New-York tribune., 1914-12-22
LEHICH Wins IN
ANTITRUST SUIT
Federal Judge HoldsIhere
Was No Violation OF
Commodities Clause.
NO TRADE RESTRAINT
WITHOUT CONTROL
Finds No Proof of Alleged Mo-
nopoly of Coal in Inter
state Commerce.

The suit brought by the government
against the Lehieh Valley Railroad and
allied concerns comprising, 1t was al
legged, the hard coal trust, was dismissed
yesterday by Judge Charles VI. Hough
in the Federal Court.
NO monopoly Of interstate commerce
is shown ne said, NOR any attempt
to monopolize; Tor the proof Of the
pudding is in the eating thereof, and 1t
is impossible to find any Of the normal
results Of monopoly without also fnd-
ing violations of the commodities
clause. and none is discovered. As to
restraint Of interstate trade IN coal
transported over the Lehigh road, there
can be no restraint without control and
since the railroad does not control the
coal IL carries il has no means OF re-
straint.'
Judge HouCh found that the Lehigh
Valley was rather further from violat-
ing the commodities clause OF the inter
state commerce acts than was the
Lackawanna. whose acts were upheld
bv the Circuit Court The Lackawsnna
owned much Of the coal il carried out
right, while the Lehigh simply owned
the stock of corporations which, under
the laws of Pennsylvania. had good
right TO own the lands and mine ana
sell the coal.
Concerning the necessity Tor the
formation of the Lehign Valley Coal
Sales Company. which acquired from
the Lehigh Valley Railroad lands Tor
storing coal and fron the coal com.
many coal on hand. az what was alleged
TO he ridiculously low prices, Judge
Hough said; go,
what should or could be done with
the lands and coal on hand ana now
could the concern retiring from the
selling business insure the creation OF
strong and pushing successor Ger
tainly not by hostility. Who couId or
would buy the coal on hand and occupy
and use the storage plants except the
Coal Sales company?
"Rut. says the complainant, the prices
we're ridiculously low. Answer IS Justi-
fed that 1) the assertion rs untrue,
and ~ IL was praisewOrthy and lawful
at first TO sacrifice much in price when
the object was TO save from further
assault the business of selling coal
after interstate transportation 0usi-
ness which had become precarlous ow-
ing TO modern economies, as asserted
I'm statutes and Interpreted by the
courts"
The allegations OF the government as
10 the violation of the antitrust law
must rest, Judge Hough said, on the
assumption of identity of interests be
tween the coal carrying corporation
and the coal owning and mining cor
porations.
But IL must also be remembered
he said. chat the mere fact OF such
union i'm interests. as manifested by
stock ownership. is not unlawful, pro-
vided there is dissertation in good
faith between bona fide corporations.
Dissertation in good faith re-
quIres no more than the lawful con-
duct OF honest men
Pointing out that the anthracite
acreage referred to in the suit repre-
sented a little less than - per cent Of
the coal lands conveniently tributary
TO the Lehigh Valley Railroad, Judge
Hough said that the alleged monopoly
"within the territorial unit of the
lands presently reached By the Lehigh
Railroad" does not bear investigating.
"All that it does or can amount to-
Judge Iough holds. "is this: Under
existing decisions the coal lands are
lawfully owned. the coal therefrom is
lawfully carried; there is an actual
and honest dissertation Of interests
between coal owner and coal carrier;
the relations which are complained of
have. therefore. no influence upon in
tcrstate commerce. for said relations
begin. exist and end within the limits
OF the State OF Pennsylvania, and
therefore are entirely legal
Suit was instituted by the govern
ment March l8. 1914. Besides the L.
high Valley Railroad other defendants
were the Lehigh Valley Coal Company,
the Lehigh Valley Coal Sales Company,
Coke Brothers E. Co., Inc, the Delaware.
Susquehanua & Schuylkll Railroad
Company, the New York & Middle Coal
[ Field Railroad and Coal Company. the
G. 3. Markle Company, the Girard
Trust Company, Eben B. Thomas and
7 numerous other cOrDoration officers