The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1889-11-30

gradual occupation of the entire feel
of the greater industries, with thei
, control of massed capital and thei
not infrequent intrusion into tn
arena of politics and government
this power must become one of tn
chief bulwarks of individual right
and property. The State can no
, slumber upon it, but must keep
always ready to chastise or destro
offenders with. When corporatiol
merges into trust it clearly disap
points the public purpose for whicl
it was formed. 1t ceases to hav
: any Independent existence, any rea
vitality, and has become but a par
of the machinery of monopoly. IT.
directors are no longer real directors
but are mere puppets and creature
of secret junto. 1t has violated
the fundamental condition of its be
ing. 1t is. using the powers granted
to it by the public to the detrimen
of the public. The State is, there
fore, bound to revoke the franchises
it has bestowed. In every Stat,
there exists, or ought speedily to b.
provided if it does not exist, the ap
propriate machinery, judicial ant
otherwise, for the correct ascertain
ment Of such offenses and the prompt
enforcement of such penalty.
CASE AGAINST SUGAR TRUST.
The decision of Judge Barrett in
the proceeding of the people of New
York to forfeit the charter of the
North River Refining Company be
cause this company had merged into
the sugar trust sustains these views
He properly brushed away the
technical pretense that the act Of
the stockholders did not affect OF
touch the corporation, and held that
the purpose to effect corporate COM
bination was but thinly disguised
that corporations have no authority
to enter into such partnerships as
are lawful for individuals; that in
so doing they exercise powers not
conferred by law, and, as legal con-
clusion, forfeiture of franchise and
dissolution follow.
While it was not necessary to go
further than this to sustain his
judgment, he also held that the com
bination itself-the sugar trusts
inherently unlawful by reason of its
tendency to prevent general compe-
tition and control prices, thus being
detrimental to the public and legal
monopoly.
Some of his words deserve to be
quoted. Fortunately the law is
able to protect itself against abuses
of the privileges which it grants.
And while further legislation, both
preventive and disciplinary, may be
suitable to check and punish excep-
tional wrongs, yet there is existing,
to use the phrase of distinguished
English judge in a noted case, plain
law and plain sense enough to deal
with corporate abuses like the pres
ent-abuses which, if allowed to
thrive and become general, must in
evitably lead to the oppression of
the people and ultimately to the sub
version of their political rights"
These are just views, and even
since my first draft of this paper,
the telegraph announces that the
Supreme Court Of New York in gen.
eral term has sustained them, hold
ing with Judge Barrett as to a ques-
tion suggested in my last article,
that a jury would be justified in con-
GLIDING from the trust deed itself
that the governing object of the as
sociation is to raise the price of the
product by limiting the supply,
which makes it criminol enterprise
in the view of the law. 1t held, &C.
cordingly, that the corporation pro-
ceeded against has entered into an
unlawful combination, and in so do
ing had renounced and abandoned
it's franchises. This decision has
yet to be reviewed by the Court of
Appeals of New York, but it is so
clearly "plain law and plain sense"
and SO clearly consonant with that
sound public policy that makes
sound law that cannot believe it
will be impaired in it's general prin-
ciples. This is a simple and speedy,
a just and efficacious way of dealing
with corporations that by the action
of their stockholders, or of a MAORI
ty of them, become parties to trust
If it be said that each State can
reach in this proceeding only the
corporations itself has created, and
that some law affecting non resident
corporations is yet required, it may
be answered that corporations exer-
else corporate powers outside of the
States which charter them not as a
matter of right, but of comfy, and
the extension of the same principle
that recalls the franchises of home
company will withdraw this comfy
from a foreign company in like
guilt
If the trust, therefore, arouse the
States to more systematic and
watchful supervision of the immor.
tai, but soulless citizens that they
create, and to firm and uniform re.
quirement of them that they shall use
the franchises granted them in strict
accordance with the terms and in
tention of their grant, they will not
have failed to subserve one very i'm
portant and benificent purpose.
FEDERAL ACTION.
But it is far more effective and
important to strike out the causes
of trusts than at the individual Of
tenders. If we can remove the
cause, we use the ounce of proven
ton that is better than a pound of
cure. We have attempted to trace
these combinations to their source
We have seen that while railroad
discrimination has, of the large
brood of artificial mononpolies, pro.
dnced the great original trust
unum sed leo-the existing prohibit
tory tariff is the teeming mother of
most of the combinations that por.
tend widespread or continu ed OPP
preston. The interstate commerce
law, evenly and rigidly enforced, will
gradually raise up competitors ia
the Standard monopoly. Had that
law been in existence for the past
quarter of century the oil trust
would never have been able to tram
pie down its competitors and make
| itsalf a mouopo1v