Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-07-18
TOUGH FOR TRUSTS.
The Antitrust Law of Illinois Begins
to Curb Combinations.
PITTSBURG CAPITAL FEELS 1T.
Purchasers From Illegal Trusts Can Refnse
to Pay for Goods.
SOME CORPORATIONS HOPE TO ESCAPE

| ESPECIAL TELEGRAM TO THE DIsPATCH.1
CHICAGO, July 1.-THE managers oi
various combines in the nature of trusts
which have their headquarters in Chicago,
are just now cudgeling their brains to know
what course to take with reference to the
antitrust act which was passed by the last
Legislature at Springfield, and became 6
law in Jnly. The act consists of eight sec
tions, and it is well worth careful reading
by Eastern manufacturers who are or may
become interested in this sort of organiza'
tions to which it relates. The first section
| provides that if any corporation, resident OF
foreign, any firm, association, or 1ndl-
vldual 'shall create, enter into,
or become member Of or party to any
pool, trust, agreement, combination, con-
federation, or understanding with any
other corporation, partnership, individual,
or any other person or association OF per-
sons, to regulate or fix the price of any arti-
| Gle of merchandise or commodity, or shall
| enter into, become a member of, or party
| to, any pool, agreement, contract, combina-
| tion or confederation to fix or limit the
| amount or quantity of any article, commod-
ity or merchandise to be manufactured,
mined, produced or sold in this State, such
corporation, partnership, or individual, or
other association of persons, shall be
deemed and adjudged guilty of conspiracy
to defraud."
Aimed at Glass Combine.
The second section reads as if it had been
aimed at the window glass combine, which
was made at Chicago several months ago by
the Pittsburg and Western manufacturers Of
that article. 1t provides that:
cit shall not be lawful for any corporation
to issue or to own trust certificates, or for any
corporation agent, officer, or employees, or
the directors or stockholder of any corpora
ton to enter into any combination, con-
tract or agreement with any person or per-
sons, corporation or corporations, or with
any stockholder or director thereof, the pur-
pose and effect of which combination, con-
management or control of such COM
bination or combinations, or the
manufactured product thereof, in
the hands of any trustee or
trustees, with the intent to limit or fix the
price, or lessen the production and sale of
any article of commerce, use or consump-
tion, or to prevent, restrict or diminish the
manufacture or output of any such article" "
The subsequent sections provide a scale of
fines of not less than $500 nor more than
1000 for the first offense, not less than
$1,000 nor more than s., 900 for the second
offense, not less than 5000 nor more than
SO, 900 for the third offense, and for every
subsequent offense the offender is liable to
fine Of $4,000.
Furnishing Trust Makers.
Several penalties are to be paid by any
Corporation or company, firm or associa-
tion" which may be found guilty of vio-
lation of this act. If any individual is
found guilty of this offense, his punish
ment is a fine of not less than 5000, nor
more than 81, 900, or imprisonment in the
county Jail not exceeding one year, or both,
in the discretion of the court. All con-
tracts in violation of the act are declared to
be absolutely void," and any purchaser
of any article or commodity from any indi-
vidual, company, or corporation transact
ing business contrary to any provision of
this act 'shall not be liable for the price or
payment of such article or commodity, and
may plead this act as defense to any suit
for such price or payment. 1t is made
the duty of the Attorney General and the
prosecuting attorneys in their respective
districts to enforce the act and the in
former is given one-ffth of the fines col
lected.
1t is already known that the act has
broken up the American Watch Case Man.
ufacturing Association, one of the most ex.
acting trusts in this country, with its head
quarters at New York, andlthe National As
of Jobbers in American Watches
which is dependent on it.
Effects of the Legislation.
This result is reached by the withdrawal
from the trust of the Elgin National Watch
Company, of Illinois, which, in circular
to the trade, stated that the new law was
&ba f0,. tic
Trust has also been abandoned, but there
has not yet been any break in the line of |
that large and powerful class of trusts |
which exist in the form of corporations. |
First and foremost among these, in point of |
capital and political influence and power, is |
the Whisky Trust, which is an Illinois cor |
poration, under the name of ''The Distil- |
lers and Cattle Feeders Association.
Another very prominent one, well known |
in the East, is the Omitted Glass Com
pany,"a corporation organized under the |
laws of New York, having its headquarters
1t Syracuse, in that State, and, as a corpor-
ation, owning the plants of 20 odd factories
n New York, Pennsylvania Ohio, Indiana
md Illinois which it operates. It's bust
les is all done from the Auditorium bnild- |
ng in this city. In every essential partic-
liar it is trust If the price of glass is
lot satisfactory, one or more of the factories
which it controls is shut down, or the work
If production in all ceases entirely until the
market supply diminishes and rates become
more satisfactory. The question is: Will
he new act put an end to trusts of that
haracter, which in form are business cor
,orations.
A Test for the Act
an be readily raised when the purchaser of
Window glass or spirits from either of these
ombines, pleads in defense of suit to en-
orce payment that his creditor exists in vio-
alton of the antitrust act, and asks to be
xcused from payment on that ground. I'm
il the courts have ruled upon it the attor-
eys of the incorporated combines" seem
Inclined to take the ground that they are
afe 1t is said that some of them have ad-
ised their clients to take the precaution
OF to sell any goods directly to this trade,
ut to make a sale first to some intervening
so that the antitrust act cannot
e pleaded as defense. i
Of course, if the incorporated trusts esa
ape, the act will, for all practical purposes,
OF be worth the space it occupies in the
atute book.
HFEn a H1nc ann nnrvTH