Peck Steamship Line v. New York & P. R. S. S. Co.

THE PECK STEAMSHIP LINE, Plff.,

V.

THE NEW YORK & PORTO RICO STEAMSHIP COMPANY AND THE AMERICAN RAILROAD COMPANY OF PORTO RICO, Dfts.

San Juan, Law, No. 396.

1. By effect of the 9th article of the treaty of peace between the United States and Spain, and §§ 8 and 14 of the organic law of Porto Rico (31 Stat. at L. 77, chap. 191), all the general acts of Congress, whether applying to the "territories" or to the "territory" of the United States, are applicable in Porto Rico, when not locally inapplicable.

2. There is nothing in the antitrust law (26 Stat. at L. 209, chap. 647, U. S. Comp. Stat. 1901, p. 3200, July 2, 1890), entitled "An Act to Protect Trade and Commerce against Unlawful Restraints and Monopolies," which makes it locally inapplicable to Porto Rico, although it was enacted before the cession of Porto Rico to the United States.

3. Porto Rico is substantially a territory of the United States.

4. A complaint which alleges an unlawful combination between two common carriers, one alleged to be engaged in trade between Porto Rico and a state of the Union, is sufficient as against both defendants.

5. Allegations to the effect that, by reason and effect of an unlawful combination in restraint of trade, plaintiff, a common carrier, lost the carriage of a large amount of trade, and that the customers of plaintiff would thereby be compelled to pay an increase in the handling of freight, and, for that reason, would not ship with plaintiff, are not allegations of damages too remote to be considered under the antitrust law.

6. Such a combination is not less unlawful because made by parties not actually in competition with each other.

7. The contract evidencing the alleged unlawful combination need not be set out in the complaint in hæc verba.

Peck Steamship Line v. New York & P. R. S. S. Co.

8. An alleged contract between a railroad in Porto Rico and a steamship line between Porto Rico and New York, intended to give the latter a monopoly of the landing facilities at the port of San Juan, Porto Rico, would, if proved as alleged, be in violation of the antitrust law. 9. An action brought under that law to recover damages sustained by reason of the unlawful combination is not an action based on the said contract. 10. Under the antitrust act only the government can file a bill to enjoin acts under a contract in violation thereof.

Opinion filed September 4, 1906.

Messrs. Hord & Hawkins and J. Henri Brown, Esq., for plaintiff.

Francis H. Dexter, Esq., and Messrs. Hartzell & Rodriguez for the New York & Porto Rico Steamship Company.

Francis H. Dexter, Esq., for the American Railroad Company of Porto Rico.

RODEY, Judge, delivered the following opinion:

This cause is before the court on a demurrer to the declaration or complaint. It is a suit for damages in the sum of $180,000, brought under § 7 of the act of Congress of July 2, 1890 (26 Stat. at L. 209, chap. 647, U. S. Comp. Stat. 1901, p. 3202), commonly known as the antitrust act, and entitled: "An Act to Protect Trade and Commerce against Unlawful Restraints and Monopolies."

The case was argued at length by counsel for all parties. The defendants filed a joint demurrer, but appeared by separate counsel, and all of the parties have filed elaborate briefs. Apart from the many other grounds of demurrer to the different paragraphs of the declaration, for insufficiency and other reasons, it

Peck Steamship Line v. New York & P. R. S. S. Co.

becomes necessary to pass upon the very important question as to whether the antitrust act, having been passed some ten years before the date of the approval of the treaty by which Spain ceded Porto Rico to the United States, applies to or is in force, in whole or in part, in Porto Rico.

It is found impossible, because of the character of the declara tion and the demurrer, to pass upon the questions involved without setting them both out in extenso. The complaint consists of nineteen paragraphs, and, with the preamble, is as follows:

Complaint.

The plaintiff, the Peck Steamship Line, a corporation duly organized and existing under and by virtue of the laws of the state of New York, and doing business in Porto Rico, with offices at San Juan, Porto Rico, complaining of the defendant, the New York & Porto Rico Steamship Company, a corporation duly organized and existing under and by virtue of the laws of the state of New Jersey, U. S. A., doing business in Porto Rico and with offices at San Juan, Porto Rico, and the American Railroad Company of Porto Rico, a corporation duly organized and existing under and by virtue of the laws of the state of New York, doing business in Porto Rico and having its main offices in the city of San Juan, Porto Rico, alleges:

1. That the plaintiff is now, and at the times of the doing of the acts herein complained of was engaged in the management and operation of a line of steamships between San Juan and other ports in Porto Rico and the city of New York, in the state of New York, for the purpose of doing and carrying on a general freight business between the city of New York and the various ports in Porto Rico.

2. That the defendant the New York & Porto Rico Steamship

Peck Steamship Line v. New York & P. R. S. S. Co.

Company has for several years past been engaged in operating a line of steamships between the same points, and is still continuing so to operate the same, doing a general freight and passenger business between the said points, owning and controlling a certain pier located in the harbor of San Juan, known as "Pier No. 1," and did own and control said pier at the times of the doing of the acts herein complained of.

3. That the defendant the American Railroad Company of Porto Rico is engaged in the operation of a railroad line in the island of Porto Rico, and, as assignee of the "Compañia de los Ferrocarriles de Puerto Rico," obtained the control and management of a certain dock in the harbor of San Juan known as the "Quartermaster's dock" under the terms of a certain franchise granted its assignor, the said "Compañia de los Ferrocarriles de Puerto Rico" by the executive council of Porto Rico on October 28th, 1901,

4. That the said franchise still continues in full force and effect and that the said defendant the American Railroad Company of Porto Rico, at the times of the doing of the acts herein complained of, professed to control and manage the said Quartermaster's dock by virtue of and according to the terms of the said franchise.

5. That the said franchise provides that the grantee or its assignee, the defendant the said American Railroad Company of Porto Rico, shall, by suitable rules and regulations, approved by the executive council, and subject to alteration or amendment by the executive council, permit the use of the said dock to all vessels.

6. That the said Pier No. 1 and the said Quartermaster's dock are the only points in the harbor of San Juan where steamships can dock to load and discharge cargo without the use of lighters.

Peck Steamship Line v. New York & P. R. S. S. Co.

7. That heretofore, to wit, on or about the month of December, 1905, and from that time down to this date, the steamships chartered by the plaintiff with large capacity for the carriage of freight, and being such as the plaintiff company had just reason and cause to believe could be operated between the said ports of Porto Rico and the said city of New York for the carriage of freight as aforesaid at a large profit to the plaintiff, have been making trips between the said ports and have been carrying out and performing their contracts and obligations entered into by and between plaintiff and the shippers of freight in the island of Porto Rico and the said city of New York and other points in the United States, but that owing to the illegal, wrongful, and malicious conduct of the defendants, and their agents and employees, both in the island of Porto Rico and the city and state of New York, plaintiff has been greatly hindered and obstructed in the discharge of its obligations as aforesaid contracted with the shippers of freight in the island of Porto Rico and points in the United States by reason of the said wrongful and illegal acts and doings on the part of the said defendants.

8. That on or about the month of December, 1905, the said defendants did wrongfully, maliciously, and wantonly combine, confederate, and conspire together to illegally harass, interfere with, obstruct, and cause damage to the plaintiff in the conduct of its business, for the purpose of ruining and destroying the said business of the plaintiff, and compelling the plaintiff to desist from the continuance of such business, and to the end that the defendants the New York & Porto Rico Steamship Company might have and enjoy a monopoly of the freight business between the said ports of New York and Porto Rico.

9. That said conspiracy and combination entered into by the defendants as aforesaid was in restraint of trade and commerce between the ports of Porto Rico and the said city of New York,

II. PORTO RICO.-8.