Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1912-12-16
WINS
PARTIAL VICTORY !
IN ANTHRACITE
COAL SUIT
Supreme Court Holds Con.
tracts to Control Output OF
Independents Illegal and in
Restraint of Trade.
GENERAL COMBINATION
NOT SHOWN BY EVIDENCE
[By Leased Wire Io Evening Herald

Washington. Dec. lG.--The govern.
ment today lost It's night before the
supreme court OF the United states to
have the anthracite coal carving
railroads and their. affiliated coal com.
pAnics declared to he IA = general
combination In violation uf the anti
trust law.
II won IL victory In getting the court
To strike down the 65 per cent con-
tracts whereby the railroad coal
companies" buy the output ~ "indc-
pendent" mines, Justice furtOn, In
announcing the opinion, said these
contracts were plainly in violation OF
the law.
The court also held the railroads
had violated the law by attempting tn
shut out of the anthracite region
competitive roUd through their con-
troll OF the Temple Iron company.
AZ TO minor combinations Of rail-
roads and coal companies charged to
be violating the law, the court DIS.
missed the action, without prejudice
tO future suits, because II held II not
fair to require those groups IT, make
defense in an action primarily
against general combination"
Justices Day, Hughes and Pitney
took no part In the decision. There
weer no dissenting opinions.
In an opinion announced by Asso-
Clatc Juaticc LurtOn. the court holds;
First, that the general COmbina-
ton alleged by the government 10 cN-
lst between the defendant roads for
Rn appOrtlOnmcnt for total tonnage
To the EcH board by an agreement In
the nature ~ pooling arrangement
has not been established and there
fOie the relief sought by the govern
ment upon assumption Of such COmbi-
nation is denied.
Second, the court finds. however,
that the principal defendants did
combine, for The purpose OF cutting
out from the anthracite coat folds a
frOad, the New York, wyoming and
Western railroad. and To accomplish
that purpose II is found thuL the
stock of the Temple Iron company
and of the Simpson and watkins col
lierics WAX acquired for the purpnHr
and with the intent. not of normally
Hnd lawfully developing trade, but ol
restraining Interstate commerce ana
competition In transportation when
would have presumably come about
through the construction and opera.
ton OF the proposed competing line
OF railroad between the mines and
| tideWHter.
"Third. the court holds that certain
| contracts made with pruduCcrS cover
| ing DelWtth ~ anu ~ per ''Hl w
| the total annual supply Of coal known
as the 81 per cent contracts. 10y when
such independent producers huund
| themselves to deliver the output nl
| their mines or any other min" which
| they might acquire, to the rnilrohd
compa nics for 81 per cent Of the aV'
erage price AT lidrwntcr, were also
void because In violation at tn" anti
trust act. as abnormal and Illegal re-
| atrainta upon interstate commerce.
Fourth. the court reiteratrH the
| declaration in the standard on CAsi
that an act of congress does not Tor
| hid or RESTRAIN IN" power To make
normal ana usual contracts to further
! trade by rcEorting 10 all normal meth
| DDS, whether. hy agreement or other
wise, to accomplish such purpose.
Nevertheless II holds that the acu
which II finds In this case To he ~
legal. the Temple Iron and 81 PEI
lccnt contracts were not Within suci
class, hut on the contrary were Rb
normal In their character and directl!
tended To and were Intended tO illc
gslly restrain trade and commerce
land therefore came within the stat
ute M illustrated by the rulings In ~
Louis Terminal Association and S"it
co. W.. United states"