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THOMAS v. BLUE COAL CORP.

March 9, 1973

Thomas et al., Trustees of the Anthracite Health and Welfare Fund, Plaintiffs
v.
Blue Coal Corporation, Defendant


Muir, District Judge.


The opinion of the court was delivered by: MUIR

I. FINDINGS OF FACT

1. The Plaintiffs are the Trustees of the Anthracite Health and Welfare Fund, a Trust with its principal place of business located in Hazleton, Pennsylvania. (Uncontested Fact.)

 2. The Defendant is a Pennsylvania corporation which has its principal place of business located at 101 South Main Street, Ashley, Pennsylvania. (Uncontested Fact.)

 3. In the course and conduct of its business, Defendant produced a substantial amount of anthracite coal for use or for sale which was subsequently transported and delivered in interstate commerce. (Uncontested Fact.)

 4. The United Mine Workers of America is a labor organization representing employees in the coal industry. (Uncontested Fact.)

 5. At all times material to this case, the Defendant was a party to the Anthracite Wage Agreement of September 1, 1966 and the Anthracite Wage Agreement of April 1, 1969. Both of said agreements were between coal operators and the United Mine Workers of America. Pursuant to the terms of both of the aforesaid Anthracite Wage Agreements, the Defendant agreed to pay Plaintiffs as a royalty the sum of Seventy Cents (.70) per ton on all anthracite produced by it for use or for sale. (Uncontested Facts.)

 6. Between January 1, 1968 and May 31, 1970 inclusive, Defendant purchased eighty-five thousand two hundred and eighty-one (85,281) tons of coal from Olyphant Premium Anthracite, Inc. The coal was delivered by rail to Defendant's Huber Colliery. (Uncontested Facts.)

 7. Olyphant Premium Anthracite, Inc. was not a signatory to the above Anthracite Wage Agreements. (T. 78.)

 8. No royalty was paid to the plaintiffs on the aforesaid 85,281 tons of coal by anyone. (Uncontested Fact.)

 9. The coal in question had lain in a culm or refuse bank for years before it was reclaimed and processed through the Olyphant Premium Anthracite Breaker in Olyphant, Pa., prior to its sale and shipment to Defendant. (T. 87.)

 10. The coal in issue was processed through the Olyphant Premium Anthracite Breaker, a heavy media breaker with modern sophisticated equipment which removed impurities from the bank material and sized the coal into five commercial sizes: stove, nut, pea, buck and rice. (T. 14; 39; 86-88.)

 11. Prior to the development of the above equipment, the coal in said culm or refuse bank could not be extracted economically. (T. 87.)

 12. After it went through the Olyphant Breaker the coal tested to a 10 to 12 percent ash content which was within acceptable standard limits for ...


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