The Penn's Grove record., 1905-03-03
TEXAS TRUST LAW VALID
United States Supreme Court Up
holds State Judiciary.
COTTON OIL MONOPOLY HIT
Power to Tax Beef Trust Also Confirmed
Long Fight of "Lone Starr Corpora
tions E~nds-Justice McKenna Hands
Down the Deeision-ChaIters of Two
Companies Forfeited.

Down the Deeision-ChaIters of Two
Companies Forfeited.
Washington, D. C.-Two cases Of
great Importance were decided by the
United States Supreme Court, and one
of them, confirming the validity of the
Texas Antitrust law, puts it immedi-
ately within the power of that State
to regulate every monopoly doing bust
ness there, and make all obey the law
the same as any individual.
The Texas Antitrust law is the
most sweeping in the country, and
many lawyers have held that the Su-
preme Court would never affirm it's
validity. This, however, it did, and by
its decision declared forfeited the char
tiers of the National Cotton Oil Com
pany and the Southern Cotton Oil Com
pany.
These two corporations ignored the
Texas law and repeatedly violated it's
provisions for the purpose of making a
test case The Texas Supreme Court
found the National Cotton Oil Company
guilty and declared that il had for
feited its right to do business i'll the
State.
The case Immediately was taken on
appeal to the United States Supreme
Court, the oil company holding that the
Texas Antitrust law was plainly un-
constitutional and violated the right
of contract. The final court, Justice
McKenna writing the opinion, holds
that the law is valid; that the corpora-
tons were guilty and that the decision
of the Texas court FORGETTING their
charters must be upheld.
The State charged that on the LIST
named entered into a combination with
each other and with various other
firms, and as a result of that arrange
ment became parties to a trust and
agreement whereby they agreed to fix
the price at which they would buy cot
tonseed and whereby they would regu-
late and fix the price of cottonseed."
In general terms the State of Texas
contended that, in making such an
agreement, they had violated the State
Antitrust law, and had forfeited their
permit to transact business.
The plaintiffs in error alleged insult
fciency in law, and that the law was
unconstitutional and discriminatory.
The Supreme Court thus has held
that the State had the right to pass the
law and that it had the right to inter-
pref it and apply the penalties.
The second aSe affirmed the cOnsti-
nationality of the Georgia law imposing
a tax Of 5000 on the agents Of packing
houses in each county of the State.
The test suits were brought by the At
lanta agent of Nelson, Morris & Co..
of Chicago, ILL.,, who held that his cor
poration was doing an interstate bust
ness and the State tax could not be
imposed.
The Georgia court decided that in
cases in which meats were consigned
to an agent to be distributed to pur-
chasers the law could not be sustained.
because it would be an interference with
interstate commerce, but that cases in
which they are shipped to him for sale
it is valid, and the agent is liable for
tax. The opinion, delivered by Justice
McKenna, colcurred with the view of
the Georgia court.
1t was acknowledged, said the Su-
preme Courts opinion, that the greater
part Of the business of packing-house
agents was in delivering meats pre-.
viously ordered, which was clearly in
terstate commerce. But it was equally
clear that they carried on domestic
business, such as selling of meats.
In line of previous decisions, it made
no difference how small a part the do
mestlc business was compared with the
interstate business, or even if it were
merely incidental. it made the agent
subject to the whole tax. AS to the
contentious of the appellant that it de-
MED him the equal protection of the
law, being a tax only on corporations
outside of the State, the opinion said
tnat while the Court might suspect that
was the effect of the law, yet it did
not show on the face of the act.