Rensselaer Semi-Weekly Republican, Volume 38, Number 48, Rensselaer, Jasper County, 2 March 1906 — GIVES TRUST A HARD BLOW. [ARTICLE]

GIVES TRUST A HARD BLOW.

Court Rules that Railways Cannot Mine and Sell Coal. Common carriers cannot lawfully deal in the commodities which they 'TSHSsport, according to a decision of the Supreme Court of the United States handed down by Mr. Justice White. The decision hits at the foundations of the monopoly of the great coal carrying railroads which, through their ownership and operation of coal mines, are able to undersell their competitors, thereby giving what amounts to a discrimination in freight rates. Thus, while nominally they-charge the published rate for transporting coal, they can sell it at a price- which would mean an actual loss to the mines if the full freight charges were paid. —— “Not only' does the decision affect the coal monopoly, but it may have a farreaching effect on the beef combine in its capacity of proprietor of refrigerating car lines. Cases are pending In court now in which the government is endeavoring to have private car lines declared common carriers, and in case the suit Is successful packers either will have to give up their car lines or abandon their trade in the beef, produce, poultry and fruit which they transport. The decision also- will apply to the great breweries which own their ownYeTrlgefatbi'' Cars, - as well w to several other lines of business. Mr. Justice White, in his decision, said that to jfermit the carrier to be come a dealer in the commodities carried by It would be to supply the means for perpetuating an evil which the interstate commerce commission was created to remedy, and would make the adherence to published rates only a . farce.

The case in question originally was a dispute between the Chesapeake and Ohio Railroad Company and the New York, New Haven and Hartford Railroad Company. The former agreed to supply the latter with 2,000,000 tons of soft coal between July 1, 1897, and July 1, 1902, but because of a strike fell short 60,000 tons in making the deliveries. The buyer went into the open maket, bought the coal and sent the bill to the Chesapeake and Ohio. This the road refused to pay, but delivered the coal called for by the contract, though the price of fuel had gone up to such an extent that the road lost heavily by doing so. The fight over a matter of a little over SIOO,OOO In the lower courts attracted the attention of the interstate commerce commission, which became a party to the litigation, taking the position that the action of the Chesapeake and Ohio In delivering coal at far below the market price was, In fact, a cutting of freight rates and an evasion of the law prohibiting the transportation of freight at less than the published schedule, and asking an injunction to stop the road from dealing in coal.