NEW JERSEY. COMMON-LAW DECISIONS. John P. Stockton, Attorney-General of New Jersey, at the Relation of John R. Miller et al. v. The American Tobacco Co. et al. 55 N. J. Eq., 352. Statement. February, 1897. Five companies of New York, North Carolina and Virginia, were at one time, independently of each other, manufacturing and selling paper cigarettes. In 1889, under the laws of New Jersey they formed the American Tobacco Company, and its capital stock was to be $25,000,000. The five companies above mentioned turned their property over to this corporation and received its stock in payment therefor. The American Tobacco Company did no business in New Jersey except to sell its cigarettes there through jobbers under agreement that the jobbers should sell cigarettes for no other manufacturer. By this means the American Tobacco Company has monopolized ninety-five per cent of the paper cigarette business of the United States. Plaintiff seeks to enjoin the American Tobacco Company from doing business in a manner to restrict trade. Opinion. If the corporation was not legally formed, the proper remedy is not in equity, but at law to declare its charter void. If the corporation was legally formed, it has the same right to do business as an individual, and clearly an individual has the right to make any contract the defendant has made. The bill is dismissed. Trenton Potteries Co. v. Richard C. Oliphant et. al. 56 N. J. Eq., 680. 43 At. Rep., 723. Statement. March 19, 1898. July 7, 1899. Plaintiff, it is alleged, is a corporation formed for the purpose of buying enough of the manufactories of sanitary ware to control the market in this article. To this end it pur chased a manufactory in which defendants were interested, and made a contract with defendants whereby they agreed to manufacture no pottery ware anywhere in the United States except in Nevada and Arizona for fifty years. They are now breaking this contract and plaintiff brings a bill in equity to have them enjoined. Opinion of the Court of Chancery. The prayer for the enforcement of this contract is a request that equity shall aid in carrying into effect a scheme which, in all its parts, tended to secure to the complainant company such an undue control of the market of a necessary of life as is against public policy, and the request should not be granted. Opinion of Court of Errors and Appeals. As the legislature had given corporations power to acquire the property and control of other corporations, and this carried with it the right to make contracts reasonably required to protect the purchaser in the enjoyment of the business purchased, the legislature had settled the question of public policy, and the court had to decide only whether the restraint was reasonably required to protect the purchaser. Held that a reasonable restraint would extend only to the territory covered by the seller's business; that in such territory the contract would be specifically enforced, but that as to the rest of the territory covered by the contract no relief would be granted. As to the state of New Jersey the injunction will be granted, but as it is not proved that defendants' business which was sold extended into the rest of the territory covered by the contract, as to that, it will be refused. NEW MEXICO. STATUTE. COMPILED LAWS. TRUSTS, POOLS AND COMBINATIONS. § 1292. Every contract or combination between individuals, associations or corporations, having for its object or which shall operate to restrict trade or commerce or control the quantity, price or exchange of any article of manufacture or product of the soil or mine, is hereby declared to be illegal. Every person, whether as individual or agent or officer or stockholder of any corporation or association, who shall make any such contract or engage in any such combination, shall be deemed guilty of a misdemeanor, and on conviction thereof shall be punished by a fine not exceeding one thousand dollars nor less than one hundred dollars, and by imprisonment at hard labor not exceeding one year, or until such fine has been paid. § 1293. Every person who shall monopolize or attempt to monopolize, or combine or conspire with any other person or persons to monopolize any part of the trade or commerce of this territory, shall be deemed guilty of a misdemeanor, and on conviction thereof shall be punished by a fine not exceeding one thousand dollars or by imprisonment not exceeding one year, or by both said punishments in the dis cretion of the court. § 1294. All contracts and agreements in violation of sections one thousand two hundred and ninety-two and one thousand two hundred and ninety-three shall be void, and any purchaser of any commodity from any individual, corporation or association transacting business in violation of this act shall not be liable for the payment for such commodity. § 1294a. This act shall take effect from and after its passage and publication three times in the "Daily New Mexican." [Passed in 1891.] NEW YORK. STATUTES. PENAL CODE. CONSPIRACY. § 168. Conspiracy defined.—If two or more persons conspire, either * * * 6. To commit any act injurious to the public health, to public morals, or to trade or commerce, or for the perversion or obstruction of justice, or of the due administration of the laws; Each of them is guilty of a misdemeanor. LAWS OF 1897, CHAP. 384. § 7. Combinations abolished. No domestic stock corporation and no foreign corporation doing business in this state shall combine with any other corporation or person for the creation of a monopoly or the unlawful restraint of trade or for the prevention of competition in any necessary of life. LAWS OF 1899, CHAP. 690. AN ACT to prevent monopolies in articles or commodities of common use, and to prohibit restraints of trade and commerce, providing penalties for violations of the provisions of this act, and procedure to enable the attorney-general to secure testimony in relation thereto. The People of the State of New York, represented in Senate and Assembly, do enact as follows: §1. Every contract, agreement, arrangement or combination whereby a monopoly in the manufacture, production or sale in this state of any article or commodity of common use is or may be created, established or maintained, or whereby competition in this state in the supply or price of any such article or commodity is or may be restrained or prevented, or whereby for the purpose of creating, establishing or maintaining a monopoly within this state of the 252A- -12 177 manufacture, production or sale of any such article or commodity, the free pursuit in this state of any lawful business, trade or occupation is or may be restricted or prevented, is hereby declared to be against public policy, illegal and void. § 2. Every person or corporation, or any officer or agent thereof, who shall make or attempt to make or enter into any such contract, agreement, arrangement or combination, or who within this state shall do any act pursuant thereto, or in, toward or for the consummation thereof, wherever the same may have been made, is guilty of a misdemeanor, and on conviction thereof shall, if a natural person, be punished by a fine not exceeding five thousand dollars, or by imprisonment for not longer than one year, or by both such fine and imprisonment; and if a corporation, by a fine of not exceeding five thousand dollars. § 3. The attorney-general may bring an action in the name and in behalf of the people of the state against any person, trustee, director, manager or other officer or agent of a corporation, or against a corporation, foreign or domestic, to restrain and prevent the doing in this state of any act herein declared to be illegal, or any act, in, toward or for the making or consummation of any contract, agreement, arrangement or combination herein prohibited, wherever the same may have been made. § 4. Whenever the attorney-general has determined to commence an action or proceeding under this chapter, he may present to any justice of the supreme court, before beginning such action or proceeding under this chapter, an application in writing, for an order directing the persons mentioned in the application to appear before a justice of the supreme court, or a referee designated in such order, and answer such questions as may be put to them or to any of them, and produce such papers, documents and books concerning any alleged illegal contract, arrangement, agreement or combination in violation of this chapter; and it shall be the duty of the justice of the supreme court, to whom such application for the order is made, to grant such application. The application for such order made by the attorney-general may simply show, upon his information and belief that the testimony of such person or persons is material and necessary. The provisions of article one, of title three, of chapter nine of the code of civil procedure, relating to the application for |