Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1912-12-17
Victory Divided Between
Anthracite Barons and
the Federal Government;
Lurton Gives Opinion.
COMPANIES ARE ....a
NOT A COMBINE
Decision Against the 65 Per
Cent Contracts Whereby
Roads Buy Mines Output,
Pleased Wickersham.

Washington, D. c., Dec. 16.-The
government today lost its fight before
the supreme court of the United States
to have the anthracite coal carrying
railroads and their affiliated coal COM
panies declared to be in q general COM
bination in violation of antitrust law.
1t won victory in getting the court
to strike down the 65 per cent con-
tracts whereby the railroad coal COM
panies" buy the output of "independ-
ent' mines. Justice Lurton in an
nouncing the opinion said these con-
tracts were plainly in violation OF the
law.
The court also held that the railroad
had violated the law by attempting to
shut out Of the anthracite region a
competitive road through their control
Of the Temple Iron Co.
AS to minor combinations of rail-
roads and coal companies charged to
be violating the law, the court dismis-
sed the action, without prejudice to
further suit because 1t held 1t not fair
to require those groups to make a
defense in an action primarily against
"a general combination"
Justice Day, Hughes and Pitney took
no part in the decision. There were
dissenting opinions.
Not In Combination.
In an opinion announced by asso-
ciate Justice Lurton, the court holds:
First, that the general combination
alleged by the government to exist be-
tween the defendant roads for an ap-
for total tonnage to the
seaboard by an agreement in the ma
ture of pooling arrangement has not
been established and therefore the re-
lief sounght by the government upon
assumption Of such combination is
denied. 1868
Second the court finds however that
the principal defendants did combine
for the purpose Of shutting out from
the anthracite coal field a projected
Independent line Of railroad, the New
York, Wyoming and Western railroad
and to accomplish that purpose 1t Is
found that the stock Of the Temple
Iron Co., and Of the Simpson and Wat
kins colleries was acquired for the pur-
pose Of and with the intent, not OF
normally and lawfully developing trade
but of restraining interstate commerce
and competition in transportation
which would have presumably come
about through the construction and
operating Of the proposed competing
line Of railroad. between the mines and
Tidewater.
"Third the court holds that certain
contracts made with producers cover
ing between 20 and Is per cent Of the
total annual supply Of coal, known as
The IS per cent contracts by which
such Independent producers bound
themselves to deliver the output OF
heir mines or any other mine which
hey might acquire, to the railroad
for IS per cent Of the aver
age market price at Tidewater, were
also void because in violation of the
as abnormal and illegal
restraints upon interstate commerce.
.. Contracts Restrain Wade.
Fourth, the court reiterates the de-
,laration in the Standard Oil case
hat an act of congress does not for
lid or restrain the power to make nor
nal and usual contracts to further
rade by resorting to all normal meth
ids, whether by agreement or other
wise, to accomplish such purpose
Nevertheless, it holds that the acts
which it finds in this case to be illeg-
il, the Temple iron and sixty-five per
.ent contracts were not within such
lass. but on the contrary were abnor-
nal in their character and directly
ended to and were intended to illeg-
lily restrain trade and commerce and
therefore, came within the statute as
Illustrated by the rulings in the st.
4ouis terminal association and Swift
{ Co., vs. United States"
The government suit charged that
he principal anthracite carrying rail-
Dads and their affiliated coal com
,anies had entered into general
combination to end competition in the
transportation and sale of anthracite.
several grs ups of the defendants
we're further charged with smaller
for the same purpose.
rhe so-called 65 per cent contracts
we're agreements whereby the railroad
.oal companies were to buy the out
,ut OF Independent operators at 65 per
,ent of the price Of coal at Tidewater.
In announcing the opinion Justice
,urton said that these contracts we're
n restraint OF trade and illegal no
n ASrH., &