Untitled Texas Attorney General Opinion ( 1944 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN iioaorablo ?. t. OraM8 COunCJ Llttornu7 ca8sroo Goant Bwvnaville, T8388 met* rot fo o th in your letter Corpomtlon A, Christ1 ld car a la dwP u h Ou888 a t The quurtloa p;eoatd’ia rhuthu? raoha tmpuetlon, if aoasummt~d &or ruoh faotr 8ad uI?uumUrw8s, I8 da- - nouncud bJ thU %tslpI anti-tPUat 8titUte8. The rt8tutr 1Jardietely l~rolvrd ir Artialo 7427, pzovidlrg : Honorable P. T, QfQMa, pge 2 ‘A noaopoly is .a ooabtrvtiou or oonsoll~- ticu OS tvo or DAOP~ corporcrtloms vhisa effected iB 9ithOP Of thr fOllOViBg EdhOdSJ Nl. YhOB the dlraatlon of the 8ffr3.1’8 of tt?o or 801~0~OP~O~~fOtU 18 in any mMeP brought under the samm nWasgeEent o control for the pur- pa54 of podwing, warrhea’* suah own m&go- mm or coatrol tends to oriMktel trust 45 de- tlMd IB th# lf?St Wlvlv Of bhf8 Chibpt@P. I l2. mar* bfty aorporutioa llq ulr rthe r S-Per oP eoPtiii55tr8 Ot 8took or bODd#, IPWahiu OP other rlghtr, o* the ph?slU1 pqwrtles oP lo;l ~&art thwoor, or any other oorpQlutlon or berporr- tioar, ror thr purporo of preventing or 1055oBlng, O? vhero tha 8ireot 02 ruuh baquirltloa t*ndr to 8tfeCt OP 1.850!& tl~t:tiOXL, V h & iOP lU5b 56 qulsltlon Is rocomplished dlr#,otl7 or through the i~5tPfJ8ORt6lft~ Of trBlt558 0 OtkW’Vi55: A mretul basl7~ls ot this rtatuta llakea ltr aosn- tng and purpors rirple aad unhrsUndablu. Fha speoiflc act prohibited $9 8 roablaatloa or oonsollbtion of tvo or wro corpomtloM.” Bat 1, is fmjmrtant 50 obrervo that suoh l “ooablMt:on or COn80ildntieBm is BOt draoaneud unlmr it 15 ;;f;ottd iB ona ol the sethods prohibited by the swtutr lt- . Th. flrrt method tiflaed &nd aade illoel 1s vhen it ia rought to brlq *the dlreotlon of th lif8lrs of tvo OP 8OPO OOP~~tiOBS Mdsr t& 8&W B5lrr~vlseBt OP OOn$POl an& vhero such COR~OIL 55bpc)gMOBt tends to Orebte 5 tx’ust. Obvlourly this prohibition vould not oover l trUs@otlon be- tvecn an uctive corpotitlon and OM vhlch 18 dlrsolred and in process of llquidbtlon. Too, NP. sust:oe Pewnn of the T*rrrs Suplww Court, has pointed out t&t on5 OS the 5855nttil rleaents 10 -king l crse under this subdlvlalon vould bo tJm proved existence o f l dealgned bnd united ooopemtioa of the offeadlly( agen- ales to moonpUsh the u0Uvfu.l puppora. 80 s8ld in part I - .\ 773 xonoPab& ?. t. Qmhm, paa* J I ... Xn order to ooartltuto 8 truot,vlth- fD tb UDfM Of kh. 8WtUt8 tbs?l atrt-• of $4&~iUl,l 'ocaablmlloa k lli OS aata br two OP aore.n Wcmbilytlo8,~ aa hart, uaad, waaua w&ion or aaaoa*tiatt. x r th e r e b e DO p a i w la M - o UtW by 0~ w ran ekill at sklr ‘arpital, o rla ta t ,’wr ema b ea @‘o a b lmtioma & 4 ’ h e Doma *‘traat.’ VheD ua amtdar tha p-98 forr uh%ak%ha ‘aa8biutADD’ aas8 be for80& to em r itk th iseltStUte, t&e oaeSat%Sl m5Sning Of tb UWd ‘OdlDio*tiOD,’ unb tb fD8t -t l paDiObOD% t8 ~#BW:kd ior ueh dry th6l k& $?a09 aoatlnaea in exiateaea, va bra led to the ooaolDalm t&St the aDieD or Damaution of '84pl. uq, a&ill 01 out0 draarmwd i8 l?hmM the pnst100 I.DI& gutieular baa deal&Dad the aaited a*r wti# Of bWh bgOWfS8, ~rtriCh R@ht &VO k.8 o c h wv* t8da doat a d eapetiDg, fo r tb* lu- oaa w 8oPe of SDOh paPpoaeo* x00*?, 39 8. v. IOn. The aaeoa4wthod of ‘oo8blmtlaa 6P muO1ibrtiOee that1 0dea o una la vhwed rODao o P p w~tiq loqu%Ma n t3n*- $1641gropartiea af *aother 00?pomt10n to? #&a parpoeeof prov.Et~ Qo 1WbS&il?& S3 ShWS the OffSOt Ot OUSh SSqUi8:- tion toDdato lrroot 8 b55ea or8EqietltleP.’ The us+tfoo you mire UDbr 8obhtViOiDD 2 awae to h V#u 8Sttd irr -XaO. IDa r l8ila lba8tleE P hem or&e & P p a P Ot:~ M QUiM d tb l588tO WXt ph 180~ f~PCf~?ti?H Oi aadmr vhieh wu about to dlreolve u ar 80 out of bue&aee #&Lovoa7 lUtate, the FartUwth and 1av01vlag CeuPtor Clvll Appwla mid: w . . . (the oqmatloa) . . . Md detar8fn.d to bl8801Va, it oe?tbiDly h8d thr rl&t to da 80 aDdeP Ibn lav, red tha al* (te a 0Q8pet:tw) UD- ue tolbu, se va mast, the deal*Jatlma of tha Co-85 ODthis lubjort. A~glied I* yWP rUtO888t hSP8, B 0-P-Y aa a s-t 89 p wit of bwlneee @ad to die art LOO. CampMyA MS l rightto piualrrea _ ~.i.. ..-,d. .,.: 774 bemwlr to do so vi11 orlther peveat aor lersso cempetl- tion. lo reaashlq thfa QOMlSS19a~ uo a a c epa0t l6aurete sad tzuathe rmulta et 79~ rbbdim to the rfiaet tbt t&a 10 00 doal&a'aa@#~80, ne UaitOdeOOp?Otl~ to ofrea8veat tlm lau. Skew, lo rushelrmmmmaea, n &me coeolm%ed thr OLVll 8ktuW8 Ue net VlOlbted 1% fO~3~8 t&t the SStr tiaa?lbe& Us no0 dancuiiea& b7 is. ehil4r pro- viaioslr~,oS the ,PWl Cede. Xiiadb