Untitled Texas Attorney General Opinion ( 1942 )

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1‘
OFFICEOF THE ATTORNEY GENERAL OF TEXAS
..1% AUSTIN,
i..
. *
id&&#. fropcuz queatlon
&t$ola q&i6 of the ‘OirilOodo and Aptiolls
th490atwatg40p 004md.nth0 following
1angw41
.:*&*t&t* ia a oombinationor oapital,,
suit ~Qr a&a bg two or p~om3pereons,rm8,
I( o``gosapiiowfitassooiationsor pap~one, or
eitherticro’ormore ,0r them ror either, any or
all of.the r@,lming prrrpoaest
EfJllO~rdi4
Ltnt4E S~‘saTa&4,
P-4 a
&eat4 or oarpr out reet
.pgrealt. 4r ‘my buslaea~ auth4Zed or, per+hd
bfim8 or 9114am4.
-*Anyand all trurt8,monopoll anU~6onspfra-
oi4#,:$~3
reotralnt or trade, as here@ a4rlmdd;em
prolgb$te~ana +ooUred to be j.lla@l.~'
Gi~$aialtleaare pre@oribedbo thcteznm at:&& '
oler.7b36aml 7436 or the olvll oodo,uh+le Art&ale 1635$i
the PemaXOode make@ a oriainalriolatlon a relony.
While we have been unable to.rInd any baaelawupon
the sabjeet, v&do $$nd an emlightsningdlsouealonuhioh we 1
deem olear end pestbeat, in aLopInion written during the yeear 1
;.~ 1917 by the &morable 0.M. Curet~n. Report iuldO~inIoi~s,
Attorney @moral-or 34x44,19164918, PI 151,
..
At thb tldor writing the opinlm, the late lanent-
ed Chlaf or our
ilustlee~ Texma
Supreme Court waa Firat Asels-
tant Attorney f&erel aenlng ln the a6nInletmtlon0r At-
i tommy Oeneral'B. F. iooaey. The question r)84whether banks
:: operatingin thin atate were emenable to the rovlolonaor the
1,
ix.
anti-tTUBtand mnop04 8kttUte8 (btiOle8 77 %9-;2
...~ 19l.l‘ now Artii31et?&S-742?. 8. a, s., 1925, un
i.
dit&&shedwrIt~ .puottra with approval rroJl~earl
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``~'orthe statutes,he wrote as rOllmW
g:
&
802
Peg4 3
Hcaorabla Llnt40 S.~Savais4,
"The eirst qtleatfon r0r determismtion is ``
whether orhot the basin448 ot bauklng 14 limit@,
ed, afi4et4d, or oontr4ll46by thhwo artloles
of-the&atute~doflnlng prrrhiblt&~and paa-
wll.ngtruate 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~th4.80at4of T-r: Theta trtmt
%a. a oaab$aatlon af azpbtal, zklll, or aotz
w. tro OF r0re ptws~nrr, rim+ 00rpor~ti0~0,
or aimolatlonaof peraozm, or oi ,4ith& twq
4rga4r4 ot'thei@, for.either,any,01 a&t of
therollotise:'purpoa48~ Flrat.~'To areato
or ,oerryout.rerrtrlotiane~ht tratb,:.Bsoondr
243latlt or roduoe the loduotloa,‘or. in-
orease or rsduee the pr!'00 of ~mrgbandfae
or o4mmodltfa4. Third, To prevent oompetl-
tion in mamf4otv24, making, tranepcmtation,
w&r, or Wahase or merohan~w, produoe,
or~oonmmllt~es.Fourth. To rlx I+ auy
standard or iigure, wh4mby lt4,m%oo to the
pub110 8h4llbe ln4nyirrnnsr44ntmll4dor
Oatfabllahedi any art1014 or omzloaltyor
merahahdla4, ,pro&me,. or oamnera 0 intendna
.
tar &lo, 1184,or oonaimptlon ln this &ate.*
=Youwillnote t&t.YheAot,of.1903, whioh
Is the preeent.law, quoted above materially
ahsnged the meapfne 4nd applSoa&n or the orlg-
iadl tit or 1889, ?zmt nading the two it will
be obs4rv4d that th4 #lop8 of the sot we4 bzv+d4a:-
4d and rmd4 ta apply aot oalr to art10144 or .'~
trads and bmae+oe, but to 'aids to oc41in9r44'~
al80 that, the Anti-trust bat wa8 made to ap~lr
to any aot cm ouublnatlon,the pusmae or,whlah
wae t~to oreat& oreawry out reatrlotlone in the
I'?44purrtult~sr'ariybu4lneaa authorized or per-
n&ted by the4law8 of this atate,* These mater-
iel and far reaahlllg a&mdmente t&the law were
&ad4 mbaequent to.the opinion of the Supreme
O&t of the State lo the (wee of the Queen In-
t&tinoe Oomgany va. The State, 86 TOILLS, page
250, in whioh aaee the oourt held that the busl-
nass-~oSlnaurenoe wee not aiieoted by the Anti-
trtmt Aot; that insurauoewas neither trade nor
Wau&iMly, e oorporatlonexerofeiagthme
powcirnend~ianotionsis aiding oommaro~ and the
wuatxyin aterypraotioa&andaatarielrrayi
ArgWent ,woiUdqau su~m!#ous~ Oamaerae
oaaa4* ex&*~;dthout oarh,:grea$tf'MQ 8,sybtem
or-qwk osrtdin.aadla4xp4b~lr4~4xa~r
Th464 :thjmgs.baakagupp2yc They +&loot-luto
great resezqird thi tisk 44a areait. or th4
oaaafry,``tdifohltlodl&rlbtlkdlnta
lndtiqt* ````:pmuztekoi in'such aaowtf sit&. at
awh-C~:~6r"btmineer mar,dmdi 'Btmk4ag6
not pal*e ~Xak*a tuta66semirs in whi6h sr6
qo;us&ts& mi+lur mites for rrdi@rlbutloD
r0r pwpo6ass~ofirrigation,and 6r4 as essen-
t$ally'.aids'to acmmr64 as the-lattsr to
SW~S``UX-``~ pawti48k*. h .ra4t,
tk* sa``~+uourt or the United atat48:hari--
deobmd th4 .lmr0tyor the businwis of bank-
*.’ t4 be TOM or ths prl.atarJr oonaltloM.or
auoacr&ml oonmero6s In ale 0664 of loobl4
ShtcBank~.~k, HBskell, 239 V. S.‘.llltthat
oow'~la:~rerriag to the gllarlqty or bsn&
depodts, '&alares:
.:~nt%mT~ b6 aeld in a genera& rajthat
th4 polloe~ power txt4n68 to all .:lzhegrwit
n&de+ OsmfleLdvs. Unlbed Statea,
..``bllb
147 WI 8;':~
518, xt iay bs put io*b Yin
a&a or'wht~tlir~.sanc~tm~sd b n-4, cm 1
f
hdld b&tke mevafilng mora lt$:‘or@rwg
- 8114pr6pW~6rant~opioloa to b6 greatly..
6na imakidiatsly naa466arg to the p@bl&a
welfarth .Aaomqg matters of that 8orD gtab-
lib4 iswrould daubt that'both !IM@ and
pr4poo~k O#alon gloi their amotion
to enferolngthe primary oond$tlonsof
64aa466hx 06``i4.rO4. 02iedr thas4 wnai-
.tliis ht the pmsent tl6i6Is ths possi-
bllZty 'or,.paylpsnt by @heWi drawn s&nst
&nk deposi~ts, to suoh an extait do ohsoks
hp%aoo~ crurmnop~lndally bosl,nsss~fr
t!mn.th+Lsglslatwe or the State think6
~thadthe publ.iow6lfare raqulms themea-
sure wider oonalaeretlonteitalogland
~prlnolple ir4 In ravor of the powsf to
SWOt it. .mOUk the prim8ry ObjaOt.. Or th4
required assessmmt 1s not a pr$vats bene-
fit+ as It was in th4 oases abow olted
of a bitoh ror Irrigation or a railw6y to
a tins, but it is to m&z6 the o~lcenoy
or sh4+ 884Ur4, ana by the saw stSOk4
fo nk4. bat*: the almost eompuls0ry resort
_ or d4podtoru to bank6 86 the'ofiy avail-
abls me6~ ror kseplng moneycm hand. t
W4 0tmTlutZe, on the whoX4 the& that
the bUSltl~6 Ot bank;frrg i6 Wit& tit@ PrOtOO-
,.’
tlte, ibafbttory and anal prOrls1~ o? th4
ent1~b+08D:ans or thfa hta, and that beaks
m4 ~@mk4n.are as muoh bound to zssp6ot the
aati-trrrcrt iani,asare deelers in amaodltleta.
ThtS Om61U6ion. i6 in hiumony with th4 tipin-
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'proklbltlngovedreifts;.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.whantwo or 1110``bauks
entearedinto a 0Omb``~atlOnror this purp064,
that sueh~oombinatioi~vi0iat4a the anti-trwt
law;., Thls0plnl0uwasprsdloat4a~p0nth4
propositlon~:~hat tha.basklngbuainessr wa8
sa‘aid to~t%%weree, and WSS a businessart-
thoriPed.aM perrmitted~by the Ima ot this
Stat4 and -lu:whloh.thsstatute proh@ltl)(lany
'a&ma&eat -ten$%sg-torestriot ths business.
IIIthis Op5.~%On8Ul&e Brt@ in part .eSidS
-The’
qtmstion now mOUr8t ma6 th4
piaotloe 0r allowing 0ve*sft*, Oi~th4
abaraotar above ma, oonstltute60m-
meo~oraldl.to oamm4r64? 'Pam416
ror the propo6ltlon that
drafts, oh4&a and
oomasrolal i116tm+
asate to raollltate6onm4r44~; eud if nst
ptd or W ‘hoameroe itself, rairiy oome
witfdn th+tssm, aud may be designatedas
%ld6 to eoeun4raet (ste49 Hioh., 24l; mathan
we* Lcmisla~, 17 u. S., 507); aad the
praatlo*-beinglegal, any agrs6msnt or
uudmW,aadiag by Md between two or mme
ba6ks or a olty psohibltlngeb6olutely the
“( .-..
8~6 i
:
Easambla L&Moo S, Saw,ga, %a 7
&%'hfi&$ 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 rastrlotlcumluoamneme snd~
aid* to ouimm4r64 snd would tharararebs
:rloEatlv%W
., Ssattion1 af said A&...
._,
e4r4 ‘3urWar
.'**W4~ oi She opinion that suoh
66 'ikgr64asnt; *tie oraat4 and o&my out ra-
Stl'$OtiM'S'tn the ,$l'Wplreoit Or 8 business
authorixt& ore pemitted by the lsws or this
mdi4i -rf)hh t&S fXWTi&``Or said 6$6tUt4,
Ths'banwmg pu@$468 I*
peaitfo&b~:pe~.l8M’``t tha
uwIIp,og~lsshs in the wsy af
apart0rsuohbuslnes6 anaaumdland
.fMllar feat- oi madarn bsskln~. Zndesd,
autharltlastrWt tha ssme-98 a
sama c)r.:tha
prs~aal:"nsaasalty in the ,oonduotor suoh
bt&inase,,athough-thisr&or is boub$l4ss
all amnt6, wham pursgedWith
taa braad.~:.~At
a reaiioWil4.degraaof prudanoa snd.aoosrd-
-to the‘ed+3ry ueega, it 18.frae~r4-0b6
gsllty, uud6r~c~e prasant state Of the
asid'``egra'a~&ntor uuderstandlng'
1s``~; 2
when 'bsnk~ pasties to the sama 'bind
thsase
$ -6 m&to.grent this pririis&4 to
tbiir aGstoWss, oraatas and owrles oUti
?96triOhibtiS%Zthe rr66 DUMUit~Or choir
- buslnass.wlthfirthe mssobg:ai ssld~Hstuta.
Ia the abrieao4. o$ swWan a&reeme!It or under
stanillsg-the bankswau&d eaoh be fraa to
illhi thl6 priri1~4,tq'their OUStbS~6~
aad,-slaoe thei agree ta";dlsoantlnuatha
usage and praotloe, they tharaby naoa66arlly
restslot .Cwedaat
thefr~ to aot in a platter
0r
y06p66 .WhiOh thW~O4a 0th4Z6166 b4 f~44
,~&aosnnat oasaalra haw It ooutd be
hex& beat,h&ar suohlan sgraamant asoh P8tiY
thereto roula not bb rastrloting~thafraa
guqult or ~thebu6iwss.Ot every ,othar 8rtY
thereto, as:.wdllas'his own busines6. Pt
follaws frornwhat has bsan ssid that (~1agree-
m&t OS the ohsraotar euggestadwould'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
l* Iowan mappsot~ aQvW3d that Strb-
dm810n 1,
‘ors0otion z 0i tb ml-trust
Aot 0r 1903,d0rinOOa trwt to be +I + * a
oombination.or,
aa lt8l, skill or aots W two
or rP rm8,
more pertsoa) oorporaUon8 or a880-
oiatt0n8 or PWODII, o r llther tutor more
or th011-ror.OithOrr,.
an*,or Cru 0r the rob
lowingpurpo808aTo oroa*eor uhiohmay
tZ$%‘22rS tZId%?ZZ~ZZ E
,thepreparation or any preduot .tor-niarkit
or transportation or to oreate or oarry
OUt M8triOtiOM iIIchs rM0 .PW8uit Or w
bU8ine88 aothoriwd or permittedby lens
Or thi8 88fitesa
of esobango, &dt8~;.. end 'the -_
paper to rhlaQ pu referram
in8tEURWlt8 t0 faOflitat0 0-0
mere, 8nd ~a.r
not a part or th6 00maOro0
it8df OhUu OOMb Within the, tOM Wd
-~%f-ddtt8i@latOd 'M clidt0 OOEWcOd' (9
Mioh., S?t+l;
Hathasvrr. Loui818na,~17 UC 8.,-
507); and any ooablnafion, agreenwnt or
.tmdC%rHtding~O``WII knka to rfx t&t8Oha%!ge
ror oolleotion8,~rould tiw~eo&ti~,ay;
8tltute a re8trioUon.in
to oci~exie. in violation or said a@.,~
~hme iieotionqu&ed, uhioh-prohlbite.the
oreation or oarrylngout 0r the restrio-
time In the frw plr8Uit or any bwineee
authorieed or petitted.by the WV8 Of
thie state. ~OlbOtiOli8 8UOh a8 yi?U have
mentioned are a part of lmoh bwin98e, and
any understandingbetweenbank to oharge
Em3 . .
Tl$&e,le:littlethit 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!$hosQ~f~Wh%Oh It'qWte8, ~enp~O&a~'@#lthe C+L-
trollin&.wlat:0'that the Oondllo$Of Q baUk*Q.bU&t~QseI8
-an =aId.to.owiaQreQi~" 1~eWQ '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 4u&lo~
deEwrIbQd~$ik~$fwr
uould~oonsitltut~ a ~*oomblnatIomof oapitdl``:adu or aot8*
lor the '&arposeof.oarrylng pt rokitrlo~oa8in."aide to
Pammrw~, la violationor the provl8lowor hrtldles 7&26,
R. 0. Srv and 1632; Penal Code, supra. _
Your8 wry truly
A!i'TORlJY
GE&AL OFTXAS
Ben3aaf.nWoodall
Assistant