Democratic Sentinel, Volume 15, Number 19, Rensselaer, Jasper County, 22 May 1891 — A BLOW AT TRUST COMPANIES. [ARTICLE]

A BLOW AT TRUST COMPANIES.

Uncler Certain Circumstances They Have No Recourse in Law. A trust company has no recourse in law if a member of the trust violates the agreement not to go into business again is the substance of a decision by Judge Thayer of the United States Court, St. Louis, Mo. The decision was rendered in the ease of the American Prcserveis Company against the Taylor Manufacturing Comi any. For years prior to 1888 the Taylor Company had been carrying on its business in St. Louis, but the tempter came, and the Amerian Preservers’ Trust bought out business, for which it was to . -y part cash and the balance in trust certificates. The Taylor Company agreed not to go into business again in this country for twenty-five years, or until the trust died. In 18!'0 the company did go into business again, and when the American Preservers Company brought suit to enjoin it. it c aimed iho agreement only bound the three stockholders who had signed. As the trust did not allege that the company was bound by the action of those stockholders, it was compelled to file another petition, and the Taylor Company then replied, saying that even if the company was bound by the agreement such contracts were unlawful in the State of Missouri. The demurrer to the bill was sustained.