The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1890-07-09

crizatlon of that organization and its
business methods by every Court of
the State of New York, rs well as
by The Superior Court Of California,
to be affirmed in due time, no doubt,
by the Supreme Court Of this State +!
DO they think that any possible hope
or chance of gain can justify Il
criminal conspiracy to plunder the
American people2 And do they not
now comprehend that the .attack
upon the Treaty, which has been left
without q solitary defender in the
United States, is the result of their
tlagrant disregard of the moral obh-
cations of that solemn engagement,
by becoming members of the Sugar
Trust, and Lending themselves to n
conspiracy against the American
people which the Courts declare TO
be unlawful and criminal!
THE DECISION
Of the New York Court Of Appeals
fits The case Of the American Sugar
Refinery SO exactly, that the follow
ing extracts are made for the edifi-
cation of all who may be interested
in that doomed concern. IT says:
"the judgment sought against the
defendant is one Of corporate death
a state which created asks us to
destroy, and the penalty invoked
represents the extreme ri9or of the
law. Two questions open before
us: First, has the defendant corpo-
ration exceeded or abused its
powers? and second, does that eX-
cess or abuse threaten or harm the
public welfare? We find in evil
dence that it has become an inte-
grail part and element of a combna-
ton which possesses over it abso
lutte control and dictates the extent
and manner and terms of its entire
business activity. The defendant
corporation has lost the power to
make dividend, and is compelled
to pay over its net earnings to a
master whose servanfit has become.
Under an order from that master,
it refused to refine sugar, and by SO
much has lessened the supply upon
the market. 1t cannot stir unless
its master approves, and yet it is en-
titled TO receive from the earnings
Of other relincries, amassed as pro-
fits in the treasury of the board, its
proportionatc share for division
among its own stock holders, who
now own substitute certificates. Ir
return for this advantage it has be.
come liable TO become mortgaged,
not for its own corporate benefit
alone, but to supply with funds :
controlling board when that boart
reaches out for other coveted re
fineries. All this is admitted b,
defendant
The decision, after further con
sidering the formation OF the trust
says:
1.-The defendant could have pre-
vented it being founded by refusing
to register or recognize the legs
transfer of stock. They should hav
appealed to the law, thus shatterin
the trust at the outset. The Ques
ton to he determined is whethe
the conduct of the defendant in aid
ing to form the trust was illegal
In all these points which have bee
reviewed it is found the corporate
was doing the public an injury anc
: in avoiding the State law wbic
compels the reservation of corpol
ate rights, proved unfaithful TO il
charter. The present corporatio
, or trust puts upon the market
capital stock, proudly defiant of th
: actual values and capable of III
limited expansion. 1t is one thin
: for State to respect the rights {
ownership, and quite another thin
Q to add to the possibility of the flu
Their extension of their consequence
by creating artificial authorities
y the management of such aggreg'
i tions. If corporations could con
t bine and mass their forces in soil
Il trust, with little added risk to cal
e ital already in, without limit to ma:
o nitude, tempting and easy road
: opened to enormous combination
G vastly exceeding in number az
n strength any possibilities of individ
h al ownership. The State seeks
! protect individuals rather than col
! binations."
It Concluding the opinion says:
o "The defendant corporation b
violated its charter and failed
e the performance of its corpora
IS duties, and that in respect SO ms
e erial and important as to justify
y judgment of dissolution. We hol
h besides, that in this State there C.
a be no partnerships of separate al
n Independent corporations, wheth
"a directly or indirectly, through t
he medium of trusts, and no substa
he tial consultations which avoid a
y disregard statutory provisions a
i. restraints, but that manufacturi
IN corporations must be and RENE
j. several as they we're created, or 0
ne under the statute. Tho judgmC
T. appealed from is affirmed, "
ne costs"
Sc -