Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-04-11
1T MAY TERMINATE OTHERS
Manufacturers Say That the ProViS-
ions of the Federal Act May
TRIPLE DAMAGES AND LAW FEES.
Inducements for Bringing Suits in United
States Courts Too Great.
TALKS ABOUT THE TRUST TROUBLES


with capital stock OF S35, 600, 900, and put
in operation with corps OF officers includ-
ing some of the shrewdest business men in
the country, and then suddenly dropped
like hot poker by all parties concerned.
there was no little curiosity on the part OF
the public to know why it had been so sud
denly abandoned. 1t was asserted by some
that the outcry against it bv the press was
the chief cause of the downfall of the
scheme, but, then, trusts usually pay very
Little regard to the press. 1t was then said
that certain large manufacturers like the
McCormicks had finally refused to 60 into
the scheme because they could not consent
to give up their individuality and take
trust stock for their immensely valuable
properties.
What the Manufacturers Say.
The manufacturers themselves explained
that it was because OF legal difficulties that
the scheme had been given up, but very few
people believed that, because trusts have
too often met and overcome all the legal
difficulties that could be placed in their
way. But the explanation last referred to
is probably the correct one.
An attorney of one of the firms in the pro-
jected trust said this afternoon that the rea-
son the scheme was not carried through was
because the lawyers could not convince the
capitalists engaged in it that the trust could
be operated without running afoul of the act
of Congress of last July in reference to trusts
and conspiracies In restraint of trade. Pull
Ing down a volume of session laws, he
hastily read over the act, which, with the
usual amount of legal verbiage, declares to be
illegal, every contract, com mbination, in
the form of a trust or otherwise, or con-
spiracy in restraint of trade or commerce
between the several States or with foreign
nations, "and
Furnishes Everybody Who Enters
into any such contract, combination or con-
spiracy with fine not exceeding S., 900 or
imprisonment not over one year. or both, in
the discretion of the Court, and imposes a
like penalty on every person who shall
monOpoliEe, or attempt to monopolize, or
combine or conspire with auv other person
o. persons to monopollze any part of the
trade or commerce among the several States
or with foreign nations;" and, as if that
were not enough, provides further that any
person who suffers injury In consequence of
the formation of any such trust may recover
tIlplC udLudStst COSIS duu alIOTuefS Ices
from the parties engaged in the trust
After running over the act of which this
is the substance, the attorney said that when
the attention of the firms had been called to
its severe penalties they put the question to
their counsel whether they were not vio-
lating that law by going into the trust The
latter replied that they were not. The trust
they said, was organized as a corporation
under the laws of Illinois. Each party
going into it would do SO in good faith.
A Regular Corporation.
They took stock in it and paid for the
stock its full value by turning into the in
cOrpOratel trust their respective plants and
the trust would operate them in the same
manner as an individual who might buy up
and run halfa dozen stores in various parts
Of the city. They cited the case of the
[ aited Glass Company, a New York cor
por2tiOn located in Chicago. which operates
about is different glass factories stretching
from New York to ST. Louis, which used to
compete with each other, and said that that
concern had never been interfered with.
But, the manufacturers urged, that COM
pany was formed before the act of Congress
went into effect, and they could not be con-
WINGED that the Agricultural Implement
Trust could be run without at least great
danger Of the prosecution of its members in
the United States courts. ''The upshoI of it
all was" saids he "that the scheme was
abandoned. The advantages to be derived
from it were not great enough to CON-
pensate for the risks.
Triple Damages the Biggest Bugbear.
Some of the manufacturers especially
feared that section OF the act giving to any
person injured triple damages for injuries
sustained through the trust, and the gentle
man road the follouno.
Section ANY person who shall he iniured
in hls business or property by any other person
OF corporation by reason of anything forbidden
or declared to be unlawful by this act may sue
therefor IN any Circuit Court of the United
States, in the district where the defendant re.
sides or is found, without respect to the amount
in controversy, and shall recover threefold the
damages by him sustained and the costs of
suit. including reasonable attorneys fee
The language Of that section" he con-
tinued, sis very broad and sweeping, and
the people engaged in that trust found that
they would be at once swampeG with
troublesome litigation. That act is COM
paratively new and has been brought into
the courts in only one instance, when pro-
ceedings were begun at Nashville,
Tenn, to prevent the formation of a coal
combine The courts have not yet put an
Interpretation on this section of it, and,
until they do, it will be hard to say just
1t Would Cause Endless Annoyance.
But there is no question that it might
cause endless annoyance to trust like that
for the manufacture of agricultural imple-
ments. suppose, for instance, that 1 am
an extensive farmer, and must have many
thousand dollars worth of machinery to
carry on my business. The trust is formed.
All competition is put an end to and the
price list doubled. 1 am, therefore, obliged
to pay just twice as much for my machinery
as L would have to pay if there were no
trust, and would be damaged just to that
extent. Under that section of the monopo-
lies act could sue the trust, and if l made
out my case L could recover three times TIE
amount OF the damage suffered, and also my
attorneys fee. What an inducement there
is in that to sue the trust The cost of be-
ginning and carrying on suit is compare
lively light; the profits of one, if successful,
NAV be enormous"
IF that act prevents the formation of the
Reaper Trust, why should 1t not also affect
trusts in other srticles-glass, for instance.
or anthracite coal?" the attorney was asked.
Other Trusts Would Be Affected.