Evening star., 1932-10-03
COURT FIXES BAN
ON COAL COMBINE.
Appalachian Goals, Inc, Held
to Be Organization in
Restraint of Trade.
BY the Associated Press.

BY the Associated Press.
RICHMOND, Va, October 3.-Ap-
palachian Goals, Inc, formed by 81 pro-
ducers of coal in Virginia, West Vir-
ginia, Kentucky and Tennessee, was
held to be an organization in restraint
of trade by the United States District
Court of Western Virginia in an opinion
today granting an injunction to the
Government restraining further opera
tion of the organization.
A suggested decree was read by the
court but not entered pending study CT
its language by counsel in the case. The
suggested decree would dissolve the Or
ganization and order it to surrender ITS
charter.
Judge Parker pointed out that all OF
the stock was owned by the l3I pro-
ducers and that the organization hao
the right to sell their entire output and
control their prices. The results were
declared to be elimination OF competl-
tion among the member producers as 70
price; an organization controlled py
them to fix prices; and control OF such
a large part of the coal sold in Ger
markets as to affect prices.
Take Big Share of Trade.
Members of Appalachian Goals Inc,
are said to have supplied the States OF
South Carolina, North Carolina and
Georgia with 53.3, 52.3 and 45.7 per
cent, respectively of their receipts OF
bituminous fuel, other than railroad
coal, during the year 1929. The Gov
eminent contended that these receipts
did not show the full extent of control.
In parts of each of these States,
the Government brief asserted, freight
rates from the districts in which the
defendants operate are more favorable
in relation to freight rates from other
producing districts than in other parts
of the same State. For this and other
reasons, of the total bituminous coal
receipts in certain parts of each of
these States, a much higher percentage
thereof is shipped by defendants than
their percentage Of total receipts for
the State as a whole"
The defendant coal companies as
serted the organization was to remedy
destructive competitive practices OF
shipping coal on consignment, resulting
in the dumping of the coal on the mar
ket irrespective Of the demand there
for, pyramiding of orders for the sale
of coal, and to effect other things of
benefit to the producers, including a
better marketing agency, and reduction
in advertising costs per unit.
The case originated in the western
district of Virginia and was argued at
Asheville, N c., with the three circuit
judges sitting for the Western District
Court.
Separate Opinion Agrees.
The decision was reached by Judges
John j. Parker, Elliot Northcott and
Morris A. Soper of the United States
Circuit Court of Appeals, sitting as a
Federal District Court. Judge Soper
rendered a separate opinion which,
however, did not dissent from the con-
clusions in the majority opinion writ
ten by Judge Parker.
Judge Parker said the court found
that the organization would control not
only the major part of the coal pro-
duced in the area in which its mem
bers were located. but in the markets
in which it would compete. The ad
mitted effect, he said. would be to
eliminate competition among the pro-
ducing members themselves. When the
producers engaged in interstate COM
merce, he added control SO much of
the coal produced and marketed the
inevitable effect would be to effect
prices.
Recognizes Distress.
He said the court found no effort
to eliminate other competitors and
added that the Appalachian Goals, Inc.
would not have monopolistic control.
The court room contained a number
of representatives of the coal pro-
ducers when the decision was an
nounced. Judge Parker said the court
had been impressed with facts pre-.
sented as to distress in the coal in
dustry and the need for organization
but that this was a matter for law
making bodies and not for the courts