Railroads -- United States; Railroads -- United States -- Finance
principles of an operation of that kind, _i. e._ that it must reduce
prices and not increase them. The anthracite coal combination was
killed because prices were immediately put up....
“Q. Mr. McLeod has testified before this commission that it was his
intention to effect such economies as should be reflected in lower
prices. Do we understand that you criticise the policy in that it did
not so reduce the prices?
“A. He did not do it, no matter what his intention was.”[237]
The situation was, however, as clearly understood by the public as by
the managers themselves. Even before the combination had begun to carry
out its policy, outcry was made, and as prices went up the agitation
became intense. In New Jersey an act to legalize the combination
which passed both houses was vetoed by Governor Abbot on the ground
of the effect upon the price of anthracite coal;[238] and in June the
Attorney-General applied for an injunction to dissolve the lease of
the New Jersey Central to the Philadelphia & Reading, alleging that
the tripartite agreement between these companies and the Philadelphia
& Reading was illegal. The court granted a temporary injunction,[239]
which it continued in August to a final hearing, with conditions to
make it more effective.
Prices did not go down, and in October Attorney-General Stockton of
New Jersey again appeared before Chancellor McGill. He now charged the
Philadelphia & Reading, the Central, and the Port Reading with having
conspired to advance the price of coal in defiance of the order of
the court, and asked for the appointment of a receiver to enforce the
former decree, and to restrain the company from further using the New
Jersey railroads for carrying any coal until the advanced price should
have been reduced.[240] The officers denied the allegations, but the
Chancellor sustained the Attorney-General on every point; and only
the official announcement of the abrogation of the lease prevented
the granting of the order.[241] The lease of the Lehigh Valley fared
better. In a suit brought by M. H. Arnot, a stockholder in the Lehigh
Valley, Judge Metzger of the Court of Common Pleas held that the
Reading and Lehigh Valley were not parallel and competing lines in the
sense contemplated by the law; and that mere incidental competition
between branches or spurs of two systems would not prevent the
consolidation of their main lines.[242] So much then of the original
programme was allowed to stand.
Public-domain text, read in full here on John Shaqi.
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