The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-12-16
HARD COAL TRUST
DECISION MADE
CONTINUED from page ID

exist between the defendant roads
for an superintendent Of total ton
mage to the seahoard By an agree
ment in the nature OF pooling ar
rangement, has not been established
and therefore the relief sought by
the government upon the assumption
Of such combination is denied.
.Second-The court finds, however,
that the principal defendants did COM
bine for the purpose OF shutting out
from the anthracite coal field pro
jected independent line of railroads.
the New York. Wyoming and West
ern railroad. and to accomplish this
purpose It found that the stock of
the Temple Iron Company and OF the
Simpson and Watkins collieries was
acquired for the purpose Of, and with
the intent, not of normally and law
fully developing trade, but Of re-
straining Interstate commerce and
competition in transportation, which
would have presumably come about
the construction and operation Of the
proposed competing line of railroad
lines between the mines and tide
water.
Third The court holds that Ger
tain contracts made with producers
covering between 20 and Is percent
OF the total annual supply Of coal
known as the IS percent contracts. by
which ouch independent producers
bound themselves to deliver the out
put OF their mines or any other mine
which they might acquire to the rail,
road companies for 85 percent of the
average market price at tidewater,
were also void, because in violation
OF the antitrust act as abnormal and
Illegal restraints upon Interstate
commerce.
| declaration In the Standard Oil case
tina. the act OF congress does not for
bid or restrain the power to make
normal and usual contracts to further
| trade by resorting to abnormal meth
/ DDS, which are by agreement or 9th
erwise to accomplish such purpose
I nevertheless 1t holds that the acts
which it finds In this case. 20 be II
Illegal The Temple Iron Company and
the IS percent contracts were moi
within such class but on the contrary
were abnormal in their character
and directly tended to and were in
| tended to, illegally restrain trade ant
commerce, and therefore come within
1 the statute as illustrated by the rul
| ings in ST. Louis terminal association
and Swift and Company 70. United
States
/ In its opinion the court said in part
The case is barren of documentar,
Ievidence OF solidarity. The fact o
general combination II it exists mus
be deduced from specific acts"
Referring to the organization of thu
Temple Iron Company which was dis
solved, the court said it was forme'
! principally by President Baer. OF thu
Reading railroad and Robert ]. Bacoi
i of J. p. Morgan and Company.
1.-THE combination by means OF thu
Temple company still exists" the opin
lion continued. 1T has been and still
lis an effective agency for the collect
i've activities of the defendant cal
riers for the purpose Oh preventing
competition in the transportation an
sale of coal in other states. Through
it the defendants (railroads) may ah
serb the remaining output of inde
pendent producers. The evil is Il
combination. The transaction involy
ed concocted scheme and combine
ton for the purpose OF restrainin
commerce among the states In plai
violation of the Sherman law"
AS to the 65 per cent contracts tn
court said in part:
ut is not essential that these COZ
tracts singly be unlawful, in restrain
Of trade. They may be wholly inns
: cent. Even acts lawful may be ste
. in criminal plot.
That these contracts were desigl
: ed to prevent competition Is q plai
: deduction.
. Prior to 1900 we find no evidenc
of cimbination with independel
operators.
1T is obvious that the law may M
compel competition between these i
dependents and the defendants, but
:, at least may remove Illegal barrier
Z resulting from Illegal agreement
which make such competition impra
! teal"