Salt Lake Herald | 1895-03-20 | Page 2 | Trusts Illegal

TRUSTS ILLEGAL Important Decision Tiy Judge Sev erns of Michigan Detroit March 19Judge Severns Jn the United States district court to Bay rendered an important decision bearing upon the Sherman antitrust law About a years ago the Merse Warren War-ren Michigan and National Capsule companies entered into an agreement to pool their interests and carry on the business of manufacturing gelatine shells for capsules as one institution under the style of the United States Capsule company The Merse company com-pany balked and filed a bill to perpetually I 0 perpet-ually restrain the United States company com-pany from doing business on the I ground that it was an enterprise to bar the competitors and put up prices out of business The defense was that the new company was not formed to raise prices but to lessen the cost of production stop the ruinous competition competi-tion and yield better products Judge Severns takes the position that the trust was formed In violation of the laws of Michigan as well as the act of Congress I I It became so apparent said the Judge in connection with his opinion that the combination was Intolerable under the Michigan laW3 it was not necessary to apply acts of Congress which bear upon the same question The case will doubtless undergo a review by < the appelate court