Evening journal., 1912-12-16
GOAL TRUST"
NOT HURT BY
HIGH COURT
BY The United Press.

BY The United Press.
WASHINGTON, Dec 16-Uncle Sam
both lost and won his case against
the anthracite coal trust by decision
Of the Supreme Court today. The
Government lost the better part of its
charges against the combine, winning
out only in one particular, but this
one count sustained by the court was
said to forecast a revolutionary
change in anthracite business. The
court refused to disturb an alleged
combination of six great anthracite
coal carrying railroads in the Key
stone State, 43 big operators and
number Of subsidiary coal companies,
which the government charged was
in control of 80 per cent of all anthra-
cite deposits in the State and domi-
mated three-fourths of the annual pro-
duction. The court limited, however,
that separate dissolution suits against
the alleged railroad mergers might be
brought
The partial victory scored by the
Government was in the court declar-
ing Illegal the so-called "65 per con-
tract" system, q plan by which
the operators were paid So per cent
of the tidewater price for coal by the
railroads and agreed to turn over
their entire output
Also the court sustained the deci-
sion of the Pennsylvania Federal
Courts in dissolving the Temple Iron
Company, a holding company or
ganized by independent operators
TO control additional output.
That the Government erred in bring
ing one single suit against the rail-
road mergers and the coal producing
questions was held by the court.
The court refused to order the dis
solution of the Erie and the Central
Railroad of New Jersey and also
other alleged combinations of the
anthracite carriers.
In its opinion, the court said in
part
The case is barren Of documentary
evidence of solidarity. The fact OF
general combination If it exists must
be deduced from specific acts"
Referring to the organization of
the Temple Iron Company which was
dissolved, the court said it was form
ed principally by President Baer of
the Reading Railroad and Robert j.
Bacon. Of j. p. Morgan & Co.
The combination by means of the
Temple Company still exists" the
opinion continued. 1T has been and
still is an effective agency for the
the collective activities Of the de-
fendant carriers for the purpose OF
preventing competition in the trans
portation and sale Of coal in other
States. Through it the defendants
trailrOads) may absorb the remaining
output of independent producers. The
evil is in combination. The transac-
tion involved a concerted scheme and
combination for the purpose of re-
straining commerce along the States
i'm plain violation of the herman
law
As to the sixty-fve per cent. con-
tracts the court said in part:
1t is not essential that these con.
tracts singly be unlawful. in restrain
of trade They may be wholly in.
nocent Even acts lawful may be
step in a criminal plot.
That these contracts we're de
signed to prevent competition is Z
plain deduction.
Prior to 1900 we find no evidence
of combination with independent op,
orators.
Before these contracts there exist
ed not only the power to compete
but actual competition Such com.
petition, after the contracts, was i'm
prac ticable
ut is obvious that the law may no
compel competition between these in
dependents and the defendants, but i
may at least remove illegal barriers
resulting from illegal agreements
which make such competition i'm
practicable
Justice Hughes did not participat,
in the opinion. Otherwise, the de
cision was unanimous.
The anthracite coal trust was frs
attacked by the government i'm a sui
begun in 1907. The Philadelphia ant
Reading, Lehigh Valley, ID. L. & W.
Erie, Central g New Jersey and New
York, Susquellnna and Western rail
rods. with their nine subsidiaries. in
cluding the Temple Iron Company
were attacked, together with forty
three of the largest coal operators
In December, 1910. the Government
lost all of its contentious except dis
solution Of the Temple Iron Company
by decision of the circuit court. Tha
the Temple company's stock was own
ed by railroads and the company USE
TO balk independents was found. Tha
the combine monopolized production
transportation and sale was alleged
Merger OF the New York, Sus
quehanna and Western and Erie rail
roads i'm 1899 by stock manipulation
and purchase by the Reading road O
the Central Of New Jersey in 1901. a
part of a plan to suDpress competi
tion, was also alleged. The Erie wa
also charged with buying up the Erie
Pennsylvania Coal company in 1S9