Omaha daily bee., 1906-07-02
STATE ATTACKS on TRUSTS.
Missouri and Ohio Furnish Examples
of Effective Activity.
Brooklyn Eagle.

Brooklyn Eagle.
The antitrust activity is so great that
It is difflcult to keep track OF all the efforts
made under national and state laws to
hopple them, but the most recent cases
in Missouri and Ohio are so drastic as to
be of more than usual Importance The
Missouri antitrust law contains quite the
most remarkable clause in the history Of
trust batting. II reads:
Amy purchaser of any article or COM
modify from any individual, company or
corporation transactlng business contrary
to any provision OF the preceding sections
Of this article shall not be liable for the
price or payment of such article or COM
modify, and may plead this article as a
defense TO any suit for such price or pay
ment"
OF course the adoption or enforcement
OF that policy drought the country would
destroy commercial credit and introduce
something closely approaching business an
arehy Perhaps for that reason IL has
not been invoked in Missouri until the
present fight OF the Plumbers Supply
trust 10 freeze out all the plumbers in
ST. Louis who do not belong TO the Plumb
ers' association. The> Cahill- Swift COM
pany. member OF this combination, had
been dealing with plumber named Walsh,
and Walsh had paid his bills. But Walsh
did not belong TO the Plumbers associa-
ton and that body shut down on his get
ting any more goods from the members
OF the supply combination unless he would
| Join the association. When that ultimat um
was pronounced Walsh owed the Cahlll-
Swift company $50. He refused to pay
and when the company sued he proved in
court that II was a member OF an or
ganizstion In restraint OF trade and
/ claimed that debts TO such a creditor need
not be paid under the state law. Judge
Ryan sustained that view and threw the
| suit out OF court. That is, in Missouri
] II your creditor belongs 10 a trust you
can refuse to pay your debt, just as YOU
| can refuse 10 pay a gambling debt. The
trusts, like the gamblers, are denied the
benefit OF commercial credit and can only
safely sell those goods for which the Gus
| toner offers spot cash
| The Ohio case Is not so far reaching
in it's effect, although by 1t 1--WE prominent
business men OF Toledo were sentenced
10 Jail They were members Of the loca
/ Ice trust One OF them was convicted OF
combining to raise prices and the Others
pleaded guilty. The Judge inflicted th'
extreme penalty OF the state law, 500
fine for each and one year in the work
house. The Judge. however, intimated tina
| IL the prisoners should restore the money
they had heeced from the consumers b!
their artificial prices and should restore
ice to the price at which II was sold he
fore the combination was made he nigh
remit the Imprisonment part OF the sen
tence II those Toledo business men d.
not wear stripes for the next year, II viii
he upon those terms. AZ $4,000 fine mus
use up most OF the normal pronts OF TN
Toe business in a city Of that size for
season, and as the Illicit or trust profit
must be returned TO customers under tn
Judges offer, the case is likely 10 be
warning that the Valentine law In Obi
is not to be trified with.