Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-01-09
AGAINST THE SUGAR TRUST.
Judge Barrett Renders a Decision In
Eaxor of fho cfafo x,f Ara..-

Judge Barrett Renders a Decision In
Favor Of the State of New York.
NEW YORK, Jan. 9.-Judge Barrett, in tn,
supreme court circuit to-day, rendered deci
sion in favor of the attorney-general ant
against the sugar trust. The suit was brough
by the people of the state of New York agains
the North River sugar refining company by At
tOrney-General Tabor to forfeit the charter o.
| the North River company of this city on the
ground that IT had virtually passed out of ex
lstence by selling out all its stock to the sugar
| trust combinations and closing up all its works
The action WAS brought by Acknowledgement
Tabor for the forfeiture and dissolution of tn,
charter OF the North river sugar refining com
pany because it had exceeded its powers and
franchises in becoming member of the suga,
trust. Judge Barrett's opinion is a most ex
haustive one, and is probably the most impor
tant that has ever been written upon the sub
ject of trusts and monopolies. Judge Barrett,
to-day summoned the counsel on both sides be-
fore him and "a juror whose duty it was tc
merely formally render a verdict in accord
ance with the decision Of the court. Counse
for defendants took an exception to the ruling
of the court.
POINTS FROM THE DECISION.
In his decision Judge Barrett. saws: sIt did
not require the astute mind that prepared thi,
most original instrument to conceive that an
aggregation of partnerships, with the danger.
resulting from death and the exercise of indi.
vidual power, would never effect safe and per.
manent cohesion. Accordingly, we find as one
of the first provisions of the deed and as the
basis OF the so-called trust structure. a condi.
ton in substance that the partnerships shall
all be turned into corporations This in fact
was done, and thus several of these corpora
tions were organized for DE cypress purpose OF
creating the Gerry shares Of capital stock through
,csich TIE combination tcds TO be formed Partners
I'm, IL
and as such fitted themselves to enter the
combination within the terms of the deed"
Regarding the profits arising from the busi-
ness Of each corporation "to be paid over by il
to the board hereby created. and the aggregate
of said profits or such amounts as NAV be
designated for dividends, shall be proportion
ately distributed by said board, at such time
as it may determine to the holders of the GER
tificates issued by saiAboard for capital stock
as hereinbefore provided" Judge Barrett
says: 1T viii be seen that these dividends are
not to be declared or distributed upon the
aggregate capital stock of the corporations,
which is to be turned over to and held by the
trustees, but upon what might not inaptly.
in view Of these peculiar facts, be termed the
trust boards capital stock, namely, the trust
certiicates. Thus we have series of corpora
tions existing and transacting business under
the forms of law without real membership or
genuinely qualified direction-mere abstract
fragments Of statutory creation-without life
in the conceit or underlying association. Every
share of stock has been practically surrendered
and vital membership resigned. With the
transfer to the eleven trustees the shareholders
cease to occupy the position of ''ceistius que
trustent, with regard to the directors Of the
various corporations"
Speaking Of the scope of the examination the
judge says: "But they did not stop there.
Provision is made for the gathering in
Of every other existing refinery Tin
every instance to be incorporated) and in fact
four others have joined the combination
since the deed was signed by the origi-
nal partnerships and corporations and
the evidence shows that in the entire country
but Ave sugar redneries of the character in