Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1909-02-11
DEBTS 0UTLAWED
TREMENDOUS DECISION OF SU.
PREME COURT ON COMBINES.
Cannot Collect Bills. The Effect is
WideSpreading, and Points TO Elim-
inatiOn of Price eCOmbina !iOnS From
American business Life. Debts
to Trusts are N'itiH'"od

WASHINGTON, d. c., Feb. O.
Another decisive move in the slow,
but apparently sure process of rem
dering the existence of Trusts i'm
today by the supreme court of the
United States when it handed down
a tremendous and sweeping decision
that outlaws every debt owed to a
trust
Thus is placed in the hands of ev-
cry citizen a weapon that can be
used with deadly eMect against all
illegal combinations formed for the
purpose of throttling competition
and promoting monopoly. Under the
decision all Trusts and combinations
that seek to restrain trade by means
of contracts with jobbers and retail
ers regulating prices and methods of
sale are placed in the pirate or out
law class that have no standing in
the courts. and they cannot collect
QeDtS or enforce contracts.
Gripping Blow to Big Concerns.
Taken in connection with the de-
cision of the same court couple of
wONs ago in the WatersPierce Oil
company case, which came up on APP
pedi l4v4n .o.>..o, today piO-4odnce-
ment by the highest tribunal of the
land appears to mark the beginning
of the end of the Trust era in our
commercial and industrial develop
ment. 1t is predicted BY lawyers
that the effect of todays decision
will be Ear reaching and will make
absolutely necessary a rcorganiza-
tion of the many great concerns
formed in the last Is or 20 years
for the purpose of dominating GER
tain great lines of industry and
commerce.
The case on which the decision
was rendered was that of the Con-
tinental Wall Paper company, other
wise known as the Wall Paper Trust
against Louis Voight, Sons G. Co., of
Cincinnati, large jobbing firm.
This firm seems to have made heavy
purchases from the Wall Paper Trust
and refused to settle a balance to
the Trust of $59,670.10.
In order to do business with the
Trust the Cincinnati firm had been
Obliged TO enter into an agreement
not to sell the Trusts goods below a
certain price. The object of this
agreement was, of course, to stifle
competition, restrict trade and in
sure the Trust control of the wall
paper market. The Trust sued Louis
Voight, Sons & Co. in the Sixth ju-
dicial district to obtain payment of
the balance Of $59.670.10, and the
decision of the court was against
the Continental Wall Paper COM
pany, which then appealed to the
supreme court of the United States.
The latter in it's decision today
held the lower court on the broad
ground that the courts of the United
States could not be used to collect
debts which accrued under illegal
agreements such as that made by
the Voight company with the Wall
Paper Trust.
The Continental Wall Paper Com
pany is what is known as a hold
ing company" for the National Wall
Paper Company and other manufec-
turers of wall paper. 1t was form
ed in 1898, under the laws of New
York, with a capital of 100000.
1t controls 80 factories in New
York, pnnnsvlvoria. Now Jersey
and Massachusetts, producing SO
per cen, Of the doiues.lc output Of
wall paper. The articles of agree
ment show that the National Com
pany was to select three directors
Of the Continental Company, three
were to be chosen by the other
manufacturers and the six were to
elect seventh, which Board was to
have entire management and control
Of the affairs of the 80 factories
and their output.
They also provided for the sitting
of competition by agreements as to
selling prices, which were fixed by
the directors, and refusal to sell to
any who cut the prices so fixed.
In the view of the court the agree
ment to sell the product of the COM
Continental Company above certain
figure was an attempt to restrain
trade and therefore obnoxious to the