The Washington times., 1913-05-26
HARD COAL TRUST
IS HIT BODY BLOW
Monopo|ies Under Sixty.five
Per Cent Contracts Made H.
legal by Courts Decision.

PHILADELPHIA, Pa, May o.-F1N-
ing the way for further Sherman law
prosecutions, the Anthracite Coal
trust was struck body blow today
by the Federal district court. A decree,
in strict accordance with the recent
Supreme Court decision, was entered by
the court perpetually enjoining the great
anthracite coal-carrying railroads and
mining companies from monopollzing
the trade under the so-caTled '65 per
cent contracts"
|. Several contracts were exempted from
the decree. These exemptions will be
the basis for further litigation.
Todays decree dismisses the antitrust
prosecution brought by the Government
in 1910 against a dozen railroads and
coal companies. except TO fnd that the
6 per cent contracts are in violation OF
the Sherman law. This finding was
made by the Supreme Court last winter.
Under the S. per cent contracts. the
railroads agreed to buy all coal pro-
duced oy allied mines. paving 6s per
cent of the market price on the Atlantic
seaboard for such coal The railroads
assumed the freight costs. These con-
tracts were held by the Supreme Court
to be violation Of the Sherman law.
Means Revolution
The courts embargo against the 65
per cent contracts is said to entail revo-
luton in conducting the coal business.
It forces the allied mining companies to
compete in the open market with the
independents" Suits to set aside the
purchase of the capital stock Of the New
York, SusQuehanna and Western rail-
road by the Erie railroad. the acquisi-
ton of the capital stock Of the Penn
sylvania Coal Company. the Erie and
Wyoming Valley Railroad Company,
and the Delaware Valley and Kingston
railroad by the Erie railroad. and capi-
tai stock Of the Central railroad Of New
Jersey by the Reading railroad, are ex-
pected to follow today's decision
After dismissing the principal charges
Of the collusion and monopoly against
the railroads and coal companies, ex-
cept as to the IS per cent contracts, the
court today exempted from operation OF
the decree as to these contracts the fol-
lowing:
Agreements for the purchase Of coal
pany and the Elk Hill Coal Company,
between the New York, Susquehanna
Western Coal Company and John and
Joseph Jermyn. between the Hillside
Coal and Iron Company and the Lacka-
wanna Coal Company. and between the
railroad and the Peoples and George
F. Lee Coal Companies.
Attorney General Consents.
Application for exemption from the
decree was recently made by these
companies to the Supreme Court, and
granted, with the consent Of the Attor.
uey General.
The court, in exempting the special
contracts from its Injunction, reserves
the right to determine IL these par
ruling the the United states Supreme
Court Hearings will be given soon
Today's decree enjoins continuance
s5 ths IS dRsfensan,s Rsft Ssns ''
Philadelphia and Reading Coal and
Iron Company: Lehigh and Wilkes
barre Coal COMPANY: Lehigh Valley
esa Ssnna snG Western
Coal and Iron Company: Pennsylvania
Coal Company. and New York. Sus-
Quehanna and Western Coal Company
The 4e Dsas Aone% WsRen
sham. charging the several railroad
and coal companies with general
conspiracy to monopolize the coal
trade, were dismissed today, except
as to the IS per cent contracts.
| New SultS POSSIBLE.
But the decree today reserves to the
Government the right to bring new
| suits in the following cases:
The purchase of the capital stock OF
the New York. Susquehanna and
Western railroad by the Erie rail
road: the acquisition of a majority OF
the capital stock Of the Central Rail
road Of New Jersey by the Philadel-
phia and Reading Company: the con-
troll of the Pennsylvania Coal Com.
many. the Erie and Spring Valley Coal
Company. and sthe Delaware Valley
and Kingston Railroad Company by
the Erie railroad, and the coal pur
chasing agreements between the Elk
Hill Coal and Iron Company ana the
Pennsylvania Coal Company.
Costs of the entire suit were taxed BY
the court today against the defendant
railroad and coal companies.
DissoI-t'~n ~ the Temple Iron Com
pany. OF Pennsylvania, holding com
panv organized by the railroads. each
Of the great coal carriers taking shares
of stock to control the coal output OF
several Independent mines swallowed
hy the combinations. is also involved ir
the degree today. The formation Of the
Temple company was originally held hy
the district court. and afterward by
the Supreme Court. TO be In restraint
Of trade.