New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-01
COURTS AND LAW EVASIoNs.

rna -es,,lt Of the decision OF the United STATES
suprems Court in the merger case Cutting
through all suhterfuge and refusing 10 permit
evasion of the law. ought TO be a spread OF mat
same spirit to the State courts ana ueterii
tion on their part to use their powers TO prevent
the virtual defiance of the State Ia" d! CUT
norations of its own creation.
Tho discussion of the Remsen East River
Gas hill has brought TO attention one method OF
evasion which so far as we know, mas hllheIto
been regarded as perfectly legal The Stahdaru
Gas Light Company has provision IN ltS cHaE-
fer that If shall not consolidate or in any way
.rinite with any other gas company, or ID any
"ray nool its earnings" The charter OF inc
Mutual Gas Company makes IL a mlsoemeailor
for the directors TO consolidate or transfer iLs
franchise TO any other gas company. Now, IL
is plain that the intent of the legislature was 10
forbid in the broadcast possible language any
combination OF gas companies and insure conn.,
netition in this public service That was the
clear purpose Of the law, and the clear under
standing of the incorporators at the time inc
charters were granted, and the companies were
in all good faith bound TO live mp 10 the condi-
lions OF their existence. Nevertheless. there Is
no competition to-day. Both companies are
owned BY the Consolidated Gas Company, ana
to all intents and purposes, so far as the public
IS concerned. a complete union has taken place.
which the intent OF the law could be evaded-
They have done Indirectly what was forbidden
directly. Perhaps they are not TO he blamed
overmuch for taking all that Is allowed them
by the disposition of courts TO let corporations
juggle with the statutes and concern themselves
with mint anise and cummin 10 the neglect OF
the weightier matters Of the corporation law.
This virtual consolidation Of gas companies Is
almost the same thing as the virtual consolida-
ton Of railroads sought by means Of the North
ern Securities Company. 1t is a consolidation
which takes refuge in the plea Of the inalien-
able right Of buying ard selling stock The Su-
preme Court dealt thoroughly with that plea
and established the doctrine that no device of
that sort could block the operation of law.
When combination was forbidden, it was for
hidden effectively, not merely in form, but IN
essence and the arm Of the court was able TO
reach combination in fact, matter how re-
moteIy it might be hidden in form. Why is
not that good doctrine for the NewYork Court
Of Appeals and for the courts Of every other
State? We do not blame the gas companies or
other corporations for taking advantage Of the
liberty allowed them to promote their own bust
ness interests They cannot be expected TO
take stricter view Of their charter obligations
than do the courts. II the government practi-
cally abdlcates its control over corporations and
allows at wholesale by indirection what It has
directly forbidden. the government is itself at
fault. It IS, however. notorious fact that in
many States antitrust laws OF the most COM
prehensive character are practically n dead let
ter, because clever lawyers have been able 20
devise schemes Of evasion and responsibility
which the judges are not equally clever TO cir
cumvent. Certainly the ingenuity OF Judge TO
enforce the plain intent OF law and discover
fact beneath fiction should be equal to that of
the lawyer to evade II and violate statutes in
the spirit while obeying them in empty form.