. 1 ‘

OFFICE

OF THE ATTORNEY 

### GENERAL OF TEXAS ..1% AUSTIN,

. * i..

id&&#. fro

pcuz queatlon

&t$ola q&i6 of the ‘Oiril Oodo and Aptiolls 

### th490atwatg4

0p 004md.n

th0following

1angw41
.:*& *t&t* ia a oombination or oapital,, suit ~Qr a&a bg two or p~om3 pereons,rm8, I( o~~gosapiiow fit assooiations

### or pap~one, or either ticro’or more ,0r them ror either,any or all of. the r@,lming prrrpoaest

### EfJllO~rdi4 Ltnt4E 

### S~‘saTa&4,

P-4 a

&eat4 or oarpr 

### out 

### reet .pgrealt. 4r ‘my buslaea~ auth4Zed 

### bfim8 or 9114am4. or, per+hd



### -*Any and all 

### trurt8,

monopoll anU~6onspfra

### oi4#,:$~3

reotralntor trade, as here@ 

### a4rlmdd; em prolgb$te~

### ana +ooUred to be j.lla@l.~' Gi~$aialtlea are pre@oribedbo thcteznm at:&& ' 

### oler.7b36

aml 7436 or the 

### olvlloodo,uh+le Art&ale 1635$i the PemaXOode make@ a oriainalriolatlona relony.

While we have been unable to.rIndany baaelawupon the **sabjeet,** v&do $$nd an emlightsning dlsouealonuhioh we 1 deem olear end pestbeat, in aLopInion written during the yeear 1 ;.~ 1917 by the &morable 0.M. Curet~n. Report iuld O~inIoi~s, Attorney @moral-or 

### 34x44, 19164918, PI 151,

. . At thb tldor writing the opinlm, the late lanented Chlaf ilustlee~ or our Texma Supreme Court waa Firat Asels

### i tant Attorney 

### f&erel aenlng ln the a6nInletmtlon

### 0r Attommy Oeneral'B.F. iooaey. :: The questionr)84 whether banks 1, operatingin thin atate were emenable to the **%** rovlolonaor the
**ix.** anti-tTUBt

and mnop04 8kttUte8 **(btiOle8** 77 9-;2 19l.l‘ now Artii31et ?&S-742?. 8. a, s., 1925, **un**

**. ..~**  **i.** dit&&shedwrIt~ .puottra with approval rroJl~earl j- lone or this department, and hi8 treatiesis of auoh for04 we
r: take the.

liberty of oopylngat l%ggth. Arter quoting the pmg: olai~~~'orthe statutes, he wrote as rOllmW
&HcaorablaLlnt40 S.~Savais4, Peg4 3 

### 802

"The eirst qtleatfon r0r determismtion is ~~ whether orhot the basin448ot bauklng 14 limit@, ed, afi4et4d,or oontr4ll46 by thhwo artloles 

### of-the&atute~doflnlng prrrhiblt&~ and 

### paawll.ngtruate 

### end m-fi*II. In the rimt antltmmt statoh of thio 8tat4,whloh N pa4wd in 1889 

### and~~+%h~oonssp6uulswlth thos4 portions 4i Istlol6'7796 quobbd above, w4 flud the roll~+t

. w300ti0~ i. B4 

### it em&d by the t4&- latuz% or~th4.80at4 of T-r: Theta trtmt %a. a oaab$aatlon af azpbtal, zklll, or aotz w. tro OF r0re ptws~nrr, rim+ 00rpor~ti0~0, 

### or aimolatlona

of peraozm,

or oi ,4ith& 

### twq 4rga4r4 

### ot'thei@,

for. either, any,01 a&t of therollotise:'purpoa48~ 

### Flrat.~' To 

### areato or 

### ,oerry

out.rerrtrlotiane~ht tratb,:. 

### Bsoondr 243latlt or 

### roduoethe orease or **rsduee** the r! loduotloa,

‘or. in

### or o4mmodltfa4. p '00of ~mrgbandfae

Third, To prevent oompetltion in mamf4otv24, making, tranepcmtation, w&r, or Wahase 

### or merohan~w, produoe, 

### or~oonmmllt~es.

Fourth. To rlx I+ auy standardor iigure,wh4mby lt4,m%oo to the pub110 8h4llbe ln4nyirrnnsr44ntmll4dor Oatfabllahedi

any art1014or omzloaltyor 

### merahahdla4,

,pro&me,. 

### or oamnera 0 intendna 

### tar &lo, 1184,



### or 

### oonaimptlon

ln this &ate.* 

### =You willnotet&t.YheAot,of .1903, whioh Is the preeent.law,quoted 

### above materially ahsnged the meapfne 4nd 

### applSoa&n or the 

### orlgiadl tit or 1889, ?zmt nading the two it will be obs4rv4d that th4 #lop8 of the sot we4 bzv+d4a 4d and rmd4 ta apply aot oalr to art10144 or .'~ trads and bmae+oe, but 

### to 'aids to oc41in9r44'~ al80 that, the 

### Anti-trust bat wa8 made to ap~lr to any aot cm ouublnatlon, the pusmae or,whlah wae t~tooreat& oreawry out 

### reatrlotlone in the I'?44 purrtult~sr'ariy

bu4lneaaauthorized or pern&ted **by** the4

law8 of this atate,* These materiel and far reaahlllg a&mdmente t&the law were &ad4 mbaequent to.the opinion of the Supreme O&t 

### of the State lo the (wee of the Queen Int&tinoeOomganyva. The State, 86 

### TOILLS, page 250, in whioh aaee the oourt held that the buslnass-~oS

lnaurenoewee not aiieotedby the Antitrtmt Aot; that insurauoe was neither trade 

### nor :-Wau&iMly, e oorporatlonexerofeiagthme

powcirn end~ianotionsis aiding oommaro~

### and thewuatxyin aterypraotioa&andaatarielrrayi

ArgWent **,woiUd**

qau su~m!#ous~ Oamaerae oaaa4* ex&*~;dthout oarh,**:grea$tf** 'MQ 

### 8, sybtem or-qwk 

### osrtdin.aad la4xp4b~lr4~4xa~r **Th464** :thjmgs.baakagupp2yc They +&loot-luto great resezqird thi tisk 44a areait. or th4 oaaafry,~~tdifohltlodl&rlbtlkdlnta lndtiqt* ~~~~:pmuztekoi in'such aaowtf sit&. at 

### awh-C~:~6r"btmineer mar,dmdi 'Btmk4 ag6 not pal*e ~Xak*a tuta 66semirs in whi6h sr6 qo;us&ts&mi+lur mites for rrdi@rlbutloD r0r pwpo6ass~ofirrigation, and **6r4 as**  **essen** t$ally'.aids'to **acmmr64 as**  the-lattsrto SW~S~~UX-~~~ pawti48k*. h 

### .ra4t, tk* sa~~~+uourt or the United atat48:hari-- 

### deobmd **th4** 

### .lmr0ty or the businwis of bank- *.’ t4 be TOM or ths prl.atarJr oonaltloM.or auoacr&ml 

### oonmero6s **In ale**  **0664 of**  **loobl4** ShtcBank~.~k, HBskell, 

### 239V. S.‘.lllt that oow'~la:~rerriag to the gllarlqty or bsn& **depodts,** '&alares:

- .: ~nt%mT~ b6 aeld in a genera&rajthat **th4 polloe~** power txt4n68**to** 

### all **.:lzhe grwit**  

### ..~~bllb n&de+ OsmfleLd

**vs. Unlbed**  **Statea,** 

### 147WI 8;':~

518, xt iay bs put io*b Yin a&a or'wht~t

lir~.sanc~tm~sd

**b**f hdld b&tke mevafilng mora **n-4, cm**  **1** lt$:‘or @rwg 8114 pr6pW~6rant~opioloa to b6 greatly.. 6na imakidiatsly **naa466arg to**  the **p@bl&a** welfarth **.Aaomqg**

matters **of** that **8orD gtab**  **lib4** iswrould daubt that'both !IM@ **and pr4poo~k**  O#alon gloi their amotion to enferolngthe primary oond$tlonsof **64aa466hx 06~~i4.rO4.**  02ie dr thas4 wnai- .tliis ht the pmsent tl6i6 Is ths possibllZty 'or,.paylpsnt

by @heWi drawn s&nst &nk deposi~ts,

to suoh an extait 

### do ohsoks hp%aoo~ crurmnop~ln dally bosl,nsss~fr t!mn.th+Lsglslatwe or the State think6 ~thad the publ.io

w6lfare raqulms themeasure 

### wider oonalaeretlont eitalogl

and 

### ~prlnolple

ir4 In ravor 

### of the powsf to **SWOt it.**  **.mOUk the**  **prim8ry ObjaOt..**  **Or th4**  required assessmmt 1s not a pr$vatsbene**fit+ as**  It **was in**  **th4 oases**  **abow** olted of a bitoh 

### ror Irrigationor a railw6y to 

### a tins, but it is to m&z6 the o~lcenoy**or sh4+**  **884Ur4, ana**  **by** the **saw stSOk4**  **fo nk4.**  **bat*:** **the** 

### almost **eompuls0ry** resort

_ or d4podtoru to bank6 **86** the'ofiyavailabls 

### me6~ rorkseplng money cm hand. t

**W4 0tmTlutZe,**  **on the**  whoX4 the& that **the bUSltl~6**  **Ot bank;frrg**  **i6** Wit& tit@ **PrOtOO-**

**,. ’**  tlte, ibafbttory and anal prOrls1~ o? th4

ent1~b+08D

:ans or thf

a **hta,** and that **beaks** m4 ~@mk4n.are as muoh bound to zssp6otthe aati-trrrcrt



### iani,as

are deelers 

### in amaodltleta. **ThtS Om61U6ion.**  **i6** in hiumonywith th4 tipinon the sabjeot.

or bsaklgg 

### On Jwwry ll, 1912,the 

### the state,.

in an ophiioa wrltt4nwth4 Ek0raW.a Jobn~U~B~dy, As* **tsat** Attorney Qenersl held thatsO.a@eamnt 4ntered info **betwodn** the ~~inetitutlons or a olty'proklbltlng ovedreifts;.

would **bb** * riolatlool-or

the al&i-tl'lIst

Zar; not that 

### w-bank on'

Lts owz..gotrion

ml& not prohibit mep3mrt+,bp th~?Q.whantwo or 1110~~ bauks enteared

into 

### a 0Omb~~~atlOn ror this purp064, 

### thatsueh~oombinatioi~ vi0iat4athe anti-trwt law;.,Thls0plnl0uwasprsdloat4a~p0nth4 

### propositlon~:~hat

tha.basklng

buainessr

wa8
**sa ‘** **aid** to~t%%weree, and **WSS** 

### a businessartthoriPed.aM perrmitted~by the **Ima ot**  this Stat4 

### and -lu:whloh.ths statuteproh@ltl)(l any 'a&ma&eat -ten$%sg

-torestriotths business. III this Op5.~%On

8Ul&e Brt@ in part.eSidS

**-The ’**  qtmstion **now mOUr8t**  **ma6** th4 **piaotloe** 0r allowing 

### 0ve*sft*, Oi~th4 **abaraotar** above ma, oonstltute60m

### meo~oraldl.to **oamm4r64?** 'Pam416 **ror** the propo6ltlonthat drafts, oh4&a and oomasrolali116tm+ asate **to** 

### raollltate **6onm4r44~;** 

### eud **if** nst 

### ptd or W ‘hoameroe itself, rairiy oome 

### witfdnth+tssm, aud 

### may be designated 

### as %ld6 to 

### eoeun4raet (ste4 

### 9 Hioh., 24l;mathan 

### we* Lcmisla~, 17 u. S., 507);aad the praatlo*-being

legal, any agrs6msntor uudmW,aadiag by Md between two or mme ba6ks or 

### a olty psohibltlngeb6olutelythe“( .-.. 8~6

: i

Easambla L&Moo S, Saw,ga, %a 

### 7

&%'hfi&$ or ssoh prltilegas, upon the part of.all th4 'pwtle6 to the agreemwt, 

### would ia4Or **O-W,, 4Z46tS**  **aab** ta6d:tO Ora& .I%@ :mOrrry:,ootr

rastrlotlcumlu

oamneme snd~ aid* to ouimm4r64

snd would tharararebs : rloEatlv%W Ssattion 1 af said A&...

., ._, .'**W4~ e4r4 ‘3urWar oi She opinion that suoh 66 'ikgr64asnt; *tie oraat4 and o&my out raStl'$OtiM'S'tn

the ,$l'W

plreoit Or 8 **business** 

### authorixt& **ore pemitted**  **by** the lsws or this mdi4i -rf)hh t&S 

### fXWTi&~~Or said **6$6tUt4,** Ths'banwmg pu@$468 I* **peaitfo&b~:pe~.l8M ’**  **~~t** tha uwIIp,og~lsshs in 

### the wsy af apart0rsuohbuslnes6 anaaumdland .fMllar feat- oi madarn bsskln~. Zndesd, sama c)r.:tha

autharltlastrWt tha ssme-98

### a prs~aal:"nsaasalty in the ,oonduot or suoh bt&inase, ,athough-thisr&or is boub$l4ss taa braad.~:.~At

all amnt6, wham 

### pursged With a reaiioWil4.degraa of prudanoa snd.aoosrd- -to the‘

ed+3ry **ueega,** it 18. frae~ 

### r4-0b6 gsllty, uud6r~c~eprasant state Of the 1s~~~; asid'~~egra'a~&nt **or** uuderstandlng' 2 when $ 'bsnk~ pasties to the sama 'bind thsase -6 m&to.grent this pririis&4to tbiir aGstoWss, oraatas and owrles **oUti** ?96triOhibtiS%Z

the rr66 DUMUit~Or choir

- buslnass.wlthfir

the mssobg:ai ssld~ Hstuta. **Ia the**  **abrieao4. o$**  **swWan a&reeme!It**  

### or under stanillsg-

the bankswau&d eaoh be fraa to illhi thl6 priri1~4,tq'their OUStbS~6~ aad,-slaoethei agree ta";dlsoantlnua tha **usage** and praotloe, they tharaby naoa66arlly restslot 

### thefr~



### .Cwedaat to aot in 

### a platter 0r y06p66 .WhiOh thW~O4a 0th4Z6166**b4** f~44

,~&a osnnat oasaalrahaw It ooutd be hex& beat,



### h&ar suohlan sgraamant asoh **P8tiY** theretoroula not bb rastrloting ~thafraa guqult or ~the

bu6iwss.Ot every ,othar 8rtY thereto, as:.wdll

as'his own busines6. Pt follaws frornwhathas bsan ssid that (~1agreem&t OS the ohsraotareuggestad would'ba illa&l @iwsuld subjeot the parties thereto to thei?&isllsltles

or the A4t.t Vol. 25, Opla&,i, ai the **Attorney** Oanaral, 171-2.: ,‘ i

l * Iowan mappsot~ aQvW3d that Strb**dm810n 1,**  

### ‘or **s0otion z**  **0i** 

### tb ml-trust Aot 

### 0r 1903,

d0rinOO a trwt **to be**  **+I +**  ***** 

### a oombination.or,

aa **lt8l,** skill **or** aots W **two or**  

### more pertsoa) P 

### r rm8, oiatt0n8

### or PWODII, 

### oorporaUon8 or a880- orl lther tutor 

### more 

### or th011-ror.OithOrr,.

an*,or 

### Cru0r therob lowing purpo808a

To oroa*e

or 

### uhioh

may tZ$% ‘22rS 

### tZId%?ZZ~ZZ E ,the preparationor any preduot .tor-niarkit or transportation OUt M8triOtiOM i 

### or to oreateor oarry

II chs rM0 .PW8uit Or w bU8ine88 aothoriwd 

### or permitted by lens Or thi8 88fitesa

of esobango,**&dt8~;..** end 'the paper to rhlaQ pu referram **in8tEURWlt8 t0**  **faOflitat0 0-0**  

### mere, 8nd 

### ~a.r **not** a part or th6 00maOro0 **it8df OhUu**  **OOMb** Within **the,** tOM **Wd** -~%f-ddtt8i@latOd 

### 'M clid t0 OOEWcOd' 

### (9 Mioh., S?t+l;

Hathasvrr.Loui818na,~ 17 UC 8.,- 

### 507) ; and any ooablnafion, agreenwnt **or** .tmdC%rHtding~O~~WII knka to rfx t&t8 Oha%!ge **ror** oolleotion8,~rould 8tltute a re8trioUon.intiw~eo&ti~,ay;
to oci~exie. in violationor said **a@.,~**

~hme iieotion

qu&ed, uhioh-prohlbite.the oreation or oarrylngout 0r the restriotime In the frw plr8Uit

### or any bwineee authorieed

### or petitted.by the **WV8 Of**  thie state. ~OlbOtiOli8 8UOh a8 **yi?U** have mentioned are a part of lmoh bwin98e, and any understanding

betweenbank to oharge -_

## Em3

. .

Tl$&e,le:little

thit we oaa'e+d4:~o'ths'fore@oing. Uter~oonald~~~hl6:~le~earoh, w have.tio?

forold-my oa&w In oonfllot.~mif;h.the

-0onolwicw wnouaos&~lh the &&i&on opin- :M Ol! $hosQ~f~Wh%Oh It'qWte8, ~enp~O&a~'@#lthe C+Ltrollin& .wlat :

0' that the Oondllo$

Of Q baUk*Q.bU&t~Qse I8 -an =aId.to.owiaQreQi~" 1~e WQ 'or ~piaii+i~~

wt. an agrd80nt or wu@r&an4lngd.by end be$weeuall the ban&i.,&'&o ty to a6ke oQr$aIn oh%.rees '(:euo&~ae

deEwrIbQd~$ik~$fwr

4u&lo~ uould~oonsitltut~

a ~*oomblnatIom

of oapitdl~~:adu 

### or aot8* lor the '&arpose

of. oarrylngpt rokitrlo~oa8in."aide to Pammrw~, la violation

### or the 

### provl8lowor hrtldles 7&26, R. 0. Srv and 1632; Penal Code, supra.

_ 

### Your8 wry truly A!i'TORlJY

GE&AL OFTXAS

Ben3aaf.n

Woodall **Assistant**