The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-10-25
BAD FOR THE TRUSTS.

A decision just rendered by the SUI
preme court OF Illinois promises tc result
in considerable trouble for the trusts, at
least in that state. The main principle
established by the decision is that no
corporation can transfer its interests to
arotha, corporation, with a view to the
formation of q trust, against the oprosi-
ton Of a stockholder.
The case decided was that Of the Amer
lean Glucose company, corporal on
whose plant had been transferred to the
American Sugar Refining company for
a sum equivalent to S2.o00.O0O In the
ownership Of the trust concern. The Chi
cago Real Estate and Trust company.
which owned $3.50, 900 of the stock
of the glucose company, objected
and applied to the court to prevent the
Incorporation of this property in that of
the trust. The court sustained its
contention and prevented the transfer.
The court held that under the Illinois
law trust was an illegal combination
and the parties who organized it were
engaged in combination TO defraud 1t
further held that stockholder could not
have his property disposed Of to such a
combination without his consent; ard.
Furthermore, that the state courts had
doing business within the limits of III
nois The trust, it is almost ne dless to
say, was organized in New Jersey
The agreement of the glucose conn any
was in effect not to engage further in
the manufacture of sugar from glucose
within certain distance of Chicago.
Speaking of the nature ard operation CT
this part of the agreement between The
two concerns. the court said:
The evidence shows that the manu1act-
ure of glucose and grape sugar and their
products is confined to certain corn
belt, where corn is raised, and that this
district is embraced within the territory
specified within the contract of Aug. IL
1897; that is to say, within radius Of
1.500 miles of Chicago. AS the evidence in
the record tends to show that glucose
can only be manufactured successfully
within this radius, the agreement not to
manufacture and sell it therein amounted
in effect to an agreement in total or gen
| eral restraint of trade; hence the agree
ment was void and stamps the transac-
! ton of which it was a part as Illegal.
Regarding this decision the attorney for
one Of the concerns intere sted says that
the litigation resulting is as yet only in
| it's infancy. No doubt he is correct. One
Of the parties being a foreign corporation,
the case will no doubt be sent to the
federal supreme court The decision of
throw much light on the true chara cter
of the remedies necessary to put an end
| to trust operation. Apart entirely from
the illegal character of the trust, it seems
court is correct that the manuf actuee
Of glucose sugar IS practically Impossible
outside Of the radius mentioned, that he
contract of the glucose company TO re-
frain from it's manufacture within that
radius is clearly illegal as being in re-
:straint Of trade.
It is with the other proposition laid
down by the 1nicnis court that the stu
dents of the trust evil will naturally be
concerned. If the federal courts su stain
the proposition that a stakeholder has a
right to stay the transfer of his took
with view to the formation of a mo-
nopoiy, the end of the trusts is not far to
| seek.
One Of the most significant results CT
the decision is that the stock of the
trust went down several points on
the announcement Of the action Of the
court Another is that, il the action Is
/ sustained it will affect every frost row
operating within the limits Of The state