The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-05-03
TRUST LAW TESTED
Decision Handed Down by the Missouri
Court Of Appeals.
THE ACT OF 1891 SUSTAINED.
Trust Can Not Cloak Its Objects Under
Form Of q Corporation.
THE ACCOUNTS ARE UNCOlLECTABLE.
THE ACCOUNTS ARE UNCOlLECTABLE
The Case Of the National Lead Compan,
Remanded for Retrial.
BIGGEST TRUST OF ALL ABOUT COMPLETED
steel Interests VIII be Combined
with n Capital of $500, 600 900.
Big Advance in Prices.

St. Louis, May 2.--In the circuit court of
appeals today. with Judges Bland, Bggs
and Bond on the bench. a unanimous de-
eislon was made in an appealed case to the
effect that a trust can not cloak its objects
under the form OF corporation and evade
the penalties provided for violations of
the Missouri antitrust law OF 1891, I'm
der this decision accounts with trusts
operating as corporations in Missouri are
not ccllectabe.
IN 1897 the S. Il. Grote Paint Store com
pany owed the National Lead company
$500 for white lead. Suit was brought TO
recover the $500 and Incidentally 1t is
claimed, to harass the company. The
defense was that the National Lead COM
pany was trust. formed to control prices
In violation of tho provisions OF the anti
trust law of 1891, one section OF which
reads:
ANY purchaser Of any article or conf
modify from any individual, company or
corporation, transacting business contrary
to the preceding sections of this act, shall
not be liable for the price of payment of
such article or commodity and may plead
this act as defense to any suit for such
price or payment"
The case was tried before the circuit
court at Clayton and a verdict was re-
turned In favor of the National Lead com
pany. The Grote company appealed To-
days decision reverses and remands the
case FOR retrial
The evidence showed that the National
Lead trust was organized in 1887 TO con-
troll the lead business of the country, 1t
continued under the trust form OF orgaDl-
cation until 1891. AT which time ii had
absorbed thirty companies in the United
States and Mexico, engaged in the paint
and lead business. In 1891 following the
enactment by this State Of legislation ad-
verse to trusts 1t was reorganzed in the
form of corporation under the name OF
the National Lead company. The attor-
news for the National Lead company con
tended In the trial Of the case that the de-
Tense set up by the attorneys OF the y. u.
Grote Paint Store company could not
stand because the National Lead company
was corporation, not trust They ar
gued to the court Of appeals that the trial
court had erred in admitting evidence Of
the objects of the corporations In other
words evidence tending to show that II
was corporation organized to control
prices as trust.
II was also claimed that the company,
having a charter from the State could
only be proceeded against in the name
OF the State and not by an individual.
In its decision the court Of appeals says
1.-THE crucial question in this case is
whether the plaintiff corporation, either
IN It's organization or business operations
in this State has offended any OF the
provisions OF its laws. That the prede-
cessor of the plaintiff. the National Lead
trust. was an unlawful combination. both
in purpose and fact. is sufficiently osiab-
lished by the nature Of the agreement IN
der which 1t was created. and the practice