Albuquerque morning journal., 1910-12-09
No CONSPIRACY
AMONG COAL
CARRIERS
COMPANIES RESTRAINED
FROM BREAKING LAW
Government Wins One Of Sev-
eraI Points Contended for but
Price of Fuel viii Not Be
Affected By Decision,
IBy Morning Journal Special Leased wireI

IBy Morning Journal Special Leased NireI
Philadelphia, Pa, Dec. S.--The
United States circuit court Tor the
east district of Pennsylvania today
decided that there is no general con
spiracy among the anthracite coal
carrying roads or coal companies to
restrain commerce to monopolize the
trade or to maintain certain prices,
but it did decide that the Temple
Iron company is q combination of
anthracite coal-carrying railroads in
violation of the Sherman antitrust
law.
TIL court granted the prayer of the
government for an injunction re-
straining that corporation from con-
tinuing violations Of the act. The
sum and substance is that the gov
ernment wins only one of several
points, that in the Temple Iron
company case, and that the defend
ants will not be compelled to change
the present prices OF coal.
The case was heard by Judges
George Gray, Joseph Burlington and
William M. Lanning last February.
Three opinions were handed down
late this afternoon, and each differs
from the others.
Judge Gray dismissed all of the
governments charges except that re-
hating to the Temple Iron company,
which he sustains.
Judge Burlington dismissed all the
charges except the one against the
Temple company and one relating TO
the 65 per cent contract existing be-
tween the big corporations and the
Independent coal companies. He sus-
tanned the charges of violation Of law
on these two points.
Judge Lanning dismissed all the
contentious made by the government
The suit was filed in June, 1907, dur
ing President Roosevelts administra-
ton The defendants included the
Reading company the Philadelphia
and Reading railway, the Lehigh VAL
ley railroad, the Delaware, Lacka-
wanna and Western railroad, the
Central Railroad of New Jersey, the
Erie railroad, the new Susquehanna
and Western railroad, the Philadel-
phia and Reading Coal and Iron
company the Lehigh Valley Coal
company the Lehigh and Wilkes
barre Coal company the Pennsyl-
vania Coal company, the Hillside Coal
and Iron company, the New YORK,
Susquehanna and Western Coal COM
pany, the Temple Iron company and
about forty so-called Independent
coal companies. The three other an
thracite roads were not involved in
the suit as they were not competitors
in carrying anthracite TO tidewater
They are the Pennsylvania, the New
York, Ontario and Western, and the
Delaware and Hudson.
The theory of the governments
case was that all defendants had long
been parties to a general conspiracy
which stifled competition in anthra-
cite coal.
The Independent coal companies
were brought into the case through
the so-called So per cent contract
transaction. The Independents sell
their product to the big companies
for 65 per cent of the price the big
companies receive Tor it at tideWater
The government contended that the
Independents were forced into max
ing these contracts because there was
no other way to get their coal to
market.
The judge in taking up the matter
of the 65 per cent contracts con
cudes that they are not violation |
Of Interstate commerce,
These contracts Judge Gray says /
were clearly intrastate and not IN
terstate in their character Ihey |
were complete when the coal was de-
livered at the mines I. o. D. TO tle
buyer. They did not control OF ~
feet, except indirecti. and incident
ally. interstate commerce; much less |
did they suppress or restrain such
commerce. .,
'.No stipulation of the contract dl-
rectly or Indirectly touched inc
movement or disposition OF coal ny
the buyer after its delivery under the
contract to purchase. Such nuyel
might have withheld all the coal thus
purchased from the stream OF lhteI
state commerce, and disposed oi
in the state where it was bought.
Taking m the matter of general
conspiracv among the defendants
Judge Gray says:
"A careful consideration OF the ar
gument and brief of counsel LOT .he
government does not convince US lii'i'
the evidence discloses any such gem
eral contract, combination or con-
spiracy among the defendants III
straint of trade or commerce "nlVus
the several states or to mon"polnc
any part Of the trade or eoihiieie0
among the same.
Judge Gray then takes up the mat
ter of the Temple Iron company
II appeared from the testimony IN
the case that when simpson anu
Watkins an Independent coal mlhlns
coupanv. lead a movement TO buiu
an independent coal road 10 ~"
York I'm order to get their coal 10
market cheaper. the SIX coal car slile
railroads named formed a comhlna-
ton and purchased the Temple iron
company which had blanket char
ter permitting it To mine or sell coal
The presidents of q majority OF inc
anthracite coal companies are diieC-
tors in the company which pnr
chased the interests Of simpson anu
watkins ana thereby killed the new
project.
OF this transaction Judge Gray
says:
1t seems to me clear that an
agreement was ccme to by the ne-
PENDANTS named. which resulted IN
action Tor the avowed pur-
pose Of bringing about an abandon I
ment OF the project Of q route from :