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A contract between several companies not to sell goods within certain territorial limits for a specified time, and that no company should sell more than a certain percentage of the entire amount of goods sold, is contrary to the provisions of the California civil code, which provide that every contract by which one is restrained from exercising a business or calling is void to that extent, except that one who has sold the good-will of a business may agree not to carry on a similar business within a specified county or town, and that, in anticipation of dissolution of partnership, a partner may agree not to carry on a similar business in the town or city where the partnership was located.1

1 Vulcan Powder Co. v. Hercules Powder Co. (1892), 96 Cal. 510, 31 Pac. R. 581.

PART VII.

THE FEDERAL ANTI-TRUST LAW.

CHAPTER 22.

THE LAW AND ITS APPLICATION.

796. Act of July 2, 1890.

797, 798. The title of the act.

799. "Trade and commerce."

800-805. "Unlawful restraints and monopolies." 806, 807. The provisions of the act.

808-810. The contracts embraced within the act.

811. Act is constitutional.

812. A state is not within the act.

813. The object of the statute.

814. The anti-trust act and the interstate commerce act.

815. Interferences with interstate transportation.

816. Decisions of the supreme court of the United States.

817. The construction of the act.

818, 819. Corporate combinations of manufacturers - Sugar refineries.

820-822.

823.

Manufacture and commerce.

General propositions affecting corporate combinations.

824, 825. Simple combinations of manufacturers

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836-843.

844. 845-848.

Cast-iron pipe com

Trans-Missouri Freight Association case.
In the supreme court.

Joint Traffic Association case.

849, 850. Contracts of railways not contrary to act.

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863. Right to form associations for the advancement of business. 864-866. Effect of dissolution of combination.

867. Remedies under the act.

868-873. In equity.

§ 874.

875.

Injunction without notice.

Injunction, affidavits for.

876-878. Action at law to recover damages.

879-881. Defense against suit by illegal combination.

882. Parties.

883. Question of intent.

884. Penalties.

885-891. Indictment.

892. Habeas corpus.

892a. Statutes of limitation.

796. Act of July 2, 1890.- The federal anti-trust act, sometimes called the "Sherman Act" and sometimes called the "Trust Act," or, more properly, "Anti-Trust Act," approved July 2, 1890, was entitled:

§ 797. The title of the act.-"An act to protect trade and commerce against unlawful restraints and monopolies." While

1 Ch. 647, vol. 26, U. S. Stats. at Large. The act entire, including the title, is as follows:

An act to protect trade and commerce against unlawful restraints and monopolies. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Sec. 1. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the sev eral States, or with foreign nations, is hereby declared to be illegal. Every person who shall make any such contract or engage in any such combination or conspiracy, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.

2 Mr. S. C. T. Dodd, general counsel of the Standard Oil Co., has an interesting article on the anti-trust act in 7 Harvard Law Review, 165. See also article by Mr. William F. Dana in the same volume at p. 338. Mr.

Sec. 2. 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 among the several States, or with foreign nations, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.

Sec. 3. Every contract, combination in form of trust or otherwise, or conspiracy, in restraint of trade or commerce in any Territory of the United States or of the District of Columbia, or in restraint of trade or commerce between any such Territory and another, or between any such Territory or Territories and any State or States or the District of Columbia, or with foreign nations, or between the District of Columbia William D. Guthrie discusses the act in a criticism of the decision of the supreme court in the Trans-Missouri Traffic Association Case, in 11 Harvard Law Review, p. 80.

it is true that under the English decisions the title of an act is no part of the act, and, according to Lord Coke, should not be taken into consideration at all,' still the common-law rule as adopted in this country is that the title may be resorted to to

and any State or States or foreign nations, is hereby declared illegal. Every person who shall make any such contract or engage in any combination or conspiracy, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.

Sec. 4. The several circuit courts of the United States are hereby invested with jurisdiction to prevent and restrain violations of this act; and it shall be the duty of the several district attorneys of the United States, in their respective districts, under the direction of the AttorneyGeneral, to institute proceedings in equity to prevent and restrain such violations. Such proceedings may be by way of petition setting forth the case and praying that such violation shall be enjoined or otherwise prohibited. When the parties complained of shall have been duly notified of such petition the court shall proceed, as soon as may be, to the hearing and determination of the case; and pending such petition and before final decree, the court may at any time make such temporary restraining order or prohibition as shall be deemed just in the premises.

moned, whether they reside in the district in which the court is held or not; and subpoenas to that end may be served in any district by the marshal thereof.

Sec. 6. Any property owned under any contract or by any combination, or pursuant to any conspiracy (and being the subject thereof) mentioned in section one of this act, and being in the course of transportation from one State to another, or to a foreign country, shall be forfeited to the United States, and may be seized and condemned by like proceedings as those provided by law for the forfeiture, seizure, and condemnation of property imported into the United States contrary to law.

Sec. 7. Any person who shall be injured in his business or property by any other person or corporation by reason of anything forbidden or declared to be unlawful by this act, may sue therefor in any circuit court of the United States in the district in which the defendant resides or is found, without respect to the amount in controversy, and shall recover three-fold the damages by him sustained, and the costs of suit, including a reasonable attorney's fee. Sec. 8. That the word "person "persons" wherever used in this act shall be deemed to include corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the Territories, the laws of any State, or the laws of any foreign country. Approved, July 2, 1890.

Sec. 5. Whenever it shall appear to the court before which any proceeding under section four of this act may be pending, that the ends of justice require that other parties should be brought before the court, § 210 and authorities cited. the court may cause them to be sum

or

1 Sutherland on Statutory Const.,

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