The Cairo bulletin., 1909-11-24
ICE TRUST An
ILLEGAL COMBINE
JUDGE SHIELDS HOLDS THAI
POLAR WAVE COMPANY
VIOLATES LAWS.
CHARTER IS FORFEITED
stock Ordered Distributed Among
Seven Constituent Companies
Appeal is Probable-6is
Case in st. Louis.

st. Louis, Nov. &c. w. WhitelaV
president of the Polar Wave Ice and
Fuel Company. which was declared 9
combination In restraint OF trade. IN
violation OF the state antitrust law
by a decision handed down by Judge
George Fl. Shields in the circuit court
Yesterday refused to make any state
ment or say whether the corporation
would appeal the case to the supreme
court. Daniel N. Kirby. one OF the
FIRMS attorneys. stated he presumed
an appeal would be taken, but could
not say definitely
III Judge Shields DECISION is sus-
tanned by the supreme court, the
Polar Wave companys charter will
be forfeited and it will be ordered to
distribute its stock among the seven
companies from merger of which
it was created according to the origi,
nal holdings of these companies.
The court found that Immediately
after the consolidation of the compel
ing companies. the price Of Ice adj
vanced from So to soc per 100 pounds
The Polar Wave corporation was
organized February 10, 1903, through
a merger Of the following original
companies. American Ice and Fuel
Company, Muckerman Ice and Coal
Company, Union Ice Company Creve
Occur Lake Ice and Transportation
Company, Huse-Loomis Ice and
Transportation Company, HnseGood-
ell Ice Company and Hygeia Ice Com
pany. 1t has a capital stock of ST.
100000. Its officers are c. w. White
Law. president; John G. Muckermann.
vice president; l. G. Muckermann
treasurer and general manager, and
H.. K. Penning secretary.
Referees Finding oyerruled.
Judge Shields decision oyerrules
the finding of Clifford B.. Allen. before
whom the case was tried on its mer
its, as referee. Arthur N Sager, for
mer circuit attorney took exception
to the ruling Of the referee, and asked
Judge Shields to review the testimony
Judge Shields has held the case under
advisement for more than year. The
case was prosecuted by Loomis John
son, fourth assistant. circuit attorney
In his opinion Judge Shields critt
eises the ruling of the referee. say
ing The conclusions of the referee
ignore entirely the proposition that
no competition ever existed between
the constituent companies. The lack
of competition resulted from com.
munity of interests and parceling out
of the territory of the city by the re
tail companies in the ice trade. Then
the fact that there was no competi-
tion could not be used as an excuse
for the continuation Of the illegal
combination by the new corporation.
Judge Shields reference to the
Standard Oil decision by the United
States circuit judges in his opinion
shows that the effect of the latter is
already being felt in the state
tribunals.
Extracts From Decision.
Judge Shields decision in part is:
| am of the opinion that the com,
munity of interests which is shown
by the evidence to exist between the
stockholders of the three wholesale
companies and the family relationship
between the officers and stockholders
of the four retail companies are facts
to be taken into consideration in de
termining whether or not the re
spondent was organized as corpora
tion to perpetuate an illegal combina
ton existing between some OF the
corporations which were destroyed by
the transfer OF the assets to the re.
spondent company.
The whole report OF the referee
seems to be based on the idea that
1t was necessary to show an unlawful
combination existing between the
three wholesale and four retail com
panies. am not of that opinion. II
makes no difference whether all un
lawful combination existed at that
time.
am satisfied there was an rnlaw.
full combination between the four re
tail companies, that the lack OF com
petition between them and the whole
sale companies was the result of o
community OF interests and manage.
ment and that the reason there was
no competition was because they had
stified competition between them by
their understandings and agreements.
History Of the Case.
Sager filed his quo warranto pro.
ceedings in 1906. giving two specifi'
reasons why the charter of the com
pany should be annulled:
/. That the company had con
spired with other companies to form
trust to control the output and
price of ice.
2. That the methods employed In
merging three wholesale and four re
tail companies was in violation Of
section 1884 of the statutes regulating
the consolidation of companies.
The case was tried before Referee
Allen, appointed by Jesse Mcdonald
former circuit judge, and about year
later Aliens report was filed with
Judge Muench, sustaining the Polar
Wave. Sager filed exceptions to the
report, which were argued before
Judge Shields, May is, 1908. In this
instance Charles Nagel, now secre
tary OF commerce and labor, repre-.
scented the Polar Wave, and Sager and
Johnson the state. Judge Shields had
the case under advisement since that
date.
WHAT "AM6ERoL" MEANS.