The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1890-07-04

The Sugar Trust Receives It's
Death Blow.


trust are fully affirmed By the Court OF
Appeals This fact was not apparent
in the first decision handed down at ten
o'clock. the decision being ; D clouded
with t~cchnicalities that its true in
tent was not apparent 70 one
not familiar with every phase OF
the case. AT eleven o'clock. however.
Clerk Parks announced TO tho anxious
group Of correspondents that there had
been q mistake in preparing the de- |
r~ision, his deputy clerk, or some one
else. had left out the most important
feature Of the decision. viz; The fact
that the court had affirmed in toto the
decisions Of the lower courts. The de-
cision was written By Judge Finch. in
which he says:
The Judgment sought against the defend
ant IS one Of corporate death. The state |
which created asks Us 60 destroy IL. and the |
penalty invoked represents the extreme
rigor 81 the law. lis infection must rest
upon grave cause and be warranted BY
material misconduct The life OF a corpo.
ration u indeed less than that Of the hum
@hest citizen, and yet IL cnyelons a great ac.
rnmulation Of property. moves and carries
N large volume the business ana enterprise
81 the people, and may not be destroyed
= fr"F- Ln0 ANAU4AnL reasons. InI< 1
would be true even IL the Leg stature should
debate the destruction Of the cor porate life Nj
" 4 repeal OF the corporate charter. bur i
Dtycnd dispute where the State summons
~ defender before It's udicialfribunals and
submits IL complaint 10 their Judgment
ahu view by that process IL assumes the
burden OF establishing the charge which n
mas made. and must show us warrant in the I
1acts Tor the relief which il seeks. Two OF ,
the charges preferred in the complaint have
dropped out OF sight. They were Of little '
Importance. and have been prudently dis q
missed from the inquiry for that reason
and We are lef, to consider the one grave
@ra serious accusation TO which alone the
proofs ana argument have been directed J
Ihaf accusation i adequate for the purpose
TOT which 4 T. framed. but upon two condi-
IONS. "hien dictate the line of Inquiry and
unit the area OF discussion. II appears ~
be settled that the State as prosecutor mnst q
sno" on the part Of the corporation accused y
some sin against the law Of It's being which =
nas prouuce1. or tends 20 produce. injury 10 q
ne pubic The transgression must not be u
merely formal or incidental. but mate c
"A a and serious; and such a. 10 harm or n
menace the public welfare. For the :,
Sts'e does not concern itself with thc IS
quarreis OF private litigants. II furnishes 81
~ 'hem sunncient courts and remedies. bur | III
.a'ervenes as a party only whore some pub. IN
- interest requires is action. Corpora -
49, tt| AVt tAEENU IDHIr an
wherein sheir private rights are AZ. N
'ec.ed- When these are adjusted all it, carr th
mos and all harm Is averted. Eut vines. -.
~ tIah>sression has a wider scope ana ~,
'nleAtens the welfare Of the people. they r.
summon the onender to answer for the Pa
lDuse OF is franchise or the violation OF its tn
oIporatic duty. The code of civil proced- an
au.norizes an action for that purpose ~
men the corporation has .'violated any M
xosis'on o. the law whereby 10 has forfeit Io'
{ ~ chartrr Or become liable TO be dis he
owed by the abuse Of its powers- eli
= number Of recent decisions in keep 4
~ with this line Of policy are quoted. ~
10 continues: cn'
Two questions therefore omen befor. NJ. Va
has the defendant eorporation *. Ke,
,eueu cr abused its powers. and. second. 1856
'es t~nat <xccss or abuse threaten or i.,rm Der
public welfare. We nnd disclosed sh.s ~ /,
ma become an integral part and element and
: eompinauon which Possesses over Il on
absolute control and dictates the extent 1888
~ manner and terms OF it. entire cuisines, the
WY. AL 80 stock Is in the central cor alw
ration dominated by q board consisting Cor
only eleven individuals. who took ana Met
striouteu % 10 own stockholders ccrtin : ure
tes OF the board. carrying = propor4ionate bill
crest " rhaf sE describes ns it, capital fors
'ck- itnss lost the power 10 make ! divi- den
ns..Mat'~ compelled 20 pay over It's net Cra
sss - the master whose servant is has VIII
Under the order Of that master acc
mas refused to ve1ne sugsr. and By 80 Cou
atn rs ic-scned the supply upon the / cen
.rktt.rh can mt stir unlszs she master his
rrUvSs' and yrt Is entitled TO ree>Iv~ from Kra
2 earnings OF 1.-The other rehDeries. asBassed eou
prohts IN the treasury of she hoard. its Tc
oportionate share for division s,song It's OF 4
m stockholders. owning tn snbssit utcd Am
rtincates. In return for this advantage IL foul
> be come liable 10 be mortgaged. not for SUR
-
y with funds Che controlling board when
AZ board reaches out for other coveted re.
All 81 this IL admitted BY the de-. =
ndant. The question 90 be determined. - ~
nethcr the corporation became the servant -
the board by its own voluntary action. or -
Z will and power Of Others. n what has &
. asccrtained 70 be that the no,
Of this corporation one OF -.
any. sold absolutely TO the board their -
tire stock. and the latter has merely 0rs
Ioscn directors in their own interest ana ord
e handling the property AZ absolute own tive
3 may. then IL Is difficult 20 see wherein I.
ic corporation has slnned or what u has -
more than for a time to omit 20 do Ios'
lsiness. This u the appellants theory. Diet
d the other hand II - commended that ma
'srs nsssr .as : sale. pu' q .rn., consti- Jur
Rcd were H. whole ha,v I, s,a"ea," Ro,
: In each corporation. necessarily repre-. Hui
anting and bonding tho corporation itself: livt
mt they transferred their shares to the ar
bard upon the trusts declared In the deed; S.~
'at the certificates. issued by the board were -"
% formal declaration 81 the trust; that the con
'rrorate stock holders parted with the dra
gal title TO their stock 20 the chosen trus- 50
60 with the power 20 vote upon Il. but re- III,
IL beneficial ownership through the ~
p~cration OF the certificates. and 90 the roi
entered a partnership with aw;
10 board In col troll. In constructing thes and
70 theories. the court says that in con. .a-
acts the buyer. which In this case was the -
pard, should bind itself 60 a term 81 sale, In
~ according 20 the stockholders. this was sto
% done. the board making no price. In dat
is case the stockholders alone nxed the
and the vendors did not sign the con-
act. but left q 20 be supplied ~ inference r
their action. They allowed the board, IN
Dwevcr. to nix the personal property pfece. !. 4
the light OF these events the board was -
IMPLY an agent. which IL the characteristic wit
q trust The action which placed the Mr..
ock In the hands OF n trustee shows that no hus
lie was intended but simply a transfer In .--
This q also proved ~ the mortg avc ny
anse. No absolute owners require per. abe
iission 20 mortgage. but here the supposed son
uycr- are authorized 20 put a mortgage on
~ stock Notwithstanding that the board
AL no capital or power % mortgage prop. I
We find twenty rcfinerics willing a. nut nj,
4elyDa an III. r..ufrut n - .n1h-