OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

iioaorablo ?. t. OraM8 

COunCJ Llttornu7 

ca8sroo Goant 

Bwvnaville, T8388 

in your letter 

Corpomtlon A, 

Christ1 l d car 

a t 

met* rot fo o th 

a l a d wPuhOu888 

The quurtloa p;eoatd’ia rhuthu? raoha tmpuetlon, 

if aoasummt~d &or ruoh faotr 8ad uI?uumUrw8s, I8 da- - 

nouncud bJ thU %tslpI anti-tPUat 8titUte8. 

The rt8tutr 1Jardietely l~rolvrd ir Artialo 7427, 

pzovidlrg : 
Honorable P. T, QfQMa, pge 2 

‘A noaopoly is .a ooabtrvtiou or oonsoll~- 

ticu OS tvo or DAOP~ corporcrtloms vhisa effected 

iB 9ithOP Of thr fOllOViBg EdhOdSJ 

Nl. YhOB the dlraatlon of the 8ffr3.1’8 of 

tt?o or 801~0 ~OP~O~~fOtU 18 in any mMeP brought 

under the samm nWasgeEent o control for the purpa54 of podwing, war rhea’* suah own m&gomm or coatrol tends to oriMkte l trust 45 detlMd IB th# lf?St Wlvlv Of bhf8 Chibpt@P. 

I 

l 2. mar* bfty aorporutioa l lq ulrrr the S-Per 

oP eoPtiii55tr8 Ot 8took or bODd#, IPWahiu OP 

other rlghtr, o* the ph?slU1 pqwrtles oP l o;l 

~&art thwoor, or any other oorpQlutlon or berporrtioar, ror thr purporo of preventing or 1055oBlng, 

O? vhero tha 8ireot 02 ruuh baquirltloa t*ndr to 

8tfeCt OP 1.850!& tl~t:tiOXL, Vh& iOl P U5b 56 

qulsltlon Is rocomplished dlr#,otl7 or through the 

i~5tPfJ8ORt6lft~ Of trBlt558 0 OtkW’Vi55: 

A mretul basl7~ls ot this rtatuta llakea ltr aosntng and purpors rirple aad unhrsUndablu. Fha speoiflc act 

prohibited $9 8 roablaatloa or oonsollbtion of tvo or wro 

corpomtloM.” Bat 1, is fmjmrtant 50 obrervo that suoh l 

“ooablMt:on or COn80ildntieBm is BOt draoaneud unlmr it 15 

;;f;ottd iB ona ol the sethods prohibited by the swtutr lt- 

. 

Th. flrrt method tiflaed &nd aade illoel 1s vhen 

it ia rought to brlq *the dlreotlon of th l if8lrs of tvo 

OP 8OPO OOP~~tiOBS Mdsr t& 8&W B5lrr~vlseBt OP OOn$POl 

an& vhero such COR~OIL 55bpc)gMOBt tends to Orebte 5 tx’ust. 

Obvlourly this prohibition vould not oover l trUs@otlon betvecn an uctive corpotitlon and OM vhlch 18 dlrsolred and 

in process of llquidbtlon. 

Too, NP . sust:oe Pewnn of the T*rrrs Suplww Court, 

has pointed out t&t on5 OS the 5855nttil rleaents 10 -king 

l crse under this subdlvlalon vould bo tJm proved existence 

o f l dealgned bnd united ooopemtioa of the offeadlly( agenales to moonpUsh the u0Uvfu.l puppora. 80 s8ld in part I - 
.\ 

773 

xonoPab& ?. t. Qmhm, paa* J 

I . . . Xn order to ooartltuto 8 truot, vlthfD tb UDfM Of kh. 8WtUt8 tbs?l atrt-• 

'ocaablmlloa of $4&~iUl, l k lli OS aata br two OP 

aore.n Wcmbilytlo8,~ aa hart, uaad, waaua w&ion 

or aaaoa*tiatt. x r ther e b e DO p a i w l a M - 

o UtW by 0~ w ran at sklr ‘arpital, ekill 

or l a ta tw,í r e ma b e a @ o a b lmtiom&a 4 í

heDom* a ‘traat.’ VheD ua amtdar tha p-98 

forr uh%ak%ha ‘aa8biutADD’ aas8 be for80& to 

em r itk tihe s l tStUte, t&e oaeSat%Sl m5Sning 

Of tb UWd ‘OdlDio*tiOD,’ unb tb fD8t -t l 

paDiObOD% t8 ~#BW:kd ior ueh dry th6l k& 

$?a09 aoatlnaea in exiateaea, va bra led to the 

ooaolDalm t&St the aDieD or Damaution of '84pl. 

uq, a&ill 01 out0 draarmwd i8 l?hmM the pnst100 

I.D I& gutieular baa deal&Dad the aaited a*r 

wti# Of bWh bgOWfS8, ~rtriCh R@ht &VO k.8 

o c h wv* t8da doat a d eapetiDg, for tb* l uoaa w 8oPe of SDOh paPpoaeo* 

x00*?, 39 8. v. IOn. 

The aaeoa4 wthod of ‘oo8blmtlaa 6P muO1ibrtiOee 

that 1 0 dea o ulna vhed wr ODa o o P p w~til oqu%Ma q n t3n *- 

$1641 gropartiea af *aother 00?pomt10n to? #&a parpoee of 

prov.Et~ Qo 1WbS&il?& S3 ShWS the OffSOt Ot OUSh SSqUi8:- 

tion toDda to l rroot 8 b55ea or8EqietltleP.’ 

h V#u 8Sttd irr -XaO. 

The us+tfoo you mire UDbr 8obhtViOiDD 2 awae to 

ID a r l8ill aba8tleE P hem or&e 

& P p a P Ot:~ M QUiM d tb l 588tO WXt ph 

aadmr vhieh wu about to dlreolve u ar 

180~ f~PCf~?ti?H Oi 

80 out of bue&aee 

and 1av01vlag #&Lo voa7 l Utate, the Fart Uwth CeuPt or Clvll 

Appwla mid: 

w . . . (the oqmatloa) . . . Md detar8fn.d 

to bl8801Va, it oe?tbiDly h8d thr rl&t to da 80 

aDdeP Ibn lav, red tha al* (te a 0Q8pet:tw) UDue tolbu, se va mast, the deal*Jatlma of tha Co-85 

OD this l ubjort. A~glied I* yWP rUtO888t hSP8, B 0-P-Y 

aa a s-t 89 p wit of bwlneee @ad to die 

art LOO. CampMyA MS l right to piualrrea 
_ ~.i.. 

., .: 774 

bemwlr to do so vi11 orlther peveat aor lersso cempetltion. 

lo reaashlq thfa QOMlSS19a~ uo a a c epa0 t l 6aurete 

sad tzua the rmulta et 79~ rbbdim to the rfiaet tbt 

t&a 10 00 doal&a'aa @#~80, ne UaitOd eOOp?Otl~ to 

ofrea8veatlm lau. Skew, lo rush elrmmmmaea, n &me 

coeolm%ed thr OLVll 8ktuW8 Ue net VlOlbted 1% fO~3~8 

t&t the SStr tiaa?lbe& Us no0 dancuiiea& b7 is. ehil4r proviaioslr~,oS the ,PWl Cede. 

Xiiadb 

..-,d.