The Texas Legislature Attacks Trusts
Digital History ID 3685
In 1889, the Texas legislature enacted the nation’s second anti-trust law, restricting the power of large corporations.
Section 1. …a trust is a combination…for…any…of the following purposes: First—To create or carry out restrictions in trade. Second—To limit or reduce the production, or increase or reduce the price of merchandise or commodities. Third—To prevent competition in manufacture, making, transportation, sale, or purchase of merchandise, produce or commodities….
Sec. 2. That any corporation holding a charter under the laws of the State of Texas which shall violate any of the provisions of this act shall thereby forfeit its charter and franchise, and its corporate existence shall cease….
Sec. 6. Any violation of either or all the provisions of this act shall be…declared a conspiracy against trade, and any person who may be…engaged in any such conspiracy…shall be punished by fine not less than fifty dollars nor more than five thousand dollars, and by imprisonment in the penitentiary not less than one nor more than ten years…. Each day during a violation of this provision shall constitute a separate offense….
Source: H.P.N. Gammel, The Laws of Texas (Austin, 1898), IX 1169-1170
Copyright 2021 Digital History