The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-06-14
Judge Gibbons's Ruling that the
Company Is an Unlawful Trust and
Its Charter Void Sustained.
MUCH LITIGATION PROBABLE
OWNERS OF DISTILLERIES WILL
HAVE TO FIGHT FOR POSSESSION.
Plants Guarded ny Deputy NnrshaIs
to Prevent Surprise-Vicws of Me-
Nulta, MolOney and Others.

SPRINGFIELD, Ill.,, June 13.-The Su-
preme Court OF Illinois to-day fled It's opin-
ion in the case of The People VS.. the Dis
tilling and Cattle-feeding Company. The
judgment of custer entered by the lower
court is affirmed. The effect of this de-
cision will be to break up the Whisky
Trust In course of the opinion the
court says:
''No one who intelligently considers the
scheme of this trust, as detailed in the in
forma ton, can, for moment, doubt that
il was designed TO be and was in fact, a
combination in restraint OF trade and that
it was organized for the purpose OF getting
control of the manufacture and the sale
OF dstillery products, so as to stifie COM
petition and be able to dictate the amount
manufactured and the prices az which the
same should be sold, and that its effect
is to create, or tend 10 create. a virtual
monopoly in the Manufacture or the sale
of products of that character No rational
purpose for such an organization can be
shown consisting with an intention TO al
low the business 10 run into It's normal
channel, to give competition its legitimate
operation and 10 allow both production and
prices TO be controlled by the natural infiu-
ence of supply and demand, and the re-
suits, as shown by the information. were
such as might be anticipated. The trust OBJ
taned possession of nearly all the distil-
leres and nearly the entire distiilery prod
ucts OF the United states. thus enabling it
to dictate prices and the amount OF produc-
ton and thus to draw 10 itself substan-
TALLY the control of the disfillery business
OF the coustry.
The court cites large number of de-
cisons showing combinations of similar
character that have been held illegal in
other States. among others the Match
Trust. The opinion continues:
.'But il is urged that the defendant. by its
charter is authorized to purchase and own
distillery property and that there IL no
limit placed on the amount of property
cate of organization il is authorized 10 en-
gage in general distilery business in llli-
rois and elsewhere and 10 own property
necessary for that purpose. It should
incorporate charters are to be
construed strictly and that what is
denied. The defendant is authorized to own
such property as is necessary for carrying
on it's distillery business and no more Its
power 10 acquire and hold properly Is linn
tied 10 that purpose and IL has no power
by it's. charter TO enter on scheme or get
ting into its hands and under its control
all or substantially all the distilling plants
and distilleres of the country for the pur-
pose of controlling production and prices,
or of crushing out competition and OF es-
tabishing virtual monopoly In that pusl-
ness. Such purposes are foreign 10 the
powers granted by charter. The acquisition
OF property TO such an extent and FOR such
purposes do not come within the authority
TO own property for the purpose or carry
ing on a general distlllery business. In ac-
Quiring distillery properties in the manner
and for the purpose shown in the isrorna,
tion, the defendant has not only msused
and abused the powers granted by IT'S
charter, but has usurped and exercised
powers not implied by il and which are
wholly foreign 10 that instrument.
MR.. MOLONEY Is SATISFIED.
Attorney-general Moloney, speaking of
the decision, said ''The Supreme Court
practically holds that the Distilling and
Cattle-feeding Company is trust, and
that as such, Judge Gibbons, of Chicago.
did right in pronouncing a judgment Of
civil death against it. The Supreme Court
also decided that the Attorney-general was
right i'm his views of the law regarding the
matter, and that the Distiling and Cattle
feeding Company is no more than con-
limitation Of the old Distilers' Cattle-feeding
Trust. The decision is one Of the ablest
opinions ever delivered by the Supreme
Court of this State. In no uncertain Ian
guage il sounds the death knell of trusts
in this, state forever. On every 9 point in
Continuing Attorney y-general Moloney
said lit is plain, also, from the language
used by. the Supreme Court In the case that
the Pullman Palace Car Company will meet
with the same fate at the hands OF this
court that the Whisky Trust has met with:
The Supreme. Court has expressly decided
of this State have only such express powers
as are granted TO them. and that their pow
must be strictly cOnStTutu, anu all
is not given to them in express Language is
denied. The words of the supreme Court
are: 1T should be remembered that grants
of powers in corporate charters are 10 De
construed strictly, and that what is not
clearly given is by implication denied. The
defendant is authorized to own such prop
erty as is necessary for carrying on its dis
tillery business. and no more. Its power TO
acquire and hold property is limited 10
that purpose
Attorney Levy Mayer. representing the
reorganization committee, regarded the de-
cision as victory. we have been
| anxiousiy waiting for this decision he he
come i'm the way OF an affirmation. III
removes all obstacles from the way OF
the reorganization committee and makes a
reorganization now matter OF but few
days. Attorney general Moloney has done
most excellent work. We were associated
with him in the preparation Of the in
stages of the arguments before Judge
Tuley. We saw in the proceedings the
only opportunity at the G time s,, OF getting rld
The Supreme Courts decision affirms the
Judgment OF custer rendered by Judge Glib
bOns. The effect of the decision is TO de-
prive the company of the right to con-
tinue business. The statute. however, of
this State makes express provision for
Just such a case as this. IL provides. in
language. that the corporation shall con-
Iftinue its corporate capacity during the
term of two years for the purpose of col
lecting the debts and claims due the cor
poration and selling and conveying the
property and effects thereof. The law
also provides that the corporation shall
have the right to use its corporate name
for the above purposes, and that ii shall
be capable of prosecuting and defending
all suits at law in equity. Receiver
McNulta has the right to temporarily con-
tinue the business until an advantageous
sale can he made of the property The
Supreme Court decision makes a sale OF
| the property. which is now in the hands OF
| the federal court receiver. inevitable. Ii
| is this sale for which the reorganization
| committee has been striving might and
| main ever since Mr.. Greenhut removed
| from the receiyership. There can be now
| no successful flibustering or obstacles in
| terrosed TO the sale OF the proeprty fol
which our position is and has been ready
! for several weeks We know of nothing
| which more satisfactorily facilitates the
| purposes OF the reorganization committee
than the decision Just announced by the
| umph thus far of the plans OF the com
| ,,,i,t