페이지 이미지
PDF
ePub
[ocr errors]

to the courts for decision respecting the validity of such restrictions now arise under such statutes. Questions involving the construction of such statutes, so far as they fall within the proper scope of this treatise, will be considered in their appropriate places. Of course, such legislation is subject to the constitutional limitations,1 and governed by the rules of nois act is said to have been "evidently copied from the Texas act." In Waters-Pierce Oil Co. v. State, above, the Texas acts of 1889 and 1895, including provisions for forfeiting the right of a foreign corporation to do business in the State, as a penalty for violating the acts, were sustained as exercises of the police power, against the objection that they contravened the prohibition of the fourteenth amendment against "depriving any person of life, liberty or property without due process of law." The distinction between prohibitions of reasonable and of unreasonable restrictions was not, however, discussed. In United States v. TransMissouri Freight Assoc., 166 U. S. 290; s. C., 17 Supm. Ct. Rep. 540 (1897), (see § 21), where the prohibition of the Federal anti-trust act was declared to apply to reasonable as well as unreasonable restraints of trade, it was not considered whether a prohibition of such reasonable restraints might not be in contravention of the prohibition of the fifth amendment of the Federal constitution against "depriving of life, liberty or property without due process of law." That it is in contravention of such prohibition, see vigorous discussion by W. D. Guthrie in 11 Harv. Law Rev. 80 (1897); by P. C. Knox in 36 Am. Law Reg. & Rev. 417 (1897). But see article

1 In Anheuser-Busch Brewing Assoc. v. Houck, 27 S. W. Rep. 692 (Tex. Civ. App., 1894), affirmed as Houck v. Anheuser-Busch Brewing Assoc., in 88 Tex. 184; s. c., 30 S. W. Rep. 869 (1895); Waters-Pierce Oil Co. v. State, Tex. Civ. App.; S. C., 44 S. W. Rep. 936 (1898; so also of the act of 1895), the Texas anti-trust act of 1889 was held constitutional as not being class legislation. See Hathaway v. State, 36 Tex. Crim. App. 261, 277; s. c., 36 S. W. Rep. 465 (1896). As to whether the Michigan anti-trust act of 1889 is unconstitutional on that ground, see Merz Capsule Co. v. United States Capsule Co., 67 Fed. Rep. 414 (Cir. Ct. Mich., 1895). But in Re Grice, 79 Fed. Rep. 627,645 (Cir. Ct. Tex., 1897), the provision of the Texas act that it should "not apply to agricultural products or live-stock while in the hands of the producer or raiser" (it appearing that four-fifths of the people of the State were engaged in producing and raising agricultural products and live-stock), was held violative of the fourteenth amendment of the Federal constitution as class legislation, depriving persons within the jurisdiction of the State of "the equal protection of the laws." See criticism and disapproval of this decision in People ex rel. v. American Tobacco Co., 2 Chicago L. J. Weekly, 249 (Cook Co. Cir. Ct., 1897?), where the Illi

construction' applicable to statutes generally. The general power of legislation possessed by the respective States includes the power to enact such legislation, but is subject to an important limitation created by the provision of the Federal constitution vesting in Congress the exclusive power "to regulate commerce with foreign nations and among the several States."2 On the other hand, the effect of legisla

by E. B. Whitney in 7 Yale Law New York act of 1897 for examJour. 285 (1898). ination of witnesses, see Matter of Attorney-General, 22 N. Y. App. Div. 285; s. c., 47 N. Y. Suppl. 883 (1897).

1 With reference to the Federal anti-trust act it is said in The Charles E. Wise wall, 74 Fed. Rep. 802 (Dist. Ct. N. Y., 1896), that "the courts have found it very difficult to apply the indefinite generalities of this act to the facts of any given case." It was held in Re Greene, 52 Fed. Rep. 104, 112 (Cir. Ct. Ohio, 1892), not to be retroactive, or to have any ex post facto operation; but in United States v. Trans-Missouri Freight Assoc., 166 U. S. 290, 342; s. c., 17 Supm. Ct. Rep. 540 (1897), to apply to a continuance after its passage of an agreement entered into before. In United States v. Trans-Missouri Freight Assoc., 19 U. S. App. 36, 67; S. C., 58 Fed. Rep. 58, 77 (8th Cir., 1893); Greer v. Stoller, 77 Fed. Rep. 1 (Cir. Ct. Mo., 1896), it was held, as a penal statute, to be subject to the rule of strict construction. In the case last cited the remedies created by the act are said to be "exclusive of all others." In Queen Ins. Co. v. State, 22 S. W. Rep. 1048 (Tex. Civ. App., 1893), the Texas act of 1893 had been held inoperative for failure to declare trusts illegal; but this decision was reversed in 86 Tex. 250, 268; s. C., 24 S. W. Rep. 397 (1893). As to effect of provision of

2 In Fuqua v. Pabst Brewing Co., 90 Tex. 298; s. c., 38 S. W. Rep. 29, 750 (1897), recovery was not allowed for beer sold by a brewing company transacting business in another State, and shipping the beer from that State under a contract providing that, during the performance of the contract, the company would not sell or consign any beer of its manufacture to any other party at Amarillo, Texas (where the buyer transacted business), and that the buyer would neither sell nor be interested in the sale of any beer not manufactured by the company, the company to erect a coldstorage house, and allow the buyer the free use of the same. The transaction was held within the Texas anti-trust act of 1889, notwithstanding the commerce clause of the Federal constitution; this on the ground that the contract dealt with the beer after it had ceased to be an article of interstate commerce. The court say (p. 302): "A portion of the stipulations of the contract being lawful, and the others unlawful, the taint of illegality affects and destroys the whole. The commerce clause of

tion enacted by Congress is limited to such as is merely incidental to the power to so regulate commerce.1 As we shall

the constitution was not designed to protect the contractual rights of a person who thus voluntarily intermingles an otherwise legal interstate commerce transaction with an entirely local and unlawful one." But it was also held that exemption from the operation of the State statute was prevented by the Wilson Act of Congress of August 8, 1890. See, also, Anheuser-Busch Brewing Assoc. v. Houck, 27 S. W. Rep. 692 (Tex. Civ. App., 1894); affirmed as Houck v. Anheuser-Busch Brewing Assoc., in 88 Tex. 184; S. C., 30 S. W. Rep. 869 (1895). So the State statute was held applicable in Waters-Pierce Oil Co. v. State, Tex. Civ. App. —; s. c., 44 S. W. Rep. 936 (1898), where the right of a foreign corporation to do business in the State was declared forfeited, it appearing that it not only shipped its products into the State, but entered into agreements with dealers in the State for exclusive dealing, by which the latter were to buy and sell the products of such corporation exclusively, and not to sell the products so bought to any one dealing with a dealer in competitive oils. But was not all this a mere incident of the interstate dealing? Still further seems to go People ex rel. v. American Tobacco Co., 2 Chicago L. J. Weekly, 249 (Cook Co. Cir. Ct., 1897?), where the authority of the State to exclude a foreign corporation, illegal as a restriction upon competition, was sustained as an exercise of the police power, against the objection

that the corporation shipping its products into the State was engaged in interstate commerce. But the soundness of this decision is very doubtful in view of such decisions of the United States Supreme Court as Bowman v. Chicago & Northwestern Ry. Co., 125 U. S 465; s. C., 8 Supm. Ct. Rep. 689 (1888).

See

1 Of course, the Federal anti-trust act has no application to trade or commerce wholly within the boundaries of a given State. The Charles E. Wiswall, 57 U. S. App. 179; s. c., 86 Fed. Rep. 671 (2d Cir., 1898); but as to a Territory, see Moore v. United States, 56 U. S. App. 471; s. c., 85 Fed. Rep. 465 (8th Cir., 1898). Its constitutionality was asserted in United States v. Patterson, 55 Fed. Rep. 605, 638 (Cir. Ct. Mass., 1893). But in United States v. E. C. Knight Co., 156 U. S. 1; S. C., 15 Supm. Ct. Rep. 249 (1895), affirming 60 Fed. Rep. 306 (Cir. Ct. Pa., 1894), the act was held to have no application to a mere monopoly in manufacture in the United States, though of a necessity of life (sugar). The court say (p. 13): "The fact that an article is manufactured for export to another State does not of itself make it an article of interstate commerce;" and of the act (p. 16): "Congress did not attempt thereby to assert the power to deal with monopoly directly as such, or to limit and restrict the rights of corporations created by the States or the citizens of the States in the acquisi

see elsewhere, anti-trust legislation generally has, particularly by reason of the failure to distinguish between the doctrine against restrictions upon competition, and that against

tion, control or disposition of property; or to regulate or prescribe the price or prices at which such property or the products thereof should be sold; or to make criminal the acts of persons in the acquisition and control of property, which the States of their residence or creation sanctioned or permitted." See elaborate dissenting opinion of Harlan, J. Compare United States v. Jellico Mountain Coal, etc. Co., 46 Fed. Rep. 432 (Cir. Ct. Tenn., 1891). The decision in United States v. E. C. Knight Co. was applied under similar conditions in Merz Capsule Co. v. United States Capsule Co., 67 Fed. Rep. 414 (Cir. Ct. Mich., 1895). The same conclusion had been reached in Dueber Watch-case Manuf. Co. v. Howard Watch & Clock Co., 35 U. S. App. 16; s. c., 66 Fed. Rep. 637 (2d Cir., 1895); also in Re Greene, 52 Fed. Rep. 104, 112 (Cir. Ct. Ohio, 1892); and see National Distilling Co. v. Cream City Importing Co., 86 Wis. 352; s. c., 56 N. W. Rep. 864 (1893). For a vigorous criticism of the decision in United States v. E. C. Knight Co., see article by Jackson Guy in 1 Va. Law Reg. 709 (1896); see also reply by John Hunter in 2 Id. 160 (1896). In United States v. Addyston Pipe & Steel Co., 54 U. S. App. 723, 770; s. c., 85 Fed. Rep. 271, 297 (6th Cir., 1898), it is said of United States v. E. C. Knight Co. that it "draws the distinction between a restraint upon the business of manufacturing, and a restraint

upon the trade or commerce between the States in the articles after manufacture, with the manifest purpose of showing that the regulating power of Congress under the constitution could affect only the latter, while the former was not under Federal control and rested wholly with the States."

More recent attempts to apply the act have been successful. In United States v. Hopkins, 82 Fed. Rep. 529 (Cir. Ct. Kan., 1897), an injunction was granted under § 4 of the act, dissolving the "Kansas City Live-Stock Exchange," composed of persons engaged in the livestock commission business, the purpose of which was to monopolize the business of buying and selling stock at Kansas City. Their method of business is thus described (p. 537): "The shipment of live-stock from growers, dealers and traders in Kansas, Colorado, Nebraska, Missouri, Texas, New Mexico, Arizona, Oklahoma and other States and Territories, is solicited by the commission merchant in various ways, but largely by the personal solicitation of agents who travel about the country and interview the stockmen. Frequently the commission man makes loans of money on the herds, secured by chattel mortgage. The consignment of the stock is made to the commission man or firm at the Kansas City stockyards, and there unloaded. Frequently the shipper draws on the consignee through his local bank, with the bill of shipment attached;

contracts in restraint of trade, been extended much beyond its proper scope, often with mischievous results.1

and, when the stock is sold, the loan 1898), the prohibition of the act was on the cattle, or the draft on the held to apply to an agreement beconsignee, as the case may be, is tween a combination of dealers paid out of the proceeds, and the importing coal from other States balance remitted to the shipper. and foreign countries, and an assoWhile the broker is soliciting con- ciation of retail dealers, whereby signments of stock for sale, he is the business of dealing was regualso on the alert for purchasers. lated and the retail price fixed. He sells the stock without regard Applying the doctrine of Leisy v. to its destination. Some is re- Hardin, 135 U. S. 100; s. c., 10 Supm. shipped to other markets in other Ct. Rep. 681 (1890), the court say States, notably to Chicago and St. (p. 266): "The claim that the coal Louis. Much of it, especially hogs, is not sold until imported, delivis slaughtered at the large packing- ered and bulk broken is not suffi houses near by, in Kansas and Mis- cient. The principle of the origsouri." This was held to be inter- inal package does not apply to the state commerce, and not a mere sale of coal." But is this decisincident or aid to such commerce. ion in harmony with Pittsburgh & So, notwithstanding that the place Southern Coal Co. v. Bates, 156 U.S. of business of the exchange was 577; S. C., 15 Supm. Ct. Rep. 415 located on both sides of the line be- (1895)? and see Emert v. Missouri, tween Kansas and Missouri. The 156 U. S. 296; s. c., 15 Supm. Ct. court overrule the contention that Rep. 367 (1895). In United States when the live-stock reached Kan- v. Addyston Pipe & Steel Co., 54 sas City, and was unloaded into U. S. App. 723; s. c., 85 Fed. Rep. the stock-yards, it ceased to be the 271 (6th Cir., 1898), the prohibition subject of interstate commerce, of the act was held to apply to an saying (p. 541): "This live-stock is agreement not to make a contract shipped from different States for in certain States for the sale of immediate sale, and, if the market goods to be delivered in another at Kansas City is not satisfactory, State; also to an agreement not to it is to be shipped to another mar- make such a contract below a cerket. I cannot believe that it ceases tain price. After discussing Robto be the subject of interstate com- bins v. Taxing District, 120 U.S. 489; merce when unloaded into the s. c., 7 Supm. Ct. Rep. 592 (1887), and stock-yards." But it does not seem similar cases, it is said (54 U. S. App. clear to us that the business as de- 767): "If the soliciting of orders for scribed was wholly interstate busi- and the sale of goods in one State to See comments on United be delivered from another State, is States v. Coal Dealers' Assoc., below. interstate commerce in its strictest In United States v. Coal Dealers' and highest sense, such that the Assoc., 85 Fed. Rep. 252 (Cir. Ct. Cal., States are excluded by the Federal

ness.

1 See § 21.

« 이전계속 »