The representative. [volume] (St. Paul, Minn.) 1893-1901, 1899-05-11

ST. LOUIS, Mo-, May 2.-Trusts operat-
ing as corporations in Missouri cannot col
lect accounts from their debtors. This
was decided by the circuit court of ap-
peals in a decision rendered here today.
Although on the surface the ruling hits
only the National Lead Co., it was handed
down in what was generally regarded as a
test case for all similar combines, and
hence it will have sweeping effect.
The decision was unanimous. 1t was writ
ten by Judge Bond and signed by Judges
Bggs and Bland, his associates on the
bench. The latter is a brother of Con-
gresham "Silver Dick Bland. The rul-
ing reverses the jury verdict obtained by
the company in the circuit court at Clay
ton, and was rendered despite lengthy
argument from one of the most brilliant
arrays of counsel ever united in the court
of appeals in this city.
The suit upon which today's decision was
rendered was instituted in 1897 against the
S. E. Grote Paint Store Co., which owed
the National Lead Co 81, ZOO for white lead.
The defense was that the National Lead
Co. was a trust, formed to control prices,
in violation of the provisions of the Mis-
souri, antitrust law Of 1891, one section Of
which read:
Any purchaser of any article or commodity
from any individual, company or corporation
tranSacting business contrary to the pre-
ceding sections of this act shall not be
icle or commodity, and may plead this act
as a defense to any suit for such price
or payment.
The case was first tried before Judge Hir-
eel and jury in the circuit court at
Clayton AS stated above verdict was
turned in favor of the National Lead Co.
The Grote company thereupon appealed with
the result that the decision is reversed and
the case remanded for trial.
The evidence showed that the National
Lead trust was organized in 1887 to con-
troll the lead and paint business of the
country. 1t continued under the trust form
Of organization until 1891, at which time it
had absorbed 80 companies in the United
States and Mexico. In 1891, following the
enactment in this state of the legislation
adverse to trusts. which today's de-
cision was based it was reorganized in
the form of corporation under the name
of the National Lead Co.
CLAIMED CORPORATION RIGHTS
The attorneys for the National Lead Co.
contended that the defense set up could
not stand, because the National Lead Co.
was a corporation, not trust They also
admitting evidence of the objects of the
corpOration-that is evidence tending to
show that it was corporation organized to
control prices as a trust. 1t was further
held that the company, having a charter
from the state, could be proceeded against
an individual.
THE crucial question in this case" saws
Judge Bond in his ruling. sis whether the
plaintiff corporation either in its organiza-
ton or business operations in this state, has
violated any of the provisions of the Mis-
souri, laws. That the predecessor of the
plaintiff. the National Lead trust, was an
unlawful combination both in purpose and
fact, is sufficiently established by the ma
ture of the agreement under which it was
created and the methods and practices re-
sorted to in furtherance of that agree
ment."
The decision then goes on to say that
the record shows the beneficial owners of
stock in the National Lead Co were the same
persons or companies which were subscrib-
ers to the National Lead trust and adds
that the corporation was professedly or
ganized to acquire the assets of the trust
and its charter authorized it to acquire
the stock of the other firms in the same
line Of business. Then Judge Bond says
"A combination which is illegal under
the antitrust law cannot be operated I'M
der the cloak of corporation by its con-
Stituent members Or governing bodies
If our legislature in Minnesota had
amounted to pinch of snuff it would
long ago have passed such a law, and
smashed every trust that sought to do
business in this state
Shall we try to carry Minnesota in
1900 for the Peoples Party, anu enact
this, as we'll as many other needed re-
forms?
What say you brethren?
We can do it if every man puts his
shoulder to the wheel Id.