The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-05-03
TRUSTS IRE TRUSTS
In Missouri and Can't Hide
Under Other Names.
DECISION OF IMPORTANCE
Missouri Law Forgives All
Debtors to Trusts.
DECISION OF IMPORTANCE

St. Louis. No, May 2-In the circuit
court of appeals today. with Judges
Bland, Biggs and Bond on the bench. an
unanimous decision was made in an ap-
pealed case, 10 the effect that a trust can
not cloak its objects under the form of a
corporation and evade the penalties pro
vided for violations of the Missouri anti
trust law of 1881. Under this decision &C
counts with trusts operating as corpora
tons in Missouri are not collectable.
In 1897 the 5. T. Gr0te Paint Store COM
pany owed the National Lead company
sl,-00 for white lead. Suit was brought
to recover the $l.7eO and, incidentally, il
is claimed, - harass the company. The
defense was that the National Lead COM
pany was a trust formed to control prices.
in violation of the provisions of the anti
trust law of 1891, one section OF which
reads:
ANY purchaser OF any article or COM
modify from any individual. company or
corporation, transacting business contrary
to the preceding sections of this act shall
not be liable for the price or payment OF
such article or commodity and may plead
this act as defense in any suit for pay
ment"
The case was tried before Judge Hirzel
and jury in the circuit court at Clay
ton. A verdict was returned in favor Of
the National Lead company. The S. F.
Grote Paint Store company Appealed To-
days decision reverses and remands the
case for re-trial. The evidence showed
that the National Lead trust was organ
lied in 1887 to control the lead business of
the country. 1t continued under the trust
form Of organization 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. fol-
lowing the enactment in this state Of leg
islation adverse 10 trusts, it was reorgan-
lied in the form of a corporation, under
the name of the National Lead company.
As the attorneys contended in the trial Of
the case that the defense set up by the
attorneys of he S. F. Grote Paint Store
company could no stand because the Ma
tional Lead company was q corporation.
not trust. they argued to the court Of
appeals that the trial court had erred In
admitting other words in evidence tend
ing to show that it was a corporation or
gantzed to control prices as a trust 1t
was also claimed that the company. hav-
Ing 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:
'The crucial question in this case is
whether the plaintiff corporation. either
in its organization or business opera tons
in this state. has offended any of the pro-
visions Of its laws. That the predecessor
of the plaintiff. the National Lead trust.
was an unlawful combination. both In pur-
pose and fact. is sufficiently established
by the nature of the agreement under
which II was created. and the methods
and practices resOrted TO in furtherance
of that agreement"
The court of appeals decision goes on
10 say that the record shows that the
beneficial owners Of stock in the National
Lead company were the same persons or /
companies which were subscribers TO the
National Lead trust. and declares that
the corporation was professedly organized
to acquire the assets Of the trust and that
its charter authorized It 70 acquire the
stock Of other firms in the same line Of
business. Judge Bond who wrote the de-
cision, SAYS: "A combination which IS
Illegal under the antitrust law cannot be |
operated under the COAX OF a corporation |
By it's constituent members or governing
bodies"