The sun. [volume] (New York [N.Y.]) 1833-1916, 1890-06-26
,.,Drtnew,o,osmearto 10 Kept a. low -

SHssnr me moo Of sueaRto b kept - low -
aoonsistenb with reasonable profit.
n. 10 Rtyetoeaoh refinery the benent OF
ali appliances and processes USED py Ine
others. and useful to improve the qusnty
and diminish the cost Of refined sugar.
III. To furnish protection against unlaWs
full combinations OF labor,
~, To protect against Inducements 20
lower the standard Of refined sugars, .
y. Generally to promote the interests OK
the parties In al lawful and suitable ways:
10 was held by the General Term that the
raal purpose Of the Sugar Trust, az revealed
by the evidence, was to destroy competition
and enhance the price Of one OF the neoessa-
ries Of life; and hence that the combination
was subject TO the condemnation OF the law
The Same court also declared that the acu
Of the North River Sugar Refining Company
In entering into the trust was an abandon
ment OF the authority vested In the corpora
ton BY statute for its management ana
government, and operated to transfer that
management to body Of men entirely dis
tinct from the body designated by law LOT
the control OF the corporation.
The opinion Of the Court OF Appeals wnon
IA written by Judge FINCH, is largely de-
voted to an examination OF the precise ieRel
character Of the Sugar Trust, and the con-
olusion Is reached that the combination is
really trust as q matter OF law. Itappears
70 have been commended in behalf OF the de-
fendant that It's stockholders had made an
ebsolute sale or transfer Of their stock to
the Board OF eleven, and as to this point
Judge FINCH says:
"If what has happened IL ascsrtained to be that me
OF this corporation one or many SOLD aose
lutey TO the Board their entire stock and have
merely chosen directors in their interest and are
managing the property absolute owners may then II
IA TO see wherein the corporation has snned or
what IL has done more than for time TO omit to do
business"
But the learned Judge goee on to say that
while the corporate stockholders parted With
the legal title Of their stock to the Board,
they retained It's beneficial ownership
through the operation OF the certificates
which they received in lieu thereof He also
refers to the fact that the agreement gave
the Board permission to mortgage the prop
erty. This provision would have been wholly
unnecessary II the transaction with the
Board had been intended to be sale, for an
absolute owner does not require permission
from anybody to mortgage that which be-
longs to him.
The conclusion Of the Court Of Appeals Is
stated In these words:
without either approval dsapprovAl OF the vevS
expressed by the courts below, wo are enabled TO de-
eide that in this State there be partnerships OF
separate and Independents corporations. whether d.
roctly or indirectly through . medium OF trust; no
substantial cancellations which avoid and disregard
the statutory provisions and but that manu-.
featuring corporations DO and remain several Al
they were created. or one under the statute"
This Is distinct assertion that under the
laws OF the State Of New York It Is illegal for
corporations to become copartners IN bust
ness; and the language in which 1t Is made
leaves little doubt that the courts will con-
denim all corporate combinations which are
partnerships In substance, whatever they
may be in form. so long as the existing laws
remain unchanged by the Legislature.