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
Untitled Texas Attorney General Opinion
Combined Opinion