Yazoo & Mississippi Valley Railroad v. Searles

Citations

• 85 Miss. 520

Syllabus

<p>1. Trusts and Combines. Code 1893, g 4437. Laws 1900, ch. 88, p. 125. Contracts. Construction.</p> <p>In determining whether a contract violates public policy as evidenced by the anti-trust statutes (Code 1892, § 4437; Laws 1900, ch. 88, p. 125), the courts will consider the nature of the business contemplated and the tendency of the contract as affecting the public, rather than the nature of the parties, whether corporations or individuals.</p> <p>2. Same. Test of a trust.</p> <p>All combinations or contracts, without regard to their purpose, intent, or effect, by which' the control of business is placed within the power of trustees or persons other than the contract- ' ing parties, are not trusts within the meaning of the statute, Code 1892, § 4437, Laws 1900, ch. 88, p. 125, defining trusts and prohibiting contracts in restraint of trade, but the test of a trust and the essential of its existence is that the contract or combination be on account of its actual results obnoxious to public policy, or be in itself and in its necessary effect inimical to the public welfare.</p> <p>3. Same. Forms not controlling.</p> <p>Courts will look through the form of an association in order to ascertain its character, and will judge of its nature not merely by its promulgated rules, but by its actual operation, and will decide the question of its legality or illegality according to the true nature and probable effect of the arrangement, without special regard to the form which has been assumed in the particular instance.</p> <p>4. Same. Rules.</p> <p>If the form of a combination is legal, and its aim and purposes such as the law will uphold, it will not be denounced as illegal from the fact alone that the objects for which it was entered into are occasionally effectuated hy rules which are only invoked as it becomes necessary to cope with unforeseen contingencies as they arise.</p> <p>5. Same. Practical operation.</p> <p>Where a contract or understanding is not of itself inimi