New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-03-13
NEW.JERSEY NEWS.
THE TOBACCO TRUST WINS.
vIcE-cHANcELLoR REED DECIDES THAT
THE CORPORATION is A LEGAL ONE
AND THAT IT'S FRANCHISE
CANNOT BE REVOKED

The hill OF complaint against the American To-
hacco COMPANY which has been before the courts
of several States and on which vouminous testimony
was taken in the New-Jersey Chancery COURT WAS
dismissed yesterday in decision filed by Nice-|ha"
ccllor Reed The opinion by the Nlce-|hh"ceip'i
covers fifty pages OF typewriter manuscript ana
II decides in favor OF the American Iopacco |o'"
pany on every point.
The COMPLAINT was filed by John r. Miller Il Son.
OF Newark. IN 1858 II was in effect charge that
the manufacturers represented III ue coi'p""''
manufacturing ?s per cent of the whole prouuc' Oh
cigarettes. had Illegally combined TO monopohze 'ne
business and crush competitions: that the company
practically made consenees out OF jooDers. Placing
them under conditions TO sell at certain price ana
TO handle no other make OF goods. IL was under-
stood that the National Cigarette and TOBACCO Com-
pany was behind the prosecution. the case was
argued last November In Newark and jersey CHv'
eminent counsel being engaged on both SIDES IL
was contended for the American Tobacco Company
that. under the laws of New-Jersey. 1t had right
purchase many cigarette plants as II chose. and
that If In that way monopoly was obtained II was
not Illegal and that 1t had right TO sell goods
through consignees.
Vlce-Chanceor Reed. In his opinion. says In re-
gard to the ilegality of the corporation. that no
question OF that kind could be raised in court Of
equity: that the legal existence of corporation
actually formed and doing business can only be In
qulred into by the courts proceeding by quo
warranto. He could therefore. only deal with the
corporation as a legal entity.
The syllabus of the opinion Is follows:
Fir=t-A Court of Equity does possess the
power to restrain a corporation organized under the
forms Of law from performing acts within It's cor
taken in organizing the company may have been ir
regular, or because the purpose OF the ncorp0rators
Sscond~Under these condition. quo warranto is the
appropriate procedure To challenge the right OF the
corporation to exercise its franchises.
manufacturing
until Its charter Is annuiled by such proceeding at
law, has the same authority an Individual trader
or MANUFACTURE to sell or consgn its goods. to
select It's selling agents and TO impose conditions
Fourth--A decree restraining the officers and
agents of corporation from executing corporate
acts is the same as decree enjonng the corpora
ton itself.
In considering that part Of the complaint rcla-
ng TO the motives and practices under the plan Of
selling goods by consignee. the Vice-Chancellor
says:
If the conduct now the subject OF complaint had
been that of individual manufacturer instead
would think OF pressing before any the propo
sition that such conduct could be enjoined An in.
stock TO whom he pleases. any terms he p.eases.
and can refuse to sell to any one with whom. for
his reasons. however capricious, he does not
care TO deal He select his agents TO sell his
goods ana Ike any re U IN isb agent w
such restrictions to price or the terms of sale or
he pieases Within it these limits the power OF an
owner of manufactured goods Is absolute No court
would possess a sembancc of authority to annul
or enjoin at the instance OF any third party. any
arrangement between such an owner and his
can Tobacco Company and its jobbers.
Now. concedng that the American Tobacco Com
pany is q legally existing corporation. with the
power manufacture and sell paper cigarettes. IN
what respect does its power to deal with manu-
factured goods differ from the power Of indvld-
ual manufacturer 10 deal with similar goods? or
in what respect does the power of court OF equity
from It's authority to superintend the business OF
an Individual? The fact that a corporation Is an
entity :epresenting an aggregation of skill and
capital does not curtal its right TO transact the
business which the States charter empowers IL
to conduct with exactly the same freedom as a
citizen SO long as by the policy of this state inc
formation OF corporations Is permitted. so long
will the right of such artificial persons 10 act within
The scope OF its franchises he in no sense different
frnn he right of indiXidual