Case Information
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OFFICE OF THE ATTORNEY GENERAL OF TEXAS
..1% AUSTIN, i..
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id&&#. fro pcuz queatlon &t$ola q&i6 of the ‘Oiril Oodo and Aptiolls th490atwatg4 0p 004md.n th0 following 1angw41
.:*& *t&t* ia a oombination oapital,, suit ~Qr a&a bg two or p~om3 pereons, rm8, I ( o~~gosapiiow fit assooiations or pap~one, or
either ticro’or more ,0r them ror either, any
all of. the r@,lming prrrpoaest
EfJllO~rdi4 Ltnt4E S~‘saTa&4, P-4 a oarpr out reet or &eat4
.pgrealt. 4r ‘my buslaea~ auth4Zed or, per+hd bfim8 or 9114 am4. -*Any and all trurt8, monopoll anU~6onspfra- oi4#,:$~3 reotralnt or trade, as here@ a4rlmdd; em
prolgb$te~ ana +ooUred to be j.lla@l.~'
Gi~$aialtlea are pre@oribed bo thcteznm at:&& ' oler.7b36 aml 7436 or the olvll oodo, uh+le Art&ale 1635$i the PemaXOode make@ a oriainal riolatlon a relony.
While we have been unable to.rInd any baaelawupon sabjeet, v&do $$nd an emlightsning dlsouealon uhioh we 1 deem olear end pestbeat, in aLopInion written during the yeear 1 ;.~ 1917 by the &morable 0.M. Curet~n. Report iuld O~inIoi~s, Attorney @moral-or 34x44, 19164918, PI 151, . .
At thb tldor writing the opinlm, the late lanent- ilustlee~ waa Firat Asels- ed Chlaf our Texma Supreme Court tant Attorney f&erel aenlng ln the a6nInletmtlon 0r At- i The question r)84 whether banks tommy Oeneral'B. F. iooaey. :: operating in thin atate were emenable to the rovlolona or the 1, anti-tTUBt and mnop04 8kttUte8 (btiOle8 77 9-;2 % ix. 19l.l‘ now Artii31et ?&S-742?. 8. a, s., 1925, un . ..~ dit&&shedwrIt~ .puottra with approval rroJl~earl i. lone or this department, and hi8 treaties is of auoh for04 we j- take the. liberty of oopylng at l%ggth. Arter quoting the pm- r: olai~~~'or the statutes, he wrote as rOllmW g: &
802 Hcaorabla Llnt40 S.~Savais4, Peg4 3 "The eirst qtleatfon r0r determismtion is ~~
whether orhot the basin448 ot bauklng 14 limit@, ed, afi4et4d, or oontr4ll46 by thhwo artloles
of-the &atute~doflnlng prrrhiblt&~ and paa-
wll.ng truate end m-fi*II. In the rimt antl- tmmt statoh of thio 8tat4, whloh N pa4wd in 1889 and ~~+%h~oonssp6uulswlth thos4 portions 4i Istlol6'7796 quobbd above, w4 flud the rol-
l~+t
w300ti0~ i. B4 it em&d by the t4&- latuz% or~th4.80at4 of T-r: Theta trtmt %a. a oaab$aatlon af azpbtal, zklll, or aotz tro OF r0re ptws~nrr, rim+ 00rpor~ti0~0, w. or aimolatlona of peraozm, or oi ,4ith& twq 4rga4r4 ot'thei@, for. either, any, 01 a&t of therollotise:'purpoa48~ Flrat.~' To areato or ,oerry out.rerrtrlotiane~ht tratb,:. Bsoondr 243latlt or roduoe the
loduotloa, ‘or. in-
orease or rsduee the r! p '00 of ~mrgbandfae or o4mmodltfa4. Third, To prevent oompetl- tion in mamf4otv24, making, tranepcmtation, or merohan~w, produoe, w&r, or Wahase or~oonmmllt~es. Fourth. To rlx I+ auy standard or iigure, wh4mby lt4,m%oo to the pub110 8h4llbe ln4nyirrnnsr44ntmll4dor Oatfabllahedi any art1014 or omzloalty merahahdla4, ,pro&me,. or oamnera 0 intendna tar &lo, 1184, or oonaimptlon ln this &ate.* .
=You will note t&t.Yhe Aot,of .1903, whioh Is the preeent.law, quoted above materially
ahsnged the meapfne 4nd applSoa&n or the orlg- 1889, ?zmt nading the two it will iadl tit be obs4rv4d that th4 #lop8 of the sot we4 bzv+d4a :- 4d and rmd4 ta apply aot oalr to art10144 or .'~ trads and bmae+oe, but to 'aids to oc41in9r44'~ al80 that, Anti-trust bat wa8 made to ap~lr to any aot cm ouublnatlon, the pusmae or,whlah
wae t~to oreat& ore awry out reatrlotlone in the I'?44 purrtult~sr'ariy bu4lneaa authorized or per-
n&ted by the4 law8 of this atate,* These mater- iel and far reaahlllg a&mdmente t&the law were
&ad4 mbaequent to.the opinion of the Supreme
O&t of the State lo the (wee of the Queen In- t&tinoe Oomgany va. The State, 86 TOILLS, page
250, in whioh aaee the oourt held that the busl- nass-~oS lnaurenoe wee not aiieoted by the Anti- trtmt Aot; that insurauoe was neither trade nor
Wau&iMly, e oorporatlon exerofeiag thme
powcirn end~ianotions is aiding oommaro~ and the
wuatxyin aterypraotioa&andaatarielrrayi
ArgWent ,woiUd qau su~m!#ous~ Oamaerae
oaaa4* ex&*~;dthout oarh, :grea$tf 'MQ 8, sybtem
or-qwk osrtdin .aad la4xp4b~lr4~4xa~r :thjmgs.baakagupp2yc They +&loot-luto
Th464 great resezqird thi tisk 44a areait. or th4
oaaafry,~~tdifohltlodl&rlbtlkdlnta
lndtiqt* ~~~~:pmuztekoi in' such aaowtf sit&. at
awh-C~:~6r"btmineer mar,dmdi 'Btmk4 ag6 ~Xak*a tuta 66semirs in whi6h sr6
not pal*e
qo;us&ts& mi+lur mites for rrdi@rlbutloD
r0r pwpo6ass~of irrigation, and 6r4 as essen-
t$ally'.aids'to acmmr64 as the-lattsr to pawti48k*. h .ra4t,
SW~S~~UX-~~~
tk* sa~~~+uourt or the United atat48:hari--
deobmd th4 .lmr0ty the businwis of bank-
*.’ t4 be TOM or ths prl.atarJr oonaltloM. or auoacr&ml oonmero6s In ale 0664 of loobl4
ShtcBank~.~k, HBskell, 239 V. S.‘.lllt that
oow'~la:~rerriag to the gllarlqty or bsn&
depodts, '&alares:
.: ~nt%mT~ b6 aeld in a genera& rajthat
th4 polloe~ power txt4n68 to all .:lzhe grwit
..~~bllb n&de+ OsmfleLd vs. Unlbed Statea,
147 WI 8;':~ 518, xt iay bs put io*b Yin a&a or'wht~t lir~.sanc~tm~sd b n-4, cm 1
hdld b&tke mevafilng mora f lt$:‘or @rwg 8114 pr6pW~6rant~opioloa to b6 greatly..
- 6na imakidiatsly naa466arg to p@bl&a
welfarth .Aaomqg matters of that 8orD gtab-
lib4 iswrould daubt that'both !IM@ and O#alon gloi their amotion
pr4poo~k to enferolngthe primary oond$tlonsof 02ie dr thas4 wnai- 64aa466hx 06~~i4.rO4. ht the pmsent tl6i6 Is ths possi-
.tliis bllZty 'or,.paylpsnt by @heWi drawn s&nst do ohsoks
&nk deposi~ts, to suoh an extait
hp%aoo~ crurmnop~ln dally bosl,nsss~ fr
t!mn.th+ Lsglslatwe or the State think6
~thad the publ.io w6lfare raqulms themea-
sure wider oonalaeretlont eitalogl and
~prlnolple ir4 In ravor of the powsf to
SWOt it. .mOUk the prim8ry ObjaOt.. Or th4 required assessmmt 1s not a pr$vats bene- as It was in th4 oases abow olted
fit+ of a bitoh ror Irrigation or a railw6y to
a tins, but it is to m&z6 the o~lcenoy the'ofiy avail-
_ or d4podtoru to bank6 [86] abls me6~ ror kseplng money cm hand. t or sh4+ fo nk4. bat*: 884Ur4, almost eompuls0ry the ana by *6 the saw stSOk4 resort W4 0tmTlutZe, on the whoX4 the& that i6 Wit& tit@ PrOtOO- the bUSltl~6 Ot bank;frrg tlte, ibafbttory and anal prOrls1~ o? th4 ,.’
ent1~b+08D :ans or thf a hta, and that beaks m4 ~@mk4n.are as muoh bound to zssp6ot the
aati-trrrcrt iani,as are deelers in amaodltleta. i6 in hiumony with th4 tipin-
ThtS Om61U6ion. on the sabjeot. or bsaklgg
On Jwwry ll, 1912, the the state,. in an ophiioa wrltt4nwth4 Ek0raW.a Jobn~U~B~dy, As*
tsat Attorney Qenersl held thatsO.a@eamnt
4ntered info betwodn the ~~inetitutlons
or a olty'proklbltlng ovedreifts;. would bb
* riolatlool-or the al&i-tl'lIst Zar; not that
w-bank on' Lts owz..gotrion ml& not prohibit
mep3mrt+,bp th~?Q.whan two or 1110~~ bauks
enteared into a 0Omb~~~atlOn ror this purp064,
that sueh~oombinatioi~ vi0iat4a the anti-trwt
law;., Thls0plnl0uwasprsdloat4a~p0nth4
propositlon~:~hat tha.basklng buainessr wa8
sa‘aid to~t%%weree, and WSS a business art-
thoriPed.aM perrmitted~by the Ima ot this
Stat4 and -lu:whloh.ths statute proh@ltl)(l any
'a&ma&eat -ten$%sg -to restriot ths business.
III this Op5.~%On 8Ul&e Brt@ in part .eSidS
-The’ qtmstion now mOUr8t ma6 th4 piaotloe 0r allowing 0ve*sft*, Oi~th4 above ma, oonstltute 60m- abaraotar
meo~oraldl.to oamm4r64? 'Pam416
ror the propo6ltlon that drafts, oh4&a and oomasrolal i116tm+ asate to raollltate 6onm4r44~; eud if nst
ptd or W ‘hoameroe itself, rairiy oome aud may be designated as
witfdn th+tssm, %ld6 to eoeun4raet (ste4 9 Hioh., 24l; mathan we* Lcmisla~, 17 u. S., 507); aad the praatlo*-being legal, any agrs6msnt or uudmW,aadiag by Md between two or mme
ba6ks or a olty psohibltlng eb6olutely the *7 “( .-.. 8~6 i : Easambla L&Moo S, Saw,ga, %a 7
&%'hfi&$ or ssoh prltilegas, upon the part of.all th4 'pwtle6 to the agreemwt, would ia4Or O-W,, 4Z46tS aab ta6d:tO Ora&
.I%@ :mOrrry:,ootr rastrlotlcumlu oamneme snd~
aid* to ouimm4r64 snd would thararare bs
: rloEatlv%W Ssattion 1 af said A&... ., ._,
.'**W4~ e4r4 ‘3urWar oi She opinion that suoh oraat4 and o&my out ra- 66 'ikgr64asnt; *tie
Stl'$OtiM'S'tn the ,$l'W plreoit Or 8 business
authorixt& ore pemitted by the lsws or this
mdi4i -rf)hh t&S fXWTi&~~Or said 6$6tUt4,
Ths'banwmg pu@$468 I* tha peaitfo&b~:pe~.l8M’~~t
uwIIp,og~lsshs in wsy af apart0rsuohbuslnes6 anaaumdland
.fMllar feat- oi madarn bsskln~. Zndesd, sama c)r.:tha autharltlas trWt tha ssme-98 a
prs~aal:"nsaasalty in the ,oonduot or suoh
bt&inase, ,athough-this r&or is boub$l4ss
taa braad.~:.~At all amnt6, wham pursged With
a reaiioWil4.degraa of prudanoa snd.aoosrd-
-to the‘ ed+3ry ueega, it 18. frae~ r4-0b6 gsllty, uud6r~c~e prasant state Of the 1s~~~; asid'~~egra'a~&nt or uuderstandlng' 2 when 'bsnk~ pasties to the sama 'bind thsase -6 m&to.grent this pririis&4 to $
tbiir aGstoWss, oraatas and owrles oUti
?96triOhibtiS%Z the rr66 DUMUit~Or choir
- buslnass.wlthfir the mssobg:ai ssld~ Hstuta. a&reeme!It or under
Ia the abrieao4. o$ swWan stanillsg- the bankswau&d eaoh be fraa to illhi thl6 priri1~4,tq'their OUStbS~6~
aad,-slaoe thei agree ta";dlsoantlnua tha
usage and praotloe, they tharaby naoa66arlly
restslot thefr~ .Cwedaat to aot in a platter 0r
y06p66 .WhiOh thW~O4a 0th4Z6166 b4 f~44
,~&a osnnat oasaalra haw It ooutd be hex& beat, h&ar suohlan sgraamant asoh P8tiY
thereto roula not bb rastrloting ~tha fraa
guqult ~the bu6iwss.Ot every ,othar 8rtY
thereto, as:.wdll as'his own busines6. Pt
follaws frornwhat has bsan ssid that (~1 agree-
m&t OS the ohsraotar euggestad would'ba il-
la&l @iwsuld subjeot the parties thereto
to thei?&isllsltles or the A4t.t Vol. 25,
Opla&,i, ai the Attorney Oanaral, 171-2.
: ,‘ i 0r 1903, d0rinOO a
dm810n Aot trwt to be +I + * a Iowan l mappsot~ [*] s0otion 1, ‘or ml-trust tb z 0i aQvW3d that Strb-
oombination .or, aa lt8l, skill or aots W two
or more pertsoa) P r rm8, oorporaUon8 or a880-
oiatt0n8 or PWODII, o r l lther tutor more
or th011-ror.OithOrr,. an*, or Cru 0r the rob
lowing purpo808a To oroa*e or uhioh may tZId%?ZZ~ZZ E
tZ$%‘22rS
,the preparation or any preduot .tor-niarkit or to oreate or oarry
or transportation
OUt M8triOtiOM i II chs rM0 .PW8uit Or w
bU8ine88 aothoriwd permitted by lens
Or thi8 88fitesa
of esobango, &dt8~;.. end 'the -_ paper to rhlaQ pu referram in8tEURWlt8 t0 faOflitat0 0-0 mere, 8nd ~a.r not a part or th6 00maOro0 OOMb Within the, tOM Wd it8df OhUu -~%f-ddtt8i@latOd 'M clid t0 OOEWcOd' (9
Mioh., S?t+l; Hathasvrr. Loui818na,~ 17 UC 8.,-
507) ; and any ooablnafion, agreenwnt .tmdC%rHtding ~O~~WII knka to rfx t&t8 Oha%!ge ror oolleotion8,~rould tiw~eo&ti~,ay;
8tltute a re8trioUon. in
to oci~exie. in violation or said a@.,~
~hme iieotion qu&ed, uhioh-prohlbite.the
oreation or oarrylng out 0r the restrio- time In the frw plr8Uit or any bwineee
authorieed or petitted.by the WV8 Of 8UOh a8 yi?U have
thie state. ~OlbOtiOli8
mentioned are a part of lmoh bwin98e, and
any understanding betweenbank to oharge
Em3 . . Tl$&e,le:little thit we oaa'e+d4:~o'ths'fore@oing. Uter~oonald~~~hl6:~le~earoh, w have.tio? forold-my oa&w In oonfllot.~mif;h.the -0onolwicw wnouaos&~lh the &&i&on opin- :M Ol! $hosQ~f~Wh%Oh It'qWte8, ~enp~O&a~'@#l the C+L- trollin& .wlat : 0' that the Oondllo$ Of Q baUk*Q.bU&t~Qse I8 -an =aId.to.owiaQreQi~" 1~e WQ 'or ~piaii+i~~ wt. an agrd80nt
or wu@r&an4lngd.by end be$weeu all the ban&i.,&'& o ty to a6ke oQr$aIn oh%.rees '(:euo&~ae deEwrIbQd~$ik~$fwr 4u&lo~ uould~oonsitltut~ a ~*oomblnatIom of oapitdl~~:adu or aot8* lor the '&arpose of. oarrylng pt rokitrlo~oa8 in. "aide to Pammrw~, la violation or provl8lowor hrtldles 7&26, R. 0. Srv and 1632; Penal Code, supra. _
Your8 wry truly A!i'TORlJY GE&AL OFTXAS Ben3aaf.n Woodall Assistant