. 

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 th0 following 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 9114 am4. 

or, per+hd 

-*Any and all trurt8, monopoll anU~6onspfraoi4#,:$~3 reotralnt or trade, as here@ a4rlmdd; em 

prolgb$te~ ana +ooUred to be j.lla@l.~' 

Gi~$aialtlea are pre@oribed bo thcteznm at:&& ' 

oler.7b36 aml 7436 or the olvll oodo, uh+le Art&ale 1635$i 

the PemaXOode make@ a oriainal riolatlon a relony. 

While we have been unable to.rInd any baaelawupon 

the sabjeet, v&do $$nd an emlightsning dlsouealon uhioh 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 Aselsi tant Attorney f&erel aenlng ln the a6nInletmtlon 0r Attommy Oeneral'B. F. iooaey. :: 

The question r)84 whether banks 

1, operating in thin atate were emenable to the 

% 

rovlolona or 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 treaties is of auoh for04 we 

r: 

take the. liberty of oopylng at l%ggth. Arter quoting the pmg: 

olai~~~'or the statutes, he wrote as rOllmW 

& 
Hcaorabla Llnt40 S.~Savais4, Peg4 3 

802 

"The eirst qtleatfon r0r determismtion is ~~ 

whether orhot the basin448 ot bauklng 14 limit@, 

ed, afi4et4d, or oontr4ll46 by thhwo artloles 

of-the &atute~doflnlng prrrhiblt&~ and paawll.ng truate 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 roduoe the 

orease or rsduee the r! 

loduotloa, ‘or. inor o4mmodltfa4. 

p '00 of ~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 

standard or iigure, wh4mby lt4,m%oo to the 

pub110 8h4llbe ln4nyirrnnsr44ntmll4dor 

Oatfabllahedi any art1014 or omzloalty or 

merahahdla4, ,pro&me,. or oamnera 0 intendna 

tar &lo, 1184, or oonaimptlon ln this &ate.* 

=You will note t&t.Yhe Aot,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~to oreat& ore awry out reatrlotlone in the 

I'?44 purrtult~sr'ariy bu4lneaa authorized 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&tinoe Oomgany va. The State, 86 TOILLS, page 

250, in whioh aaee the oourt held that the buslnass-~oS lnaurenoe wee not aiieoted by the Antitrtmt Aot; that insurauoe was neither trade nor 

:- 
Wau&iMly, e oorporatlon exerofeiag thme 

powcirn end~ianotions is aiding oommaro~ and the 
wuatxyin 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~of irrigation, and 6r4 as essent$ally'.aids'to acmmr64 as the-lattsr to 

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, 239 V. 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, 

147 WI 8;':~ 518, xt iay bs put io*b Yin 

a&a or'wht~t lir~.sanc~tm~sd b 

hdld b&tke mevafilng mora f 

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 gtablib4 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$vats benefit+ as It was in th4 oases abow olted 

of a bitoh ror Irrigation or 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'ofiy availabls me6~ ror kseplng 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 zssp6ot the 

aati-trrrcrt iani,as are deelers in amaodltleta. 

ThtS Om61U6ion. i6 in hiumony with 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.whan two or 1110~~ bauks 

enteared into a 0Omb~~~atlOn ror this purp064, 

that sueh~oombinatioi~ vi0iat4a the anti-trwt 

law;., Thls0plnl0uwasprsdloat4a~p0nth4 

propositlon~:~hat tha.basklng buainessr wa8 

sa‘aid to~t%%weree, and WSS a business artthoriPed.aM perrmitted~by the Ima ot this 

Stat4 and -lu:whloh.ths statute proh@ltl)(l any 

'a&ma&eat -ten$%sg -to restriot ths 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, oonstltute 60mmeo~oraldl.to oamm4r64? 'Pam416 

ror the propo6ltlon that 

drafts, oh4&a and 

oomasrolal i116tm+ 

asate to raollltate 6onm4r44~; eud if nst 

ptd or W ‘hoameroe itself, rairiy oome 

witfdn th+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 agrs6msnt or 

uudmW,aadiag by Md between two or mme 

ba6ks or a olty psohibltlng eb6olutely the 
“( .-.. 

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 thararare bs 

: 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 autharltlas trWt tha ssme-98 a 

prs~aal:"nsaasalty in the ,oonduot or suoh 

bt&inase, ,athough-this r&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~e prasant 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&4 to 

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,-slaoe thei 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 oasaalra haw It ooutd be 

hex& beat, h&ar suohlan sgraamant asoh P8tiY 

thereto roula not bb rastrloting ~tha fraa 

guqult or ~the bu6iwss.Ot every ,othar 8rtY 

thereto, as:.wdll as'his own busines6. Pt 

follaws frornwhat has bsan ssid that (~1 agreem&t OS the ohsraotar euggestad 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 Strbdm810n 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) r P rm8, 

oiatt0n8 or PWODII, 

oorporaUon8 or a880- 

or l lther tutor more 

or th011-ror.OithOrr,. an*, or Cru 0r the rob 

lowing purpo808a To oroa*e or uhioh may 

tZ$%‘22rS tZId%?ZZ~ZZ E 

,the preparation or any preduot .tor-niarkit 

or transportation 

OUt M8triOtiOM i 

or to oreate or 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. in 

tiw~eo&ti~,ay; 

to oci~exie. in violation or said a@.,~ 

~hme iieotion qu&ed, uhioh-prohlbite.the 

oreation or oarrylng out 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! $hosQ~f~Wh%Oh It'qWte8, ~enp~O&a~'@#l the C+Ltrollin& .wlat : 0' that the Oondllo$ 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$weeu all 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. oarrylng pt rokitrlo~oa8 in. "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