of the court were handed down in one volume of 1S2 printed pages. l Judge Gray In his opinion after analyz- | ing the testimony given by President Baer Ss l I.ehigh Valley, and great number Of other witnesses, called in the case. says; I've are compelled to conclude that thus | far the direct evidence relied upon by the government to show that the de- iendants have long been parties to a gen cral combination and conspiracy which stifes competition and obstructs trade and commerce among the states in am thracite coal. fails to establish that charge
 | The judge then takes ID the matter Of the e5 per cent contracts and concludes l that they arc nor violation of inter-. l state commerce,
 Taking up the matter of general con Spiracy. among the defcndants Judge t.ra l says
 "A careful consideration of argument | and brief of the counsel for the govern
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