The
second threat to railroad hegemony was legal. Until the passage of the
Mineral Leasing Act of 1920, United States law allowed a maximum coal
land ownership of 640 acres. This unrealistic amount was regularly exceeded
through the use of "dummy" entrymen and the abuse of the state selections
process. Federal trust-busting litigation against the Rio Grand consortium
in 1906 through 1912 resulted in an out-of-court settlement that confirmed
the land titles of the railroad and its subsidiaries, the Pleasant Valley
Coal Company and the Utah Fuel Company. Several "independent" (non-railroad
affiliated) developers, who had began new coal operations on the assumption
that the Book Cliffs railroad-coal monopoly was over, were also indicted.
The independents' developments included mines initiated by brothers
Arthur and Frederick Sweet, first at Kenilworth (near Castle Gate) and
later on the Black Hawk vein in southwestern Carbon County, which proved
a developers' magnet from 1910 to 1917. A case involving the latter
area still stands as the national precedent for state selection of mineral
lands (U.S. v. Sweet, 245 U.S. 563 [1918]).
The
richness of the Book Cliffs areas attracted other developers. Mormon businessman "Uncle" Jesse
Knight began work in the Spring Canyon district in 1912, where several
others followed in the period up through World War I. This burgeoning
growth--and later bust--exemplified the third challenge to the Utah
coal industry: periodic production cycles triggered by outside economic
dislocations. Expansions created by the heightened demands of World
War I affected pre-established Book Cliffs areas. Meanwhile, the development
of known deposits in Emery County to
the south lagged behind because of the lack of railroad transportation.