The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-06-18

The POTTERY TRUST
Joseph H. Choate's Great
Argument Against the
Protected Monopoly.
THE SUIT AGAINST THE ELEPHANTS
Final Hearing Before yice-Chan-
celIor Grey-M Mr.. Linda
bury's Defence.
THE SUIT AGAINST THE ELEPHANTS
Special to The Jersep Cltu Nc,rs.

iIeI1-SloIN, June lS, l696.-Ihe argument
IN the case of the Trenton Potteries Com
pany against Richard C. Oliphan ct al,
70 restrain the latter from engaging in
the manufacture and selling OF pottery
ware, was continued before Vice Chan
celor Grey in the Court of Cnancery yes
terday morning.
Counsel for both sides We're in court
early and when the court proceedings
opened at 1880 there were quite a number
OF spectators in the room
Mr.. r. v. Lfndabury opened the argu-
ment for the defendants, and after stat
ing to the court that he would quote de-
cisions in similar cases, mostly by Judges
of the English counts, in reply to the de-
cisions quoted by the counsel for the com
plairant.
Mr.. Lindabury then proceeded to go
through a very formidable pile Of law
books that covered one end of the coun-
sells table.
One of the most important points tina
Mr.. Lindabury tried to impress upon the
court was that such a covenant as given
by defendants to the Trenton Potteries
Company was sure to effect the public
welfare. He said that the intention of
the parties was an important thing to
COilS1ueT HI SuCn a covenant.
Mr.. Lindabury occupied the greater part
of the morning with his opening argu-
ment. and it was nearly noon when Mr..
Choate began his argument in the interest
of the defendants.
As a preface Mr.. Choate said thai in
following Mr.. Lindabury there was not
much TO- say IN regard to the law Of the
case to the court in a most complete man
ner more 50 than 1 could lave done,"
continued Mr.. Choate.
I'm presenting the case to your honor,
I would like to call your attention to one
point which was impressed upon the for
mer Vice Chancellor before whom this
this covenant was in its nature. divisable.
I'm the very elaborate and l may say
full argumen presented by the learned
or reference is made that this is a di-
visible covenant.
What is contained In Judge Lanning's
brief we do not know"
Mr.. Choate spoke of the long line of
decisions in the courts of New Jersey in
regard to this point and said that it re-
lieved the case of a great deal of difficult
ty.
The counsellor then proceeded to state
how that the ELEPHANTS had given the
pany under the supposltion that the same
kind of covenant vas TO be eNacted
from all five of the potteries that We're
purchased by the Irent ton P e ter mre Gem
Potteries Company, Mr.. Oliphant learned
that the Equitable and Crescent Potterles
had come in under a different covenant;
There were sanitary potteries before the
Trenton Potteries Company came In
sight. They had formed a combination to
maintain prices, when these promoters
commenced negotiations.
Mr.. Choate passed over the sale of the
ELEPHANTS Pottery to the Trenton Pot
teries Company and also remarked on the
d~erogatory statements made in the brief
Of the learned counsel for the complain
ants.
of the defendants forever. The defend
ants were invited into this combination.
It is sworn to by not less than six OH
plants and Mr.. Cook that the Trenton
Potteries Company had threatened that
any single house engaged in this industry
could not live against them.
Mr.. Bayne and Mr.. Tascott denied
this, but shall they be believed and every
one else be called liars.
The counsellor asked the Court to inn
agine that 1t was the year 1910 within the
period of the covenant, perhaps thirty or
forty years after the Trenton Potteries
Company had ceased to exist, and that
one of the younger ELEPHANTS versed in
desire to use that skill in the manufac-
ture of pottery ware. They would be told
by a court of equity that the covenant
was not worth the paper 1t was written
Mr.. Choafe said that a general coven-
ant in restraint of trade without limit as
TO SDace Is VOlQ. I1GT0 LII CUullSeIlOT
quoted various decisions on this point
n proceeded to say that people were
free to get their necessities; every man
should have a calling and be free to fol-
necessarily be void.
.sYour Honor asked whether the defend
ants We're artisans. They are in the high
noNexception If they were not. They were
engaged in the manufacture and selling
Defense says that it is not unlimited
in space to set aside Nevada and Arizona.
He says this is an artificial rule and may
have an artificial exception. But the Court
and not the artificial means to beat the
Mr.. Choate stated that in Arizona and
Nevada there wa no use for the goods
manufactured.
They have no water at certain times
and depend upon melting snow.
Here in Trenton coal is from 50 to S.
q ton, while in Arizona It is $14. In Tren-
ton water is plentiful; in Arizona it is
rs cents a gallon. Labor here can be OBJ
costs from IS to Sc.
This is the kind of a covenant that the
law abhors.. 1t is a direct violation of the
allowed to follow his calling.
Mr.. Choate had not finished when ad-
journment was taken Tor lunch.
TIL case was resumed promptly at two
o'clock. Every seat in the room was occu-
pied. Many prominent local counsellorS
were present. IS
goods manufactured in the Oliphant pot
terry.
He said suppose a sugar manufacturer
made a covenant will a refinery not to
engage in the manufacture of sugar,
would this prevent him from engaging in
any other part of the grocery business?
These promoters selected eight potteries
out of the 103 in the country, and when
they came to the public whose investment
they were taking, it was limited to sani-
The thing that these parties were deal
ing with was clear to both.
The one thing they We're hooking. for
was TO gain controi of the manufacture
of sanitary pottery.
Did THAT good will extend into a region
from; wliere no orders had ever come and
to where mo goods had ever been
shipped?
When this factory first started and
they hadf never sold goods outside of New
Jersey, how could their good will extend
outside of New Jersey?
Mr.. Choate spoke of the reasonableness
Of time. For fifty Years whether the
company stops business or not the de-
feniants afe pfeEentkd from carrying
on a business. The endurance of the
Trenton Potteries Company cannot be
guaranteed for five years 81 ten years.
Mr.. Chboate said he agreed with his
learnedafriend IN some points in regard
20 m~ondonolies. He cited that any share
folder Of the Standard OIL Company
could go u n prosecute the same.
business for himself.
If tile Court of Equity. could have
cahgfD these people before This covenant
waS executed t1if court would have re
Ilseu Ssaau.