*<y
r r. ff \, A A
LAWS ON
TRUSTS AND MONOPOLIES
DOMESTIC AND FOREIGN
WITH AUTHORITIES
COMPILED UNDER THE DIRECTION OF
J. J. SPEIGHT
CLERK COMMITTEE ON THE JUDICIARY
HOUSE OF REPRESENTATIVES
BY
NATHAN B. WILLIAMS
OF THE ARKANSAS BAR
PRINTED FOR THE USE OF THE COMMITTEE
WASHINGTON, D. C., DECEMBER 1, 1913
WASHINGTON
GOVERNMENT PRINTING OFFICE
1918
COMMITTEE ON THE JUDICIARY,
HOUSE OF REPRESENTATIVES.
SIXTY-THIBD CONGRESS.
HENRY b. CLAYTON, Alabama, Chairman.
EDWIN Y. WHBB, North Carolina. JOHN F. CAREW, New York.
CHARLES C. CARLIN, Virginia. JOHN B. PETERSON, Indiana.
JOHN C. FLOYD, Arkansas. JOHN J. MITCHELL, Massachusetts.
ROBERT Y. THOMAS, Jr., Kentucky. ANDREW J. VOLSTEAD, Minnesota.
H. GARLAND DUPRE, Louisiana JOHN M. NELSON, Wisconsin.
WALTER I. McCoY, New Jersey. DICK T. MORGAN, Oklahoma.
DANIEL J. MCGILLICUDDY, Maine. HENRY G. DANFORTH, New York.
JACK BBALL, Texas. L. C. DYER, Missouri.
JOSEPH TACOART, Kansas. GEORGE S. GRAHAM, Pennsylvania.
Louis PITZHBNRY, Illinois. WALTER M. CHANDLER, New York.
J. J. SPEIGHT, 'clerk.
FABLE OF CONTENTS.
Unless otherwise indicated, references are to Bevised Statutes or codes of
the several States.
Page.
United States 1-37
Sherman antitrust law 1
Act of August 15, 1894 a
Act of February 12, 1913 5
Act of February 4, 1887 6
Act of February 11, 1903 7
Joint resolution of March 7, 1906 8
Joint resolution of March 21, 1906 10
Act of June 25, 1910 11
Judicial Code, January 1, 1912 13
Act of February 25, 1903 13
Act of February 14, 1903 14
Act of June 13, 1906, immunity of witnesses .-.--15
Sundry civil bill, March 4, 1913 16
Panama Canal act, August 24, 1912 17
Naval appropriation bill, March 4, 1913 .-, 20
District of Columbia appropriation bill, March 4, 1913 21
Equity rules, Supreme Court United States 23.
Table of cases decided under Sherman law ,__ 24-34
Resale contracts, cases 34-36
Labor cases 36
Power of Congress under antitrust act, cases :. ; 37
Alabama: |; ; v
Constitution 39
Statutes 39-4,2
Court decisions 42
Arizona :
Constitution 43
Statutes 43-47
Arkansas:
Constitution 49
Statutes , 49-56
Court decisions 56
California :
Constitution 57
Statutes 57-62
Court decisions 62
in
708913
IV TABLE OF CONTENTS.
Colorado : p age .
Constitution 63
Statutes 63-66
Connecticut :
Constitution w __ 67
Statutes 67
Court decisions 67
Delaware 69
District of Columbia . 71
Florida :
Statutes 73
Court decisions 73
Georgia :
Constitution 75
Statutes 75-78
Court decisions 78
Idaho :
Constitution 79
Statutes 79-86
Illinois:
Statutes 87-94
Court decisions 94-96
Indiana :
Statutes 97-104
Court decisions 104
Iowa:
Statutes 105-108
Court decisions 108
Kansas :
Statutes 109-123
Court decisions : 123
Kentucky :
Constitution 125
Statutes 125-130
Court decisions : 130
Louisiana :
Statutes : 131-135
Court decisions 135
Maine :
Statutes 137,138
Maryland :
Constitution 139
Massachusetts :
Statutes 141-147
Court decisions . 147
Michigan:
Constitution 149
Statutes , 149-157
Court decisions 1 157
Minnesota :
Statutes 159
Court decisions- _ 160
TABLE OF CONTENTS. V
Mississippi : Page.
Constitution 161
Statutes 161-169
Court decisions - 169
Missouri :
Statutes 171-187
Court decisions - 187
Montana :
Constitution 189
Statutes 189-192
Court decisions 1 192
Nebraska :
Constitution 193
Statutes 193-209
Court decisions 209
Nevada 211
New Hampshire:
Statutes 213
Court decisions 213
New Jersey:
Statutes : , 215-221
Court decisions 221
New Mexico:
Statutes 223
New York:
Statutes 225-228
Court decisions , 228
North Carolina :
Statutes 231-240
Court decisions 240
North Dakota:
Constitution 241
Statutes 241-250
Ohio:
Statutes 251-256
Court decisions 256
Oklahoma :
Constitution 257
Statutes 258-267
Court decisions 267
Oregon :
Court decisions 269
Pennsylvania :
Court decisions 271
Rhode Island:
Court decisions 273
South Carolina :
Constitution 275
Statutes 275-281
Court decisions 281
South Dakota:
Constitution 283
Statutes 283-288
Court decisions.. 288
VI TABLE OF CONTENTS.
Tennessee : Page,
Constitution 289
Statutes 289, 290
Court decisions 290
Texas :
Constitution . 291
Statutes 291-310
Court decisions 310
Utah:
Constitution 313
Statutes 313-317
Vermont :
Statutes 319
Virginia :
Constitution 321
Washington :
Constitution 323
West Virginia 325
AVisconsin :
Statutes 327-331
Court decisions ^.C^ ^ 331
Wyoming :
Constitution 333
Statutes 333, 334
Foreign countries 335-438
Australia 335-354
Canada 355-375
Cape of Good Hope 377-379
Great Britain 381-418
Japan 419
New Zealand- - 421-438
LAWS ON TRUSTS AND MONOPOLIES, DOMESTIC AND
FOREIGN, WITH AUTHORITIES.
UNITED STATES.
STATUTES.
THE SHERMAN ANTITRUST LAW.
[26 Stat. L., 209. July 2, 1890.]
AN ACT To protect trade and commerce against unlawful re-
straints and monopolies.
Be it enacted ~by the Senate and House of Representa-
tives of the United States of America in Congress as-
sembled, Every contract, combination in the form of Restraint pro-
hibited in corn-
trust or otherwise, or conspiracy, in restraint of trade merce between
J ' States and for-
or commerce among the several States, or with foreign eign nations,
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 pun- Punishment,
ished by a fine not exceeding $5,000, or by imprisonment
not exceding one year, or by both said punishments, in
the discretion of the court.
SEC. 2. Every person who shall monopolize, or attempt ^ n t e ^ oly pro "
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 ex- Punishment,
ceeding $5,000, 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 ^^ t P o 10 ter-
or otherwise, or conspiracy, in restraint of trade or com- ritor y In voived.
inerce in any Territory of the United States or of the
District of Columbia, or in restraint of trade or commerce
1649113 1 1
2
LAWS ON TRUSTS AND MONOPOLIES.
Conspiracy.
OD-
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 be-
tween the District of Columbia and any State or States
or foreign nations, is hereby declared illegal. Every
person w r ho shall make any such contract or engage in
an y suc \ i combination or conspiracy, shall be deemed
Punishment, guilty of a misdemeanor, and, on conviction thereof, shall
be punished by fine not exceeding $5,000, or by imprison-
ment not exceeding one year, or by both said punish-
ments, 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
- Attorney General, 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 other-
wise 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 determi-
nation of the case ; and pending such petition and before
ders P rary 01 fi na l decree, the court may at any time make such tem-
porary restraining order or prohibition as shall be
deemed just in the premises.
Additional par- SEC. 5. Whenever it shall appear to the court before
which any proceedings under section four of this act
may be pending, that the ends of justice require that
other parties should be brought before the court, the court
may cause them to be summoned whether they reside in
the district in which the court is held or not, and sub-
poenas to that end may be served in any district by the
marshal thereof.
^ EC * ' ^^ P r P er ty 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.
F ?o f ert ure f
UNITED STATES.
SEC. 7. Any person who shall be injured in his business
or property by any person or corporation by reason of P art y
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 threefold the damages by him sus-
tained, and the cost of suit, including a reasonable at-
torney's fee.
SEC. 8. That the word " person," or " persons," wher- Definitions.
ever used in this act shall be deemed to include corpora-
tions 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.
[28 Stat. L., 570. Aug. 15, 1894.]
AN ACT To reduce taxation and provide revenue for the Gov-
ernment, and for other purposes.
SEC. 73. That every combination, conspiracy, trust, public policy,
agreement, or contract is hereby declared to be contrary
to public policy, illegal, and void, when the same is made
by or between two or more persons or corporations either
of whom is engaged in importing any article from any
foreign country into the United States, and when such
combination, conspiracy, trust, agreement, or contract is
intended to operate in restrain of lawful trade, or free
competition in lawful trade or commerce, or to increase
the market price in any part of the United States of any
article or articles imported or intended to be imported
into the United States, or of any manufacture into which
such imported article enters or is intended to enter.
Every person who is or shall hereafter be engaged in the conspiracy of
importation of goods or any commodity from any for- im P rters -
eign county in violation of this section of this act, or
who shall combine or conspire with another to violate
the same, is guilty of a misdemeanor, and, on conviction
thereof in any court of the United States, such person punishment,
shall be fined in a sum not less than $100 and not exceed-
ing $5,000, and shall be further punished by imprison-
ment, in the discretion of the court, for a term not less
than three months nor exceeding twelve months.
SEC. 74. That the several circuit courts of the United ^""^ffij
States are hereby invested with jurisdiction to prevent $ggf*^ of juris ~
4 LAWS ON TRUSTS AND MONOPOLIES.
and restrain violations of section seventy-three of this
Duty of dis- act ; and it shall be the duty of ;he several district attor-
trict attorneys. . J . . .
neys or the United States, m their respective districts,
under the direction of the Attorney General, to institute
proceedings in equity to prevent and restrain such vio-
lations. Such proceedings may be by way of petitions
setting forth the case and praying that such violations
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,
Restraining or- to the hearing and determination of the case ; and pend-
ing 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.
other parties. SEC. 75. That whenever it shall appear to the court
before which any proceeding under the seventy- fourth
section of this act may be pending that the ends of jus-
tice require that other parties should be brought before
the court, the court may cause them to be summoned
whether they reside in the district where the court is
held or not; and subpoenas to that end may be served
in any district by the marshal thereof.
Condemnation SEC. 76. That any property owned under any contract
and seizure of , , . J "
property. or by any combination or pursuant to any conspiracy
<Amended by , / , . J ,. J , .
Public 370, (and being the subiect thereof) mentioned in section
Feb. 12, 1913.) v ,,. , ' .
seventy-three of this act, and being in the course ot
transportation from one State to another or to or from
a Territory or the District of Columbia 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 im-
ported into the United States contrary to law.
Threefold dam- SEC. 77. That any person who shall be injured in his
ages to injured
party. business or property by any other person or corporation
by reason of anything forbidden or declared to be un-
lawful by this act may sue therefor in any circuit court
of the United States in the district in which the defend-
ant resides or is found, without respect to the amount
in controversy, and shall recover threefold the damages
by him sustained, and the costs of suit, including a
reasonable attorney's fee.
Received by the President August 15, 1894, and not
being returned within 10 days became a law without his
approval.
UNITED STATES.
[The foregoing sections were expressly preserved in
the Dingley Act of 1897. Section 34 of that act (30
Stat., 213) concludes as follows:]
And further provided, That nothing in this act shall be
construed to repeal or in any manner affect the sections
numbered seventy-three, seventy-four, seventy-five, sev-
enty-six, and seventy-seven of an act entitled "An act
to reduce taxation, to provide revenue for the Govern-
ment, and for other purposes," which became a law on
the twenty-eighth day of August, eighteen hundred and
ninety- four.
[PUBLIC No 370. Feb. 12, 1913.]
[H. R. 25002.]
AN ACT To amend section seventy-three and section seventy-six
of the Act of August twenty-seventh, eighteen hundred and
ninety-four, entitled "An Act to reduce taxation, to provide rev-
enue for the Government, and for other purposes."
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assem-
bled, That section seventy-three and section seventy-six
of the Act of August twenty-seventh, eighteen hundred
and ninety-four, entitled "An Act to reduce taxation, to
provide revenue for the Government, and for other pur-
poses," be, and the same are hereby, amended to read as
follows :
" SEC. 73. That every combination, conspiracy, trust, Amending
agreement, or contract is hereby declared to be contrary W. 15, 1894.
to public policy, illegal, and void when the same is made
by or between two or more persons or corporations either
of whom, as agent or principal, is engaged in importing
any article from any foreign country into the United
States, and when such combination, conspiracy, trust,
agreement, or contract is intended to operate in restraint
of lawful trade, or free competition in lawful trade or
commerce, or to increase the market price in any part of
the United States of any article or articles imported or
intended to be imported into the United States, or of any
manufacture into which such imported article enters or is
intended to enter. Every person who is or shall here-
after be engaged in the importation of goods or any com-
modity from any foreign country in violation of this sec-
tion of this Act, or who shall combine or conspire with
another to violate the same, is guilty of a misdemeanor,
6 LAWS ON TRUSTS AND MONOPOLIES.
and on conviction thereof in any court of the United
States such person shall be fined in "a sum not less than
one hundred dollars and not exceeding five thousand dol-
lars, and shall be further punished by imprisonment, in
the discretion of the court, for a term not less than three
months nor exceeding twelve months."
Amending " SEC. 76. That any property owned under any contract
sec. 76, act . . . J
Aug. 15, 1894. or by any combination, or pursuant to any conspiracy,
and being the subject thereof, mentioned in section
seventy-three of this Act, imported into and being within
the United States or being in the course of transportation
from one State to another, or to or from a Territory or
the District of Columbia, shall be forfeited to the United
States, and may be seized and condemned by like proceed-
ings as those provided by law for the forfeiture, seizure,
and condemnation of property imported into the United
States contrary to law."
[24 Stat. L., 379. Feb. 4, 1887.]
AN ACT To regulate commerce. 1
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assem-
Act applies to bled. That the provisions of this act shall apply to
common car- A . . r
Hers. any common carrier or carriers engaged in the trans-
portation of passengers or property wholly by railroad,
or partly by railroad and partly by water when both are
used, under a common control, management, or arrange-
ment, for a continuous carriage or shipment, from one
State or Territory of the United States, or the District
of Columbia, to any other State or Territory of the
United States, or the District of Columbia, or from any
place in the United States to an adjacent foreign country,
or from any place in the United States, through a foreign
country to any other place in the United States, and also
to the transportation in like manner of property shipped
from any place in the United States to a foreign country
and carried from such place to a port of transshipment,
or shipped from a foreign country to any place in the
United States and carried to such place from a port of
entry either in ttie United States or an adjacent foreign
Exceptions country : Provided, however, That the provisions of this
act shall not apply to the transportation of passengers or
1 The parts of the act not relating to combinations are omitted.
UNITED STATES. 7
property, or to the receiving, delivering, storage, or
handling of property, wholly within one State, and not
shipped to or from a foreign country from or to any
State or Territory as aforesaid.
The term " railroad " as used in this act shall include
all bridges and ferries used or operated in connection
with any railroad, and also all the road in use by any cor-
poration operating a railroad, whether owned or operated
under a contract, agreement, or lease; and the term
" transportation " shall include all instrumentalities of
shipment or carriage. *
SEC. 5. That it shall be unlawful for- any common car- Pooling agree-
, . , , . . , , . . . ments unlaw-
ner subject to the provisions of this act to enter into any fui.
contract, agreement, or combination with any other com-
mon carrier or carriers for the pooling of freights of
different and competing railroads, or to divide between
them the aggregate or net proceeds of the earnings of
such railroads, or any portion thereof; and in any case
of an agreement for the pooling of freights as aforesaid,
each day of its continuance shall be deemed a separate
offense.
SEC. 7. That it shall be unlawful for any common car- Continuous
. , . . . shipments.
rier subject to the provisions of this act to enter into any
combination, contract, or agreement, expressed or im-
plied, to prevent, by change of time schedule, carriage in
different cars, or by other means or devices, the carriage
of freight from being continuous from the place of ship-
ment to the place of destination. * * *
[32 Stat. L., 823. Feb. 11, 1903.]
AX ACT To expedite the hearing and determination of suits in
equity pending or hereafter brought under the act of July
second, eighteen hundred and ninety, entitled "An act to pro-
tect trade and commerce against unlawful restraints and mo-
nopolies," "An act to regulate commerce," approved February
fourth, eighteen hundred and eighty-seven, or any other acts
having a like purpose that may be hereafter enacted.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress as-
sembled. That in any suit in equity pending or hereafter Expedition of
' . . J ^ hearings under
brought in any circuit court of the United States under Sherman law.
(Amended by
the act entitled "An act to protect trade and commerce act June 25,
against unlawful restraints and monopolies," approved
July second, eighteen hundred and ninety, "An act to
regulate commerce," approved February fourth, eighteen
8 LAWS ON TRUSTS AND MONOPOLIES.
hundred and eighty-seven, or any other acts having a
like purpose that hereafter may be enacted, wherein the
United States is complainant, the Attorney General may
file with the clerk of such court a certificate that, in
his opinion, the case is of general public importance,
a copy of which shall be immediately furnished by such
clerk to each of the circuit judges of the circuit in which
the case is pending. Thereupon such case shall be given
precedence over others and in every way expedited, and
be assigned for hearing at the earliest practicable day T
before not less than three of the circuit judges of said
circuit, if there be three or more ; and if there be not more
than two circuit judges, then before them and such dis-
trict judge as they may select. In the event the judges
sitting in such case shall be divided in opinion, the case
shall be certified to the Supreme Court for review in like
manner as if taken there by appeal as hereinafter pro-
vided.
appeais. ays f r SEC. 2. That in every suit in equity pending or here-
after brought in any circuit court of the United States
under any of said acts, wherein the United States is
complainant, including cases submitted but not yet de-
cided, an appeal from the final decree of the circuit court
will lie only to the Supreme Court, and must be taken
within sixty days from the entry thereof: Provided,
That in any case where an appeal may have been taken
from the final decree of a circuit court to the circuit
court of appeals before this act takes effect, the case shall
proceed to a final decree therein, and an appeal may be
taken from such decree to the Supreme Court in the
manner now provided by law.
JOINT RESOLUTION Instructing the Interstate Commerce Com-
mission to make examinations into the subject of railroad dis-
criminations and monopolies in coal and oil, and report on the
same from time to time.
Resolved ~by the Senate and House of Representatives
of the United States of America in Congress assembled,
zt^rteftoeZ-T^ tne Interstate Commerce Commission be, and is
amine into sub- hereby, authorized and instructed immediately to inquire,
J6Ct or r3.iiro3.Q *^ __^ . _
tSTnToai investigate, and report to Congress, or to the President
and oil, and when Congress is not in session, from time to time as the
make report ^
time time to investigation proceeds
UNITED STATES. 9
First. Whether any common carriers by railroad, sub
ject to the interstate-commerce act, or either of them, own
or have any interest in, by means of stock ownership in
other corporations or otherwise, any of the coal or oil
which they, or either of them, directly or through other
companies which they control or in which they have an
interest, carry over their or any of their lines as common
carriers, or in any manner own, control, or have any in-
terest in coal lands or properties or oil lands or properties.
Second. Whether the officers of any of the carrier com- f^ln co*
panics aforesaid, or any of them, or any person or per- o? d co ai am? 8
sons charged with the duty of distributing cars or fur- oil traffic -
nishing facilities to shippers, are interested, either
directly or indirectly, by means of stock ownership or
otherwise in corporations or companies owning, operat- Jjfj. ^ Jj
ing, leasing, or otherwise interested in any coal mines, ^(JVn finds
coal properties, or coal traffic, oil, oil properties, or oil g^jgj? 1 and o11
traffic over the railroads with which they or any of them
are connected or by which they or any of them are
employed.
Third. Whether there is any contract, combination m
the form of trust, or otherwise, or conspiracy in
of trade or commerce among the several States, in which g?^ oil
any common carrier engaged in the transportation of coal
or oil is interested, or to which it is a party ; and whether
any such common carrier monopolizes or attempts to
monopolize or combines or conspires with any other car-
rier, company or companies, person or persons to monop-
olize any part of the trade or commerce in coal or oil or
traffic therein among the several States or with foreign
nations, and whether or not, and if so, to what extent,
such carriers, or any of them, limit or control, directly or
indirectly, the output of coal mines or the price of coal
and oil fields or the price of oil.
Fourth. If the Interstate Commerce Commission shall mae\report. to
find that the facts, or any of them, set forth in the three
paragraphs above do exist, then that it be further re-
quired to report as to the effect of such relationship,
ownership, or interest in coal or coal properties and coal
traffic or oil, oil properties, or oil traffic aforesaid, or
such contracts or combinations in form of trust or other-
wise, or conspiracy or such monopoly or attempt to
monopolize or combine or conspire as aforesaid, upon
10 LAWS OK TRUSTS AND MONOPOLIES.
such person or persons as may be engaged independ-
ently of any other persons in mining coal or producing
oil and shipping the same, or other products, who may
desire to so engage, or upon the general public as con-
sumers of such coal or oil.
?upp?and d- Fifth. That said commission be also required to inves-
tribution. tigate and report the system of car supply and distribu-
tion in effect upon the several railway lines engaged in
the transportation of coal or oil as aforesaid, and whether
said systems are fair and equitable, and whether the same
are carried out fairly and properly ; and whether said car-
riers, or any of them, discriminate against shippers or
parties wishing to become shippers over their several
lines, either in the matter of distribution of cars or in
furnishing facilities or instrumentalities connected with
receiving, forwarding, or carrying coal or oil as afore-
said.
SSS?st r^med? Sixth. That said commission be also required to report
andconc r iu- actsas to wnat remedy it can suggest to cure the evils above
sions. set forth, if they exist.
Seventh. That said commission be also required to re-
port any facts or conclusions which it may think pertinent
to the general inquiry above set forth.
l?5S2& to Eighth- That said commission be required to make this
time. time to investigation at its earliest possible convenience and to
furnish the information above required from time to
time and as soon as it can be done consistent with the
performance of its public duty.
Public Resolution, No. 8, approved March 7, 1906.
JOINT RESOLUTION Amending joint resolution instructing the
Interstate Commerce Commission to make examinations into the
subject of railroad discriminations and monopolies, and report
on the same from time to time, approved March seventh, nine-
teen hundred and six.
Resolved by the Senate and House of Represent a*' vw
of the United States of America in Congress assembled,
That joint resolution instructing the Interstate Com-
merce Commission to make examinations into the subject
of railroad discriminations and monopolies, and report
on the same frorn time to time, approved March seventh,
nineteen hundred and six, is hereby amended by adding
the following thereto:
Ninth. To enable the commission to perform the duties
required and accomplish the purposes declared herein,
UNITED STATES, 11
the commission shall have and exercise under this joint
resolution the same power and authority to administer
oaths, to subpoena and compel the attendance and testi-
mony of witnesses and the production of documentary
evidence, and to obtain full information, which said com-
mission now has under the act to regulate commerce, ap-
proved February fourth, eighteen hundred and eighty-
seven and acts amendatory thereof or supplementary
thereto now in force or may have under any like statute
taking effect hereafter. All the requirements, obliga-
tions, liabilities, and immunities imposed or conferred
by said act to regulate commerce and by "An act in rela-
tion to testimony before the Interstate Commerce Com-
mission in cases under or connected with an act entitled
'An act to regulate commerce,' approved February fourth,
eighteen hundred and eighty-seven, and amendments
thereto," approved February eleventh, eighteen hundred
and ninety-three, shall also apply to all persons who may
be subpoenaed to testify as witnesses or to produce docu-
mentary evidence in pursuance of the authority herein
conferred.
Public Eesolution, No. 11, approved March 21, 1906.
[36 S'tat. L., 854. June 25, 1910.]
AN ACT To amend an act entitled "An act to expedite the hearing
and determination of suits in equity pending or hereafter
brought under the act of July second, eighteen hundred and
ninety, entitled 'An act to protect trade and commerce against
unlawful restraints and monopolies,' 'An act to regulate com-
merce/ approved February fourth, eighteen hundred and eighty-
seven, or any other acts having a like purpose that may be
hereafter enacted," approved February eleventh, nineteen hun-
dred and three.
Be it enacted ~by the Senate and House of Representa-
tives of the United States of America in Congress as-
sembled, That section one of the act entitled "An act to
expedite the hearing and determination of suits in equity
pending or hereafter brought under the act of July sec-
ond, eighteen hundred and ninety, entitled 'An act to
protect trade and commerce against unlawful restraints
and monopolies,' 'An act to regulate commerce,' approved
February fourth, eighteen hundred and eighty-seven, or
any other acts having a like purpose that may be here-
after enacted," approved February eleventh, nineteen
hundred and three, be, and the same is hereby, amended
so as to read as follows :
12 LAWS ON TRUSTS AND MONOPOLIES.
under * "That in any suit in equity pending or hereafter
trust laws. brought in any circuit court of the United States under
the act entitled 4 An act to protect trade and commerce
against unlawful restraints and monopolies,' approved
July second, eighteen hundred and ninety,' 'An act to
regulate commerce,' approved February fourth, eighteen
hundred and eighty-seven, or any other acts having a
like purpose that hereafter may be enacted, wherein the
United States is complainant, the Attorney General may
file with the clerk of such court a certificate that, in his
opinion, the case is of general public importance, a copy
of which shall be immediately furnished by such clerk
to each of the circuit judges of the circuit in which the
case is pending. Thereupon such case shall be given
precedence over others and in every way expedited, and
be assigned for hearing at the earliest practicable day,
before not less than three of the circuit judges of said
court, if there be three or more ; and if there be not more
?u!g!s ati n f than two circuit judges, then before them and such dis-
trict judge as they may select; or, in case the full court
shall not at any time be made up by reason of the neces-
sary absence or disqualification of one or more of the
said circuit judges, the justice of the Supreme Court
assigned to that circuit or the other circuit judge or
judges may designate a district judge or judges within
the circuit who shall be competent to sit in said court
at the hearing of said suit. In the event the judges sit-
ting in such case shall be equally divided in opinion as
to the decision or disposition of said cause, or in the
event that a majority of said judges shall be unable to
agree upon the judgment, order, or decree finally dis-
posing of said case in said court which should be entered
in said cause, then they shall immediately certify that
Failure of fact to the Chief Justice of the United States, who shall
bf r eerti e fied to a t once designate and appoint some circuit judge to sit
with said judges and to assist in determining said cause.
Such order of the Chief Justice shall be immediately
transmitted to the clerk of the circuit court in which
said cause is pending, and shall be entered upon the
minutes of said, court. Thereupon said cause shall at
once be set down for reargument and the parties thereto
notified in writing by the clerk of said court of the
action of the court and the date fixed for the reargument
thereof. The provisions of this section shall apply to
UNITED STATES, 13
all causes and proceedings in all courts now pending, or
which may hereafter be brought.
THE JUDICIAL CODE.
AN ACT To codify, revise, and amend the laws relating to the
judiciary.
[Approved Mar. 3, 1911 ; in effect Jan. 1, 1912.]
SEC. 289. The circuit courts of the United States, upon circuit courts
7 " abolished.
the taking effect of this act, shall be and hereby are
abolished. * * *
SEC. 290. All suits and proceedings pending in said District courts
supersede cir-
circuit courts on the day of the taking effect of this act, cult courts,
whether originally brought therein or certified thereto
from the district courts, shall thereupon and thereafter
be proceeded with and disposed of in the district courts
in the same manner and with the same effect as if origi-
nally begun therein. * * *
SEC. 291. Wherever, in any law not embraced within ^^e
this act, any reference is made to, or any power or duty is cu " : courts -
conferred or imposed upon, the circuit courts, such ref-
erence shall, upon the taking effect of this act, be deemed
and held to refer to, and to confer such power and im-
pose such duty upon, the district courts.
[32 Stat L., 854, 903. Feb. 25, 1903.]
AN ACT Making appropriations for the legislative, executive, and
judicial expenses of the Government for the fiscal year ending
June thirtieth, nineteen hundred and four, and for other pur-
poses.
*****
That for the enforcement of the provisions of the act
entitled "An act to regulate commerce," approved Febru-
ary fourth, eighteen hundred and eighty-seven, and all
acts amendatory thereof or supplemental thereto, and
of the act entitled "An act to protect trade and commerce
against unlawful restraints and monopolies," approved
July second, eighteen hundred and ninety, and all acts
amendatory thereof or supplemental thereto, and sections
seventy-three, seventy-four, seventy-five, and seventy-six
of the act entitled "An act to reduce taxation, to pro-
vide revenue for the Government, and other purposes,"
approved August twenty-seventh, eighteen hundred and
14
LAWS ON TKUSTS AND MONOPOLIES.
Exemptions
from prosecu-
tions under
trust acts.
ninety-four, the sum of $500,000, to be immediately avail-
able, is hereby appropriated, out of any money in the
Treasury not heretofore appropriated, to be expended
under the direction of the Attorney General in the em-
ployment of special counsel and agents of the Department
of Justice to conduct proceedings, suits, and prosecutions
under said acts in the courts of the United States : Pro-
vided, That no person shall be prosecuted or be subjected
to any penalty or forfeiture for or on account of any
transaction, matter, or thing concerning which he may
testify or produce evidence, documentary or otherwise,
in any proceeding, suit, or prosecution under said acts:
Provided further, That no person so testifying shall be
exempt from prosecution or punishment for perjury
committed in so testifying.
[32 Stat. L., 825, 827. Feb. 14, 1903.]
AN ACT To establish the Department of [Commerce and Labor.]
Now Department of Commerce, act March fourth, nineteen
hundred and thirteen.
*****
Bureau of Cor-
porations.
SEC. 6. That there shall be in the Department of Com-
merce and Labor a bureau to be called the Bureau of
Corporations, and a Commissioner of Corporations who
shall be the head of said bureau, to be appointed by the
President, who shall receive a salary of $5,000 per an-
num. There shall also be in said bureau a deputy com-
missioner who shall receive a salary of $3,500 per annum
and who shall, in the absence of the commissioner, act as
and perform the duties of the Comimssioner of Corpora-
tions, and who shall also perform such other duties as
may be assigned to him by the Secretary of Commerce
and Labor or by the said commissioner. There shall also
be in the said bureau a chief clerk and such special agents,
clerks, and other employees as may be authorized by law.
Powers of bu- The said commissioner shall have power and authority
rcuu to ID & KG
investigation, to make, under the direction and control of the Secretary
of Commerce and Labor, diligent investigation into the
organization, conduct, and management of the business
of any corporation, joint-stock company, or corporate
combination engaged in commerce among the several
States and with foreign nations, excepting common car-
riers subject to "An act to regulate commerce," approved
February fourth, eighteen hundred and eighty- seven, and
UNITED STATES. 15
to gather such information and data as will enable the
President of the United States to make recommendations
to Congress for legislation for the regulation of such
commerce and to report such data to the President from
time to time as he shall require; and the information so
obtained, or so much thereof as the President may direct,
shall be made public.
In order to accomplish the purposes declared in the
foregoing part of this section, the said commissioner
shall have and exercise the same power and authority in
respect to corporations, joint-stock companies, and com-
binations subject to the provisions hereof as is conferred
on the Interstate Commerce Commission in said " act
to regulate commerce," and the amendments thereto in
respect to common carriers, so far as the same may be
applicable, including the right to subpoena and compel
the attendance and testimony of witnesses and the pro- o
duction of documentary evidence and to administer oaths. e?? ks ' papers
All the requirements, obligations, liabilities, and immu-
nities imposed or conferred by said " act to regulate com-
merce " and by "An act in relation to testimony before
the Interstate Commerce Commission," and so forth, ap-
proved February eleventh, eigtheen hundred and ninety-
three, supplemental to said " act to regulate commerce "
shall also apply to all persons who may be subpoenaed to
testify as witnesses or to produce documentary evidence
in pursuance of the authority conferred by this section.
It shall also be the province and duty of said bureau, ports"
under the direction of the Secretary of Commerce and
Labor, to gather, compile, publish, and supply useful
information concerning corporations doing business
within the limits of the United States as shall engage
in interstate commerce or in commerce between the
United States and any foreign country, including cor-
porations engaged in insurance, and to attend to such
other duties as may be hereafter provided by law.
[34 Stat, 798. June 30, 1906.]
AN ACT Defining the right of immunity of witnesses under the
act entitled "An act in relation to testimony before the Inter-
state Commerce Commission," and so forth, approved February
eleventh, eighteen hundred and ninety-three, and an act en-
titled "An act to establish the Department of Commerce and
Labor," approved February fourteenth, nineteen hundred and
three, and an act entitled "An act to further regulate com-
16
Immunity of
Witnesses.
LAWS ON TKUSTS AND MONOPOLIES.
rnerce with foreign nations and among the States," approved
February nineteenth, nineteen hundred and three, and an act
entitled "An act making appropriations for the legislative, ex-
ecutive, and judicial expenses of the Government for the fiscal
year ending June thirtieth, nineteen hundred and four, and for
other purposes," approved February twenty-fifth, nineteen hun-
dred and three.
That under the immunity provisions in the act en-
titled "An act in relation to testimony before the Inter-
state Commerce Commission," and so forth, approved
February eleventh, eighteen hundred and ninety-three,
in section six of the act entitled "An act to establish the
Department of Commerce and Labor," approved Feb-
ruary fourteenth, nineteen hundred and three, and in
the act entitled "An act to further regulate commerce
with foreign nations and among the States," approved
February nineteenth, nineteen hundred and three, and in
the act entitled "An act making appropriations for the
legislative, executive, and judicial expenses of the Gov-
ernment for the fiscal year ending June thirtieth, nineteen
hundred and four, and for other purposes," approved
February twenty-fifth, nineteen hundred and three, im-
munity shall extend only to a natural person who, in
obedience to a subpoena, gives testimony under oath or
produces evidence, documentary or otherwise, under oath.
[Public, No. 3. H. R. 2441. Mar. 4, 1913.]
AN ACT Making appropriations for sundry civil expenses of the
Government for the fiscal year ending June thirtieth, nineteen
hundred and fourteen, and for other purposes.
Limitation on
prosecutions of
Enforcement of antitrust laws: For the enforcement
o a r^nizations m of antitrust laws, including not exceeding $10,000 for
salaries of necessary employees at the seat of government,
$300,000 : Provided, however, That no part of this money
shall be spent in the prosecution of any organization or
individual for entering into any combination or agree-
ment having in view the increasing of wages, shortening
of hours or bettering the conditions of labor, or for any
act done in furtherance thereof, not in itself unlawful:
Provided further, That no part of this appropriation
snail be expended for the prosecution of producers of
xarm products and associations of farmers who cooperate
and organize in an effort to and for the purpose to obtain
and maintain a fair and reasonable price for their prod-
ucts. * * *
UNITED STATES. 17
[Public, No. 337. Approved Aug. 24, 1912. H. R. 21969.]
AN ACT To provide for the opening, maintenance, protection, and
operation of the Panama Canal, and the sanitation and govern-
ment of the Canal Zone.
* * * * *
SEC. 11. That section five of the act to regulate com-
merce, approved February fourth, eighteen hundred and
eighty-seven as heretofore amended, is hereby amended
by adding thereto a new paragraph at the end thereof,
as follows:
" From and after the first day of July, nineteen hun- ? ai own d s S hip 0t
dred and fourteen, it shall be unlawful for any railroad Exce P tions -
company or other common carrier subject to the act to
regulate commerce to own, lease, operate, control, or have
any interest whatsoever (by stock ownership or other-
wise, either directly, indirectly, through any holding
company, or by stockholders or directors in common, or
in any other manner) in any common carrier by water
operated through the Panama Canal or elsewhere with
which said railroad or other carrier aforesaid does or
may compete for traffic or any vessel carrying freight or
passengers upon said water route or elsewhere with which
said railroad or other carrier aforesaid does or may com-
pete for traffic; and in case of the violation of this pro-
vision each day in which such violation continues shall be
deemed a separate offense."
Jurisdiction is hereby conferred on the Interstate Com-
merce Commission to determine questions of fact as to the
competition or possibility of competition, after full hear-
ing, on the application of any railroad company or other
carrier. Such application may be filed for the purpose
of determining whether any existing service is in viola-
tion of this section and pray for an order permitting the
continuance of any vessel or vessels already in operation,
or for the purpose of asking an order to install new serv-
ice not in conflict with the provisions of this paragraph.
The commission may on its own motion or the applica-
tion of any shipper institute proceedings to inquire into
the operation of any vessel in use by any railroad or
other carrier which has not applied to the commission
and had the question of competition or the possibility of
competition determined as herein provided. In all such
cases the order of said commission shall be final.
1649113 2
18 LAWS ON TKUSTS AND MONOPOLIES.
terSa r te 'com- ^ tne Interstate Commerce Commission shall be of the
merce commis- opinion that any such existing specified service by water
other than through the Panama Canal is being operated
in the interest of the public and is of advantage to the
convenience and commerce of the people and that such
extension will neither exclude, prevent, nor reduce com-
petition on the route by water under consideration, the
Interstate Commerce Commission may, by order, extend
the time during which such service by water may continue
to be operated beyond July first, nineteen hundred and
fourteen. In every case of such extension the rates,,
schedules, and practices of such water carrier shall be
filed with the Interstate Commerce Commission and shall
be subject to the act to regulate commerce and all amend-
ments thereto in the same manner and to the same extent
as is the railroad or other common carrier controlling such
water carrier or interested in any manner in its opera-
tion: Provided, Any application for the extension under
the terms of this provision filed with the Interstate Com-
merce Commission prior to July first, nineteen hundred
and fourteen, but for any reason not heard and disposed
of before said date, may be considered and granted
thereafter.
o^operatSfin ^ vessel permitted to engage in the coastwise or for-
she?m i a > S ufw eig 11 trade of the United States shall be permitted to enter
canal? use or P ass through said canal if such ship is owned, char-
tered, operated, or controlled by any person or company
which is doing business in violation of the provisions of
the act of Congress approved July second, eighteen hun-
dred and ninety, entitled "An act to protect trade and
commerce against unlawful restraints and monopolies,"
or the provisions of sections seventy-three to seventy-
seven, both inclusive, of an act approved August twenty-
seventh, eighteen hundred and ninety-four, entitled "An
act to reduce taxation, to provide revenue for the Gov-
ernment, and for other purposes," or the provisions of
any other act of Congress amending or supplementing
the said act of July second, eighteen hundred and ninety,
commonly known as the Sherman Antitrust Act, and
amendments thereto, or said sections of the act of August
twentj^-seventh, "eighteen hundred and ninety-four. The
question of fact may be determined by the judgment of
any court of the United States of competent jurisdiction
in any cause pending before it to which the owners or
UNITED STATES. 19
operators of such ship are parties. Suit may be brought
by any shipper or by the Attorney General of the United
States.
That section six of said act to regulate commerce, as
heretofore amended, is hereby amended by adding a new
paragraph at the end thereof, as follows:
"When property may be or is transported from point ^diction ^f 1 '
to point in the United States by rail and water through
the Panama Canal or otherwise, the transportation being sion -
by a common carrier or carriers, and not entirely within
the limits of a single State, the Interstate Commerce
Commission shall have jurisdiction of such transporta-
tion and of the carriers, both by rail and by water, which
may or do engage in the same, in the following particu-
lars, in addition to the jurisdiction given by the act to
regulate commerce, as amended June eighteenth, nine-
teen hundred and ten:
" (a) To establish physical connection between the lines
of the rail carrier and the dock of the water carrier by ne ctions.
directing the rail carrier to make suitable connection be-
tween its line and a track or tracks which have been con-
structed from the dock to the limits of its right of way,
or by directing either or both the rail and water carrier,
individually or in connection with one another, to con-
struct and connect with the lines of the rail carrier a spur
track or tracks to the dock. This provision shall only
apply where such connection is reasonably practicable,
can be made with safety to the public, and where the
amount of business to be handled is sufficient to justify
the outlay.
" The commission shall have full authority to deter- Ma y fil terms,
mine the terms and conditions upon which these con-
necting tracks, when constructed, shall be operated, and
it may, either in the construction or the operation of such
tracks, determine what sum shall be paid to or by either
carrier. The provisions of this paragraph shall extend
to cases where the dock is owned by other parties than the
carrier involved.
"(b) To establish through routes and maximum joint thrJufh routes
rates between and over such rail and water lines, and to
determine all the terms and conditions under which such
lines shall be operated in the handling of the traffic em-
braced.
"(c) To establish maximum proportional rates by rail JJ^ J* > JJ* 1 '
to and from the ports to which the traffic is brought, or tional rates -
20 LAWS ON TRUSTS AND MONOPOLIES.
from which it is taken by the water carrier, and to de-
termine to what traffic and in connection with what ves-
sels and upon what terms and conditions such rates shall
apply. By proportional rates are meant those which
differ from the corresponding local rates to and from the
port and which apply only to traffic which has been
brought to the port or is carried from the port by a com-
mon carrier by water.
M^y^equire "(d) If any rail carrier subject to the act to regulate
rangements commerce enters into arrangements with any water car-
made for all . J
lines. Her operating from a port in the United States to a
foreign country, through the Panama Canal or otherwise,
for the handling of through business between interior
points of the United States and such foreign country,
the Interstate Commerce Commission may require such
railway to enter into similar arrangements with any or
all other lines of steamships operating from said port to
the same foreign country."
Orders to be The orders of the Interstate Commerce Commission
formal com- relating to this section shall only be made upon formal
complaint or in proceedings instituted by the commission
of its own motion and after full hearing. The orders
provided for in the two amendments to the act to regu-
late commerce enacted in this section shall be served in
the same manner and enforced by the same penalties and
proceedings as are the orders of the commission made
under the provisions of section fifteen of the act to regu-
late commerce, as amended June eighteenth, nineteen
hundred and ten, and they may be conditioned for the
Bonds. payment of any sum or the giving of security for the
payment of any sum or the discharge of any obligation
which may be required by the terms of said order.
[Public, No. 433. Approved Mar. 4, 1913. H. R. 28812.]
AN ACT Making appropriations for the naval service for the fiscal
year ending June thirtieth, nineteen hundred and fourteen, and
for other purposes.
*****
That no part of any sum herein appropriated shall be
expended for the purchase of structural steel, ship plates,
armor, armament, or machinery from any persons, firms,
^Sherman* 1 or corporations who have combined or conspired to
tfcT ate in na monopolize the interstate or foreign commerce or trade
vai contracts. o f ne United States, or the commerce or trade between
the States and any Territory or the District of Columbia,
UNITED STATES. 21
in any of the articles aforesaid, and no purchase of struc-
tural steel, ship plates, or machinery shall be made at a
price in excess of a reasonable profit above the actual
cost of manufacture. But this limitation shall in no
case apply to any existing contract.
*****
[Public, No. 435. Approved Mar. 4, 1913. H. R. 28499.]
AN ACT Making appropriations to provide for the expenses of
the government of the District of Columbia for the fiscal year
ending June thirtieth, nineteen hundred and fourteen, and for
other purposes.
*****
PAR. 54. That no franchise nor any right to or under
any franchise to own or operate any public utility as de-
fined in this section or to use the tracks of any street rail-
road shall be assigned, transferred, or leased, nor shall
any contract or agreement with reference to or affecting
any such franchise or right be valid or of any force or
effect whatsoever unless the assignment, transfer, lease,
contract, or agreement shall have been approved by the
commission in writing. The permission and approval of
the commission to the assignment, transfer, or lease of a
franchise under this paragraph shall not be construed
to revive or validate any lapsed or invalid franchise or
to enlarge or add to the powers and privileges contained
in the grant of any franchise or to waive any forfeiture.
It shall be unlawful for any street railroad corporation, NO public utn-
, , ity to acquire
eras corporation, electric corporation, telephone corpora- bonds or stock
, ,. . .,., of others, un-
tion, telegraph corporation, or other public utility cor- less,
poration, directly or indirectly, to acquire the stock or
bonds of any other corporation incorporated for or en-
gaged in the same or similar business as it is, unless
authorized in writing to do so by the commission, and
every contract, transfer, agreement for transfer or as-
signment of any such stock or bonds without such written
authority shall be void and of no effect.
*****
PAR. 72. That the power to create lines on corporate
property by public utilities in the District of Columbia
is hereby declared to be a special privilege the right of
supervision, regulation, restriction, and control of which
is hereby vested in the public utilities commission of the
22 LAWS ON TRUSTS AND MONOPOLIES.
District of Columbia, and such power shall De exercised
according to the provisions of this section.
PAR - 73 - That no public utility shall hereafter issue
any stocks, stock certificates, bonds, mortgages, or any
other evidences of indebtedness payable in more than
one year from date, until it shall have first obtained the
certificate of the commission showing authority for such
issue from the commission.
PAR. 74. That no public utility shall issue any stocks,
certificates of stock, bonds, or other evidences of indebt-
edness for money, property, or services, either directly
or indirectly, nor shall it receive any money, property, or
services in payment of the same, either directly or indi-
rectly, until there shall have been recorded upon the books
^ sucn P u blic utility the certificate of the commission in
necessary. this section provided for.
dends ck divi " PAR - 75 - That no P ub l ic utility shall declare any stock,
bond, or scrip dividend or divide the proceeds of the sale
of any stock, bond, or scrip among its stockholders.
PAR. 76. That no public utility shall issue any stocks,
certificates of stock, bonds, or other evidences of indebt-
edness secured on its property in the District of Columbia
organization! f r the purpose of any reorganization or consolidation in
excess of the total amount of the stocks, certificates of
stock, bonds, or other evidences of indebtedness then out-
standing against the public utilities so reorganizing or
consolidating, and no such public utility shall purchase
the property of any other public utility for the purpose. of
effecting a consolidation until the commission shall have
determined and set forth in writing that said consolida-
tion will be in the public interest, nor until the com-
mission shall have approved in writing the terms upon
which said consolidation shall be made.
PAR. 77. That no public utility shall apply the pro-
ceeds of any such stock, certificates of stock, bonds, or
other evidences of indebtedness to any other purpose or
issue the same on any less favorable terms than that
specified in- the certificate issued by the commission.
void issues. PAR. 78. That all stocks, certificates of stock, bonds,
and other evidences of indebtedness issued contrary to
the provisions of this section shall be void.
UNITED STATES. 23
RULES OF PRACTICE IN EQUITY, SUPREME COURT OF
THE UNITED STATES.
[Promulgated Nov. 4, 1912.1
73.
PRELIMINARY INJUNCTIONS AND TEMPORARY RESTRAINING
ORDERS.
No preliminary injunction shall be granted without no- Rules of Su-
iice to the opposite party. Xor shall any temporary
restraining order be granted without notice to the oppo-
site party, unless it shall clearly appear from specific
facts, shown by affidavit or by the verified bill, that im-
mediate and irreparable loss or damage will result to the
applicant before the matter can be heard on notice. In
case a temporary restraining order shall be granted with-
out notice, in the contingency specified, the matter shall
be made returnable at the earliest possible time, and in
no event later than ten days from the date of the order,
and shall take precedence of all matters, except older
matters of the same character. When the matter comes
up for hearing the party who obtained the temporary
restraining order shall proceed with his application for
a preliminary injunction, and if he does not do so the
court shall dissolve his temporary restraining order.
Upon two days' notice to the party obtaining such tem-
porary restraining order, the opposite party may appear
and move the dissolution or modification of the order,
and in that event the court or judge shall proceed to hear
and determine the motion as expeditiously as the ends of
justice may require. Every temporary restraining or-
der shall be forthwith filed in the clerk's office.
74.
INJUNCTION PENDING APPEAL.
When an appeal from a final decree, in an equity suit,
granting or dissolving an injunction, is allowed by a
justice or a judge who took part in the decision of the
cause, he may, in his discretion, at the time of such allow-
ance, make an order suspending, modifying, or restoring
the injunction during the pendency of the appeal, upon
such terms, as to bond or otherwise, as he may consider
proper for the security of the rights of the opposite
party.
24 DECISIONS ON TRUSTS AND MONOPOLIES.
CASES DECIDED UNDER THE SHERMAN LAW OR
RELATING THERETO.
[See Federal Anti-Trust Decisions, 4 volumes.]
Abner-Drury Brewing Co., Leonard v 25 D. C. App., 161.
A. Booth & Co. v. Davis 127 Fed., 875.
131 Fed., 31.
Addyston Pipe & Steel Co., U. S. v : 78 Fed., 712.
85 Fed., 271.
175 11. S.. 211.
Agler, U. S. v 62 Fed., 824.
Alexander v. U. S 201 U. S., 117.
Allen Bros. Tob. Co., R. J. Reynolds Tob. Co. v_151 Fed., 819.
Aluminum Castings Co. v. Michigan Alumi-
num F. Co 190 Fed., 879.
American Banana Co. v. United Fruit Co 153 Fed.. 943.
160 Fed., 184.
166 Fed.. 261.
213 U. S., 347.
American Biscuit & Mfg. Co. v. Klotz 44 Fed., 721.
American Brake Beam Co. v. Pungs 141 Fed., 923.
American Naval Stores Co., U. S. v 172 Fed., 455.
186 Fed.. 592.
American Preservers' Co., Bishop v 51 Fed., 272.
105 Fed., 845.
American School Furniture Co., Metcalf v 108 Fed., 909.
113 Fed., 1020.
122 Fed., 115.
American Sugar Ref. Co., Pennsylvania Sugar
Ref. co. v . 160 Fed., 144.
166 Fed., 254.
American Tel. & Tel. Co., Ames v 166 Fed., 820.
American Tob. Co., Larcus v _163 Fed., 712.
American Tob. Co., Monarch Tob. Works v 165 Fed., 774.
American Tob. Co., People's Tob. Co. v 170 Fed., 396.
American Tob. Co., U. S., v 164 Fed., 700.
221 U. S., 106.
191 Fed., 371.
American Tob. Co., U. S. Tob. Co. v 163 Fed., 701.
American Tob. Co., Ware-Kramer Tob. Co. v__178 Fed., 117.
180 Fed., 160.
American Tob. Co., Weisert Bros. Tob. Co. v__163 Fed., 712.
American Union Coal Co. v. Penna. R. Co 159 Fed., 278
Ames v. American Tel. & Tel. Co 166 Fed., 820.
Anderson, Shawnee Compress Co. v 87 Pac., 315.
209 U. S., 423
Anderson v. United States 82 Fed, 998
171 U. S., 604.
Arkansas Brokerage Co. v. Dunn & Powell___173 Fed., 899.
Armour & Co., U. S. v 142 Fed., 808
Atchison, T. & S. F. Ry. Co. v. Prescott & A. C.
Ry. Co 73 Fed., 438.
84 Fed., 213.
UNITED STATES. 25
Atchison, T. & S. F. Ry. Co., U. S. v 142 Fed., 176.
Barber Asphalt Paving Co., Field v 117 Fed., 925.
229 U. S., 1.
Bauer & Cie v. O'Donnell 194 U. S., 618.
Bay (Cincinnati, Portsmouth, Big Sandy, and
Pomeroy Packet Co. v.) 200 U. S., 179.
Beef Trust Cases. See U. S. v. Swift and
U. S. v. Armour.
Bement v. National Harrow Co 186 U S., 70.
Bigelow v. Calumet & Hecla Min. Co 155 Fed., 869.
167 Fed., 704.
167 Fed., 721.
Bishop v. American Preservers' Co 51 Fed., 272.
105 Fed., 845.
Blindell v. Hagan 54 Fed., 40.
56 Fed., 696.
Block v. Standard Distilling & Distributing Co_ 95 Fed., 978.
Blount Mfg. Co. v. Yale & Towne Mfg. Co 166 Fed., 555.
Board of Trade v. Christie Grain & S. Co 116 Fed., 944.
121 Fed., 608.
125 Fed., 161.
198 U. S., 236.
Bobbs-Merrill Co. u Straus 139 Fed., 155.
210 U. S., 339.
Booth & Co. v. Davis 127 Fed., 875.
131 Fed., 31.
Bradley, Fonotipia Ltd. v 171 Fed., 951.
Bradley, Victor Talking Mach. Co. v 171 Fed., 951.
Buchanan, Foot v 113 Fed., 156.
Callam, Northwestern Consol. Min. Co. v 177 Fed., 786.
Calumet & Hecla Min. Co., Bigelow v 155 Fed., 869.
167 Fed., 704.
167 Fed., 721.
Camors-McConnell Co. v. McConnell 140 Fed., 412.
140 Fed., 987.
152 Fed., 321.
Carter-Grume Co., Cravens v 92 Fed., 479.
Carter-Grume Co. v. Peurrung 186 Fed., 439.
Case, J. L, Threshing Mach. Co., Indiana Mfg.
Co. v 148 Fed., 21.
154 Fed., 365.
Cassidy, United States v 67 Fed., 698.
Central Coal & Coke Co. v. Hartman 111 Fed., 96.
Central Railroad & Banking Co. of Ga.,
Clark v 50 Fed., 338.
Charles E. Wisewall, The 74 Fed., 802.
86 Fed., 671.
Chattanooga Foundry & Pipe Works, City of
Atlanta v .101 Fed., 900.
127 Fed., 23.
203 U. S., 390.
Chesapeake & Ohio Fuel Co., U. S. v 105 Fed., 93.
115 Fed., 610.
26 DECISIONS ON TRUSTS AND MONOPOLIES.
Chicago Wall Paper Mills v. General Paper Co_147 Fed., 491.
Christie Grain & Stock Co., Board of Trade v_116 Fed., 444.
121 Fed., 608.
125 Fed., 161.
198 U. S., 236.
Cilley v. United Shoe Mach. Co 152 Fed., 726.
Cincinnati, N. O. & T. P. Ry. Co., Thomas v___62 Fed., 808.
Cincinnati, Portsmouth, Big Sandy & Pomeroy
Packet Co. v. Bay 200 U. S., 179.
City of Atlanta v. Chattanooga Foundry &
Pipe Works 101 Fed., 909.
127 Fed., 23.
203 U. S., 390.
Clabaugh v. Southern Wholesale Grocers'
Ass'n 181 Fed., 706.
Clarke v. Central R. R. & Banking Co. of Ga___50 Fed., 338.
Cole Transp. Co. v. White Star Lane 186 Fed., 63.
Coal Dealers' Ass'n of Calif., U. S. v 85 Fed., 252.
Comer, Waterhouse v 55 Fed., 149.
Connolly, Union Sewer-Pipe Co. v ___99 Fed., 354.
184 U. S., 540.
Continental Tobacco Co., Whitewell v 125 Fed., 454.
Continental Wall Paper Co. v. Voight 148 Fed., 939.
212 U. S., 227.
Corning, In re 51 Fed., 205
Cravens v. Carter-Grume Co 92 Fed., 479.
Creamery Package Mfg. Co., Virtue v 179 Fed., 115.
Danbury Hatters' Case. See Loewe v. Lawlor.
Darius Cole Transp. Co. v. White Star Line__186 Fed., 63.
Davis et al., A. Booth & Co. v 127 Fed., 875.
131 Fed., 31.
Debs, United States v 64 Fed., 724.
Debs, In re .158 U. S., 564.
Delaware, L. & W. R. Co. v. Frank 110 Fed., 689.
Delaware, L. & W. R. Co. v. Kutter 147 Fed., 51.
D. E. Loewe & Co. v. Lawlor 130 Fed., 633.
142 Fed., 216.
148 Fed., 924.
208 U. S., 283.
Dennehy v. McNulta 86 Fed., 825.
77 Fed., 900.
Dr. Miles Med. Co. v. Jaynes Drug Co 149 Fed., 838.
Dr. Miles Med. Co. v. Park 164 Fed., 803.
220 U. S., 373.
Dueber Watch Case Mfg. Co. v. Howard Watch
& Clock Co 55 Fed., 851.
66 Fed., 637.
Dunn & Powell v. Arkansas Brokerage Co 173 Fed., 899.
Du Pont de Nemours & Co. v. U. S 188 Fed., 127.
Eastman Kodak Co., Loeb v 183 Fed., 704.
E. C. Knight Co., U. S. v .60 Fed., 306.
60 Fed., 934.
156 U. S., 1.
UNITED STATES. 27
E Howard Watch & Clock Co., Dueber Watch
Case Mfg. Co. v 55 Fed., 851.
56 Fed., 637.
Elliott, United States v 62 Fed., 801.
64 Fed., 27.
Ellis v. Inman, Poulsen & Co 124 Fed., 956.
131 Fed., 182.
Evans v. Lowenstein 69 Fed., 908.
Farmers' Loan & Trust Co. v. Northern Pac.
R. R. Co 60 Fed., 803.
Field v. Barber Asphalt & Paving Co 117 Fed., 925.
194 U. S., 618.
Fonotipia Ltd. v. Bradley 171 Fed., 951.
Foot v. Buchanan 113 Fed., 156.
Frank (Delaware, L. & W. R. Co. v.) 110 Fed., 689.
Geiger, Otis Elevator v .107 Fed., 131.
General Electric Co. v. Wise 119 Fed., 922.
General Paper Co. v. Chicago Wall Paper
Mills .147 Fed., 491.
Gibbs v. McNeeley (Shingle Trust) 102 Fed., 594.
107 Fed., 210.
118 Fed., 120.
Goshen Rubber Works v. Single Tube Auto. &
Bicycle Tire Co ,166 Fed., 431.
Grand Jury, In re 62 Fed., 840.
Grand Jury, In re charge to 151 Fed., 834.
Green, In re 52 Fed., 104.
Greenhut, United States v 50 Fed., 469.
Greer, Mills & Co. v. Stoller 77 Fed., 1.
Griffin & Skelly Co., U. S. Consol. S. R. Co. v__126 Fed., 364.
Gulf, C. & S. F. Ry. Co. v.' Miami S. S. Co .86 Fed., 407.
Hadley Dean Plate Glass Co. v. Highland
Glass Co 143 Fed., 242.
Hagan, Blindell v 54 Fed., 40.
56 Fed., 696.
Hale, In re 139 Fed., 496.
Hale v. Henkel 201 U. S., 43.
Hale v. O'Connor Coal & Sup. Co 181 Fed., 267.
Harriman v. Northern Securities Co 132 Fed., 464.
134 Fed., 331.
197 U. S., 244.
Harrington, Pidcock v 64 Fed., 821.
Hartman, Central Coal & Coke Co. v 111 Fed., 96.
Hartman v. John D. Parks & Sons Co 145 Fed., 358.
153 Fed., 24.
Heike, United States v 175 Fed., 852.
217 U. S., 42&
Hench, National Harrow Co. v 1__76 Fed., 667.
83 Fed., 36.
84 Fed., 22.
Henkel, Hale v 201 U. S., 43.
Henkel, McAlister v 201 U. S., 90.
Highland Glass Co., Hadley Dean Plate Glass
Co. v__ 143 Fed., 242.
28 DECISIONS ON TEUSTS AND MONOPOLIES.
Hocking Valley Ry. Co., Mannington v 183 Fed., 133.
Hopkins, United States v 82 Fed., 529.
84 Fed., 1018.
171 U. S., 578.
Howard Watch & Clock Co., Dueber Watch
Case Mfg. Co. v 55 Fed., 851.
66 Fed., 637.
In re Corning 51 Fed., 205.
In re Debs, Petitioner 158 TJ. S., 564.
U. S. v. Debs 64 Fed., 724.
In re Grand Jury 62 Fed., 840.
In re Grand Jury charge to 151 Fed., 834.
In re Green 52 Fed., 104.
In re Hale 139 Fed., 496.
Hale v. Henkel 201 U. S., 43.
In re Kittle 180 Fed., 946.
In re Terrell 51 Fed., 213.
Indiana Mfg. Co. v. J. I. Case Threshing Mach.
Co 148 Fed.. 21.
154 Fed., 365.
Inman, Poulsen & Co., Ellis v 124 Fed., 956.
131 Fed., 182.
lola Portland Cement Co., Phillips v 125 Fed., 593.
Jayne, Loder v 142 Fed., 1010.
149 Fed.. 21.
Jaynes Drug Co.. Dr. Miles Med. Co. v 149 Fed.. 838.
Jellico Mountain Coke & Coal Co., U. S. v 43 Fed., 898.
46 Fed., 432.
J. I. Case Threshing Mach. Co., Indiana Mfg.
Co. v 148 Fed., 21.
154 Fed., 365.
John D. Parks & Sons Co., Hartman v 154 Fed., 895.
153 Fed., 24.
Joint Traffic Association, U. S. v 76 Fed., 895.
89 Fed., 1020.
171 U. S., 505.
Kinsey Co. v. Board of Trade 198 U. S., 236.
Kissell, United States v 173 Fed., 823.
218 U. S., 601.
Kittle, In re 180 Fed., 946.
Klotz, American Biscuit & Mfg. Co. v 44 Fed., 721.
Knight Co., United States v 60 Fed., 306.
60 Fed., 934.
156 U. S.. 1.
Kutter, Delaware, L. & W. R. Co. v___ 147 Fed., 51.
Laemuile et al., Motion Picture Patents Co. v_178 Fed., 104.
Larcus v. American T,ob. Co 163 Fed., 712.
Lawlor, Loewe V L 130 Fed., 633.
142 Fed., 216.
148 Fed., 924.
187 Fed.. 522.
208 U. S., 283.
UNITED STATES. 29
Lehigh Valley R. Co., Meeker et al. v 162 Fed., 354.
183 Fed., 548.
Leonard v. Abner-Drury Brewing Co 25 D. C. App., 161.
Licorice Paste Trust. See U. S. v. MacAn-
drews & Forbes Co
Loder r. Jayne 142 Fed., 1010.
149 Fed., 21.
Loeb r. Eastman Kodak Co 183 Fed., 704.
Loewe r. Lawlor 130 Fed., 633.
142 Fed., 216.
148 Fed., 924.
187 Fed., 522.
208 U. S., 283.
Lowenstein v. Evans 69 Fed., 908.
Lowry r. Tile, Mantel & Grate Ass'n 98 Fed., 817.
106 Fed., 38.
Lowry, W. W. Montague & Co. v 115 Fed., 27.
193 U. S., 38.
McAlister v. Henkel 201 U. S., 90.
MacAndrews & Forbes Co., U. S. v 149 Fed., 823.
212 U. S., 585.
McConnell, Camors-McConnell Co. v 140 Fed., 412.
140 Fed., 987.
152 Fed., 321.
McXeeley, Gibbs v 102 Fed., 594.
107 Fed., 210.
118 Fed., 120.
McNulta, Dennehy v 86 Fed., 825.
Mannington v. Hocking Valley Ry. Co. et al183 Fed., 133.
Meeker et al. v. Lehigh Valley R. Co 162 Fed., 354.
183 Fed., 548.
Metcalf v. American School Furniture Co 108 'Fed., 909.
113 Fed., 1020.
122 Fed., 115.
Miami S. S. Co., Gulf C. & S. F. Ry. Co. v 86 Fed., 407.
Michigan Aluminum F. Co. v. Aluminum Cast-
ings Co 190 Fed., 879.
Miles Medical Co. v. Park & Sons Co 220 U. S., 373.
Milwaukee Rubber Works, Rubber Tire Wheel
Co. v 142 Fed., 531.
154 Fed., 358.
Mines v. Scribner 147 Fed., 927.
Minnesota v. Northern Securities Co 123 Fed., 692.
194 U. S., 48.
Monarch Tob. Works v. American Tob. Co 165 Fed., 774.
Montague & Co. v. Lowry J.15 Fed., 27.
193 U. S., 38.
Moore v. United States 85 Fed., 465.
Motion Picture Patents Co. v. Laemuile 178 Fed., 104.
Motion Picture Patents Co. v. Ullman .186 Fed.. 174.
Nash v. U. S 229 U. S., 373.
National Folding-Box & Paper Co. v. Robert-
son__ 99 Fed., 985.
30 DECISIONS ON TRUSTS AND MONOPOLIES.
National Harrow Co. v. Hench 76 Fed., 667.
83 Fed., 36.
84 Fed., 226.
National Harrow Co. v. Quick 67 Fed., 130.
74 Fed., 443.
National Harrow Co., Bement v 186 U. S., 70,
National Harrow Co., Strait v 51 Fed., 819.
National Window Glass Jobbers' Ass'n, Wheeler
Stenzel Co. v 152 Fed., 864.
Nelson, United States v 52 Fed., 646.
Nelson v. United States 201 U. S., 92.
Northern Securities Co., Harriman v 132 Fed., 464.
134 Fed., 331.
197 U. S., 244.
Northern Securities Co., U. S. v 120 Fed., 721.
193 U. S., 197.
Northern Securities Co., Minnesota v 123 Fed., 692.
194 U. S., 48.
Northwestern Consol. Min. Co. v. Wm. Callarn
& Son 177 Fed., 786.
O'Connor Coal & Sup. Co., Hale v 181 Fed., 267.
O'Donnell, Bauer & Cie v 229 U. S., 1.
Otis Elevator Co. v. Geiger 107 Fed., 131.
Pacific & Arctic Co., U. S. v 228 U. S., 87.
Park & Sons Co., Dr. Miles Med. Co. v 164 Fed., 803.
220 U. S., 373.
Park, John D., & Sons Co., Hartman v 145 Fed., 358.
153 Fed., 24.
Patten, U. S. 1; 187 Fed., 664.
Patterson, United States v 55 Fed., 605.
59 Fed., 280.
Pemia. R. Co., American Union Coal Co. v 159 Fed., 278.
Penna. Sugar Ref. Co. v. American Sugar Ref.
Co 160 Fed., 144.
166 Fed., 254.
People's Tob. Co. v. American Tob. Co ,170 Fed., 396.
Peurrung, Carter-Grume Co. v 86 Fed., 439.
Phillips v. Portland Cement Co 125 Fed., 593.
Pidcock v. Harrington __64 Fed., 821.
Prescott & A. C. R. Co. v. Atchison, T. & S. F.
R. Co 73 Fed., 438.
84 Fed., 213.
Pungs, American Brake Beam Co. v 141 Fed., 923.
Quick, National Harrow Co. v 67 Fed., 130.
74 Fed., 236.
R. J. Reynolds Tob. Co. v. Allen Bros. Tob.
Co -151 Fed., 819.
Reading Company, U. S. v -183 Fed., 427.
Reardon & Sons Co., John, v U. S 191 Fed., 454.
Rice v. Standard Oil Company 134 Fed., 464.
Robertson v. National Folding-Box & Paper
Co 99 Fed., 985.
Robinson v. Suburban Brick Co. 127 Fed., 804.
UNITED STATES. 31
Rubber Tire Wheel Co. v. Milwaukee Rubber
Works Co 142 Fed., 531.
154 Fed., 358.
Scribner, Mines v 147 Fed., 927.
Shawnee Compress Co. v. Anderson 87 Pac., 315.
209 U. S., 423.
Shingle Trust. See Gibbs v. McNulta.
Single Tube Auto. & Bicycle Tire Co., Goshen
Rubber Works v 166 Fed., 431.
Southern Indiana Exp. Co. v. United States
Exp. Co 88 Fed., 659.
92 Fed., 1022.
Southern Railway, Tift v ____138 Fed., 753.
Southern Wholesale Grocers' Ass'n, Cla-
baugh v 181 Fed., 706.
Standard Distilling & Distributing Co.,
Block v 95 Fed., 978.
Standard Oil Company, Rice v 134 Fed., 464.
Standard Oil Co. of New Jersey, U. S. v 152 Fed., 290.
173 Fed., 177.
221 U. S., 1.
Standard Sanitary Mfg. Co. v. U. S 191 Fed., 172.
State of Minnesota v. Northern Securities Co__123 Fed., 692.
194 U. S., 48.
Steers et al. v. U. S 192 Fed., 1.
Stoller (Greer, Mills & Co. v.) 77 Fed., 1.
Strait v. National Harrow Co 51 Fed., 819.
Straus, Bobbs-Merrill Co. v 139 Fed., 155.
210 U. S., 339.
Strauss et al. r. American Publishers' Ass'n__,TL S. Supreme
Court, Dec. 1 ,
1913.
Strout v. United Shoe Machinery Co 195 Fed., 313.
Suburban Brick Co., Robinson v 127 Fed., 804.
Swift & Co., United States v 122 Fed., 529.
188 Fed., 92.
196 U. S., 375.
Terminal Railroad Ass'n of St. Louis, U. S. v__. 224 U. S., 383.
Terrell, In re 51 Fed., 213.
Thomas v. Gin., N. O. & T. P. Ry. Co 62 Fed., 803.
Thomson v. Union Castle Mail S. S. Co 149 Fed., 933.
166 Fed., 251.
Tift v. Southern Ry Co 138 Fed., 753.
Tile, Mantel & Grate Ass'n v. Lowry .98 Fed., 817.
106 Fed., 38.
Tobacco Trust Cases. See U. S. v. American
Tobacco Co., Hale v. Henkel, McAlister v.
Henkel, and U. S. v. MacAndrews & Forbes
Co.
Trans-Missouri Freight Ass'n, U. S. v 53 Fed., 440.
58 Fed., 58.
166 U. S., 290.
Tribolet, United States v 95 Pac., 85.
Ullman, Motion Picture Patents Co. V ...186 Fed., 174.
32 DECISIONS ON TRUSTS AND MONOPOLIES.
Union Castle Mail S. S. Co., Thomson v 149 Fed., 933.
166 Fed.. 251.
CJnion Pacific Coal Co. v. U. S 173 Fed., 737.
Union Pacific R. R. Co. v. U. S 188 Fed., 102.
Union Sewer-Pipe Co. v. Connolly 99 Fed., 354.
184 U. S., 540.
United Fruit Co., American Banana Co. v 153 Fed., 943.
160 Fed., 184.
166 Fed., 261.
213 U. S., 347.
United Shoe Mach. Co., Cilley v 152 Fed., 726.
United Shoe Mach. Co. v. Strout 195 Fed., 313.
U. S. v. Addyston Pipe & Steel Co 78 Fed., 712.
85 Fed., 271.
175 U. S., 211.
U. S. v. Agler 62 Fed., 824.
U. S. v. American Naval Stores Co 172 Fed., 455.
186 Fed., 592.
U. S. v. American Tobacco Co 164 Fed., 700.
221 U. S'., 106.
191 Fed., 371.
U. S. v. Armour & Co 142 Fed., 808.
U. S. v. Atchison, T. & S. F. Ry. Co 142 Fed., 176.
U. S. v. Cassidy 67 Fed., 698.
U. S. v. Chesapeake & Ohio Fuel Co 105 Fed., 93.
115 Fed., 610.
U. S. v. Coal Dealers' Assn. of Calif 85 Fed., 252.
U. S. v. Debs 64 Fed., 724.
In re Debs 158 U. S., 564.
U. S., v. Du Pont de Nemours & Co 188 Fed., 127.
U. S. v. E. C. Knight Co 60 Fed., 306.
60 Fed., 934.
156 U. S., 1.
U. S. v. Elliott 62 Fed., 801.
64 Fed., 27.
U. S. v. Freight Association. (See U. S. v.
Trans-Missouri Freight Association.)
U. S. v. General Paper Co. (See Nelson v.
U. S. and Alexander v. U. S.)
U. S. u Greenhut 50 Fed., 469.
U. S. v. Heike 175 Fed., 852.
217 U. S., 423.
U. S. v. Hopkins 82 Fed., 529.
84 Fed., 1018.
171 U. S. 578.
U. S. Jellico Mountain Coke & Coal Co 43 Fed., 898.
46 Fed., 432.
U. S. v. Joint Traffic Association 76 Fed., 895.
89 Fed., 1020.
171 U. S., 505.
U. S. v. Kissell__ 173 Fed., 823.
218 U. S., 601.
U S. v. MacAndrews & Forbes Co 149 Fed., 823.
212 U. S., 585.
U. S. u. Nash__ 229 U. S. 373.
UNITED STATES. 33
U. S. v. Nelson 52 Fed.. 646.
Nelson v. United States 201 U. S., 92.
U. S. v. Northern Securities Company 120 Fed., 721.
193 U. S., 197.
U. S. v. Pacific & Arctic Company 228 U. S'., 87.
U. S. v. Patten 187 Fed., 664.
226 U. S., 525.
U. S. v. Patterson 55 Fed., 605.
59 Fed., 280.
U. S. v. Reading Company 183 Fed., 427.
226 U. S., 324.
228 U. S., 158.
U. S. v. John Reardon & Sons Co 191 Fed., 454.
U. S. v. Standard Oil Co. of New Jersey 152 Fed., 290.
173 Fed., 177.
221 U. S., 1.
TJ. S. v. Standard Sanitary Mfg. Co 191 Fed., 172.
226 U. S., 20.
U. S. v. Hteers et al 192 Fed., 1.
U. S. v. Swift & Co 122 Fed., 529.
188 Fed., 92.
196 U. S., 375.
U. S. v. Trans-Missouri Freight Ass'n 53 Fed., 440.
58 Fed., 58.
166 U. S., 290.
U. S. v. Tribolet 95 Pac., 85.
U. S. v. Virginia-Carolina Chemical Co 163 Fed., 66.
U. S. v. Winslow et al 195 Fed., 578.
227 U. S., 202.
U. S. v. Workingmen's Amalgamated Council_54 Fed., 994.
57 Fed., 85.
U. S., Alexander v 201 U. S., 117.
U. S., Anderson v 82 Fed., 998.
171 U. S., 604.
U. S., Moore v 85 Fed., 465.
U. S., Union Pacific Coal Co. v 173 Fed., 737.
U. S., Union Pacific R. R. Co. v 188 Fed.. 102.
226 U. S'., 61-470.
U. S. Consolidated S. R. Co. v. Griffin-
Skelly Co 126 Fed., 364.
U. S. Exp. Co., Southern Ind. Exp. Co. v 88 Fed., 659.
92 Fed., 1022.
United States Tob. Co. v. American Tob. Co___163 Fed., 712
Victor Talking Mach. Co. v. Bradley 171 Fed., 951.
Virginia-Carolina Chemical Co. v. U. S 163 Fed., 66.
Virtue v. Creamery Package Mfg. Co 179 Fed., 115.
227 U. S., 8.
Voight, Continental Wall Paper Co. v 148 Fed., 939.
212 U. S., 227.
Ware-Kramer Tob. Co. v. American Tob. Co__178 Fed., 117.
180 Fed., 160.
Waterhouse v. Comer 55 Fed.. 149.
Weisert Bros. Tob. Co. v. American Tob. Co___163 Fed., 712.
1649113 3
34 DECISIONS ON TRUSTS AND MONOPOLIES.
Wheeler Stenzel Co. r. National Window Glass
Jobbers' Ass'n 152 Fed., 864.
White Star Line, Cole Transp. Co. v 186 Fed., 63.
Whitwell v. Continental Tob. Co 125 Fed., 454.
Winslow et al. v. U. S 195 Fed., 578.
Wise, General Electric Co. v ''. 119 Fed., 922.
Wisewall, The Charles E 74 Fed., 802.
86 Fed., 671.
Workingnien's Amalgamated Council, U. S. v__54 Fed., 994.
57 Fed., 85.
Yale & Towne Mfg. Co., Blount Mfg. Co. v 166 Fed., 555.
NOTE. Owing to the fact that there are four volumes of anti-
trust decisions in print and full table of cases has been given
above, only a few illustrative cases of leading propositions are
here separately cited. Some very late cases are digested. Com-
piler.
RESALE CONTRACTS.
PRICE FIXING.
United States v. Greenhnt et. al 51 Fed., 205.
United States -v. Greenhnt et al 51 Fed., 213.
American Soda-Fountain Co. v. Green et al 69 Fed., 333.
Henry v. A. B. Dick Co 223 U/ S., 6.
Bobbs-Merrill Co. v. Strauss et al 210 U. S., 339.
Bauer & Cie. v. O'Donnell 229 U. S.. 1.
Dr. Miles Medical Co. v. Park & Sons Co 220 U. S., 373.
Strauss et al. r. American Publishers' Ass'n Supreme Court U.
S., Dec. 1, 1913.
Bobbs-Merrill Co. r. Strauss et al 210 U. S., 339.
STATEMENT.
This action arose under a resale price fixing notice
printed in a copyright book stating that any sale at a
less price will be treated as in infringement of the copy-
right.
OPINION.
There are differences between the patent, and the copy-
right, statutes in the extent of the protection granted by
them. The sole right to vend granted by section 4952,
Kevised Statutes, does not secure to the owner of the
Price fixing un- copyright the right to qualify future sales by his vendee
faw iSeffectuai or to limit or 'restrict such f uture sales at a specified
price, and a notice in the book that a sale at a different
price will be treated as an infringement is ineffectual as
against one not bound by contract or license agreement.
Dr. Miles Medical Co. v. Park & Sons Co__ __220 U. S., 373.
UNITED STATES. 35
STATEMENT.
The Dr. Miles Medical Co. had an elaborate resale and
price-fixing contract for their medicines, and this action
was to enjoin defendant from cutting the price or urging
others so to do or from " advertising, selling, or offering
for sale the remedies obtained," by means at less "than
the established retail price thereof."
OPINION.
A system of contracts between manufacturers and may'notflx 6 *
wholesale and retail merchants by which the manuf ac- saie. es * re
turers attempt to control not merely the prices at which
its agents may sell its products, but the prices for all
sales by all dealers at wholesale or retail, whether pur-
chasers or subpurchasers, eliminating all competition and
fixing the amount which the consumer shall pay, amounts
to restraint of trade, and is invalid both at common law
and. so far as it affects interstate commerce, under the
Sherman Antitrust Act of July 2, 1890; and so held as
to the contracts involved in this case.
A manufacturer of unpatented articles can not by rule
or notice, in absence of statutory right, fix prices for
future sales, even though the restrictions be known to
purchasers. Whatever rights the manufacturer may
have in that respect must be by agreements that are law-
ful.
Although the earlier common-law doctrine in regard
to restraint of trade has been substantially modified, the
public interest is still the first consideration; to sustain
the restraint it must be reasonable as to the public and
parties and limited to what is reasonably necessary, un-
der the circumstances, for the covenantee; otherwise re-
straints are void as against public policy.
Agreements or combinations between dealers having
for their sole purpose the destruction of competition and
fixing of prices are injurious to the public interests and
void; nor are they saved by advantages which the par-
ticipants expect to derive from the enhanced price to the
consumer.
Bauer & Cie. v. O'Domiell 229 U. S., 1.
STATEMENT.
A patented article was resold by the defendant at
less than the price fixed in a notice printed on the same
by the manufacturer.
36 DECISIONS ON TRUSTS AND MONOPOLIES.
OPINION.
not e fix e resafc y -^ patentee may not by notice limit the price at which
future retail sales of the patented article may be made,
such article being in the hands of the retailer by purchase
from a jobber who has paid to the agent of the patentee
the full price asked for the article sold.
Where the transfer of the patented article is full and
complete an attempt to reserve the right to fix the price
at which it shall be resold by the vendee is futile under
the statute. It is not a license for qualified use, but an
attempt to unduly extend the right to vend.
These last three cases (Bobbs-Merrill Co. v. Strauss,
210 U. S., 339 ; Dr. Miles Medical Co. v. Park & Sons Co.,
220 U. S., 373, and Bauer v. O'Donnell, 229 U. S., 1)
form a distinct trinity and express the views of the
Supreme Court of the United States under existing law
on the subject of resale and price-fixing and price-main-
tenance contracts. The Bobbs-Merrill case relates to copy-
. righted articles, while the Dr. Miles case relates to nn-
patented articles entering into interstate commerce, and
the O'Donnell case applies to patented articles. These
cases cover the whole subject of price-fixing contracts.
LABOR CASES.
United States r-. Workingmen's Amalgamated
Council of New Orleans et al 54 Fed., 994.
Wuterhouse et al v. Comer 55 Fed., 149.
United States v. Debs et al 64 Fed., 724.
United States v. Agler <>2 Fed. Rep., 82.
United States v. Elliott 32 Fed. Rep., 801;
64 Fed. Rep., 27.
United States v. Debs et al 64 Fed. Rep., 724.
United States v. Cassidy --67 Fed. Rep., 698.
In re Debs, Petitioner 158 U. S., 564.
Loewe v. Lawlor 208 r. S., 274.
See also
Commonwealth v. Hunt 4 Metcalf's Rep.,
111.
Vegelahn v. Guntner .1(57 Mass., 92.
State v. Coyle (Okla.) KJO Pac. Rep., 316.
United States.?.'. John S. Steers et al. Indictment re-
turned February 17, 1910, in Eastern District of Ken-
tucky, charging conspiracy to restrain trade. This is the
so-called "Night Rider " case where the restraint con-
sisted in preventing the shipment of tobacco in inter-
state commerce by means of violence and intimidation.
UNITED STATES.
After the overruling of demurrers and various pleas in
abatement a trial was had, and on April 16, 1910, a
verdict of guilty was returned as to eight of twelve de-
fendants and fines aggregating $3,500 were imposed.
The case was appealed to Circuit Court of Appeals, and
the verdict was affirmed December 5, 1911. May 11,
1912, the fines were commuted by the President to pay-
ment of costs of suit. (See cases under Kentucky, seq.)
CASES SHOWING POWER OF CONGRESS UNDER ANTI-
TRUST ACT.
Addystone Pipe Co. Case__ 175 TJ. S., 245.
American Tobacco Co. Case__ 221 U. S., 180-181.
Henient v. National Harrow Co 186 U. S M 92.
Central Ohio Salt Co. r. Guthrie 35 Ohio St., 666. 672.
(Quoted and approved in Northern Securities case.)
Charles River Bridge v. Warren Bridge 11 Pet., 567.
Gibbs r. Baltimore Gas Co 130 U. S., 408-400.
(Jumpers, r. Bucks Stove & Range Co 221 U. S., 438-439.
Henry r. A. B. Dick Co__ 223 U. S. ; 224 U.
S., 6-12.
In re Greene 52 Fed. R., 115.
Montagne v. Lowry 193 U. S., 45.
Morris Run Coal Co. v. Barclay Coal Co 68 Pa. St., 173, 186.
(Quoted and approved in Northern Securities case.)
National Cotton Oil Co. v. Texas 197 U. S., 128-129.
Northern Securities Case 193 U. S., 351-352.
IVarsall r. Great Northern Railway Co 161 U. S., 676.
Standard Oil Case 221 U. S., 50.
Swift & Co. r. United States 196 U. S., 395.
United States r. Joint Traffic Asso __171 U. S., -568.
United States r. Joint Traffic Assn__ 171 U. S., 566-568.
United States r. Swift & Co 122 Fed Rep., 534.
United States v. Trans-Missouri Freight Assn__166 U. S., 312, 313.
United States v. Trans-Missouri Freight Assn__.166 U. S., 316.
United States r. World ngm en's Amalgamated
Council 54 Fed R.. 990.
Whitwell v. Continental Tobacco Co 125 Fed. R. 457-458.
GENERAL POWER OF CONGRESS; SOME OTHER CASES.
Blake r. McClung .172 U. S., 239.
Brown et al. v. Maryland 12 Wheat. 413, 1827.
Farmers' and Mechanics' National Bank r.
Desiring.. .--91 U. S., 29.
Gibbons r. ()gden__ 9 Wheat, 1, 1824.
In re Rahrer, Petitioner 140 U. S., 545.
Leisy v. Hardin .135 U. S., 100.
McCulloch v. The State of Maryland et al 4 Wheat., 316. 1819.
Mnnn r. Illinois.. __.94 U. S., 113.
37
38 DECISIONS ON TRUSTS AND MONOPOLIES.
Nicol r. Ames; In re Nichols; Skillen v. Ames
and Ingwersen v. United States 173 TJ. S M 50ft.
Pollock v. Farmers' Loan & Trust Co. ; Hyde v.
Continental Trust Co 158 U. S., 601.
Regan r. Mercantile Trust Co 154 U. S., 413.
llobbins r. Shelby County Taxing District 120 U. S., 480.
Trade-Mark Cases 100 TJ. S., 82.
Walling v. The State of Michigan 116 U. S., 446.
ALABAMA.
CONSTITUTION, 1901.
SEC. 103. The legislature shall provide by law for the
regulation, prohibition, or reasonable restraint of com-
mon carriers, partnerships, associations, trusts^ monopo-
lies, and combinations of capital, so as to prevent them
or any of them from making scarce articles of necessity,
trade, or commerce, or from increasing unreasonably the
cost thereof to the consumer, or preventing reasonable
competition in any calling, trade, or business.
SEC. 233. No corporation shall engage in any business
other than that expressly authorized in its charter or
articles of incorporation.
SEC. 234. No corporation shall issue stock or bonds
except for money, labor done, or property actually re-
ceived ; and all fictitious increase of stock or indebtedness
shall be void. The stock and bonded indebtedness of cor-
porations shall not be increased except in pursuance of
general laws, nor without the consent of the persons hold-
ing the larger amount in value of stock, first obtained at
a meeting to be held after thirty days' notice, given in
pursuance of law.
STATUTES.
SEC. 7579. Any person or corporation who engages or
agrees with other persons or corporations, or enters into,
directly or indirectly, any combination, pool, trust, or
confederation, to regulate or fix the price of any article
or commodity to be sold or produced within this state,
or any person or corporation who enters into, becomes a
member of. or party to, any pool, agreement, combina-
tion or confederation, to fix or limit the quantity of any
article or commodity to be produced, manufactured,
mined, or sold, in this state, must, on conviction, be fined
not less than five hundred nor more than two thousand
dollars.
39
40 LAWS ON TEUSTS AND MONOPOLIES.
SEC. 7580. Any corporation chartered under the laws
of this state, or any officer, stockholder, agent, or em-
ploye of any such corporation, which enters into any
combination with any other corporation or person with
the intent to place the management or control of any
such corporation in the hands of another corporation or
person, and thereby limit or fix the price, restrict or
diminish the production, manufacture, sale, use, or con-
sumption of any article of commerce, must, on conviction,
be fined not less than five hundred nor more than two
thousand dollars.
SEC. 7581. Any person or corporation, domestic or for-
eign, which shall restrain or attempt to restrain the free-
dom of trade or production, or which shall monopolize,
or attempt to monopolize the production, control, or sale
of an} 7 commodity, or the prosecution, management, or
control of any kind, class or description of business; or
which shall destroy, or attempt to destroy, competition
in the manufacture or sale of a commodity, shall be
guilty of a misdemeanor, and, upon conviction, shall be
fined not less than five hundred nor more than two
thousand dollars for each offense.
SEC. 7582. The four preceding sections must be given in
special charge to the grand jury.
SEC. 2487. Any person, firm, or corporation injured or
damaged by an unlawful trust, combine, or monopoly, or
its effect, direct or indirect, may, in each instance of such
injury or damage, recover the sum of five hundred dollars
and all actual damages from any person, firm, or corpora-
tion creating, operating, aiding or abetting such a trust,
combine, or monopoly; and ma} 7 maintain the action
therefor against any one or more of the parties to the
trust, combine, or monopoly, or their attorneys, officers,
or agents, who aid or abet such trust, combine or monop-
oly. And all such actions may be prosecuted to final
judgment or decree against any one or more of the de-
fendants thereto, notwithstanding there may be a dis-
missal, acquittal, verdict, judgment, or decree in favor of
one or more of the defendants.
SEC. 2488. Actions under the preceding section may be
brought in any county where the trust, combine, or
monopoly was formed, or where it exists or is carried on,
promoted, operated, practiced, employed, used or en-
joyed ; or in any county in which either of the defendants
ALABAMA. 41
may have a domicile, or where an officer or agent of any
defendant corporation may be found.
UNLAWFUL POOLING OF FREIGHTS.
Any officer, agent, or servant of a person or corpora-
tion operating a railroad, who aids in making or carry-
ing out an agreement between railroads, commonly called
a pool, for the division between themselves of the freight-
carrying business of any place in this state, whereby trade
is restrained by the establishment of extortionate rates
and the prevention of free competition, unless such agree-
ment has been approved by the railroad commissioners,
must, on conviction, be fined not less than fifty, nor more
than two hundred dollars. (Act of 1883, sec. 2.)
INSURANCE.
That every contract or policy of insurance made or
issued after the passage of this act shall be construed to
mean that in the event of loss or damage thereunder, the
assured or beneficiary thereunder may, in addition to the
actual loss or damage suffered, recover twenty-five per
cent of the amount of such actual loss, any provision or
stipulation in such contract or policy to the contrary not-
withstanding; Provided, at the time of the making of
such contract or policy of insurance, or subsequently be-
fore the time of trial the insurer belonged to, or was a
member of, or in any way connected with, any tariff
association or such like thing by whatever name called
or who had any agreement or had any understanding
with any -other person, corporation or association en-
gaged in the business of insurance as agent or otherwise
about any particular rate of premium which should be
charged or fixed for any kind or class of insurance risk ;
And provided further, no stipulation or agreement in
such contract or policy of insurance to arbitrate loss or
damage nor to give notice or make proofs of loss or dam-
age shall in any such case be binding on the assured or
beneficiary, but right of action accrues immediately upon
loss or damage.
Be it further enacted, That if it is shown to the reason-
able satisfaction of the jury by a preponderance of the
weight of the testimony that such assurer at the time of
the making of such agreement or policy of insurance or
42 LAWS ON TKUSTS AND MONOPOLIES.
subsequently before the time of trial belonged to, or was
a member of, in any way connected with any tariff asso-
ciation or such like thing by whatever name called, either
in or out of this state, or had made any agreement or had
any understanding either in or out of this state with
any person, corporation or association engaged in the
business of insurance as agent or otherwise about any
particular rate of premium which should be charged or
fixed for any risk of insurance on any person or prop-
erty or on any kind or class of insurance risk, they must
if they find for the assured or beneficiary in addition to
his actual damages assess and add twenty-five per cent
of the amount of such actual loss, and judgment shall be
rendered accordingly.
Be it further enacted, That this act shall be liberally
construed to accomplish its object.
February 18th, 1897.
COURT DECISIONS.
Citizens' Light, Heat & Power Co. v. Montgomery
Light & Water Power Co., 171 Fed., 553.
ARIZONA.
CONSTITUTION, 1910.
SEC. 4. No corporation shall engage in any business
other than that expressly authorized in its charter or by
the law under which it may have been or ma} 7 hereafter
be organized.
SEC. 5. Xo corporation organized outside of the limits
of this State shall be allowed to transact business within
this State on more favorable conditions than are pre-
scribed by law for similar corporations organized under-
the laws of this State; and no foreign corporation shall
be permitted to transact business within this State unless
said foreign corporation is by the laws of the country.
State, or Territory under which it is formed permitted
to transact a like business in such country, State, or
Territory.
STATUTES.
AN ACT Defining and prohibiting trusts, providing procedure to
enforce the provisions of this act, and providing penalties for
violation of the provisions of this act.
(Law 1912, c. 73.)
SEC. 1. A trust is a combination of capital, skill, or
acts, by two or more persons, firms, corporations, or asso-
ciations of persons, or either two or more of them, for
either, any or all of the following purposes :
First. To create or carry out restrictions in trade or
commerce or aids to commerce, or to carry out restric-
tions in the full and free pursuit of any business author-
ized or permitted by the laws of this State.
Second. To increase or reduce the price of merchan-
dise (merchandise), products or commodities, or limit
the production thereof, or to control the cost or rates of
insurance.
Third. To prevent competition in the manufacture,
making, transportation, sale or purchase of merchandise,
products or commodities, or to prevent competition in
aids to commerce.
43
44 LAWS ON TRUSTS AND MONOPOLIES.
Fourth. To fix any standard or figure, whereby its
price to the public shall be, in any manner, controlled
or established, any article or commodity of merchandise,
product or commerce intended for sale, use or consump-
tion in this State.
Fifth. To make or enter into, or execute or carry out,
any contract, obligation or agreement of any kind or
description by which they shall bind or have to bind
themselves not to sell, manufacture, dispose of or trans-
port any article or commodity, or article of trade, use,
merchandise, commerce or consumption below a common
standard figure or by which they shall agree in any man-
ner to keep the price of such article, commodity or trans-
portation at a fixed or graded figure, by which they shall
in any manner establish or settle the price of any article
or commodity or transportation between them or them-
selves and others, to preclude a free and unrestricted com-
petition among themselves or others in transportation,
sale or manufacture of any such article or commodity,
or by which they shall agree to pool, combine or unite any
interest they may have in connection with the manufac-
ture, sale, or transportation of any such article or com-
modity, that its price may in any manner be affected.
Sixth. To regulate the transportation of any product
or commodity.
And any such combinations are hereby declared to be
against public policy, unlawful and void.
SEC. 2. All persons, companies, or corporations within
this State are hereby denied the rights to form or to be
in any manner interested, either directly or indirectly,
as principal, agent, representative, consignee or other-
wise in any trust as defined in Sec. 1 of this Act.
SEC. 3. Any corporation, holding a charter under the
laws of the State of Arizona which shall violate any of
the provisions of this Act shall thereby forfeit its charter
and franchise, and its corporate existence shall cease and
determine; and any stockholder, director, officer, agent,
representative or consignee of any such corporation shall
be subject to the penalties herein prescribed.
SEC. 4. For a violation of any provision of this Act
by any corporation, or any of its officers or agents, men-
tioned herein, it shall be the duty of the Attorney General
of the State or County Attorney of any county in which
said violation may occur, or either of them, upon his own
ARIZONA. 45
motion, to institute an action in any court in this State
having jurisdiction thereof, for the forfeiture of the
charter, rights and franchise of such corporation, and
the dissolution of its corporate existence.
SEC. 5. Every person, company, or corporation within
or without this State, their officers, agents, representa-
tives, or consignees, violating any of the provisions of
this -Act, within this State, are hereby denied the right,
and are hereby prohibited from doing any business
within this State, and all persons, companies and cor-
porations, their officers, agents, representatives and con-
signees within this State are hereby denied the right to
handle the goods of, or in any manner deal with, directly
or indirectly, any such person, company, or corporation,
their officers, agents, representatives, or consignees, and
it shall be the duty of the Attorney General, and the
County Attorney of any county in the State where any
violation of this Act be committed, or either of them, to
enforce the provisions of this section by injunction or
other proceeding; and all persons, companies and cor-
porations, their officers, agents, representatives or con-
signees, violating any of the provisions of this section,
either directly or indirectly or abetting or aiding either
directly or indirectly in any violation of any provisions
of this section, shall be deemed guilty of a misdemeanor
and shall be fined not less than One Hundred Dollars
($100.00) nor more than One Thousand Dollars
($1,000.00), and confined in jail not less than Thirty
(30) Days, nor more than six (6) Months, and shall for-
feit not ' less than One Hundred Dollars ($100.00) for
each and every day such violation may continue, which
may be recovered in the name of the State of Arizona in
any court of competent jurisdiction.
SEC. 6. Each and every person, company or corpora-
tion, their officers, agents, representatives or consignee;-:,
who either directly or indirectly, violate any of the pro-
visions of this Act shall be deemed guilty of a misde-
meanor and on conviction thereof shall be subject to a
fine of not less than One Hundred Dollars ($100.00) nor
more than One Thousand ($1,000.00), and shall be
imprisoned not less than Thirty (30) Days nor more
than Six (6) Months, and in addition thereto for each
and every day thereafter that such violation shall be com-
mitted or continued, forfeit and pay the sum of One
46 LAWS ON TRUSTS AND MONOPOLIES.
Hundred Dollars ($100.00), which may be recovered in
the name of the State of Arizona, in any county where
the offense is committed or where either of the offenders
reside, and it shall be the duty of the Attorney General
of the State or of the County Attorney of any county in
the State, in which said violation shall occur, or either
of them, to prosecute and enforce the provisions of this
Act.
SEC. 7. The creation or maintenance of a monopoly
within the State shall be unlawful, and any person, part-
nership, association, company, or corporation attempting
to create or maintain such monopoly shall be punished,
as provided for persons, companies, or corporations, their
officers, agents, representatives, or assigns forming or
interested in trusts, as defined herein, as provided in Sec.
6 hereof, and to all other penalties provided herein for
violation of the provisions of this Act.
SEC. 8. Any contract or agreement in violation of any
of the provisions of this Act shall be absolutely void and
not enforceable in any of the courts of this State, and
when any civil action relating to and growing out of trans-
actions prohibited by this Act, shall be commenced in
any court of this State, it shall be lawful to plead in the
defense thereof that the plaintiff or any other person
interested in the prosecution of the case is, at the time,
or has within One (1) Year next preceding the date of
the commencement of any such action, been guilty either
as principal, agent, representative, or consignee, directly
or indirectly, of a violation of any of the provisions of
this Act, or that the cause of action grows out of any
business transaction in violation of this Act.
SEC. 9. That any person, firm, company, or corpora-
tion that may be damaged by any such agreement, trusts
or combination described in Sees. 1 and 2 of this Act,
may sue for and recover in any court of competent juris-
diction in this State, of any person, company, or corpora-
tion, operating such trust or combination, such dam-
ages as they have sustained, together with a reasonable
attorney fee.
SEC. 10. It shall be the duty of the Attorney General
of the State, an-d the County Attorneys in their respec-
tive counties, to diligently prosecute any and all persons
violating any of the provisions of this Act, and it shall
be the duty of all State and county officials having no-
AEIZOSTA. 47
tice and knowledge of any violation of the provisions of
this Act to notify the county attorney of their respective
counties and the Attorney General of the State, of the
fact of such violation, and to furnish them with the
names of any witnesses by whom such violation can be
proved; if any such officer or officers shall fail to com-
ply with the provisions of this section he shall, upon con-
viction, be fined in any sum not less than One Hundred
Dollars ($100.00) nor more than One Thousand Dollars
($1,000.00), and such conviction shall be a forfeiture of
the office held by such person, and the court before whom
such conviction is had shall, in addition to the imposition
of the fine aforesaid, order and adjudge the forfeiture
of his said office.
SEC. 11. The several superior courts of this State, and
the judges thereof, shall have jurisdiction, and it shall
be their duty, upon good cause shown and upon written
application of the County Attorney or the Attorney Gen-
eral, to cause to be issued by the clerk of said court sub-
poenas for such witnesses as may be named in the ap-
plication of a county attorney or the Attorney General,
and to cause the same to be served by the sheriff of the
county where such subpoena is issued; and such wit-
nesses shall be compelled to appear before such court or
judge, at the time and place set forth in the subpoena,
and shall be compelled to testify as to any knowledge
they may have of the violation of any of the provisions
of this Act: and any witness who fails or refuses to
attend and testify shall be punished as for contempt as
provided by law. Any person subpoenaed and examined
shall not be liable to criminal prosecution for any viola-
tion of this Act about which he may testify. Neither
shall the evidence of any such witness be used against
him in any criminal proceeding. The evidence of all wit-
nesses so subpoenaed shall then be taken down by the
reporter of said court and shall be transcribed and placed
in the hands of the County Attorney or the Attorney
General, and he shall, in the proper courts, at once prose-
cute such violator or violators of this Act as the testi-
mony so taken shall disclose. Witnesses subpoenaed as
provided for in this section shall be compelled to attend
from any county in the State.
ARKANSAS.
CONSTITUTION, 1874.
ART. 11, SEC. 19. Perpetuities and monopolies are con-
trary to the genius of a republic, and shall not be al-
lowed; * * *
STATUTES (ACT 1905 AS AMENDED MAR. 12, 1913).
Any corporation organized under the laws of this or
any other state, or country, and transacting or conducting
any kind of business in this state, or any partnership or
individual, or other association or persons whatsoever,
who are now, or shall hereafter create, enter into, become
a member of, or a party to, any pool, trust, agreement,
combination, confederation or understanding, whether
the same is made in this state or elsewhere, with any other
corporation, partnership, individual, or any other person
or association of persons, to regulate or fix either in this
state or elsewhere the price of any article of manufacture,
mechanism, merchandise, commodity, convenience, repair,
any product of mining, or any article or thing whatso-
ever, or the price or premium to be paid for insuring
property against loss or damage by fire, lightning or tor-
nado, or to maintain said price when so regulated or fixed,
or who are now, or shall hereafter enter into, become a
member of. or a party to, any pool, agreement, contract,
combination, association or confederation, whether made
in this state or elsewhere, to fix or limit in this state or
elsewhere, the amount of quantity of any article of manu-
facture, mechanism, merchandise, commodity, conven-
ience, repair, any product of mining, or any article or
thing whatsoever, or the price or premium to be paid for
insuring property against loss or damage by fire, light-
ning, storm, cyclone, tornado or any other kind of polkrp
issued by any corporation, partnership, individual or
association of persons aforesaid, shall be deemed and ad-
judged guilt}' of a conspiracy to defraud and be subject
to the penalties as provided by this act.
1649113 4 49
50 LAWS ON TEUSTS AND MONOPOLIES.
SEC. 2. Any person, partnership, firm or association.
or any representative or agent thereof, or any corpora-
tion or company, or any officer, representative or agent
thereof, violating any of the provisions of this Act, shall
forfeit not less than two hundred dollars, nor more than
five thousand dollars for every such offense, and each day
such person, corporation, partnership or association shall
continue to do so shall be a separate offense, the penalty
in such case to be recovered by an action in the name of
the State at the relation of the Attorney General, the
moneys thus collected to go into the State Treasury for
the benefit of the common school fund of this State,
except as hereinafter provided. (Act Mar. 12, 1913.)
SEC. 3. Any corporation created or organized by or un-
der the laws of this state which shall violate any of the
provisions of the preceding sections of this act shall
thereby forfeit its corporate rights and franchises and its
corporate existence shall, upon proper proof being made
thereof in any court of competent jurisdiction in this
state, be by the court declared forfeited, void and of non-
effect, and shall thereupon cease and determine; and any
corporation created or organized by or under the laws of
any other state or country, which shall violate any provi-
sions of the preceding sections of this act, shall thereby
forfeit its right and privilege thereafter to do any busi-
ness in this state, and upon proper proof being made
thereof in any court of competent jurisdiction in this
state, its right and privilege to do business in this state
shall be declared forfeited ; and in all proceedings to have
such forfeiture declared, proof that any person who has
been acting as the agent of such foreign corporation in
transacting business in this state, has been, while acting
as such agent, and in the name, behalf or interest of such
foreign corporation, violating any provisions of the pre-
ceding sections of this act, shall be received as prima
facie proof of the act of the corporation itself; and it
shall be the duty of the clerk of said court to certify the
decree thereof to the secretary of state, and if it be an
insurance company, also to the auditor of the state, who
shall take notice and be governed thereby as to the cor-
porate powers and rights of said corporation.
SEC. 4. Xo individual, company or corporation shall
be subject to any of the penalties of this Act. unless such
individual, company or corporation shall do within this
ARKANSAS. 51
State some act directly tending to carry into effect a
conspiracy prohibited by this Act; and the purchase,
sale, delivery or disposition of any article of commerce
in a lawful manner within this State shall not be deemed
an act done in pursuance of, or for the purpose of carry-
ing into effect any such conspiracy. (Act Mar. 12, 1913.)
SEC. 5. A monopoly is any union or combination or con-
solidation or affiliation of capital, Credit, property, assets,
trade, customs, skill or acts of any other valuable thing or
possession, by or between persons, firms or corpora-
tions, or association of persons, firms or corporations,
whereby any one of the purposes or objects mentioned in
this act is accomplished or sought to be accomplished, or
whereby any one or more of said purposes are promoted
or attempted to be executed or carried out, or whereby the
several results described herein are reasonably calculated
to be produced ; and a monopoly as thus defined and con-
templated, includes not merely such combination by and
between two or more persons, firms and corporations, act-
ing for themselves, but is especially defined and intended
to include all aggregations, amalgamations, affiliations,
consolidations or incorporations of capital, skill, credit,
assets, property, custom, trade or other valuable thing on,
possession whether effected by the ordinary methods of
partnership or by actual union under the legal form of a
corporation, or any incorporated body resulting from the
union of one or more distinct firms or corporations, or by
the purchase, acquisition or control of shares or certifi-
cates of stocks or bonds, or other corporate property or
franchises, and all partnerships and corporations that
have been or may be, created by the consolidation or amal-
gamation of the separate capital, stock, bonds, assets,
credit, property, customs, trade, corporate or firm belong-
ings of two or more firms or corporations or companies,
are especially declared to constitute monopolies within
the meaning of this act, if so created or entered into for
any one or more of the purposes named in this act ; and a
monopoly, as thus defined in this section, is hereby de-
clared to be unlawful and against public policy, and any
and all persons, firms, corporations or association of per-
sons engaged therein shall be deemed and adjudged to be
guilty of a conspiracy to defraud, and shall be subject to
the penalties prescribed in this act.
52 LAWS ON TKUSTS AND MONOPOLIES.
SEC. 6. If any person, persons, company, partnership,
association, corporation or agent engaged in the manufac-
ture or sale of any article of commerce or consumption pro-
duced, manufactured or mined in this state, or elsewhere,
shall, with the intent and purpose of driving out compe-
tition, or for the purpose of financially injuring compet-
itors, sell within this state at less than cost of manufac-
ture or production, or'sell in such a way, or give away in
this state, their productions for the purpose of driving
out competition, or financially injuring competitors en-
gaged in similar business, said person, or persons, com-
pany, partnership, association, corporation, or agent re-
sorting to this method of securing a monopoly within this
state in such business, shall be deemed guilty of a con-
spiracy to form and secure a trust or monopoly in re-
straint of trade, and on conviction thereof shall be sub-
jected to the penalties of this act.
SEC. 7. It shall be the duty of the Secretar\^ of State
on or about the first day of July each year, to address to
the president, secretary or treasurer, or any director of
said company doing business in this State, a letter of
inquiry as to whether the said corporation has all or any
part of its interest or business in or with any trust, com-
bine or association or persons or stockholders as named
in the preceding provisions of this Act, and to require
an answer under oath, of the president, secretary or treas-
urer, or any director of said company. A form of affi-
davit shall be inclosed in said letter of inquiry, as
f ollows :
AFFIDAVIT.
State of Arkansas, County of
I, do solemnly swear that I am the
(president, secretary, treasurer or di-
rector) of the corporation known and styled
duly incorporated under the la AYS of
on the day of
and now transacting or conducting
business in the State of Arkansas, and that I am duly
authorized to represent said corporation in making this
affidavit ; and I do further solemnly swear that said
, known and styled as aforesaid, has not, since
the day of (naming the day upon
which this Act is to take effect), created, entered into or
AEKANSAS. 53
become a member of or a party to, and was not on the
day of nor at any day since that
date, and is not now a member of or a party to any pool,
trust, agreement, combination, confederation or under-
standing with any other corporation, partnership, indi-
vidual or any other person or association or persons,
either in this State or elsewhere, to regulate or fix in this
State the price of any article of manufacture, mechanism,
merchandise, commodity, convenience, repair any product
of mining, or any article or thing whatsoever, or the
price or premium to be paid for insuring property against
loss or damage by fire, lightning, storm, cyclone, tornado,
or any other kind of policy issued by the parties afore-
said ; and that it has not entered into or become a mem-
ber of or a party to any pool, trust, agreement, contract,
combination, or confederation, to fix or limit in this
State the amount or quantity of any article of manufac-
ture, mechanism, merchandise, commodity, convenience,
repair, any product of mining, or any article or thing-
whatsoever, or the price or premium to be paid for in-
suring property against loss or damage by fire, lightning,
storm, cyclone, tornado, or any other kind of policy
issued by the parties aforesaid; and that it has not issued
and does not own any trust certificates for any corpo-
ration, agent, officer or employee, or for the directors
or stockholders of any corporation, and has not en-
tered into and is not now in any combination, contract
or agreement with any person, or persons, corporation or
corporations, or with any stockholder or director thereof,
the purpose and effect of which said combination, con-
tract or agreement would be to place the management or
control of such combination or combinations, or the
manufactured products thereof in the hands of any
trustee or trustees, with the intent to fix or limit the
price or lessen the production and sale of any article of
commerce, use or consumption, or to prevent, restrict or
diminish the manufacture or output of any article in
Arkansas.
President, Secretary, Treasurer, or Director.
" Subscribed and sworn to before me, a
within and for the County of this
day of 1
Seal.
54 LAWS ON TRUSTS AND MONOPOLIES.
"And on refusal to make oath in ansAver to said in-
quiry, or on failure to do so, within thirty days from the
mailing thereof, the Secretary of State shall certify said
fact to the Attorney General, and it shall be the duty of
the Attorney General, at his earliest practical moment.
in the name of the State and at the relation of the At-
torney General, to proceed against said corporation, if a
domestic corporation, for the recovery of the money for-
feit provided for in this Act, and also for the forfeiture
of its charter or certificate of incorporation. If a for-
eign corporation, to proceed against such corporation
for the recovery of the money forfeit provided for in this
Act, and to forfeit its right to do business in this State.
Provided, that within sixty days after the passage of
this Act, all foreign corporations desiring to do business
in this State shall file a new bond, as the statutes direct ;
and such sureties and bondsmen shall be liable for the
penalties and forfeitures, including costs, provided for
in this Act. (Act Mar. 12, 1913.)
SEC. 8. Whenever any proceedings shall be commenced
in any court of competent jurisdiction in this State by
the Attorney General against any corporation or cor-
porations, individual or individuals, or association of in-
dividuals, or joint stock association or co-partnership
under the law against the formation and maintenance of
pools, trusts of any kind, monopolies or confederations,
combinations or organizations in restraint of trade, to
dissolve the same or to restrain their formation or main-
tenance in this State, or to recover the penalties in this
Act provided, then, and in such case, if the Attorney
General desire to take the testimony of any officer,
director, agent or employee of any incorporation, or
joint stock association proceeded against, or in case of a
co-partnership any of the members of said partnership,
or any employee thereof, in any court in which said ac-
tion may be pending; and the individual or individuals
whose testimony is desired are without the jurisdiction
of this, or reside without the State of Arkansas, then in
such case the Attorney General may file in said court in
term time, or with the judge thereof in vacation, a state-
ment, in writing setting forth the name or names of the
persons or individuals whose testimony he desires to
take, and the time when and the place where he desires
said person to appear; and thereupon the court or judge
thereof shall make an order for the taking of said testi-
ARKANSAS. 55
monv of such person or persons, arid for the production
of any books, papers, documents in his possession or
under his control relating to the merits of any suit, or
to any evidence therein, shall appoint a commission for
that purpose, who shall be an officer authorized by law to
take depositions in this State, and said Commission shall
issue immediately a notice in writing, directed to the
attorney or attorneys of record in said cause, or agent,
or officer, or other employee, that the testimony of the
person named in the application of the Attorney General
is desired, and requesting said attorney or attorneys of
record, of said officer, agent or employee to whom said
notice is delivered, and upon whom the same is served,
to have said officer, agent, employee, representative of
said co-partnership, or agent thereof, whose evidence is
desired to take, together with such books, papers and
documents, at the place named in the application, shall
then and there testify. Provided, however, that such ap-
plication shall always allow in fixing said time and same
number of days' travel to reach the designated place in
Arkansas that would be allowed by law in case of taking
depositions; provided, also in addition to the above
named time, six days shall be allowed for the attorneys
of record, or the agent, officer or employee on whom
notice is served to notify the person or persons whose
testimony is to be taken. Service of said notice as re-
turned in writing may be made by any one authorized by
law to serve subpoena. (Act Mar. 12, 1913.)
SEC. 9. Whenever the persons mentioned in the pre-
ceding sections shall be notified as above provided, to
request any officer, agent, director or employee to attend
before any court, or before any person authorized to
take the testimony in said proceedings, and the person
or persons whose testimony is required as above provided,
shall fail to appear and testify and produce any books,
papers and documents, they may be ordered to procure
by court, or the other office authorized to take such evi-
dence, then it will be the duty of the court, upon motion
of the Attorney General, to strike out the answer, mo-
tion, reply, demurrer or other pleading then or thereafter
filed in said action or proceeding by the said corporation,
joint stock association or co-partnership whose officer,
agent, director or employee has neglected or failed to
attend and testify and produce all books, papers and
documents he or they shall have been ordered to produce
56 LAWS ON TEUSTS AND MONOPOLIES.
in said action by the court or person authorized to take
said testimony and said court shall proceed to render
judgment by default against said co-partnership, joint
stock association or corporation, joint stock association
or co-partnership. And it is further provided, that in
case of any officer, agent, employee, director or represent-
ative of any corporation, joint stock association or co-
partnership in such proceeding, as hereinbefore men-
tioned, who shall reside or be found within this State,
shall be subpoenaed to appear and testify, or produce
books, papers and documents and shall fail, neglect or
refuse to do so, then the answer, motion, demurrer or
other pleading then and thereafter filed by said corpora-
tion, joint stock association or co-partnership in any
such proceeding, shall on motion of the Attorney Gen-
eral, be stricken out and judgment in said cause rendered
against said corporation, joint stock association or co-
partnership. (Act Mar. 12, 1913.)
SEC. 10. It will be the duty of the Attorney General
to enforce the provisions of this Act. As compensation
for his services in this behalf, the Attorney General shall
be entitled to his actual expenses incurred in the prose-
cution of such suits, to be paid by the defendant or de-
fendants when judgment is rendered for the State, to be
taxed as costs by the court hearing the cause. (Act Mar.
12, 1913.)
SEC. 11. In all suits instituted under this Act to for-
feit the charter of corporations, or to forfeit the right of
a corporation to do business in this State, where judg-
ment of forfeiture is obtained, and the cause not appealed
to the Supreme Court, the Circuit Court rendering such
judgment shall allow the Attorney General, his actual
expenses, to be paid out of the assets of said corporation.
All actions authorized and brought under this Act shall
have precedence on motion of the Attorney General, of
all other business, civil and criminal, except criminal
cases where the defendants are in jail. (Act Mar. 12.
1913.)
COURT DECISIONS.
Hammond Packipg Co. v. State, 212 U. S., 322.
State v. Lancashire Ins. Co., 66 Ark., 466 ; 45 L. E. A.,
348.
State v. Aetna Fire Ins. Co., 66 Ark., 480.
Ex Parte Levy, 43 Ark., 42, 53.
CALIFORNIA.
CONSTITUTION, 1879.
ART. 12, SEC. 9. No corporation shall engage in any
business other than that expressly authorized in its char-
ter, or the law under which it may have been or may
hereafter be organized; nor shall it hold for a longer
period than five years any real estate except such a.s may
be necessary for carrying on its business.
STATUTES.
[March 23. 1907.]
CARTWRIGHT ANTI-TRUST LAW.
SECTION 1. A trust is a combination of capital, skill or
acts by two or more persons, firms, partnerships, corpo-
rations or associations of persons, or of any two or more
of them for either, any or all of the following purposes :
1. To create or carry out restrictions in trade or com-
merce.
2. To limit or reduce the production, or increase the
price of merchandise or of any commodity.
3. To prevent competition in manufacturing, making,
transportation, sale or purchase of merchandise, produce
or any commodity.
4. To fix at any standard or figure, whereby its price
to the public or consumer shall be in any manner con-
trolled or established, any article or commodity of mer-
chandise, produce or commerce intended for sale, barter,
use or consumption in this state.
5. To make or enter into or execute or carry out any
contracts, obligations or agreements of any kind or de-
scription, by which they shall bind, or have bound them-
selves not to sell, dispose of or transport any article or
any commodity or any article of trade, use, merchandise,
commerce or consumption below a common standard fig-
57
58 LAWS ON TRUSTS AND MONOPOLIES.
are or fixed value, or by which they shall agree in any
manner to keep the price of such article, commodity or
transportation at a fixed or graduated figure, or by
which they shall in any manner establish or settle the
price of any article, commodity or transportation be-
tween them or themselves and others, so as to directly
or indirectly preclude a free and unrestricted competition
among themselves, or any purchasers or consumers in the
sale or transportation of any such article or commodity,
or by which they shall agree to pool, combine or directly
or indirectly unite any interests that they may have con-
nected with the sale or transportation of any such article
or commodity, that its price might in any manner be af-
fected. Every such trust as is defined herein, is declared
to be unlawful, against public policy and void, provided
that no agreement, combination or association shall be
deemed to be unlawful or within the provisions of this act,
the object and business of which are to conduct its opera-
tions at a reasonable profit or to market at a reasonable
profit those products which cannot otherwise be so mark-
eted, provided further, that it shall not be deemed to be
unlawful, or within the provisions of this act, for persons,
firms, or corporations engaged in the business of selling
or manufacturing commodities of a similar or like char-
acter, to employ, form, organize or own any interest in
any association, firm or corporation, having as its object
or purpose the transportation, marketing or delivery of
such commodities. (As amended by L. 1909, c. 362.)
SEC. 2. For a violation of any of the provisions of this
act by any corporation or association mentioned herein,
it shall be the duty of the attorney-general or the district
attorney of the proper county, to institute proper suits
or quo warranto proceedings in any court of competent
jurisdiction for the forfeiture of its charter rights, fran-
chises or privileges and powers exercised by such cor-
poration or association, and for the dissolution of the
same under the general statutes of the state.
SEC. 2J. It shall be lawful to enter into agreements or
form associations or combinations, the purpose and effect
of which shall be to promote, encourage or increase com-
petition in any .trade or industry, or which are in fur-
therance of trade". (Added, L. 1909, c. 362.)
CALIF OENIA. 59
SEC. 3. Every foreign corporation, as well as every for-
eign association, exercising any of the powers, franchises
or functions of a corporation in this state, violating any
of the provisions of this act, is hereby denied the right
and prohibited from doing any business in this state, and
it shall be the duty of the attorney-general to enforce
this provision by bringing proper proceedings by injunc-
tion or otherwise. The secretary of state shall be au-
thorized to revoke the license of any such corporation or
association heretofore authorized by him to do business
in this state.
SEC. 4. Any violation of either or all of the provisions
of this act shall be and is hereby declared a conspiracy
against trade, and any person who may become engaged
in any such conspiracy or take part therein, or aid or
advise in its commission, or who shall, as principal, man-
ager, director, agent, servant or employee, or in any other
capacity, knowingly carry out any of the stipulations,
purposes, prices, rates, or furnish any information to
assist in carrying out such purposes, or orders there-
under or in pursuance thereof, shall be punished by a
fine of not less than fifty ($50) dollars nor more than
five thousand ($5,000) dollars, or be imprisoned not less
than six months nor more than one year, or by both such
fine and imprisonment. Each day's violation of this pro-
vision shall constitute a separate offense.
SEC. 5. In any indictment, information or complaint
for any offense named in this act, it -is sufficient to state
the purpose or effects of the trust or combination, and
that the accused is a member of, acted with or in pur-
suance of it, or aided or assisted in carrying out its pur-
poses, without giving its name or description, or how,
when and where it was created.
SEC. 6. In prosecutions under this act, it shall be suffi-
cient to prove that a trust or combination, as defined
herein, exists, and that the defendant belonged to it, or
acted for or in connection with it, without proving all the
members belonged to it, or proving or producing any
article of agreement, or any written instrument on which
it may have been based ; or that it was evidenced by any
written instrument at all. The character of the trust or
combination alleged may be established by proof of its
general reputation as such. In case any court of record,
or in vacation any judge of said court in which is pend-
60 LAWS ON TRUSTS AND MONOPOLIES.
ing any civil, criminal or other action or proceeding
brought or prosecuted by the attorney-general or any
district attorney for the violation of any of the provi-
sions of this act or in any action or proceeding for the
violation of the law of this state, against conspiracy or
combination in restraint of trade so orders, no person so
ordered shall be excused from attending, testifying or
producing books, papers, schedules, contracts, agreements
or any other document in obedience to the subpoena or
under the order of such court or any commissioner or
referee appointed by said court to take testimony or any
notary public or other person or officer authorized by the
laws of this state to take depositions when the order made
by such court or judge thereof includes a witness whose
deposition is being taken before such notary public or
other officer on the ground or for the reason that the tes-
timony or evidence required of him may tend to crimi-
nate him or subject him to any penalty; but no individual
shall be prosecuted or subjected to any penalty for or on
account of any transaction, matter or thing concerning
which he may so testify or produce evidence, docu-
mentary or otherwise, before any such court, person or
officer.
SEC. 7. Each and every firm, person, partnership, cor-
poration or association of persons, who shall in any man-
ner violate any of the provisions of this act, shall, for
each and every day that such violations shall be commit-
ted or continued, after due notice given by the attorney-
general or any district attorney, forfeit and pay the sum
of fifty ($50) dollars, which may be recovered in the
name of the people of the state of California, in any
county where the offense is committed, or where either of
the offenders resides ; and it shall be the duty of the attor-
ney-general, or the district attorney of any county on the
order of the attorney-general, to prosecute for the re-
covery of the same. When the action is prosecuted by
the attorney-general against a corporation or association
of persons, he may begin the action in the supreme
(superior) court of the county in which defendant resides
or does business.
SEC. 8. That any contract or agreement in violation of
the provisions of "this act shall be absolutely void and
shall not be enforceable either in law or equity.
CALIFORNIA. 61
SEC. 9. That the provisions hereof shall be held cumu-
lative of each other and of all other laws in any way
affecting them now in force in this state.
SEC. 10. It shall not be lawful for any person, part-
nership, association or corporation, or any agent thereof,
to issue or to own trust certificates, or for any person,
partnership, association or corporation, agent, officer or
employee, or the directors or stockholders of any corpo-
ration, to enter into any combination, contract or agree-
ment with any person or persons, corporation or corpora-
tions, or with any stockholder or director thereof, the
purpose and effect of which combination, contract or
agreement shall be to place the management or control
of such combination or combinations, or the manufac-
tured product thereof, in the hands of any trustee or
trustees with the intent to limit or fix the price or lessen
the production and sale of any article of commerce, use
or consumption, or to prevent, restrict or diminish the
manufacture or output of any such article, and any per-
son, partnership, association or corporation that shall en-
ter into any such combination, contract or agreement for
the purpose aforesaid shall be deemed guilty of a mis-
demeanor, and on conviction thereof shall be punished by
a fine not less than fifty dollars, nor more than five thou-
sand dollars.
SEC. 11. In addition to the criminal and civil penalties
herein provided, any person who shall be injured in his
business or property by any other person or corporation
or association or partnership, by reason of anything for-
bidden or declared to be unlawful by this act, may sue
therefor in any court having jurisdiction thereof in the
count}- where the defendant resides or is found, or any
agent resides or is found, or where service may be ob-
tained, without respect to the amount in controversy, and
to recover twofold the damages by him sustained, and the
costs of suit. Whenever it shall appear to the court be-
fore which any proceedings under this act may be pend-
ing that the ends of justice require that other parties
shall be brought before the court, the court may cause
them to be made parties defendant and summoned
whether they reside in the county where such action is
pending or not.
SEC. 12. The word " person " or " persons " whenever
used in this act shall be deemed to include corporations,
62 LAWS ON TRUSTS AND MONOPOLIES.
partnerships and associations existing under or author-
ized by the laAvs of this state or any other state, or any
foreign count ry.
SEC. 13. Labor whether skilled or unskilled^ is not a
commodity within the meaning of this act. (Added by
L. 1909, c. 362.) (Gen. Laws, Sec. 4166.)
COURT DECISIONS.
San Diego Water Co. v. San Diego Flume Co., 108
Cal., 549.
Merchant's Ad Sign Co. v. Sterling, 124 Cal., 429; 46
L. R. A., 142.
Calif. Steam Navigation & Trust Co. v. Wright 6 Cal., 258.
Lightner v. Menzel ' 35 Cal., 452.
Wright f. Ryder 36 Cal., 342.
More v. Bonner 40 Cal., 251.
Callaghan v. Donnolly .45 Cal., 152.
Schwalm v. Holmes 49 Cal., 665.
Weil v. Jones 53 Cal., 46.
Santa Clara Co. v. Hayes 76 Cal., 387.
Havermeyer v. Superior Court 84 Cal., 378.
Brown t\ Kling 101 Cal., 295.
Pacific Factor Co. v. Adler 90 Cal., 110.
City Carpet Beating Co. v. Jones 102 Cal., 506.
Visalia Gas & Elec. Co. v. Sims 104 Cal., 326.
Kagsdale v. Nagle 106 Cal., 332.
Gregory v. Spieker 110 Cal., 150.
Herrmau v. Menzies 115 Cal., 16.
Meyers v. Merillion 118 Cal., 352.
Calif., etc., Association v. Stelling 141 Cal., 720.
Dodge v. Dodge 145 Cal., 380.
Pavkovich v. S. P. R. R 87 Pac. Rep., 1097.
Franz v. Bieler 126 Cal., 176.
Works v. Jones 102 Cal., 506.
Grogan v. Chaffee.- 156 Cal., 611.
Ghirardelli v. Ilunsicker (Cartwright Act) 164 Cal., 355.
COLORADO.
CONSTITUTION, 1876.
ART. XV, SEC. 5. Xo railroad corporation, or the
lessees or managers thereof, shall consolidate its stock,
property or franchises with any other railroad corpora-
tion owning or having under its control a parallel or
competing line.
STATUTES.
[Chapter 161 (Acts 1913).]
TRUSTS DEFINED AND PROHIBITED.
AX ACT Defining and prohibiting trusts; providing procedure to
enforce the provisions of this act, and penalties for violations
of the provisions of this act.
SECTION 1. A trust is a combination of capital, skill or T rust? lti
acts, by two or more persons, firms, corporations, or asso-
ciations of persons, or by any two or more of them, for
either, any or all of the following purposes :
First. To create or carry out restrictions in trade or
commerce, or aids to commerce, or to carry out restrictions
in the full and free pursuit of any business authorized or
permitted by the laws of this State.
Second. To increase or reduce the price of merchandise,
produce or commodities.
Third. To prevent competition in the manufacturing,
making, transportation, sale or purchase of merchan-
dise, produce, ores, or commodities, or to prevent compe-
tition in aids of commerce.
Fourth. To fix any standard of figures, whereby the
price to the public of any article or commodity of mer-
chandise, produce or commerce intended for sale, use or
consumption in this State shall, in any manner, be con-
trolled or established.
63
64 LAWS ON TRUSTS AND MONOPOLIES.
Fifth. To make or enter into, or execute or carry out,
any contract, obligation or agreement of any kind or de-
scription by which they shall bind or have to bind them-
selves not to sell, manufacture, dispose of or transport any
article or commodity, or article of trade, use, merchandise,
commerce or consumption below a common standard fig-
ure ; or by which they shall agree in any manner to keep
the price of such article, commodity or transportation at
a fixed or graded figure; or by which they shall in any
manner establish or settle the price of any article or com-
modity or transportation between them or themselves and
others so as to preclude a free and unrestricted competi-
tion among themselves or others in transportation, sale
or manufacture of any such article or commodity; or by
which they shall agree so to pool, 'combine or unite any
interest they may have in connection with the manufac-
ture, sale or transportation of any such article or com-
modity, that its price may in any manner be affected.
Against pub- And all such combinations are hereby declared to be
against public policy, unlawful and void; provided that
no agreement or association shall be deemed to be unlaw-
ful or within the provisions of this act, the object and
purposes of which are to conduct operations at a reason-
able profit or to market at a reasonable profit those prod-
ucts which cannot otherwise be so marketed; provided
further that it shall not be deemed to be unlawful, or with-
in the provisions of this act, for persons, firms, or corpora-
tions engaged in the business of selling or manufacturing
commodities of a similar or like character to employ,
form, organize or own any interest in any association,
firm or corporation having as its object or purpose the
transportation, marketing or delivering of such commod-
ities ; and provided further that labor, whether skilled or
unskilled, is not a commodity within the meaning of this
act.
Lawful agree- SECTION 2. It shall be lawful to enter into agreements
meats. .
or form associations or combinations, the purpose and
effect of which shall be to promote, encourage or increase
competition in any trad or industry, or which are in fur-
therance of trade.
Genera* or ' Di/- SECTION 3. For a violation of any of the provisions of
tn i s act by any 'corporation, or by any of its officers or
agents mentioned herein, it shall be the duty of the attor-
ney general of this State, or district attorney of any dis-
trict in which said violation may occur, or either of them,
upon his own motion to institute an action in any court
COLOKADO. 65
in this State having jurisdiction thereof for the forfeiture
of the charter, rights and franchise of such corporation,
and the dissolution of its existence.
SECTION 4. Every foreign corporation, as well as every Foreign cor-
... . . j> ,-, /. porations vio-
foreign association, exercising any of the powers, f ran- lating this act.
chises or functions of a corporation in this State, violat-
ing any of the provisions of this act, is hereby denied the
right and prohibited from doing any business in this
State, and it shall be the duty of the Attorney General to
enforce this provision by bringing proper proceedings by
injunction or otherwise.
SECTION 5. Each and every person, company or corpo- violations,
ration, the officers, agents or representatives thereof, vio-
lating any of the provisions of this act shall be deemed
guilty of a misdemeanor, and on conviction thereof shall
be subject to a fine of not more than one thousand dollars,
or to imprisonment for not more than six months ; and it
shall be the duty of the Attorney General of the State,
or the district attorney of any district in the State, in
which said violation shall occur, or either of them, to
prosecute and enforce the provisions of this act.
SECTION 6. Any contract or agreement in violation of contracts in
. \ . _ violation, void.
any of the provisions of this act shall be absolutely void
and not enforceable in any of the courts of this State;
and when any civil action shall be commenced in any
court of this State it shall be lawful to plead in defence
thereof that the cause of action sued upon grew out of
a contract or agreement in violation of the provisions of
this act.
SECTION 7. That any person, firm, company or corpo- Action for
ration that may be damaged by any such agreement, trust
or combination described in Section 1 of this act, may sue
for and recover in any court of competent jurisdiction in
this State, of any person, company or corporation operat-
ing such trust or combination, such damages as may have
been thereby sustained.
SECTION 8. In any proceeding pending in any court of fr NJ t e estif U in e
record brought or prosecuted by the Attorney General, ^cause^of in-
or any district attorney, for the violation of any of the
provisions of this act, no person shall be excused from
attending, testifying or producing books, papers, sched-
ules, contracts, agreements or any other document, in
obedience to the subpoena or under the order of such
court, or any commissioner or referee appointed by said
1649113 5
66 LAWS ON TRUSTS AND MONOPOLIES.
court to take testimony, or any notary public, or other
person or officer authorized by the laws of this State to
take depositions, when the orders made by such court, or
judge thereof, included a witness whose deposition is be-
ing taken before such notary public or other officer, on
the ground or for the reason that the testimony or evi-
ience required of him may tend to criminate him or sub-
No prosecu- ject him to any penalty; but no individual shall be prose-
tton because of j i 5 i j. *
evidence given, cuted or subjected to any penalty for or on account of
any transaction, matter or thing concerning which he
may so testify or produce evidence, documentary or other-
wise, before any such court, person or officer.
Approved April Tth 1913, at 9 :03 A M. o'clock.
CONNECTICUT.
CONSTITUTION, 1818.
ART. I, SEC. 1. We declare, That all men when they
form a social compact, are equal in rights; and that no
man or set of men are entitled to exclusive public emolu-
ments or privileges from the community.
STATUTES.
[Chapter 185 Acts 1911.]
AN ACT Concerning Combinations to increase Prices of Necessities.
Any person who, for himself or as a member of any
firm or an officer or agent of any corporation, conspires necessities pro-
with or enters into any combination or agreement with
any other person or any firm or corporation for the pur-
pose of fixing or maintaining a higher price, at wholesale
or retail, for ice, coal, or any other necessity of life than
would prevail except for such conspiracy, combination, or
agreement, or of limiting or restraining the production,
manufacture, shipment, or sale of any such commodity
for the purpose of increasing the price thereof, shall be
fined not more than one thousand dollars, or imprisoned
not more than five years, or both.
Approved, August 15, 1911.
COURT DECISIONS.
The Norwich Gas Light Co. v. The Norwich City Gas
Co., 25 Conn., 18.
The State v. Brennan's Liquors, 25 Conn., 277.
Connors v. Connolly, Conn. Rep. 86, 641.
67
DELAWARE.
There are no anti-trust statutes in Delaware.
69
DISTRICT OF COLUMBIA.
The general statutes of the United States (26 Stats, at
Large, 209; Sup. 2d Ed., p. 762), and other laws prohib-
iting unlawful restraints of trade, monopolies and com-
bines, are in force in this District.
71
FLORIDA.
STATUTES, 1906.
SEC. 3160. Every arrangement, contract, agreement,
trust, or combination between persons or corporations, or
between any person and any corporation, made with a
view to, or tending to prevent, hinder or obstruct the
lawful sale in this State, or any place therein, of beef or
other fresh meat of cattle or any other edible animal
raised, fattened or fed in the State of Florida, or any
other beef or fresh meat, or with a view to or tending to
prevent, hinder or obstruct the lawful sale of any cattle
or other edible animal in this State, or any place therein,
or which shall tend to monopolize or control the sale or
price of beef or other fresh meat in .this State, or any
place therein, is hereby declared to be against public
policy.
SEC. 3161. Any corporation chartered under the laws
of this State, which shall violate any of the provisions of
the preceding section shall thereby forfeit its charter
and franchises, and its corporate existence shall there-
upon cease and determine. Every foreign corporation
which shall violate any of the provisions of said section,
is hereby denied the right to do and is prohibited from
doing business in this State. It is hereby made the duty
of the Attorney- General of this State to enforce this
provision by due process of law.
COURT DECISIONS.
Barbee v. Jacksonville & A. Plank Road Co., 6 Fla.,
262.
Stewart & Bro. v. Stearns & Culver Lbr. Co., 56 Fla.,
570.
73
GEORGIA.
CONSTITUTION.
ART. IV, SEC. 2. The General Assembly of this state
shall have no power to authorize any corporation to buy
shares or stock in any other corporation in this state or
elsewhere, or to make any contract or agreement what-
ever, with any such corporation, which may have the
effect, or be intended to have the effect, to defeat or
lessen competition in their respective businesses, or to
encourage monopoly; and all such contracts and agree-
ments shall be illegal and void.
STATUTES, 1896.
SEC. 1. That, from and after the passage of this Act,
all arrangements, contracts, agreements, trusts or combi-
nations between persons or corporations made with a
view to lessen, or which tend to lessen, full and free com-
petition in the importation or sale of articles imported
into this State, or in the manufacture or sale of articles
of domestic growth or of domestic raw material, and all
arrangements, contracts, agreements, trusts or combina-
tions between persons or corporations designed, or which
tend to advance, reduce or control the price or the cost
to the producer or to the consumer of any such product
or article, are hereby declared to be against public policy,
unlawful and void.
SEC. 2. Be it further enacted l>y the authority afore-
said, That any corporation, chartered under the laws of
this State, which shall violate any of the provisions of
this Act shall thereby forfeit its charter and its franchise,
and its corporate existence shall thereupon cease and de-
termine. Every foreign corporation, which shall violate
any of the provisions of this Act, is hereby denied the
right to do, and is prohibited from doing, business in this
State. It is hereby made the duty of the Attorney- Gen-
eral of the State to enforce this provision by due process
of law.
75
76 LAWS ON TKUSTS AND MONOPOLIES.
SEC. 3. Be it -further enacted by the authority afore-
said, That any violation of the provisions of this Act
shall be deemed, and is hereby declared to be destructive
of full and free competition and a conspiracy against
trade, and any person or persons who may engage in any
such conspiracy, or who shall, as principal, manager,
director or agent, or in any other capacity, knowingly
carry out any of the stipulations, purposes, prices, rates
or orders made in furtherance of such conspiracy, shall,
on conviction, be punished by a fine of not less than one
hundred dollars or more than five thousand dollars and
by imprisonment in the penitentiary not less than one
year nor more than -ten years; or, in the judgment of the
court, by either such fine or such imprisonment.
SEC. 4. Be it further enacted by the authority afore-
said, That the provisions of this Act shall not apply to
agricultural products or live stock while in the possession
of the producer or raiser.
SEC. 5. Be it further enacted by the authority afore-
said, That any person or persons, or corporations that
may be injured or damaged by any such arrangement,
contract, agreement, trust or combination, described in
Section one of this Act, may sue for and recover, in any
court of competent jurisdiction in this State, of any per-
son, persons or corporation operating such trust or com-
bination, the full consideration or sum paid by him or
them for any goods, wares, merchandise or articles the
sale of which is controlled by such combination or trust.
SEC. 6. Be it further enacted by the authority afore-
said, That it shall be the duty of the Judges of the
Superior Courts of this State specially to instruct the
grand juries as to the provisions of this Act.
SEC. 7. Be it further enacted by the authority afore-
said, That all laws and parts of laws in conflict with the
provisions of this Act be, and the same are, hereby re-
pealed.
Approved December 23, 1896.
GEORGIA CODE.
[Section 9.]
w
POOLING.
p.ioe. 1890 ~ 1 ' SEC. 2466. It shall be unlawful for any insurance com-
24 || cs - 6466 >pany, or companies, authorized to do business in this
GEORGIA. 77
State, or the agent or agents thereof, to make, maintain,
or enter into any contract, agreement, pool, or other ar-
rangement with any other insurance company, or com-
panies, licensed to do business in this State, or the agent
or agents thereof, for the purpose of, or that may have the
tendency or effect of, preventing or lessening competition
in the business of insurance transacted in this State. And
when it shall be made to appear to the commissioner of
insurance that any company, or companies, agent, or
agents have entered into any such contract, agreement,
pool, or other arrangement, said commissioner shall re-
voke the license issued to such company or companies.,
and the same shall not be reissued until the president or
chief officer of such company or companies shall file an
affidavit with said commissioner, stating that such con-
tracts, agreements, pools, or other arrangements have
been annulled and made void : Provided, that nothing in
this Article shall be so construed as to prevent any insur-
ance company, legally authorized to transact business in
this State, from separately surveying, inspecting, or ex-
amining the premises to be insured, by and with the con-
sent of the owner, for the purpose of bringing about im-
provements in fire protection, so as to lessen the cost of
insurance by reducing rates.
SEC. 2597. Any railroad company incorporated under 5 i Acts 1892> p "
the provisions of this Article shall have authority to sell, 2607-2610 2591 '
lease, assign, or transfer its stock, property, and fran-
chises to, or to consolidate the same with, those of any
other railroad company incorporated under the laws of
this or any other State or of the United States, whose rail-
road within or without this State shall connect with or
form a continuous line with the railroad of the company
incorporated under this law, upon such terms as may be
agreed upon ; and conversely any such corporation organ-
ized under the provisions of this Article may purchase,
lease, consolidate with, absorb, and merge into itself the
stock, property, and franchises of any other railroad
company incorporated under the laws of this or any other
State or the United States, whose railroad within or
without this State shall connect with or form a continuous
line or system with the railroad of such company incor-
porated under this law, upon such terms as may be agreed
upon. And it shall be lawful for any railroad company
or corporation now or hereafter formed by the consolida-
tion of one or more railroad companies, or corporations,
78 LAWS ON TRUSTS AND MONOPOLIES.
organized under the laws of this State, or under the lawn
of this State and any other States, with one or more com-
panies or corporations organized under the laws of any
other State, or under the laws of this and other States,
to issue its bonds and stock as provided for in this Article,
in such amounts as they may deem necessary for the pur-
pose of paying or exchanging the same for or retiring
any bonds or stocks theretofore issued by either of the
said companies, or corporations, so merged, purchased, or
consolidated, or for any other purpose, and to the amount
authorized by the laws of the State under which either
of said companies, or corporations, so consolidated was
organized, and to secure the same, in case of bonds, by
mortgages or trust deeds upon its real or personal prop-
erty, franchises, rights, and privileges, whether within or
without this State: Provided, that no railroad company
shall make any contract under the provisions of this sec-
tion with any other railroad company which is a com-
peting line, that is calculated to defeat or lessen competi-
tion in this State or to encourage monopoly.
Acts 1890-1, SEC. 2614. All street-railroad companies may lease or
' Sees. 6466, sell their road, franchises, and other property to any
other corporation created by the laws of this State
for street-railroad purposes; and their franchises and
property so sold shall remain liable in the hands of the
lessee or purchaser for all debts or claims against the
company making the conveyance. Nothing in this sec-
tion shall be construed to authorize any such company to
sell, lease, or otherwise dispose of any of its property or
franchises so as to defeat or lessen competition, or to
encourage monopoly.
Sees. 394, SEC. 4253. A contract which is against the policy of the
3132, 1340, , ., ,.
2545, 2665, law can not be enforced; such are contracts tending to
2785, 6466, , . , . ' . ,. . . ,
3465, 4247, corrupt legislation or the judiciary, contracts in general
in restraint of trade, contracts to evade or oppose the
revenue laws of another country, wagering contracts,
contracts of maintenance or champerty.
COURT DECISIONS.
Brown v. Jacobs Pharmacy Co., 115 Ga., 429; 57 L. R,
A., 547.
Trust Company of Ga. v. State, 109 Ga., 736.
State v. Cen. of Ga. Ry. Co., 109 Ga., 716.
Central of Ga. Ry. Co. v. Collins, 40 Ga., 582.
Dady v. Georgia & A. Ry., 112 Fed., 838.
IDAHO.
CONSTITUTION.
ART. XI., SEC. 18. No incorporated company nor any
association of persons or stock company, in the State of
Idaho, shall directly or indirectly combine or make any
contract with any other incorporated company, foreign or
domestic, through the stockholders or the trustees or as-
signees of such stockholders in any manner whatsoever,
for the purpose of fixing the price or regulating the pro-
duction of any article of commerce or of the produce of
the soil or of consumption by the people; and that the
legislature be required to pass laws for the enforcement
thereof, by adequate penalties, to the extent, if necessary
for that purpose of the forfeiture of their property and
franchise.
STATUTES (ACTS 1909).
SECTION 1. It shall be unlawful for any incorporated
company, association of persons or stock company in this
state, directly or indirectly to combine or make any con-
tract with any incorporated company foreign or domes-
tic, through their stockholders, or the trustees or as-
signees of such stockholders, or in any manner whatso-
ever, for the purpose of fixing the price or regulating the
production of any article of commerce or of produce of
the soil, or of consumption by the people. (An act to
prohibit combinations in restraint of trade and to pro-
vide punishment for violations thereof, approved March
11, 1909; L. 1909, p. 297.)
SEC. 2. A violation of the provisions of Section 1 of
this Act shall constitute a misdemeanor and be pun-
ished by a fine of not exceeding Five Thousand Dollars
pr by imprisonment in the county jail not exceeding one
year, or by both such fine and imprisonment. (Id.,
Sec. 2.)
SEC. 3. If the violation of Section 1 of this Act is com-
mitted by an association of persons, or by a stock com-
pany, all of the persons forming such association or being
79
80 LAWS ON TRUSTS AND MONOPOLIES.
members of such stock company shall be equally liable
and punishable as provided by Section 2 hereof, and if
the offense is committed by a corporation, the directors of
said corporation shall be held personally liable and pun-
ishable as provided by Section 2, and in addition thereto
the court may impose against said corporation a fine not
exceeding Five Thousand Dollars, and may declare its
franchise forfeited. (Id., Sec. 3.)
ANTI-TRUST ACT OF 1911.
SECTION 1. That every contract, combination in the
form of trust or otherwise, or conspiracy in restraint of
trade or commerce, within this state, is hereby declared to
be illegal. Every person who shall make any such con-
tract or engage in any such combination or conspiracy,
shall be deemed guilty of a misdemeanor, and on convic-
tion thereof, shall be punished by fine not exceeding five
thousand dollars ($5,000) or by imprisonment not ex-
ceeding one (1) year, or by both such punishments, in the
discretion of the court.
SEC. 2. That every person who shall monopolize, or at-
tempt to monopolize or combine, or conspire with any
other person or persons, to monopolize any part of the
trade or commerce, within this state, shall be deemed
guilty of a misdemeanor, and on conviction thereof shall
be punished by a fine not exceeding five thousand dollars
($5,000) or by imprisonment not exceeding one (1) year,
or by both said punishments, in the discretion of the
court.
SEC. 3. That any property owned under any contract
or by any combination, or pursuant to any conspiracy
(and being the subject thereof), mentioned in the fore-
going sections of this act, shall be forfeited to the state.
SEC. 4. That every person, corporation, joint stock
company, or other association, engaged in business within
this state, who shall enter into any contract, combination
or conspiracy, or who shall give any direction or author-
ity to do any act, for the purpose of driving out of busi-
ness any other person engaged therein, or who for such
purpose shall in the course of such business sell any ar-
ticle or product at less than its fair market value, or at a,
less price than it is accustomed to demand 'or receive
therefor in any other place under like conditions ; or who
IDAHO. 81
shall sell any article upon a condition, contract or under-
standing that it shall not be sold again by the purchaser,
or restrain such sale by the purchaser, shall be deemed
guilty of a misdemeanor and on conviction thereof, shall
be punished by a fine not exceeding five thousand dollars
($5,000) or by imprisonment not exceeding one (1) year,
or by both said punishments, in the discretion of the
court.
SEC. 5. That all the books of record and papers of
every corporation, joint stock company, or other associa-
tion, engaged in business within this state shall be sub-
ject to inspection by the attorney-general of this state, or
by any agent he may designate for that purpose, and such
corporation, joint stock company, or other association
shall, at such times as he shall prescribe, make such re-
turns duly verified by an officer of such corporation, joint
stock company or association, as shall be by him pre-
scribed either by general regulations or by special direc-
tion.
SEC. 6. That any president, director, treasurer, officer,
corporator, copartner, associate or agent of such corpo-
ration, joint stock company or other association, who
shall in its behalf do anything by this act prohibited to
such corporation, joint stock company, or other associa-
tion, or who shall support, vote for, aid and abet, or take
part in doing such action by said corporation, joint stock
company, or other association, or any instrumentality
thereof, shall be liable to the penalties by this act pro-
vided.
SEC. 7. That any corporation, joint stock company, or
other association that shall have been twice adjudged to
have violated the provisions of this act by the final judg-
ment of any court having jurisdiction of the question in
any civil suit or proceeding in which said corporation,
joint stock company, or other association shall have been
a party, who shall thereafter violate this act, or who
shall fail to make the returns herein required, at the time
specified, shall no longer be allowed to engage in busi-
ness within this state; provided, that such prohibition
shall only be enforced after such corporation, joint stock
company or other association shall have been enjoined
against further engaging in such business, on an infor-
mation or suit brought in a court of competent jurisdic-
tion, by the attorney-general in behalf of this state. It
1649113 6
82 LAWS ON TRUSTS AND MONOPOLIES.
shall be the duty of the attorney-general in such case,
unless he shall be satisfied that such corporation, joint
stock company or other association has desisted and ab-
stained and will in future desist and abstain from such
violation, to enforce the provision by proceeding, either
by information or by indictment, as he may in his discre-
tion think best. Any corporation, joint stock company
or other association which shall be charged with violating
this act, and any president, director, treasurer, officer or
agent thereof, may be joined as a party in any proceed-
ing, civiror criminal, to enforce this act. : If in the judg-
ment of 'the- attorney-general, such corporation, joint
stock company or other association against which any
civil proceeding may be instituted by one on which the
public is so depending that the interruption of its busi-
ness' will cause serious public loss or inconvenience, he
may in his discretion, refrain from proceeding to obtain
a decree which will absolutely prevent the continuance of
such business and may apply for a limited or conditional
decree, or, one to take effect at a future day. as the public
interests shall seem to require. And if, in the-;judgment
of the court before whom such proceeding may be pend-
ing, the interruption of the business of the defendant
corporation, joint stock company or other association,
will cause such serious public loss or inconvenience, the
court may decline to enter an absolute decree enjoining
it against proceeding with its business, and may enter a
modified or conditional decree, or such decree to take
effect at a future time, as justice shall require. The
court may also in its discretion, enjoin such officers or
agents or servants of such corporation, joint stock com-
pany or other association from continuing in its service,
and enjoin any such corporation, joint stock company, or
other association from continuing their employment
therein, as the case shall seem to require.
SEC. 8. That any corporation, joint stock company or
other association^ and - any president, director, treasurer,
officer, corporation, co-partner, associate or agent thereof ,
who shall in its behalf, after the first day of January in
the year 1912 engage in such business in violation of this
act, shall for eaoh offense, in addition to such penalty for
contempt as the court in case of disobedience to its lawful
order may impose, be punished by a fine not exceeding
five thousand dollars ($5,000) or by imprisonment -not
IDAHO. 83
exceeding one (1) year, or by both said punishments, in
the discretion of the court.
SEC. 9. That every president, treasurer, general man-
ager, agent or other person usually exercising the powers
of such officers of any corporation, joint stock company,
or other association, who has himself, in its behalf, vio-
lated, united to violate, or voted for or consented to the
violation of any of the provisions of this act, shall there-
after be personally liable for all the debts and obligations
of any such corporation, joint stock company, or other
association, created while such person holds such office or
agenc}^, whether under the same or subsequent elections
or appointments.
SEC. 10. That it shall be unlawful for any person or
persons to offer, grant or give, or to solicit, accept or re-
ceive any rebate, concession, or service in respect of the
transportation of any property within this state by any
common carrier, whereby any such property shall, by any
device whatever, be transported at a less rate than named
in the tariffs published, and filed by such carrier, as is
required by law, or charged others for like service. Every
person who shall offer, grant, or give or solicit, accept or
receive any such rebate, concession or service shall be
deemed guilty of a misdemeanor, and on conviction there-
of shall be punished by a fine of not less than five thou-
sand dollars ($5,000).
SEC. 11. That if any joint stock company, corporation
or combination or any agent thereof, shall solicit, accept
or receive any such rebate, concession or service as is
hereinabove described to be unlawful, it shall be unlaw-
ful thereafter to transport within this state any article
owned or controlled by such company, corporation or
combination or produced or manufactured by it, by
whomsoever the same may be owned or controlled.
If any such joint stock company, corporation or combi-
nation, shall offer, grant or give any special prices, in-
ducements or advantages for the sale of articles produced,
manufactured, owned or controlled by it to purchasers in
any particular locality in order to restrict or destroy com-
petition in that locality in the sale of such articles, it shall
be unlawful thereafter to transport within this state any
article owned or controlled by it or produced or manufac-
tured by it, by whomsoever the same may be owned or
controlled; provided, however, that the prohibition im-
84 LAWS ON TRUSTS AND MONOPOLIES.
posed under this section shall not apply to any article
purchased bona fide before decree made in pursuance
hereof against the joint stock company, corporation or
combination, producing, manufacturing, or theretofore
owning or controlling the same; and provided further,
that even after decree any such article may be relieved
from the prohibition imposed under this section, if the
owner thereof shall show to the satisfaction of the court
having jurisdiction of the matter, hereinafter provided,
that such articles were purchased, bona fide, without no-
tice, and within thirty (30) days after the entry of such
decree. Any transportation company, and any officer,
agent or representative thereof, knowingly concerned in
the transportation of articles within this state, contrary
to the prohibition of this section, shall be punished by
a fine of not less than five thousand dollars ($5,000).
SEC. 12. That the several courts of record of this state
having equity jurisdiction are hereby invested with juris-
diction to prevent and restrain all violations of this act,
and especially the offering, granting, giving, soliciting,
accepting or receiving any such rebate, concession, or serv-
ice by any person or persons ; and to prevent or restrain
any such joint stock company, corporation or combination,
who shall have solicited, accepted or received any such re-
bate, concession or service, or who shall have offered,
granted or given any special prices, inducements or advan-
tages in order to restrict or destroy competition in particu-
lar localities from engaging in commerce within this state.
Such proceedings may be by way of petition setting forth
the cause of action and praying that the acts hereby made
unlawful shall be enjoined or otherwise prohibited.
When the parties complained of shall be duly notified of
such petition, the court shall proceed as soon as may be
to the hearing and determination of the case, and upon
such petition and before final decree the court may at any
time make such temporary restraining order or prohibi-
tion as shall be deemed just. The court may retain juris-
diction of the cause after the decree, for the purpose of
such subsequent modification of the same as may be made
to appear equitable and just in the premises.
SEC. 13. That' whenever it shall appear to the court
before which any civil proceedings under this act shall be
pending, that the ends of justice require that other par-
ties shall be brought before the court, the court may cause
IDAHO. 85
them to be summoned, whether they reside in the county
where the court is held or not, and subpoenas to that end
may be served in any county by the sheriff thereof.
SEC. 14. That any person who shall be injured in his
business or property by any other person or persons by
reason of anything forbidden or declared to be unlawful
by this act may sue therefor in any court of record in
this state in the county in which the defendant or de-
fendants reside or are found, without respect to the
amount in controversy, and shall recover threefold the
damages by him sustained and the costs of suit, including
a reasonable attorney's fee.
SEC. 15. That the word " person " or " persons " as used
in the sections of this act, shall be deemed to include all
corporations, associations, combinations or concerns
whatsoever.
SEC. 16. That in any suit in equity brought in any court
of this state under this act wherein the state is complain-
ant, the attorney-general may file with the clerk of such
court a certificate that, in his opinion, the case is of gen-
eral public importance, a copy of which shall be immedi-
ately furnished by such clerk to the judge of the court in
which the case is pending. Thereupon such case shall be
given precedence over others and in every way expedited,
and be assigned for hearing at the earliest practicable
day. An appeal from the final decree of the court will
lie only to the supreme court.
SEC. 17. That in all prosecutions, hearing and proceed-
ings under the provisions of this act, whether civil or
criminal, no person shall be excused from the attending
and testifying or from producing books, papers, con-
tracts, agreements and documents before the courts of
this state, or in obedience to the subpoena of the same, on
the ground or for the reason that the testimony or evi-
dence, documentary or otherwise, required by him may
tend to incriminate him or subject him to a penalty or
forfeiture. Any person who shall neglect or refuse to
make returns, attend and testify or answer any lawful
requirement hereinbefore provided for, or produce books,
papers, contracts, agreements and documents if in his
custody, control or power to do so, in obedience to the
subpoenas of the court, or lawful requirements of the at-
torney-general, shall be deemed guilty of a misdemeanor
and upon conviction thereof by a court of competent
86 LAWS ON TRUSTS AND MONOPOLIES.
jurisdiction shall be punished by a fine not less than five
hundred dollars ($500) nor more than five thousand dol-
" lars ($5,000). That whoever knowingly swears to a re-
turn or report required by this act that is false in any
material particular, or knowingly swears to an answer to
any of the requirements of this act, that is false, in any
material particular, shall be deemed guilty of perjury
and punished as provided by the laws of this state in
reference to perjury.
Whoever shall knowingly prepare, or cause to be pre-
pared a report, return or answer required by this act that
is false, as aforesaid, shall be guilty of subornation of
perjury and punished as provided by law.
SEC. 18. That there is hereby appropriated out of any
money in the treasury not otherwise appropriated to be
expended under the direction of the governor and attor-
ney-general of this state, the sum of one thousand dollars
($1,000) for the enforcement of the provisions of this
act in the employment of special counsel and agents by
the governor and attorney-general to conduct proceed-
ings, suits and prosecutions under this act, in the courts
of this state. It is hereby made the duty of the attorney-
general, and the county attorneys of the state under di-
rection of the attorney-general, to institute and prose-
cute such proceedings as may be necessary to carry into
effect all of the provisions of this act ; provided, that no
person shall be prosecuted or be subjected to any penalty
or forfeiture for or on account of any transaction, mat-
ter or thing concerning which he may testify or produce
evidence, documentary or otherwise, or any proceedings,
suit or prosecution under this act ; provided, further, that
no person testifying shall be exempt from prosecution or
punishment for perjury committed in so testifying.
Approved March 10th, 1911. (L. 1911, c. 215, p. 688.)
ILLINOIS.
STATUTES (ACTS 1907).
If any corporation organized under the laws of this or
any other state or country f or , transacting otf' conducting
any kind of business in this state, or any partnership or
individual or other association of persons whosoever,
shall create, enter into, become a member of or a party
to any pool, trust, agreement, combination, confedera-
tion or understanding with any other corporation, part-
nership, individual or any other person or association of
persons, to regulate or fix the price of any article of mer-
chandise or commodity, or shall enter into, become a
member of or party to any pool, agreement, contract,
combination or confederation to fix or limit the amount or
quantity of any article, commodity or merchandise to be
manufactured, mined, produced or sold in this state, such
corpora tion,'part^ejthi,p, or individual or other association
of persons shall be deemed. and adjudged guilty of SL con-
spiracy to defraud, and be subject to indictment and -pun-
ishment as provided in this act ; provided, however, that in
the mining, manufacture or production of articles of mer-
chandise, the cost of which is mainly made up of wages,
it shall not be unlawful for persons, firms or corpora-
tiojis doing business in this state to enter into joint ar-
rangements of any sort, the principal object or effect of
which is to maintain or increase wages. (Act of June 11,
1891; Laws 1891, p. 206, as amended to 1907, Sec. 1.)
It shall not be lawful for any corporation to issue or to
own trust certificates, or for any corporation, agent, offi-
cer or employees, or the directors or stockholders of any
corporation to enter into -any .combination, contract or
agreement with any person or persons, corporations or cor-
porations, or with any stockholder or director thereof, the
purpose and effect of which combination, contract or
agreement shall be to place the management or control
of such combination or combinations, or the manufac-
tured product thereof, in the hands of any trustee or trus-
tees, with the intent to limit or fix the price or lessen
87
LAWS ON TRUSTS AND MONOPOLIES.
the production and sale of any article of commerce, use
or consumption, or to prevent, restrict or diminish the
manufacture or output of any such article. (Act supra,
Sec. 2.)
If a corporation or a company, firm or association, shall
be found guilty of a violation of this act, it shall be pun-
ished by a fine in any sum not less than five hundred dol-
lars ($500) nor more than two thousand dollars ($2,000)
for the first offense; and for the second offense not less
than two thousand dollars ($2,000) nor more than five
thousand dollars ($5,000) ; and for the third offense not
less than five thousand dollars ($5,000) nor more than ten
thousand dollars ($10,000), and for every subsequent of-
fense and conviction thereof, shall be liable to a fine of
fifteen thousand dollars ($15,000) ; provided, that in all
cases under this act either party shall have the right of
trial by jury. (Act supra, Sec. 3.)
Any president, manager, director or other officer or
agent or receiver of any corporation, company, firm or
association, or any member of any company, firm or asso-
ciation, or any individual found guilty of a violation of
the first section of this act, may be punished by a fine of
not less than tAvo hundred dollars ($200), nor to exceed
one thousand dollars ($1,000), or be punished by confine-
ment in the county jail not to exceed one year, or both, in
the discretion of the court before which such conviction
may be had. (Act supra, Sec. 4.)
Any contract or agreement in violation of any pro-
vision of the preceding sections of this act, shall be abso-
lutely void. (Act supra, Sec. 5.)
Any purchaser of any article or commodity from any
individual, company or corporation transacting business
contrary to any provision of the preceding sections of this
act, shall not be liable for the price or payment of such
article or commodity, and may plead this act as a defense
to any suit for such price or payment. (Act supra,
Sec. 6.)
The fines hereinbefore provided for may be recovered
in an action of debt, in the name of the people of the
state of Illinois. If, upon the trial of any cause insti-
tuted under this act to recover the penalties as provided
for in section 3, the jury shall find for the people, and
that the defendant has been before convicted of a viola-
tion of the provisions of this act, they shall return such
finding with their verdict, stating the number of times
ILLINOIS.
they find defendant so convicted, and shall assess and re-
turn with their verdict the amount of the fine to be im-
posed upon the defandant in accordance with said section
3 ; provided, that in all cases under the provisions of this
act, a preponderance of evidence in favor of the people
shall be sufficient to authorize a verdict and judgment for
the people. (Act supra, Sec. 7.)
It shall be the duty of the secretary of state, on or
about the first day of September of each year, to address
to the president, secretary or treasurer of each incorpo-
rated company doing business in this state, whose post-
office address is known or may be ascertained, a letter of
inquiry as to whether the said corporation has all or any
part of its business or interest in or with any trust, combi-
nation or association of persons or stockholders, as named
in the preceding provisions of this act, and to require an
answer, under oath, of the president, secretary or treas-
urer, or any director of said company. A form of affi-
davit shall be enclosed in said letter or inquiry, as fol-
lows :
AFFIDAVIT.
State of Illinois, County of , ss.
I, , do solemnly swear that I am the
(president, secretary, treasurer or director)
of the corporation known and styled
duly incorporated under the laws of , on the
day of , 18 , and now transacting
or conducting business in the state of Illinois, and that
I am duly authorized to represent said corporation in the
making of this affidavit; and I do further solemnly
swear that the said known and styled
as aforesaid, has not, since the day of
(naming the day upon which this act takes effect), cre-
ated, entered into or become a member of, or a party to,
and was not, on the day of nor at any
clay since that date, and is not now a member of or a
party to, any pool, trust, agreement, combination, con-
federation or understanding with any other corporation,
partnership, individual, or any other person or associa-
tion of persons to regulate or fix the price of any article
of merchandise or commodity; and that it has not en-
tered into or become a member of, or a party to, any pool,
trust, agreement, contract, combination or confederation
90 LAWS ON TRUSTS AND MONOPOLIES.
to fix or limit the amount or quantity of any article;
commodity or merchandise to be manufactured, mined,
produced or sold in the state ; and that it has not issued
and does not own any trust certificates, and for any cor-
poration, agent, officer or employee or for the directors
or stockholders of any corporation, has not entered into
and is not now in any combination, contract or agree-
ment with any person or persons, corporation or corpo-
rations, or, -with any stockholder 4 or director thereof the
purpose and effect of which said combination, contract
or agreement would be to place the management or con-
trol of such combination or combinations, or the manu-
factured product, thereof, in the hands of any trustee or
trustees ; w r ith the intent to limit or fix the price or lessen
lihe production and sales of any articles of commerce, use
or consumption, or to prevent, restrict <3r diminish the
manufacture or output of any such article.'
(President, Secretary, Treasurer or Director.)
Subscribed and sworn to before me, a
within and for the county of this day
of , 18___
(Seal.) ___-__l____,,___
And on refusal to make oath in answer to said inquiry,
or on failure to do so within thirty days from the mail-
ing thereof, the secretary of state shall certify that fact
to the attorney-general, whose duty it shall be to direct
the state's attorney of the county wherein such corpora-
tion or corporations are located, and it is hereby made
the duty of the state's attorney Hinder the direction of the
attorney-general, at the earliest practicable moment, in
the name of the people of the state of Illinois,' und at the
relation of the attorney-general to proceed against such
corporation for the recovery of a penalty of fifty dollars
for each day after-such refusal to make oath, or failure
to make said oath -within the thirty days from the mail-
ing of said notice; or the attorney-general may, by any
proper proceedings in a 'court of law or chancery, pro-
ceed, upon such failure or refusal, to forfeit ."such charter
of such incorporated company or association incorpo-
rated under the general laws, or by any especial law of
this state, and to revoke the rights of any foreign corpo-
ration located herein to (lo business in this state ; pro-
ILLINOIS. 91
vided, however, that before any such suit or prosecution
as contemplated by this act shall be instituted against any
person, persons, copartnerships or corporations failing to
file such affidavits within said thirty days from the mail-
ing of such notice from the secretary of state, as afore-
said, it shall be the duty of the state's attorney of the
county where such person, copartnership or corporation
is located, to give such person, copartnership or corpo-
ration ten days' notice in waiting of the intention to in-
stitute such suit or proceeding; and provided further,
that if such person, copartnership or corporation shall
then within such period of ten days make and file such
affidavit in the office of the secretary of state, no penalty
shall attach and no suit or proceeding shall be insti-
tuted against such person, copartnership or corporation.
(Act supra, Sec. 7a, as amended by Act of May 25, 1907.)
It shall be the duty of the secretary of state, at any time,
upon satisfactory evidence that any company or asso-
ciation of persons, duly incorporated under the laws of
this or any other state, doing business in this state, has
entered into any trust, combination or association in vio-
lation of the preceding sections of this act, to demand
that it shall make the affidavit, as above set forth in
this act, as to the conduct of its business. In case of fail-
ure of compliance on the part of the corporation, then
the same procedure shall ensue as is provided in section ,
7a of this act ; provided, that no corporation, firm, asso-
ciation or individual shall be subject to any criminal,
prosecution by reason of anything truthfully disclosed by
the affidavit required by this act, or truthf uly disclosed in,
any testimony elicited in the execution thereof. The sec-
retary of state is hereby authorized and required to charge
and collect of each corporation a fee of one dollar for re-
ceiving and filing the affidavit herein provided for, to be
accounted for as other fees received by him. To enable the
secretary of state to discharge the additional ,duties de-
volving upon him in the execution of this act there is
hereby appropriated out of any funds in thp-istate treas-
ury not otherwise appropriated, or so much thereof as
may be necessary, the sum of six thousand dollars per
annum, payable to the secretary of state on his order
upon proper vouchers as required by /law ; provided, that
corporations organized under tlie building loan and
homestead association laws q|C'this state are excluded
from the provisions of this act. (Act supra, Sec. 7b.)
fe
92 LAWS ON TBUSTS AND MONOPOLIES.
It shall be the duty of the prosecuting attorneys in
their respective jurisdictions, and the attorney-general, to
enforce the foregoing provisions of this act, and any pros-
ecuting attorney of any county, securing a conviction
under the provisions of this act, shall be entitled to such
fee or salary as by law he is allowed for such prosecution.
When there is a conviction under this act, the informer
shall be entitled to one-fifth of the fine recovered, which
shall be paid him when the same is collected. All fines
recovered under the provisions of this act shall be paid
into the county treasury of the county in which the suit
is tried, by the person collecting the same, in the manner
now provided by law, to be used for county purposes.
(Act supra, Sec. 8.)
TRUSTS AND COMBINES (ACT 1893).
(Held unconstitutional. See below.)
AN ACT To define trusts and conspiracies against trade, declar-
ing contracts in violation of the provisions of this act void, and
making certain acts in violation thereof misdemeanors, and pre-
scribing the punishment therefor and matters connected there-
with.
SEC. 1. Be it enacted, by the People of the State of
Illinois, represented in General Assembly, That a trust
is a combination of capital, skill or acts by two or more
persons, firms, corporations or associations of persons, or
of two or more of them for either, any or all of the fol-
lowing purposes: First To create or carry out restric-
tions in trade. Second To limit or reduce the produc-
tion, or increase or reduce the price of merchandise or
commodities. Third To prevent competition in manu-
facture, making, transportation, sale or purchase of mer-
chandise, produce or commodities. Fourth To fix at
any standard or figure, whereby its price to the public
shall be in any manner controlled or established, upon
any article or commodity of merchandise, produce or
manufacture intended for sale, use or consumption in
this state ; or to establish any pretended agency whereby
the sale of any such article or commodity shall be covered
up and made to appear to be for the original vendor, for
a like purpose or purposes, and to enable such original
vendor or manufacturer to control the wholesale or retail
price of any such article or commodity after the title to
ILLINOIS. 93
such article or commodity shall have passed from such
vendor or manufacturer. Fifth To make or enter into,
or examine or carry out any contract, obligation or agree-
ment of any kind or description by which they shall bind
or have bound themselves not to sell, dispose of, or trans-
port any article or commodity, or article of trade, use,
merchandise, commerce or consumption below a common
standard figure, or card, or list price, or by which they
shall agree in any manner to keep the price of such
article, commodity or transportation at a fixed or grad-
uated figure, or by which they shall in any manner estab-
lish or settle the price of any article or commodity or
transportation between them or themselves and others to
preclude a free and unrestricted competition among
themselves or others in the sale or transportation of any
such article or commodity, or by which they shall agree
to pool, combine or unite any interest they may have in
connection with the sale or transportation of any such
article or commodity that its price might in any manner
be affected.
SEC. 2. That a-ny corporation holding a charter under
the laws of this state which shall violate any of the pro-
visions of this act shall thereby forfeit its charter and
franchise, and its corporate existence shall cease and
determine.
SEC. 3. For a violation of any of the provisions of this
act by any corporation mentioned herein it shall be the
duty of the attorney-general or prosecuting attorney,
upon his own motion, to institue suit or quo warranto
proceedings at any county in this state in which such
corporation exists, does business, or may have a domicile,
for the forfeiture of its charter rights and franchise, and
the dissolution of its corporate existence.
SEC. 4. Every foreign corporation violating any of the
provisions of this act is hereby denied the right and pro-
hibited from doing any business within this state, and it
shall be the duty of the attorney-general to enforce this
provision by injunction or other proper proceedings in
any county in which such foreign corporation does busi-
ness, in the name of the state on his relation.
SEC. 5. Any violation of either or all of the provisions
of section one of this act shall be and is hereby declared
to be a conspiracy against trade, and a misdemeanor ; and
any person who may be or may become engaged in any
94 LAWS ON TRUSTS AND MONOPOLIES.
such conspiracy or take part therein or aid or advise in
its commission, or who shall, as principal, manager, di-
rector, agent, servant, or employee, or in any other ca-
pacity knowingly carry out any of the stipulations, pur-
poses, prices, rates, orders thereunder or in pursuance
thereof shall be punished by fine not less than two thou-
sand dollars nor more than five thousand dollars.
SEC. 6. In any indictment or information for any of-
fense named in this act it is sufficient to state the purposes
and effects of the trust or combination, and that the ac-
cused was a member of, acted with or in pursuance of it,
without giving its name or description, or how or where
it was created.
SEC. 7. In prosecutions under this act it shall be suffi-
cient to prove that a trust or combination as defined
herein exists, and that the defendant belonged to it or
acted for or in connection with it, without proving all
the members belonging to it, or proving or producing
any article of agrement or any written instrument on
which it may have been based, or that it was evidenced
by any written instrument at all.
SEC. 8. That any contract or agreement in violation of
the provisions of this act shall be absolutely void and not
enforceable either in law T or equity.
SEC. 9. The provisions of this act shall not apply to
agricultural products or live stock while in the hands of
the producer or raiser.
SEC. 10. Any purchaser of any article or commodity,
from any person, firm, corporation or association of per-
sons, or of two or more of them, transacting business con-
trary to any provision of the preceding sections of this
act shall not be liable for the price or payment of such
article or commodity and may plead this act as a de-
fense to any suit for such price or payment.
Approved June 20, 1893.
ANTITRUST LAAV HELD VOID.
UNION SEWER PIPE COMPANY V. CONNELLY.
U. S. CIRCUIT COURT,
NORTHERN DISTRICT OF ILLINOIS,
January 29, 1900.
STATEMENT.
Plaintiff brings suit on promissory notes given by
defendant for balance due on purchases of sewer pipe.
ILLINOIS. 95
Defendant gives, notices of three special defenses, all
based upon the theory that plaintiff was a combination in
restriction of trade, contrary (1) to the common law;
(2) to the so-called Sherman Act; (3) to the statute of
Illinois taking effect July 1, 1893,
OPINION.
As to the first special defense: " The fact that one
party to a contract is engaged in illegal acts will not, at
common law, avail the other party as a defense to the
enforcement of a contract in itself legal."
As to the second special defense: The so-called Sher-
man : Act does not affect contracts which "merely indi-
rectly, remotely, incidentally, or collaterally regulate to
a greater or lesser degree interstate commerce among the
States."
As to the third special defense: The statute of July
1. 1893, provides, in section 9, that " the provisions of this
act shall not apply to agricultural products or live stock
while in the hands of the producer Or raiser."
The statute^ by virtue of this clause, contains both
class and special legislation, and is in contravention of
the fourteenth amendment of the 'Federal Constitution,
which forbids any State to deprive any person of the
equal protection of the laws, and also in contravention of
section 22 of article 4 of the constitution of Illinois,
which says : " In all other cases where a general law can
be made applicable no special law shall be enacted."
It is suggested that the said ninth section may be
declared void without affecting the validity of the re-
maining clauses of the act. By such a decision the
courts would make the act binding upon those classes of
persons which the legislature especially exempted from
its provisions. This would be judicial legislation of the
most flagrant character. Clause 9 taints the whole act
and renders it all void.
Verdict must be given for the plaintiff.
COURT PECISIONS.
Ford et al. v. Chicago Milk Shippers' Association, 155
111., 166.
The Distilling and Cattle Feeding Co. v. The People
ex rel. M. T. Moloney, Attorney-General, 156 111, 488.
96 DECISIONS ON TRUSTS AND MONOPOLIES.
Levin v. Chicago Gas Light and Coke Co. et al., 64 111.
App., 393.
The People ex rel. William W. Mcllhany v. The Chi-
cago Live Stock Exchange, 170 111., 556.
Harding et al. v. American Glucose Company et al..
55 N. E. Rep., 577.
People v. Chicago Gas Trust Co., 130 111. 268, 22 N. E.
798, 8 L. R. A. 497, 17 Am. St. Rep., 319.
Dunbar v. Am. Tel. & Tel. Co., 238 111., 456; 87 N. E.
521.
Distilling Company v. People, 156 111. 448; 41 N. E.
188, 47 Am. St. Rep. 200.
Harding v. American Glucose Co. 182 111. 551, 55 N. E,
577, 64 L. R. A. 738.
People v. Chicago Live Stock Exchange, 170 111. 556.
39 L. R. A. 373.
More v. Bennett, 140 111. 69, 29 N. E. 888.
Gustafson v. Swanson, 131 111. App. 585.
Wiley & Drake v. National Wall Paper Co., 70 111.
App. 543.
People v. Butler St. Foundry & Iron Co. 201 111. 236.
66 N. E. 349.
Chicago W. & V. Coal Co. v. People, 214 111. 421, 73
N. E. 770.
Lanyon v. Garden City Sand Co., 223 111. 616, 79 N. E.
313.
Inter-Ocean Pub. Co. v. Associated Press, 184 111. 438,
56 N. E. 822, 48 L. R. A. 568, 75 Am. St. Rep. 568.
COMMON-LAW CASES.
Craft et al. v. McConoughy, 79 111., 346.
The Chicago Gas Light and Coke Co. v. The People's
Gas Light and Coke Co., 121 111., 530.
The People ex rel. Francis B. Peabody v. The Chicago
Gas Trust Co., 130 111., 268.
INDIANA.
STATUTES.
SECS. 3878, 3879. All arrangements, contracts, agree-
ments, trusts or combinations made with a view to lessen
free competition in transportation or sale of articles im-
ported or domestic are void to reduce or control the price
of such articles. The act provides for forfeiture of the
franchise of any corporation violating these provisions,
and requires the attorney-general to proceed against cor-
porations violating the provisions of the act and enforce
the penalties prescribed.
SEC. 3884. All agreements to prevent, induce or pro-
cure any wholesale or retail dealer or manufacturer from
selling to any dealer or mechanic or artisan, or any
wholesaler, retailer or manufacturer who shall refuse to
sell to such persons for the reason that such person is
not a member of a combination, etc., shall be guilty of
conspiracy in restraint of trade, and such agreements
are void. Penalty, $50 to $200, to which may be added
imprisonment in county jail for any period not exceed-
ing one year.
SEC. 3885. All agreements with object of refusing to
furnish any article required in manufacture of any ar-
ticle of merchandise when the party or corporation can
furnish same, or by charging more than the regular and
ordinary price, or refusing to do any act that would cause
such party to cease to manufacture such article or hinder
such person or corporation from so doing, shall be void,
with penalty of forfeiture of franchise. Every foreign
corporation so guilty is denied right to do business in
state.
ANTI-TRUST LAW OF 1907 (R. S.. 1908, SECS. 3866-92).
The following act was passed by the legislature of
1907:
ANTI-TRUST RESTRAINT OF TRADE ILLEGAL PENALTY.
SECTION 1. That every scheme, design, understanding,
contract, combination in the form of a trust or otherwise ,
1649113 7
98 LAWS ON TKUSTS AND MONOPOLIES.
or conspiracy in restraint of trade or commerce, or to create
or carry out restrictions in trade or commerce, or to deny
or refuse to any person or persons full participation, on
equal terms with others, in any telegraphic service trans-
mitting matter prepared or intended for public use, or to
limit or reduce the production, or increase or reduce the
price of merchandise or any commodity, natural or arti-
ficial, or to prevent competition in manufacturing, within
or without this state, is hereby declared to be illegal, but
none of the provisions of this act shall be construed to
apply to (or) repeal, modify or limit, or make unlawful
any powers, rights or privileges now existing or con-
ferred by law upon any person, copartnership, associa-
tion or corporation. Every person who shall make any
such contract or engage in any such combination or con-
spiracy, or enter into any such scheme, design or under-
standing, or do within this state any act in furtherance
of any such contract, combination, conspiracy, scheme,
design or understanding entered into without this state,
shall be deemed guilty of a misdemeanor, and on convic-
tion thereof shall be fined in any sum not exceeding five
thousand dollars, to which may be added imprisonment
in the county jail or workhouse for a term not exceeding
one year, in the discretion of the court or jury trying
the cause; provided, however, that it shall be a good
defense to any action growing out of any violation of the
provisions of this act or any other act or common law
relating to the subject matter of this act if the defendant
shall plead and by a fair preponderance of the evidence
prove that such violation is not in restraint of trade or
commerce or does not restrict trade or commerce or limit
or reduce the production or increase or reduce the price
of merchandise or any commodity natural or artificial or
prevent competition in manufacturing.
MONOPOLY -PE:N ALTY.
SEC. 2. Every person who shall monopolize or attempt
to monopolize or combine or conspire with any other per-
son or persons to monopolize any part of the trade or
commerce within- .this state, shall be deemed guilty of a
misdemeanor, and on conviction thereof shall be fined in
any sum not exceeding five thousand dollars, to which
may be added imprisonment in the county jail or work-
IXDIAXA. 99
house for a term not exceeding one year, in the discretion
of the court or jury trying the cause.
SCHEMES TO RESTRICT COMPETITION PENALTY.
SEC. 3. Any and all schemes, designs, understandings,
plans, arrangements, contracts, agreements or combina-
tions to limit, restrain, retard, impede or restrict bidding
for the letting of any contract for private or public work,
directly or indirectly, or to in any manner combine or
conspire to stifle or restrict free competition for the let-
ting of any contract for private or public work, are here-
by declared illegal, and any person who shall directly
or indirectly engage in any scheme, design, understand-
ing, plan, arrangement, contract, agreement or combina-
tion to limit, restrain, retard, impede or restrict bidding
for the letting of any contract for private or public work,
or in any manner combine or conspire to stifle or restrict
free competition for the letting of any contract for pri-
vate or public Avork, shall be deemed guilty of a misde-
meanor, and upon conviction shall be fined in any sum
not exceeding five thousand dollars, to which may be
added imprisonment in the county jail or workhouse for
a term of not more than one year, in the discretion of the
court or jury trying the cause.
COLLUSION OR FRAUD WHEN PRINCIPAL NOT LIABLE.
SEC. 4. If there shall be collusion or fraud of any kind
or character among the bidders at the letting of any con-
tract or work as provided in section 3 of this act then the
principal who lets the contract or work, or for whom
the contract was let, shall not be liable for such letting
or on account of said contract, or work, or any part
thereof, to the successful bidder to whom the contract or
work was let, his successors or assigns, if such successful
bidder be a party, directly or indirectly, to such collu-
sion or fraud on such contract or letting, or for any work,
materials furnished or thing done in discharge thereof
or with reference thereto, and if, before notice of such
collusion or fraud, payment or partial payment thereon
or therefor shall have been made, such principal may
at any time within five years from the date of the last
payment made thereon or therefor in an appropriate
action in any court of competent jurisdiction in this state
100 LAWS ON TRUSTS AND MONOPOLIES.
recover to the full amount of such payment or payments
with interest to date of judgment thereon and attorney's
fees against such successful bidder, and such recovery
shall not be a bar to any action, either civil or criminal,
brought against such bidder on account of any violation
of this act on behalf of the state by the attorney-general,
a prosecuting attorney or otherwise.
ATTORNEY-GENERAL PROSECUTORS DUTIES.
SEC. 5. It shall be the duty of the attorney-general and
of the prosecuting attorney of each judicial circuit to in-
stitute appropriate proceedings to prevent and restrain
violations of the provisions of this act or any other act
or the common law relating to the subject manner of this
act. All such proceedings shall be in the name of the
state of Indiana upon relation of the proper party. The
attorney-general may file such proceedings, either in
term time or in vacation, upon his own relation, or that
of any private person, in any circuit or superior court of
the state, without applying to such court for leave, when
he shall deem it his duty so to do. Such proceedings
shall be by information filed by any prosecuting attorney
in a circuit or superior court of the proper county upon
his own relation whenever he shall deem it his duty so to
- do, or shall be directed by the court or governor or attor-
ney-general, and an information may be filed by any
taxpayer on his own relation. If judgment or decree be
rendered any domestic corporation or against any per-
son claiming to be a corporation, the court may cause the
costs to be collected by execution against tne corporation
or against the person claiming to be a corporation, or by
attachment against any or all of the directors or officers
of the corporation, and may restrain the corporation or
any director, agent, employee or stockholder and appoint
a receiver for its property and effects, and take an ac-
counting and make distribution of its assets among its
creditors, and exercise any other power or authority nec-
essary and proper for carrying out the provisions of this
act. If judgment or decree be rendered against any cor
poration incorporated under the laws of the United
States, or of any district or territory thereof, or of any
state other than this state, or of any foreign country,
the court may cause the costs to be collected as hereto-
INDIANA. 101
fore provided, and may render judgment and decrease?;
ouster perpetually, excluding such corporation from the
privilege of transacting business in the state of "-Indiana,
and forfeiting to the school fund any or all property of
such corporation within the state and shall exercise such
power and authority with regard to the property of such
corporation . as may be exercised with regard to that of
domestic corporations.
INTERROGATORIES BY PLAINTIFF EXAMINATIONS.
SEC. 6. In all proceedings instituted under and pur-
suant to the foregoing section the plaintiff may propound
interrogatories to the defendant or defandants to be an-
swered by such defendant or defendants under oath, as
is now provided by law in civil actions, and if any de-
fendant to whom interrogatories be propounded as afore-
said be a corporation, then such interrogatories shall be
answered by the highest officer of such corporation, or
by any other officer, agent or employee of such corpora-
tion designated by the plaintiff. The plaintiff in any
such action shall be entitled upon motion to an order for
an examination under oath before trial of any defendant,
or all the defendants in such action, and if any defendant
in such action be a corporation, then of any officer, agent
or employee of any such defendant corporation, concern-
ing any or all of the facts alleged in the information or
other pleadings in such cause, the said defendant shall be
given five days' notice by the plaintiff of the time and
place of the taking of said examination, but such officer,
agent or employee shall not be compelled to attend such
examination except in the county where he resides or
where the principal office or place of business of such
corporation be situate in this state. If such defendant
corporation be incorporated under the laws of the United
States, or of any district or territory thereof, or of any
state other than the state of Indiana, or of any foreign
country, and the officer, agent or employee to be examined
be without the jurisdiction of this state, then such de-
fendant shall produce the officer, agent or employee, to be
examined as aforesaid at some place in the city or town
where the principal office or place of business of such de-
fendant be situate, upon five days' notice being served
upon the attorneys of such defendant corporation, of the
102 LAWS ON TRUSTS AND MONOPOLIES.
time, .and place fixed for the examination of such officer,
agent or. employee. In any examination of any defend-
ant, 'or of any officer, agent or employee of any defendant
corporation, such defendant officer, agent or employee
may be compelled upon notice to produce for inspection
by the plaintiff, and to testify concerning the same, or
for use in evidence upon the trial, or both, all books, pa-
pers, documents or writings pertaining, or in anywise
relating, to the facts, or any of them, stated in the infor-
mation or other pleadings filed in the cause. In such
notice to produce for inspection and testimony or for
trial, or both, it shall only be necessary to notify the de-
fendant or the attorney or attorneys of the defendant to
produce at the time and place fixed in the notice, all
books, papers, documents or writings pertaining or in
anywise relating to the facts stated in the information
or other pleadings filed, and it shall not be necessary to
state in such notice the particular books, papers, docu-
ments or writings to be produced at such time and place.
Such examinations shall be taken before an officer author-
ized to take depositions and may be continued from day
to day. Upon the failure or refusal of any defendant
to comply with any order made as aforesaid to answer
interrogatories, or for the examination of the defendant,
the officer, agent or employee of any defendant corpora-
tion or upon the failure or refusal of any defendant cor-
poration to produce any officer, agent or employee for ex-
amination when notified as aforesaid, or upon the failure
or refusal of any defendant to produce books, papers,
documents and writings when notified as aforesaid, then
all pleadings of such defendant so failing to comply with
such order or notice shall be stricken from the files upon
motion supported by affidavit, and the allegations of the
information as to such defendant in default shall be taken
as confessed and judgment and decree shall be entered
accordingly.
INJURED PERSON MAY SUE DAMAGES PENALTY.
SEC. 7. Any person who shall be injured in his busi-
ness or property, by any person or corporation by reason
of the doing by any person or persons, of anything for-
bidden or declared to be unlawful by this act, may sue
therefor in the circuit or superior court of any county in
which the defendant or defendants, or any of them, re-
INDIANA. 103
side or are found without respect to the amount in contro-
versy, and shall recover a penalty of threefold the dam-
ages which may be sustained, together with the costs of
suit, including a reasonable attorney's fee.
IMPORTANCE OF CASE CERTIFICATE.
SEC. 8. In any proceeding under this act the attorney-
general or prosecuting attorney may file with the clerk of
the court a certificate that in his opinion the case is of gen-
eral importance, a copy of which shall be immediately
furnished by said clerk to the judge or to each of the
judges of the court wherein the proceedings may be pend-
ing, and the court shall thereupon make the proper or-
ders in the premises.
COSTS HOW PAID APPROPRIATION.
SEC. 9. Whenever an information is filed by the attor-
ney-general or by any prosecuting attorney, such officer
shall not be liable for costs ; but when it is filed upon the
relation of a private person, he shall be liable for costs
unless the same are adjudged against the defendant. In
all proceedings instituted under the provisions of this act
by the attorney-general or by the prosecuting attorney
on the order and direction of the court, attorney-general
or the governor, all necessary cost and expenses of the
prosecution shall be paid out of moneys in the state treas-
ury not otherwise appropriated, if such costs cannot be
collected from the defendant or defendants, in case judg-
ment be rendered against such defendant or defendants,
and it shall be the duty of the auditor of state, upon re-
ceipt from the attorney-general of a statement of the
costs and expenses of any such prosecution, to draw his
warrant upon the treasurer of state for the amount so certi-
fied; provided, however, that the attorney-general shall
not involve the state in any extraordinary expense for
experts or other assistants, without first obtaining the
consent of the governor, and twenty thousand dollars is
& /
hereby appropriated from any funds of the state not
otherwise appropriated to defray the expenses of such
prosecutions by the attorney-general for the next ensuing
period of two years after the passage of this act, and
twenty thousand dollars biennially thereafter for the
same purposes. Such prosecuting attorney shall also
104 LAWS ON TKUSTS AND MONOPOLIES.
be allowed by the court trying such cause reasonable com-
pensation for his services, and such allowances shall be
paid as part of the costs and expenses of such prosecution.
PERSON OR PERSONS DEFINED.
SEC. 10. The word " person " or " persons," whenever
used in this act, shall be deemed to include corporations
and associations, joint stock companies, partnerships,
limited or otherwise, existing under or authorized by the
laws of the state of Indiana, or of the United States, or
of any state, territory or district of the United States,
or of any foreign country.
IMMUNITY OF WITNESSES.
SEC. 11. Any person or officer, agent or employee of a
corporation may be examined as a witness or a party, as
in other cases, in any civil action instituted under the
provisions of this act, and required to disclose all the
facts relevant to the case within his knowledge, as before
provided, but the testimony of such witness or party or
any answer to any question propounded by him in such
examination shall not be used against such witness or
party in any criminal prosecution; provided, however,
that such exemption shall be personal to such witness,
and shall not exempt or render immune the corporation
of which witness shall be an officer, agent or employee,
and such corporation shall be liable for any violation of
this act as if such officer, agent or employee had not so
testified.
ACT CUMULATIVE.
SEC. 12. The provisions of this act shall be held cumu-
lative of, or supplemental to, each other, and of all other
laws in any way affecting them, or any matter which in any
manner is the subject of this act in this state, and cumu-
lative of and supplemental to the common law of this
state relative thereto, or to any thereof.
COURT DECISIONS.
Sterling Remedy Co. v. Wyckoff, S. & B. 154 Ind. 437.
56 N. E. 911.
Knight & Jillson Co. v. Miller, 172 Ind., 27.
Chicago, etc., R. R. Co. v. Southern Indiana Ry. Co.,
38 Ind. App., 234.
Over v. Byram Foundry Co., 37 Ind. App., 452.
IOWA.
STATUTES.
SEC. 5060. Any corporation organized under the laws
of this or any other state or country for transacting or
conducting any kind of business in this state, or any
partnership, association or individual, creating, enter-
ing into or becoming a member of or a party to any
pool, trust, agreement, contract, combination, confedera-
tion or understanding with any other corporation, part-
nership, association or individual, to regulate or fix the
price of any article of merchandise or commodity, or to
fix or limit the amount of quantity of any article, com-
modity or merchandise to be manufactured, mined, pro-
duced or sold in this state, shall be guilty of a conspiracy.
SEC. 5061. No corporation shall issue or own trust
certificates, and no corporation, nor any agent, officer,
employee, director or stockholder of any corporation,
shall enter into any combination, contract or agreement
with any person or corporation, or with any stockholder
or director thereof, for the purpose of placing the man-
agement or control of such combination or combinations,
or the manufactured product thereof, in the hands of any
trustee or trustees, with intent to limit or fix the price
or lessen the production or sale of any article of com-
merce, use or consumption, or to prevent, restrict or
diminish the manufacture or output of any such article.
SEC. 5062. Any corporation, company, firm, or asso-
ciation violating any of the provisions of the two pre-
ceding sections shall be fined not less than $500 nor
more than $5,000; and any president, manager, director,
officer, agent or receiver of any corporation, company,
firm or association, or any member of any corporation,
company, firm or association, or any individual, found
guilty of a violation thereof, shall be fined not less than
five hundred nor more than five thousand dollars, or be
imprisoned in the county jail not to exceed one year or
both.
106
100 LAWS ON TRUSTS AND MONOPOLIES.
SEC. 5063. All contracts or agreements in violation of
any provisions of the three preceding sections shall be
void.
SEC. 5064. Any purchaser of any article or commodity
from any individual, company or corporation transacting
business contrary to any provisions of the four preceding
sections shall not be liable for the price or payment
thereof, and may plead such provisions as a defense to
any action for such price or payment.
SEC. 5065. Any corporation created or organized by or
under the law of this state, which shall violate any pro-
vision of the five preceding sections, shall thereby forfeit
its corporate right and franchise, as provided in the next
section.
SEC. 5066. The secretary of state, upon satisfactory
evidence that any company or association of persons in-
corporated under the laws of this state have entered into
any trust, combination or association in violation of the
provisions of the six preceding sections, shall give notice
to such corporation that, unless it withdraws from and
severs all business connection with said trust, combina-
tion or association, its articles of incorporation will be
revoked at the expiration of thirty days from date of
such notice.
SEC. 5067. County attorneys, in their counties, and the
attorney-general shall enforce the provisions of a public
nature in the seven preceding sections, and any county
attorney or the attorney-general securing a conviction
under the provisions thereof shall be entitled, in addition
to such fee or salary as by law he is allowed for such
prosecution, to one-fifth of the fine recovered. When the
attorney-general and county attorney act in conjunction
in the prosecution of any action under such provisions,
they shall be entitled to one-fourth of the fine recovered,
which they shall divide equally between them, where
there is no agreement to the contrary. It shall be the
duty of the grand jury to inquire into and ascertain if
there exists any pool, trust or combination within their
respective counties.
That it shall be unlawful for any person, company,
partnership, association or corporation owning or oper-
ating any business of buying, selling, handling, consign-
ing or transporting any commodity or any article of com-
merce, to enter into any agreement, contract or combina-
IOWA. ] 07
tion with any other dealer or dealers, partnership, com
pany, corporation or association of dealers, whether
within or without the State, engaged in like business, for
the fixing of the price or prices at which any commodity
or any article of commerce should be sold by different
dealers or sellers; or to divide between said dealers the
aggregate or net proceeds of the earnings of such dealers
and sellers, or any portion thereof ; or to form, enter into,
maintain, or contribute money or anything of value to
any trust, pool, combination or association of persons
of whatsoever character or name, which has for any of
its objects the prevention of full and free competition
among buyers, sellers or dealers in any commodity or
any article of commerce ; or to do or permit it to be done
by his or their authority any act or thing whereby the
free action of competition in the buying or selling of any
commodity or any article of commerce is restrained or
prevented. (33 G. A., Sec. 1.)
That in case any person, company, partnership, cor-
poration or association, trust, pool or combination of
whatsoever name shall do, cause to be done, or permit to
be done, any act. matter or thing in this act prohibited
or declared to be unlawful, such person, partnership,
company, association, corporation, trust, pool or combi-
nation shall be liable to the person, partnership, com-
pany, association or corporation injured thereby for the
full amount of damages sustained in consequence of any
such violation of the provisions of this act. (Id., Sec. 2.)
That any person, partnership, company, association or
corporation subject to the provisions of this act, or any
person, trust, combination, pool or association, or any
director, officer, lessee, receiver, trustee, employee, clerk,
agent or any person acting for or employed by them, who
shall violate any of the provisions of Section 1 of this act,
or who shall aid and abet in such violation, shall be
deemed guilty of a misdemeanor, and shall upon convic-
tion thereof be fined any sum not less than five hun-
dred dollars ($500) and not exceeding two thousand
($2,000) or imprisoned in the county jail for a period not
exceeding six months, or both, at the discretion of the
court. It shall be the duty of the grand jury to enquire
into and ascertain if there exists any pool, trust, combi-
nation or violation of any provisions in this act, in their
respective counties. (Id., Sec. 3.)
108 LAWS ON TRUSTS AND MONOPOLIES.
See also chapter 169 of the Laws of 1906, relating to
unfair commercial discrimination in petroleum products.
EVIDENCE.
SEC. 4612. But when the matter sought to be elicited
would tend to render him criminally liable, or to expose
him to public ignominy, he is not compelled to answer,
except as provided in the next section. But in prosecu-
tions against gaming, betting, lotteries, dealing in op-
tions, creating, entering into or becoming a member of,
or a party to any pool, trust, agreement, contract, com-
bination, confederation or understanding with any other
corporation, partnership, association or individual to
regulate or fix the price of any article of merchandise or
commodity or to fix or limit the amount or quantity of
any article, commodity or merchandise to be manufac-
tured, mined, produced or sold in this state, and keeping
gambling houses, or rooms for illegal use or disposal of
intoxicating liquors, no witness shall be excused from
giving testimony upon the ground that his testimony
would tend to render him criminally liable or expose
him to public ignominy; but any matter so elicited shall
not be used against him, and said witness shall not be
prosecuted for any crime connected with or growing out
of the act on which the prosecution is based in the cause
in which his evidence is used for the state, under the
provisions of this section. (As amended by act April
19, 1913.)
COURT DECISIONS.
Beechley v. Mulville et al., 102 la., 602; 70 N. W.
Eep., 107; 71 N. W. 428.
Wilson v. Morse, 117 Iowa, 581; 91 N. W., 823.
Dorn v. Cooper, 117 N. W., 1.
KANSAS.
STATUTES.
ACT OF 1887.
1. That it shall be unlawful for any grain dealer or
grain dealers, partnership, company, corporation or asso-
ciation of grain dealers, or any other person or persons,
partnership, company, corporation, or association, to
enter into any agreement, contract or combination with
any other grain dealer or grain dealers, partnership, com-
pany, corporation or association of grain dealers, or any
other person or persons, partnership, company, corpora-
tion or association, for the pooling of prices of different
and competing dealers and buyers, or to divide between
them the aggregate or net proceeds of the earnings of
such dealers and buyers, or any portion thereof, or for
fixing the price which any grain dealer or grain dealers,
partnerships, company, corporation or association of
grain dealers, or any other person or persons, partner-
ship, company, corporation or association, shall pay for
grain, hogs, cattle, or stock of any kind or nature what-
ever; and in case of any agreement, contract or combi-
nation for such pooling of prices of different and com-
peting dealers and buyers, or to divide between them the
aggregate or net proceeds of the earnings of such dealers
and buyers, or any portion thereof, or for fixing the price
which any grain dealer or grain dealers, partnership,
company, corporation or association of grain dealers, or
any other person or persons, partnership, company, cor-
poration or association, shall pay for grain, hogs, cattle,
or stock of any kind or nature whatever, each day of its
continuance shall be deemed a separate offense. (L.
1887, c. 175, Sec. 1; G. S., Sec. 5182.)
2. That in case any grain dealer or dealers, partner-
ship, company, corporation or association of grain deal-
ers, or any person or persons, partnership, company, cor-
poration or association subject to the provisions of this
act, shall do or cause to be done or permit to be done any
109
110 LAWS ON TRUSTS AND MONOPOLIES.
act, matter or thing in this act prohibited or declared to
be unlawful, or shall omit to do any act, matter or thing
in this act required to be done, such grain dealer or grain
dealers, partnership, company, corporation or association
of grain dealers, or any other person or persons, partner-
ship, company, corporation or association, shall be liable
to the person or persons injured thereby to the full
amount of damages sustained in consequence of any such
violation of the provisions of this act, together with a
reasonable counsel or attorney's fee, to be fixed by the
court in every case of recovery, which attorney's fee
shall be taxed and collected as a part of the costs in the
case; and in any such action brought for the recovery of
damages the court before whom the same shall be pend-
ing may compel any grain dealer or grain dealers, part-
nership, company, corporation or association of grain
dealers, or any person or persons, partnership, company,
corporation or association subject to the provisions of
this act, or any director, officer, receiver, trustee, agent,
employe, or clerk of them or either of them, defendant in
such suit, to attend, appear and testify in such case, and
may compel the production of the books and papers of
such grain dealer or grain dealers, partnership, company,
corporation or association of grain dealers, or any other
person or persons, partnership, company, corporation or
association party to such suit. The claim that any such
testimony or evidence may tend to criminate the person
giving such evidence shall not excuse such witness from
testifying, but such evidence or testimony shall not be
used against such person in the trial of any criminal pro-
ceeding. (Id., Sec, 2; G. S., Sec. 5183.)
3. That any grain dealer or grain dealers, partner-
ship, company, or corporation or association of grain
dealers, or any other person or persons, partnership, com-
pany, corporation or association subject to the provisions
of this act, or any director, officer, or any receiver, trustee,
clerk, or lessee or agent, or person acting for or employed
by them or either of them, who alone or with any other
partnership, company, corporation, association, person or
party, shall wilfully do or cause to be done or shall wil-
fully suffer to permit to be done any act, matter or thing
in this act prohibited or declared to be unlawful, or who
shall aid or abet therein, or shall wilfully omit or fail
to do any act, matter or thing in this act required to be
done, or shall cause or willingly suffer or permit any act,
KANSAS.
matter or thing so directed or required by this act to be
done, not to be so done, or shall aid or abet such omission
or failure, or shall be guilty of any infraction of this act,
or shall aid or abet therein, shall be deemed guilty of a
misdemeanor, and shall upon conviction thereof be fined
in any sum not exceeding one thousand dollars, or impris-
onment in the jail of the county not exceeding six months,
or both, in the discretion of the court ; and shall moreover
be liable to the suit of the party injured or damaged.
(Id., Sec. 3; G. S., Sec. 5184.)
ACT OP 1889.
1. That all arrangements, contracts, agreements, trusts,
or combinations between persons or corporations made
with a view or which tend to prevent full and free com-
petition in the importation, transportation or sale of
articles imported into this state, or in the product, manu-
facture or sale of articles of domestic growth or product
of domestic raw material, or for the loan or use of money,
or to fix attorneys' or doctors' fees, and all arrangements,
contracts, agreements, trusts or combinations between
persons or corporations, designed or which tend to ad-
vance, reduce or control the price or the cost to the pro-
ducer or to the consumer of any such products or articles,
or to control the cost or rate of insurance, or which tend
to advance or control the rate of interest for the loan or
use of money to the borrower, or any other services, are
hereby declared to be against public policy, unlawful and
void. (L. 1889, c. 257, Sec. 1 ; G. S., Sec. 5185.)
2. It shall not be lawful for any corporation to issue or
to own trust certificates, other than the regularly and
lawfully authorized stock thereof, or for any corporation,
agent, officer or employes, or the directors or stockholders
of any corporation, to enter into any combination, con-
tract or agreement with any person or persons, corpora-
tion or corporations, or with any stockholder or director
thereof, the purpose and effect of which combination,
contract or agreement shall be to place the management
or control of such combination or combinations, or the
manufactured product thereof, in the hands of any trus-
tee or trustees, with the intent to limit or fix the price or
lessen the production and sale of any article of commerce,
use or consumption, or to prevent, restrict or diminish
112 LAWS ON TKUSTS AND MONOPOLIES.
the manufacture or output of any such article. (Id., Sec.
2; G. S.. Sec. 5186.)
3. That all persons entering into any such arrange-
ment, contract, agreement, trust or combination, or who
shall after the passage of this act attempt to carry out or
act under any such arrangement, contract, agreement, trust
or combination described in section one or two of this
act, either on his own account or as agent or attorney for
another, or as an officer, agent or stockholder or any
corporation, or as a trustee, committee, or in any capacity
whatever, shall be guilty of a misdemeanor, and on con-
viction thereof shall be subject to a fine of not less than
one hundred dollars and not more than one thousand dol-
lars, and to imprisonment not less than thirty days and
not more than six months, or to both such fine and impris-
onment, in the discretion of the court. (Id., Sec. 3; G.
S., Sec. 5187.)
4. That any person or corporation injured or dam-
aged by any such arrangement, contract, agreement, trust
or combination, described in section one or two of this
act, may sue for and recover in any court of competent
jurisdiction in this state, of any person or corporation,
the full consideration or sum paid by him for any goods,
wares, merchandise and articles included in or advanced
or controlled in price by said combination, or the full
amount of money so borrowed. (Id., Sec. 4; G. S., Sec.
5188.)
5. That when an action at law or suit in equity shall
be commenced in any court of this state, it shall be lawful
in the defense thereof to plead in bar or in abatement
that the plaintiff or any other person interested in the
prosecution of the case is a member or agent of an un-
lawful combination as described in section one or two of
this act, or that the cause of action grows out of such com-
bination, or out of some business or transaction thereof.
(Id., Sec. 5; G. S., Sec. 5189.)
6. That the purchase, sale or manufacture of any goods,
wares, merchandise or other commodities in this state by
any person or corporation who has entered into any such
arrangements, contracts, agreements, trusts or combina-
tions in any other state or territory, as described in sec-
tions one or two of this act, or the purchase, sale or man-
ufacture of any such articles by any agent or attorney
for such person, or as an agent, officer or stock broker of
any such corporation, as a trustee, committee, or in any
KANSAS. 113
capacity whatever, shall constitute a violation of this act,
and shall subject the offender to the aforesaid liabilities
and penalties. (Id., Sec. 6; G. S., Sec. 5190.)
7. It shall be the duty of the county attorneys to dili-
gently prosecute any and all persons violating any of the
provisions of this act in their respective counties. If
any county attorney shall fail, neglect or refuse to faith-
fully perform any duty imposed upon him by this act,
he shall be deemed guilty of a misdemeanor, and upon
conviction thereof shall be fined in any sum not less than
one hundred dollars nor more than five hundred dollars,
and be imprisoned in the county jail not less than ten
days nor more than ninety days; and such conviction
shall operate as a forfeiture of his office, and the court
before whom such conviction may be had shall order and
adjudge such forfeiture of office, in addition to the fine
imposed as herein provided. And whenever the county
attorney shall be unable or shall neglect or refuse to
enforce the provisions of this act in his county, or for
any reason whatever the provisions of this act shall not
be enforced in any county, it shall be the duty of the at-
torney-general to enforce the same in such county, and
for that purpose he may appoint as many assistants as
he shall see fit, and he and his assistants shall be author-
ized to sign, verify and file all such complaints, informa-
tions, petitions and papers as the county attorney is au-
thorized to sign, verify or file, and to do and perform any
act that the county attorney might lawfully do or per-
form ; and for such services he or his assistants shall re-
ceive the same fees that the county attorney would be
entitled to for like services, to be taxed and collected in
the same manner. (Id., Sec. 7; G. S., Sec. 5191.)
8. It shall be the duty of all sheriffs, deputy sheriffs,
constables, mayors, marshals, police judges and police
officers of any city or town, having notice or knowledge
of any violation of the provisions of this act, to notify the
county attorney of the fact of such violation, and to fur-
nish him the names of any witnesses within his knowl-
edge by whom such violation can be proven. If any such
officer shall fail to comply with the provisions of this sec-
tion, he shall upon conviction be fined in any sum not less
than one hundred dollars nor more than five hundred
dollars; and such conviction shall be a forfeiture of the
office held by such person, and the court before whom
such conviction is had shall, in addition to the imposition
1649113 8
114 LAWS ON TRUSTS AND MONOPOLIES.
If the fine aforesaid, order and adjudge the forfeiture OA
his said office. (Id., Sec. 8; G. S., Sec. 5192.)
9. It shall be the duty of the district courts to instruct
the grand juries especially as to the provisions of this act.
(G. S., Sec. 5193.
ACT OF 1897.*
1. A trust is a combination of capital, skill, or acts,
by two or more persons, firms, corporations, or associa-
tions of persons, or either two or more of them, for either,
any or all of the following purposes:
First. To create or carry out restrictions in trade or
commerce, or aids to commerce, or to carry out restric-
tions in the full and free pursuit of any business author-
ized or permitted by the laws of this state.
Second. To increase or reduce the price of merchan-
dise, produce or commodities, or to control the cost or
rates of insurance.
Third. To prevent competition in the manufacture,
making, transportation, sale or purchase of mechandise,
produce or commodities, or to prevent competition in aids
to commerce.
Fourth. To fix any standard or figure, whereby its
price to the public shall be, in any manner, controlled or
established, any article or commodity of merchandise,
produce or commerce intended for sale, use or consump-
tion in this state.
Fifth. To make or enter into, or execute or carry out,
any contract, obligation or agreement of any kind or de-
scription by which they shall bind or have to bind them-
selves not to sell, manufacture, dispose of or transport
any article or commodity, or article of trade, use, mer-
chandise, commerce or consumption below a common
standard figure, or by which they shall agree in any
manner to keep the price of such article, com-
modity or transportation at a fixed or graded figure;
or by which they shall in any manner establish or
settle the price of any article or commodity or transpor-
tation between them or themselves and others, to pre-
clude a free and unrestricted competition among them-
selves or ethers in. transportation, sale or manufacture of
* This act supersedes chapter 158 of the Laws of 1891, which is no
longer in force. State v. Wilson, 84 Pac., 737. This act is constitu-
tional. Smiley v. Kansas, 196 U. S., 447.
KANSAS. 115
any such article or commodity; or by which they shall
agree to pool, combine or unite any interest they may
have in connection with the manufacture, sale or trans-
portation of any such article or commodity, that its price
may in any manner be affected.
And any such combinations are hereby declared to be
against public policy, unlawful and void. (L. 1897, c.
265, Sec. 1; G. S., Sec. 5142.)
2. All persons, companies or corporations within this
state are hereby denied the right to form or to be in any
manner interested, either directly or indirectly, as prin-
cipal, agent, representative, consignee or otherwise, in
any trust as defined in section one of this act. (Id., Sec.
2; G. S., Sec. 5143.)
3. Any corporation holding a charter under the laws
of the state of Kansas which shall violate any of the pro-
visions of this act shall thereby forfeit its charter and
franchise, and its corporate existence shall cease and de-
termine ; any any stockholder, director, officer, agent, rep-
resentative or consignee of any such corporations shall be
subject to the penalties herein prescribed. (Id., Sec. 3;
G. S., Sec. 5144.)
4. For a violation of any of the provisions of this act
by any corporation or any of its officers or agents men-
tioned herein, it shall be the duty of the attorney-general
of the state, or county attorney of any county in which
said violation may occur, or either of them, upon his
own motion, to institute an action in any court in this
state having jurisdiction thereof for the forfeiture of the
charter, rights and franchise of such corporation, and the
dissolution of its corporate existence. (Id.. Sec. 4; G. S.,
Sec. 5145.)
5. Every person, company or corporation within or
without this state, their officers, agents, representatives or
consignees, violating any of the provisions of this act
within this state, are hereby denied the right and are
hereby prohibited from doing any business within this
state, and all persons, companies and corporations, their
officers, agents, representatives and consignees within
this state, are hereby denied the right to handle the goods
of or in any manner deal with, directly or indirectly, any
such person, company or corporation, their officers,
agents, representatives, or consignees, and it shall be the
duty of the attorney-general and the county attorney of
any county in the state where any violation of this act
116 LAWS OX TRUSTS AXD MONOPOLIES.
be committed, or either of them, to enforce the provisions
of this section by injunction or other proceeding; and all
persons, companies and corporations, their officers,
agents, representatives or consignees, violating any of
the provisions of this section, either directly or indi-
rectly, or of abetting or aiding either directly or indi-
rectly in any violation of any provisions of this section,
shall be deemed guilty of a misdemeanor, and shall be
fined not less thaii one hundred dollars nor more than one
thousand dollars, and confined in jail not less than thirty
days nor more than six months, and shall forfeit not less
than one hundred dollars for each and every day such
violation may continue, which may be recovered in the
name of the state of Kansas in any court of competent
jurisdiction. (Id., Sec. 5; G. S., Sec. 5146.)
6. Each and every person, company or corporation,
their officers, agents, representatives or consignees, who
either directly or indirectly violate any of the provisions
of this act shall be deemed guilty of a misdemeanor, and
on conviction thereof shall be subject to a fine of not less
than one hundred dollars nor more than one thousand
dollars, and shall be imprisoned not less than thirty days
nor more than six months, and in addition thereto, for
each and every day thereafter that such violation shall
be committed or continued, forfeit and pay the sum of
one hundred dollars, which may be recovered in the name
of the state of Kansas in any county where the offense is
committed or where either of the offenders reside ; and it
shall be the duty of the attorney-general of the state, or
the county attorney of any county in the state, in which
said violation shall occur, or either of them, to prosecute
and enforce the provisions of this act. (Id., Sec. 6; G.
S., Sec. 5147.)
7. Any contract or agreement in violation of any of the
provisions of this act shall be absolutely void and not
enforceable in any of the courts of this state; and when
any civil action shall be commenced in any court of this
state it shall be lawful to plead in the defense thereof
that the plaintiff or any other person interested in the
prosecution of the case is at the time or has within one
year next preceding the date of the commencement of any
such action been guilty, either as principal, agent, repre-
sentative, or consignee, directly or indirectly, of a viola-
tion of any of the provisions of this act, or that the cause
KANSAS. 117
of action grows out of any business transaction in viola-
tion of this act. (Id., Sec. 7; G. S., Sec. 5148.)
8. That any person, firm, company or corporation that
may be damaged by any such agreement, trusts or combi-
nations described in sections one and two of this act, may
sue for and recover in any court of competent jurisdic-
tion in this state, of any person, company or corporation
operating such trust or combination, such damages as
they have sustained, together with a reasonable attorney-
fee. (Id., Sec. 8; G. S., Sec. 5149.)
9 It shall be the duty of the attorney-general of the
state and the county attorneys in their respective coun-
ties to diligently prosecute any and all persons violating
any of the provisions of this act ; and it shall be the duty
of all state and count}^ officials having notice and knowl-
edge of any violation of the provisions of this act to
notify the county attorney of their respective counties
and the attorney-general of the state of the fact of such
violation, and to furnish them with the names of any
witnesses by whom such violations can be proved. If
any such officer or officers shall fail to comply with the
provisions of this section he shall upon conviction be fined
in any sum not less than one hundred dollars nor more
than one thousand dollars, and such conviction shall be
a forfeiture of the office held by such person, and the
court before whom such conviction is had shall, in addi
tion to the imposition of the fine aforesaid, order and
adjudge the forfeiture of his said office. (Id.. Sec. 9; G.
S., Sec. 5150.)
10. The several district courts of this state and the
judges thereof shall have jurisdiction, and it shall be
their duty, upon good cause shown and upon written ap-
plication of the county attorney or the attorney-general,
to cause to be issued by the clerk of said court subpoenas
for such witnesses as may be named in the application of
a county attorney or the attorney-general, and to cause
the same to be served by the sheriff of the county where
such subpoena is issued ; and such witnesses shall be com-
pelled to appear before such court or judge at the time
and place set forth in the subpoena, and shall be com-
pelled to testify as to any knowledge they may have of
the violations of any of the provisions of this act; and
any witness who fails or refuses to attend and testify
shall be punished as for contempt, as provided by law.
118 LAWS ON TRUSTS AND MONOPOLIES.
Any person subpoenaed and examined shall not be liable
to criminal prosecution for any violation of this act
about which he may testify. Neither shall the evidence
of any such witness be used against him in any criminal
proceeding. The evidence of all witnesses so subpoenaed
shall be taken down by the reporter of said court, and
shall be transcribed and placed in the hands of the
county attorney or the attorney-general, and he shall, in
the proper courts, at once prosecute such violator or vio-
lators of this act as the testimony so taken shall disclose.
Witnesses subpoenaed as provided for in this section shall
be compelled to attend from any county in the state.
(Id., Sec. 10; G. S., Sec. 5151.)
11. Nothing in this chapter shall be held or construed
to affect any actions or prosecution which is now pend-
ing under the provisions of any law now in existence in
this state. (Id., Sec. 11; G. S., Sec. 5152.)
ACT OF 1899.
1. If any person, company or corporation doing busi-
ness in Kansas shall make any agreement, expressed or
implied, or by any understanding or combination with
any person, company or corporation within or without
the state, by which any shipper of seeds, grains, hay or
live stock is defrauded out of any portion of the net
weight of any consignment or grain, seeds, hay, or live
stock, all such agreements or combinations are hereby de-
clared to be in restraint of trade, and any such person,
company or corporation shall be deemed guilty of a mis-
demeanor, and upon conviction shall be fined in the sum
of not less than one hundred dollars and not exceeding
one thousand dollars for each offense. (L. 1899, c. 293,
Sec. 1; G. S., Sec. 5177.)
2. Every person, servant, agent or employe of any
firm or corporation doing business within the state of
Kansas that shall conspire or combine with any other
persons, firm or corporation within or without the state
for the purpose of monopolizing any line of business or
shall conspire or combine for the purpose of preventing
the producer of grain, seeds or live stock or hay, or the
local buyer thereof, from shipping or marketing the same
without the agency of any third person, firm or corpora-
tion, shall be deemed guilty of a misdemeanor, and on
conviction shall be fined in a sum not less than one thou-
KANSAS, 119
sand dollars and not to exceed five thousand dollars for
each offense. (Id., Sec. 2; G. S., Sec. 5178.)
3. Any person who shall as agent or employe of any
person, firm or corporation, enter into an agreement, ex-
pressed cr implied, by which it is stipulated that grain,
seeds or hay shall not be shipped by the producer or local
buyer unless accompanied with warehouse receipts, or
that the same shall in any manner be under the control
of any warehouseman cr agent as a condition precedent
to the marketing of said grain, all such agreements shall
be deemed and are hereby declared unlawful and in re-
straint of trade, and the person entering into such agree-
ment or combination shall be deemed guilty of a mis-
demeanor, and upon conviction shall be fined in a sum not
less than one thousand dollars and not more than five
thousand dollars, or by imprisonment in the county jail
not less than ninety days and not to exceed one year, or
by both such fine and imprisonment, at the discretion of
the court. (Id., Sec. 3; G. S., Sec. 5179.)
4. The several district courts and the supreme court of
the state of Kansas are hereby vested with jurisdiction to
prevent and restrain violators of this act, and it shall be
duty of the attorney-general to enforce the provisions of
this act, and such proceedings may be instituted by pe-
tition, setting forth the cause of complaint, praying re-
lief, verifying said petition by affidavit, and the court
shall grant temporary restraining orders enjoining or
prohibiting such violation till the final hearing of the
case. Said restraining order shall be granted without
bond. (Id., Sec. 4; G. S., Sec. 5180.)
5. Any person, firm or corporation that shall be in-
jured in business or property by any other person, firm or
corporation by reason of anything declared unlawful or
in restraint of trade by this act, shall have a right of
action against the person, firm or corporation violating
the provisions of this act for threefold damages, includ-
ing costs and reasonable attorneys' fees. (Id., Sec. 5;
G. S., Sec. 5181.)
ACT OF 1905.
1. Any person, firm, or corporation, foreign or do-
mestic, doing business in the state of Kansas, and en-
gaged in the production, manufacture or distribution of
any commodity in general use, that shall intentionally,
for the purpose of destroying competition, discriminate
between different sections, communities or cities of this
120 LAWS ON TRUSTS AND MONOPOLIES.
state, by selling such commodity at a lower rate in one
section, community or city or any portion thereof than is
charged for such commodity in another section, commu-
nity, or city, after equalizing the distance from the point
of production, manufacture or distribution and freight
rates therefrom, shall be deemed guilty of unfair discrim-
ination. (L. 1905. c. 2, Sec. 1; G. S., Sec. 5162.)
2. If complaint shall be made to the charter board of
the state of Kansas that any corporation chartered in this
state or authorized to do business therein is guilty of un-
fair discrimination within the terms of this act, it shall
be the duty of the charter board to institute an inquiry
as to such discrimination, giving to the party complained
against notice and reasonable opportunity to be heard,
and if in the judgment of such charter board, or a ma-
jority thereof, any corporation, foreign or domestic, shall
have been guilty of unfair discrimination, within the
terms of this act, the said charter board shall so find, and
make a record of such fact upon the records of the char-
ter board, and shall immediately forfeit the charter of
such corporation, if it be a domestic corporation, or, if
it be a foreign corporation, shall immediately forfeit the
permit of such foreign corporation to do business in this
state. (Id., Sec. 2; G. S., Sec. 5163.)
3. If after the revocation of such charter, in the case
of a domestic corporation, or of its permit, if it be a for-
eign corporation, any corporation shall continue or at-
tempt to do business in the state of Kansas, it shall be the
duty of the attorney-general, by a proper suit in the name
of the state of Kansas, to oust such corporation from all
business of every kind and character in said state of
Kansas. (Id., Sec. 3 ; G. S. y Sec. 5164.)
4. Any person, firm or corporation violating the pro-
visions of this act. upon conviction thereof shall forfeit
to the state of Kansas the sum of not less than two hun-
dred dollars for each and every violation of this act;
said sum to be recovered by a suit in the name of the
state of Kansas in any court of competent jurisdiction,
by the attorney-general. All sums collected under this
act shall be credited to the permanent school fund of the
state of Kansas. . (Id., Sec. 4; G. S.. Sec. 5165.)
5. Nothing in this act shall be construed as repealing
any other act or part of an act, but the remedies herein
provided shall be cumulative to all other remedies pro-
vided by law. (Id., Sec. 5; G. S., Sec. 5166.)
KANSAS. 121
ACT OF 1907.
1, That in all civil actions brought in the supreme
court or in the district courts of this state for the pur-
pose of enforcing the provisions of chapter 113a of the
General Statutes of 1901, being an act entitled "An act
defining and prohibiting trusts, providing procedure to
enforce the provisions of this act, and providing penalties
for violations of the provisions of this act " ; or article 13
of chapter 21 of said General Statutes of 1901, the same
being composed of acts entitled as follows: "An act to
prohibit grain dealers, partnerships, companies, corpora-
tions or associations from combining or entering into any
agreement or contract to pool or fix the price to be paid
for grain, hogs, cattle, or stock of any kind whatever, and
to provide punishment for violations of the same," "An
act to declare unlawful trusts and combinations in re-
straint of trade and products, and to provide penalties
therefor," "An act prohibiting combinations to prevent
competition among persons engaged in buying or selling
live stock, and to provide penalties therefor," "An act to
prohibit combinations in restraint of trade, declaring
such combinations unlawful, and prescribing penalties
for the violation of this act," whether such suits are for
the purpose of ousting corporations, firms or associa-
tions from transacting business in the state through or in
pursuance of unlawful agreements and combinations in
restraint of trade or to enjoin such unlawful combina-
tions and agreements, the said court may on motion of
either party require the opposing litigant to produce
books or writings in his possession or under his power
which may contain evidence pertinent to the issue, and
may require the party to answer interrogatories filed in
court with said motion for the discovery of facts material
to the support or defense of the action; and if either of
said parties fail to comply with such order of the court
or judge, the court may, on motion, give judgment by
default. (L. 1907, c. 259, Sec. 1; G. S., 5153.)
2. That the opposing party to whom the interroga-
tories are propounded shall answer the said interrogato-
ries explicitly, fully, and without evasion, and such an-
swers shall be under oath ; provided, that no answers to
such interrogatories shall be used in any criminal prose-
cution against the party so answering, nor shall the per-
son answering or producing such books or papers be
122 LAWS ON TRUSTS AND MONOPOLIES.
liable to criminal prosecution for any offense about which
his answers or books and papers produced would be evi-
dential. (Id., Sec. 2; G. S., Sec. 5154.)
3. That the motion of the party asking for the produc-
tion of such books or papers, or filing such interrogatories,
shall be supported by the affidavit of the interrogator
or of his attorney that he has reason to believe that the
party making the application will derive some material
benefit in the action from the answers which he seeks if
the answers are fairly made ; that it is not sought for the
purpose of harassment, vexation, or delay; and that he
has reason to believe and does believe that the party who
is asked to produce such books or writings or to whom
said interrogatories are addressed has knowledge of the
facts sought to be discovered, and that the discovery of
said facts is not as open to the party making the mo-
tion or filing said interrogatories as they are to the party
addressed or interrogated. (Id., Sec. 3; G. S., Sec.
5155.)
4. That the court or judge may grant the motion upon
notice and it shall be sufficiently granted or allowed if the
court or judge will indorse the motion itself with an en-
try substantially as follows: "Allowed this _ day of
19__ A. B., Judge." (Id., Sec. 4;
G. S., Sec. 5156.)
5. That upon the granting or allowance of said mo-
tion, notice thereof shall be given to the party addressed
or sought to be interrogated, and his acknowledgment
of said notice will be sufficient if signed by himself or by
his attorney of record. (Id., Sec. 5; G. S., Sec. 5157.)
6. That if the party required to produce the books and
papers as provided by this act shall fail to produce them
at the trial, without sufficient cause, the court may on mo-
tion made give judgment against him by default. (Id.,
Sec. 6; G. S., Sec. 5158.)
ACT OF 1909.
AN ACT Relating to unlawful monopolies, trusts and combinations
in restraint of trade, providing additional penalties for the vio-
lation of chapter 265 of the Laws of 1897, and providing for the
better enforcement thereof.
In addition to all other penalties and forfeitures now
provided by law, each and every firm, person, corporation
or association of persons who shall in any manner violate
KANSAS. 123
any of the provisions of chapter 265 of the Laws of 1807.
which act relates to unlawful monopolies, trusts, conspira-
cies and combinations in restraint of trade, shall for each
and every day that such violations shall be committed or
continued forfeit and pay the sum of one hundred dollars,
which may be recovered in the name of the state of Kan-
sas in any county where the offense is committed, or
where any or either of the offenders reside, and it shall
be the duty of the attorney-general to prosecute for the
recovery of said penalties. It shall not be necessary to
convict any firm, person, corporation or association of per-
sons before commencing suit to recover the penalties pro-
vided for in this section, but said penalties shall apply to
any such firm, person, corporation or association whether
they or any of them shall be prosecuted criminally or not ;
provided, said penalty shall not accrue during the pend-
ency of any actions under this act. (L. 1909, c. 261, Sec.
1; G. S., Sec. 5159.)
Actions to recover said penalties may be joined with
actions in quo warranto, injunctions or actions of any
other nature brought for the purpose of ousting firms,
corporations or associations from transacting business
in this state because of the violations of any provision
of chapter 265 of the Laws of 1897, and any court in
which said action shall be brought shall have authority
in such quo warranto, injunction or other suit, in addi-
tion to the judgments now provided for by law, to render
judgment for said penalties as herein provided. (Id.,
Sec. 2; G. S., Sec. 5160.)
. The rights and remedies given by this act shall be con-
strued as cumulative of all other laws in force in this
state, and shall not affect, change or repeal any other
remedies or rights now existing in this state for the en-
forcement, payment or collection of fines, penalties and
forfeitures. (Id., Sec. 3; G. S., Sec. 5161.)
COURT DECISIONS.
The State of Kansas v. Wm. C. Phipps et al., 50 Kans.,
09, 18 L. K. A., 657.
Barton v. Mulvane, 59 Kan., 313, 52 Pac., 883.
Crystal Ice Go. v. Wylie, 65 Kan., 104, 68 Pac., 1086.
State v. Smiley, 65 Kan., 240, 67 L. E. A., 903, 69 Pac.,
199. Aff'd in 196 U. S., 447.
State v. Dreany, 65 Kan., 292, 69 Pac., 182.
Greer v. Payne, 4 Kan. App., 153, 46 Pac., 190.
Re Pinkney, 47 Kan., 89, 27 Pac., 179.
KENTUCKY.
CONSTITUTION.
SEC. 198. It shall be the duty of the general assembly
from time to time, as necessity may require, to enact such
laws as may be necessary to prevent all trusts, pools,
combinations or other organizations from combining to
depreciate below its real value any article, or to enhance
the cost of any article above its real value.
STATUTES. (ACT 1890.)
That if any corporation organized under the laws of
Kentucky, or under the laws of any other state or country,
for transacting or conducting any kind of business in this
state, or any partnership, company, firm or individual,
or other association of persons, shall create, establish,
organize or enter into, or become a member of, or a party
to, or in any way interested in, any pool, trust, combine,
agreement, confederation or understanding with any
other corporation, partnership, individual or person, or
association of persons, for the purpose of regulating or
controlling or fixing the price of any merchandise, manu-
factured articles or property of any kind, or shall enter
into, become a member of, or party to, or in any way in-
terested in, any pool, agreement, contract, understanding,
combination or confederation, having for its object the
fixing, or in any way limiting the amount or quantity of
any article of property, commodity or merchandise to be
produced or manufactured, mined, bought or sold, shall
be deemed guilty of the crime of conspiracy, and pun-
ished therefor as provided in the subsequent sections of
this act. (Sec. 3915.)
It shall not be lawful for any corporation to issue or
to own, have or sell any trust certificates or stocks, or for
any corporation's agent, officer or employee, agent or
director, or any corporation to enter into, either verbally
or in writing, any combinations, contract, agreement or
126
126 LAWS ON TRUSTS AND MONOPOLIES.
understanding with any person or persons, corporation
or corporations, or with any director, agent or officer
thereof, the purpose or effect of which combination, con-
tract, agreement or understanding would be to place the
management, control or any part of the business of such
combination or association, or the manufactured product
thereof, in the hands or under the control, in whole or in
part, of any trustee or trustees, or agents, or any person
whatever, with the intent, or to have the effect to limit,
fix, establish or change the price of the production or
sale of any article of property or of commerce, or to pre-
vent, restrict, or in any way diminish the manufacture
or output of any such article or property. (Sec. 3916.)
If any corporation, company, firm, partnership or per-
son, or association of persons, shall, by court of com-
petent jurisdiction, be found guilty of any violation of
any of the provisions of this act, such guilty party shall
be punished by a fine of not less than five hundred dol-
lars, and not more than five thousand dollars. Any presi-
dent, manager, director or other officer or agent, or re-
ceiver of any corporation, company, firm, partnership or
any corporation, company, firm or association, or mem-
ber of any corporation, firm or association, or any mem-
ber of any company, firm or other association, or any
individual, found, by a court of competent jurisdiction,
guilty of any violation of this act, shall be punished by a
fine of not less than five hundred dollars nor more than
five thousand dollars, or may be imprisoned in the county
jail not less than six months nor more than twelve
months, or may be both so fined and imprisoned in the
discretion of the court or jury trying the case. (Sec.
3917.)
Any contract or agreement or understanding in viola-
tion of the provisions of the preceding sections of this act
shall be null and void ; and any purchasers of property
or article, or of any commodity, from any individual,
firm, company or corporation transacting business con-
trary to the preceding sections of this act, shall not be
liable for the price of payment of such article or com-
modity or property, and may plead and rely on this act
as a complete defense to any suit for such price of pay-
ment. (Sec, 3918.)
If any corporation created or organized by or under
the laws of this state shall be indicted and convicted for
any violation of any of the provisions of this act, such
KENTUCKY. 127
indictment, trial and conviction in any court of com
petent jurisdiction shall have the effect to forfeit the
charter of such corporation without any further proceed-
ings on the subject of the forfeiture of its charter; but
any corporation whose charter is so forfeited shall have
the right of appeal as is provided in other cases, and the
filing of the bond as is required by law shall suspend the
judgment of forfeiture until same is passed upon by the
court to which the case is appealed. (Sec. 3919.)
It shall be the duty of the circuit judges, and other
judges of similar jurisdiction in this state, to give the
provisions of this act in charge to the grand juries at each
term of their courts. (Sec. 3920.)
The provisions of the Code of Practise regulating ap-
peals in other cases shall apply to appeals under this act,
(Sec. 3921.)
[Chapter 117. Laws of Kentucky, 1906.] *
AN ACT Permitting persons to combine or pool their crops of
wheat, tobacco and other products and sell same as a whole, and
making contracts in pursuance thereof valid.
Be it enacted ~by the General Assembly of the Common-
wealth of Kentucky:
SECTION 1. It is hereby declared lawful for any number
of persons to combine, unite or pool, any or all of the
crops of wheat, tobacco, corn, oats, hay, or other farm
products raised by them, for the purpose of classifying,
grading, storing, holding, selling or disposing of same,
either in parcels or as a whole, in order or for the pur-
pose of obtaining a greater or higher price therefor than
they might or could obtain or receive by selling said
crops separately or individually.
SEC. 2. That contracts or agreements made or entered
into by persons with each other, the object or intent of
which is to unite, pool or combine all or any of the crops
of tobacco, wheat, corn, oats, hay, or other farm prod-
ucts, raised by such persons, for the purpose of classi-
fying, grading, storing, holding, selling or disposing of
said crops, or any of them, either in parts or as a whole,
in order, or for the purpose of obtaining a better or
higher price therefor than could or might be obtained by
selling said crops separately or individually, are hereby
permitted, and shall not, because of any such combina-
1 Now questioned under the 14th amendment in case of Collins v .
Kentucky, pending before Supremo Court of United States.
128 LAWS ON TRUSTS AND MONOPOLIES.
tion or purpose of said persons, be declared illegal or
invalid.
SEC. 3. Such persons so entering into such agreement
or contract as is set out in the foregoing sections, are
hereby permitted to select an agent or agents through
or by or with whom said parties so entering into such
agreements may classify, grade, store, hold, sell or dis-
pose of said crops, or any of them, and said agent or
agents shall have the right to take, receive, hold, store,
classify, grade, sell or dispose of said crops so placed in
such agreement, as directed or authorized by their prin-
cipal, for the purpose of accomplishing the object of
such combination or agreement between such principals,
and contracts and agreements entered into by such agent
or agents for the purpose of classifying, grading, storing,
holding, selling or disposing of said crops so combined,
united or pooled, either in parcels or as a whole, are
hereby permitted, and shall not, because of any such com-
bination or purpose of such original agreement of such
principals so entering into said combination, or of such
agent or agents, be declared illegal or 'invalid.
SEC. 4. Whereas, many persons of this Commonwealth
now desire to combine their respective crops of tobacco,
wheat, corn, oats, hay and other farm products, an emer-
gency is now declared to exist which requires that this
act should, and it shall, take effect from and after its
passage and approval by the Governor. (Approved
Mar. 21, 1906.)
[Chapter 8. Laws of Kentucky, 1908.] *
AN ACT To amend section 3 of an act of the General Assembly
of Commonwealth of Kentucky, approved March 21, 1906,
entitled "An act permitting persons to combine or pool their
crops of wheat, tobacco and other products and sell same as
a whole and making contracts in pursuance thereof valid, being
Chapter 117 of the Acts of the General Assembly of the Com-
monwealth of Kentucky for the year 1906."
Be it enacted by the General Assembly of the Common-
wealth of Kentucky:
SECTION 1. That section 3 of an act entitled, An act
permitting persons to combine or pool their crops of
wheat, tobacco and other products and sell same as a
whole, and making contracts in pursuance thereof valid,
approved March 21, 1906, being Chapter 117 of the acts
of the General Assembly of the Commonwealth of Ken-
1 Now questioned under the 14th amendment in case of Collins v.
Kentucky, pending before Supreme Court of United States.
KENTUCKY. 129
tuclry for the year 1906, be and the same is hereby
amended and re-enacted so as to read as follows :
Such persons so entering into such an agreement or
contract as is set out in the foregoing sections are hereby
permitted to select an agent or agents through or by or
with whom said parties so entering into such agreement
may classify, grade, store, hold, sell, or dispose of said
crop, or any of them, and said agent or agents shall have
the right to take, receive, hold, store, classify, grade, sell
or dispose of said crop so placed in said agreement, for the
purpose of accomplishing the object of such combination
or agreement between such principals, and contracts and
agreements entered into by such agent or agents for the
purpose of classifying, grading, storing, holding, selling
or disposing of said crop so combined, united or pooled,
either in parcel or as a whole, are hereby permitted, and
shall not, because of any such combination or purpose of
such original agreement of such principals so entering
into said combination, or of such agent or agents, be de-
clared illegal or invalid. All contracts heretofore made
by any person or persons for the purposes set out in the
foregoing sections are hereby declared valid, if otherwise
legally binding on the parties. To prevent any breach
or violation of any contract made for the purposes set
out in the foregoing sections a restraining order and writ
of injunction may be issued by proper officer, as pre-
scribed in the Civil Code of Practice.
For any breach or violation of any contract entered
into for the purposes set out in the foregoing sections, the
injured party may recover the damages sustained by him
by reason of such violation of such contract of the person
violating the same, and also of any person who shall in-
duce or persuade another to violate such contract, which
damages shall include the reasonable expense and attor-
ney's fees incurred by the injured party in prosecuting an
action to recover such damages, or to prevent a violation
of such contract, if the party complaining shall succeed
in doing so, which may be recovered in the same action or
original proceeding. Said agent when so selected as
herein provided shall have the sole right to sell said crop
so pooled or combined, and it shall be unlawful for any
owner of such crop to sell or dispose of same and for any
person to knowingly purchase the same without the writ-
ten consent of such agent, and upon conviction thereof he
1649113 9
130 LAWS ON TRUSTS AND MONOPOLIES.
or the} 7 shall be fined in any sum or amount not exceed-
ing $250.00 for each offense, to be fixed by the jury in
their discretion.
SEC. 2. WHEREAS, many crops of tobacco and other
products have been combined and pooled in this State,
under contract and agreement entered into for the pur-
poses set out in the above section, an emergency is now
declared to exist, which requires that this act should and
it shall take effect from and after its passage and ap-
proval by the Governor. (Approved Mar. 13, 1908.)
COURT DECISIONS.
Brewster v. Miller et al., 101 Ky., 368; 38 L. E. A., 505.
Anderson v. Jett, etc., 89 Ky., 375.
Commonwealth v. Grinstead, 108 Ky., 59.
Commonwealth v. International Harvester Company,
131 Ky., 551.
Commonwealth v. International Harvester Company,
131 Ky., 571.
Commonwealth v. International Harvester Company,
147 Ky., 564.
Owen County Board of Control v. Brumback, 128
Ky., 137.
Commonwealth v. Hodges, 137 Ky., 233.
International Harvester Company v. Commonwealth,
137 Ky., 551.
International Harvester Company v. Commonwealth,
144 Ky., 403.
LOUISIANA.
STATUTES.
Act 86, 1890: " That every contract, combination in the
form of trust, or conspiracy, in restraint of trade or com-
merce or to fix or limit the amount or quantity of any
article, commodity or merchandise to be manufactured,
mined, produced or sold in this state is hereby declared
illegal.
" SEC. 2. That every person who shall make any such
contract, or engage in any such combination or conspir-
acy, shall be deemed guilty of a misdemeanor, and on
conviction thereof, shall be punished by fine not exceed-
ing five thousand dollars, or by imprisonment not exceed-
ing one year, or by both of said punishments, in the dis-
cretion of the court.
" SEC. 3. That 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 within the limits of this state, shall
be deemed guilty of a misdemeanor, and, on conviction
thereof, shall be punished by a fine not exceeding five
thousand dollars, or by imprisonment not exceeding one
year, or by both said punishments, in the discretion of
the court."
Act 90 of 1892 : " That after the passage of this act it
shall be unlawful for any individual, firm, company, cor-
poration or association to enter into, continue or main-
tain any combination, agreement or arrangement of any
kind, expressed or implied, with any other individual,
firm, company, association or corporation, for any of the
following purposes: First, to create or carry out restric-
tions of trade ; second, to limit or reduce the production,
or increase or reduce the price of merchandise, produce
or commodities; third, to prevent competition in manu-
facture, making, transportation, sale or purchase of mer-
chandise, produce or commodities; fourth, to fix at any
131
132 LAWS ON TRUSTS AND MONOPOLIES.
standard or figure, whereby its price shall be in any man-
ner controlled or established, any article of merchandise,
produce, commodity or commerce intended for consump-
tion in this state; fifth, to make or enter into or execute
or carry out any contract, obligation or agreement of
any kind or description by which they shall bind or have
bound themselves not to sell, dispose of or transport any
article or commodity or article of trade, use, merchandise,
commerce or consumption below a common standard fig-
ure, or by which they shall agree in any manner to keep
the price of such article at a fixed or graduated figure,
or by which they shall in any manner establish or settle
the price of any article or commodity or transportation
between them or themselves and others to preclude a free
and unrestricted competition among themselves, or others,
in the sale or transportation of any such article or com-
modity, or by which they shall agree to pool, combine, or
unite any interest they may have in connection Avith the
sale or transportation of any such article or commodity
that its price might in any manner be affected.
" SEC. 2. That any corporation holding a charter un-
der the laws of the state of Louisiana which shall be con-
victed of a violation of the provisions of this act shall
thereby forfeit its rights and franchises, and its cor-
porate existence shall cease and determine, and it shall
be the duty of the attorney-general of his own motion
and without leave or orders of any court or judge to
institute an action in the name of the state of Louisiana
for the forfeiture of such rights and franchises and the
dissolution of such corporate existence.
" SEC. 3. That every foreign corporation, or any cor-
poration organized under or pursuant to the laws of any
state, who shall be convicted of a violation of the pro-
visions of this act is hereby denied the right and pro-
hibited from doing any business within this state, and it
shall be the duty of the attorney-general to enforce this
provision by injunction or other proceedings in the name
of the state of Louisiana.
" SEC. 4. That any violation of either or all the pro-
visions of this act shall be and is hereby declared a con-
spiracy against "trade, and any person who may be or
who may become engaged in any such conspiracy or
take part therein, or aid or advise in its commission, or
who shall, as principal, manager, director or agent,
LOUISIANA. 133
knowingly carry out any of the stipulations, purposes,
prices, rates or orders thereunder or in pursuance thereof,
shall be punished by fine not less than one hundred
dollars nor more than one thousand dollars, and by im-
prisonment in the penitentiary not less than six months
nor more than one year, or by either such fine and im-
prisonment, in the discretion of the court. It shall be
the duty of the district attorneys in their respective juris-
dictions and the attorney-general to enforce this pro-
vision, and any district attorney of any parish securing
a conviction under this provision shall be entitled to
such fee or salary as by the law he is allowed for such
prosecution.
" SEC. , 5. That in any indictment for an offense named
in this act it is sufficient to state the purposes or effects
of the trust or combination, and that the accused was a
member of, acted with or in pursuance of it, without giv-
ing its name or description, or how, when or where it
was created ; provided, that no contract or agreement or
arrangement which does not include, or which cannot be
held to include, a stipulation between the parties to share
in the profits of any such contract, agreement or arrange-
ment, or which contract, agreement or arrangement does
not provide for or does not contemplate a profit or pool
to be divided between the parties to such contract, agree-
ment or arrangement, shall be held or construed to be in
violation of the provisions of this act,
" SEC. 6. That in prosecutions under this act, it shall
not be necessary to prove who constitute all the members
belonging to the trust or combination.
" SEC. 7. That any contract or agreement in violation
of the provisions of this act shall be absolutely void.
" SEC. 8. That the provisions of this act shall not apply
to agricultural products or live stock while in the hands
of the producer or raiser; nor be so construed as to effect
any combination or confederation of laborers for the pur-
pose of procuring an increase of their wages or redress
of grievances."
ACT 1908.
Any person, firm, company, association or corporation,
foreign or domestic, doing business in the state of Loui-
siana, and engaged in the production, manufacture, or
distribution of any commodity in general use, that shall,
134 LAWS ON TRUSTS AND MONOPOLIES.
intentionally, for the purpose of injuring or destroying
the business of a competitor in any locality, discriminat-
ing between different sections, communities, cities or
localities in the state of Louisiana, by selling such com-
modity at a lower rate in one section, community, city
or locality, that is charged for such commodity by said
person, firm, company, association or corporation in an-
other section, community, city or locality after making
due allowance for the difference, if any, in the grade or
quality of such commodity and in the actual cost of
transportation of same from the point of production, if a
raw product, or from the point of manufacture, if a
manufactured product, shall be guilty of unfair discrim-
ination, which is hereby prohibited and declared unlaw-
ful, and to be a misdemeanor; and that all sales so made
shall be taken and considered as prima facie evidence of
unfair discrimination. (L. 1908, Act 128, Sec. 1.)
Any person, firm, company, association or corporation
violating any of the provisions of the preceding section,
any officer, agent or receiver of any firm, company, asso-
ciation or corporation, or any member of the same, or
any individual found guilty of a violation thereof shall
be fined not less than five hundred dollars ($500), nor
more than five thousand dollars ($5,000), or be im-
prisoned in the parish jail for not less than one year, nor
more than two years, or both, at the discretion of the
court. (L. 1908, Act 128, Sec. 2.)
All contracts or agreements made in violation of any
of the provisions of the two preceding sections shall be
void. (L." 1908, Act 128, Sec. 3.)
It shall be the duty of the district attorneys, in their
several judicial districts, throughout the state, to enforce
the provisions of the preceding sections of this act, by
appropriate actions and prosecutions in the several courts
of the state of competent criminal jurisdiction, and of
the attorney general, in all such cases, when carried by
appeal or otherwise to the Supreme Court of this state,
or to any other court of this state or of the United
States ; and that it shall also be the duty of the attorney
general of the state, whether requested or directed to do
so by the governor or by the general assembly of the
state or not, to enforce all the foregoing provisions of
this act by appropriate actions and proceedings of a civil
nature in such court or courts of the state as mav have
LOUISIANA. 135
jurisdiction in such cases, and as is hereinafter provided.
(L. 1908, Act 128, Sec. 4.)
If any complaint be made to the secretary of state that
any corporation, authorized to do business in this state
is guilty of unfair discrimination within the terms of
this act, it shall be the duty of the secretary of state to
refer the matter to the attorney general, who shall ex-
amine into said complaint, and if the facts justify it, in
his judgment, shall institute proceedings in the courts
against such corporation. (L. 1908, Act 128, Sec. 5.)
If any corporation, foreign or domestic, authorized to
do business in this state, or any officer, agent or receiver
of any corporation, is found guilty of unfair discrimina-
tion, as defined by this act, it shall be the duty of the
secretary of state immediately to revoke the permit or
license of such corporation to do business in this state.
(L. 1908, Act 128, Sec. 6.)
In all cases where a corporation may have been con-
victed of the violation of the provisions of this act, and
it shall continue or attempt to do business thereafter in
this state, it shall be the duty of the attorney general of
the state, by a proper suit, in the name of the state, to
oust such corporation from all business of every kind
and character in the state of Louisiana. (L. 1908, Act
128, Sec. T.)
The remedies and penalties provided in this act shall
be cumulative to each other and to all other remedies and
penalties provided by law. (L. 1908, Act 128, Sec. 8.)
COURT DECISIONS.
Texas and Pacific Ry. et al. v. Southern Pacific Ry.
Co., 41 La., 970.
John Trisconi v. J. M. Winship et al., 43 La., 45.
MAINE.
STATUTES.
It shall be unlawful for any firm or incorporated com-
pany, or any number of firms or incorporated companies,
or any unincorporated company, or association of persons
or stockholders, organized for the purpose of manufac-
turing, producing, refining or mining any article or
product which enters into general use and consumption
by the people, to form or organize any trust, or to enter
into any combination of firms, incorporated or unincor-
porated companies, or association of stockholders, or to
delegate to any one or more board or boards of trustees
or directors the power to conduct and direct the business
of the whole number of firms, corporations, companies
or associations which may have formed, or which may
propose to form a trust, combination or association incon-
sistent with the provisions of this section and contrary
to public policy. (R. S., c. 47, Sec. 53.)
No certificate of stock, or other evidence of interest,
in any trust, combination or association, as named in the
preceding section, shall have legal recognition in any
court in this state, and any deed of real estate given by
any person, firm or corporation, for the purpose of be-
coming interested in such trust, combination or associa-
tion, or any mortgage given by the latter to the seller, as
well as all certificates growing out of such transaction,
shall be void. (K. S., c. 47, Sec. 54.)
Any incorporated company now operating under the
laws of this state, and which at the date of the passage
of this act, may be interested in any trust, combination
or association, named in section one of this act, or any
firm, incorporated or unincorporated company, or asso-
ciation of persons or stockholders, who shall enter into
or become interested in such trust, combination or asso-
ciation, after the passage of this act. shall be deemed
guilty of a misdemeanor, and be subject to a fine of not
less than five nor more than ten thousand dollars: Pro-
137
138 LAWS ON TRUSTS AXD MONOPOLIES.
vided. That nothing in this section shall be so construed
as to apply to such incorporated companies as shall,
within ninety days from the date of the passage of this
act, withdraw from and sever all connections with such
trust, combination or association. (R. S., c. 47, Sec. 55.)
It shall be the duty of the secretary of state, as soon
as may be after the passage of this act, to forward to the
president, secretary or treasurer, of each incorporated
company organized for the purpose of manufacturing,
producing, refining or mining any article or product
which enters into general use and consumption by the
people, and doing business within this state, a copy of
this act, and also a letter of inquiry as to whether said
corporation has merged all or any part of its business or
interests in or with any trust, combination or association
of persons or stockholders as named in section one of this
act, and to require an answer, under oath, of the presi-
dent, secretary, treasurer, or directors of said company.
a form of affidavit, together with questions to be an-
swered, shall be prescribed by the secretary of state, and
forwarded with said letter, and on neglect or refusal to
make answers under oath to such questions for the term
of ninety days from the date- of this act, the secretary of
state shall notify the attorney-general, whose duty it
shall be forthwith to file an information in the nature of
a writ of quo warranto, with the supreme judicial court,
against said corporation, and the court may, upon hear-
ing and proof of such neglect or refusal, decree the dis-
solution of said corporation, and its corporate rights and
powers shall be terminated. (R. S., c. 47, Sec. 56.)
MARYLAND.
CONSTITUTION.
ART. 41. That monopolies are odious, contrary to the
spirit of a free government and the principles of com-
merce, and ought not to be suffered.
189
MASSACHUSETTS.
STATUTES.
1907.
SECTION 1. No person, firm, corporation or association
shall insert in or make it a condition or provision of
any sale or lease of any tool, implement, appliance or
machinery that the purchaser or lessee thereof shall not
buy, lease or use machinery, tools, implements or appli-
ances or material or merchandise of any person, firm,
corporation or association other than such vendor, or
lessor; but this provision shall not impair the right, if
any, of the vendor or lessor of any tool, implement,
appliance or machinery protected by a lawful patent
right vested in such vendor or lessor to require by virtue
of such patent right the vendee or lessee to purchase or
lease from such vendor or lessor such component and
constituent parts of said tool, implement, appliance or
machinery as the vendee or lessee may thereafter re-
quire during the continuance of such patent right : Pro-
vided, that nothing in this act shall be construed to
prohibit the appointment of agents or sole agents to sell
or lease machinery, tools, implements or appliances.
SEC. 2. Any person, firm, corporation or association, or
the agent of any such person, firm, corporation or associ-
ation, that violates the provisions of this act shall be pun-
ished for each offence by a fine not exceeding five thou-
sand dollars.
All leases, sales or agreements therefor hereafter made
in violation of any of the provisions of this act shall be
void as to any and all of the terms or conditions thereof
in violation of said provisions. [Approved June 1, 1907.]
1908.
Every contract, agreement, arrangement or combina-
tion in violation of the common law in that thereby a
monopoly in the manufacture, production or sale in this
141
142 LAWS ON TRUSTS AND MONOPOLIES.
commonwealth of any article or commodity in common
use is or may be created, established or maintained, or
in that thereby competition in this state in the supply
or price of any such article or commodity is or may be
restrained or prevented, or in that thereby, for the pur-
pose of creating, establishing or maintaining a monopoly
within this state of the manufacture, production or sale
of any such article or commodity, the free pursuit in this
state of any lawful business, trade or occupation is or
may be restrained or prevented is hereby declared to be
against public policy, illegal and void. (L. 1908, c. 454,
Sec. 1.)
The attorney-general, or, by his direction, a district
attorney, may bring an action in the name of the com-
monwealth against any person, trustee, director, manager,
or other officer or agent of a corporation, or against a
corporation to restrain the doing in this commonwealth
of any act herein forbidden or declared to be illegal, or
any act in, toward or for the making or consummation
of any contract, agreement, arrangement or combination
herein prohibited, wherever the same may have been
made. The superior court shall have jurisdiction to re-
strain and enjoin any act herein forbidden or declared to
be illegal. (Id., Sec. 2.)
In such action no person shall be excused from answer-
ing any questions that may be put to him, or from pro-
ducing any books, papers, documents, on the ground that
the testimony or evidence, documentary or otherwise, re-
quired of him may tend to incriminate him, but no per-
son shall be prosecuted in any criminal action or proceed-
ings, or subjected to any penalty or forfeiture for or on
account of any transaction, matter or thing concerning
which he may testify, or produce evidence, documentary
or otherwise, in any such action. (Id., Sec. 3.)
Nothing in section one of this act shall be construed
as impairing, repealing, or superseding any statute of
this commonwealth. (Id., Sec. 4.)
1911.
Upon written complaint on oath of the complainant
filed in the supreme judicial court or in the superior
court, alleging that any person, co-partnership or cor-
poration has, in the county where such complaint is filed,
entered into any contract, agreement, arrangement, com-
MASSACHUSETTS. 143
bination or practice, whereby a monopoly in the manu-
facture, production, transportation or sale in this com-
monwealth of any article or commodity in common use
is or may be created, established or maintained; or
whereby competition in this commonwealth in the supply
or price of &ny such article or commodity is or may be
restrained or prevented; or Avhereby for the purpose of
creating, establishing or maintaining a monopoly within
this commonwealth of the manufacture, production,
transportation or sale of any such article or commodity,
the free pursuit in this state of any lawful business, trade
or occupation is or may be restrained or prevented; or
whereby the price of any article or commodity in com-
mon use is or may be unduly enhanced within this com-
monwealth ; the court shall hear on oath the complainant
and any witnesses produced by him. If it appears to the
court that such contract, agreement, arrangement, com-
bination or practice exists, the court shall issue an order
of notice to the respondents to appear and show cause
why the court should not appoint a master to hear and
to make report on said complaint ; and thereafter, if such
cause be not shown, the court shall appoint a master who
shall, in accordance with the established practice and
rules in equity, hear the complainant and the respondents
and their evidence upon the allegations of said com-
plaint; and upon motion of the complainant, other per-
sons, co-partnerships or corporations, within the juris-
diction of the court and appearing to the court to be
necessary parties to the full examination of the allega-
tions of said complaint, may upon proper notice be cited
to appear as parties respondent. After such hearing the
master shall make and file his report, and said parties
may present their objections and exceptions thereto and
prosecute the same in accordance with the rules of pro-
cedure in equity. Said final report of the master shall
be filed by him within thirty days after the close of the
hearing, unless further time is allowed by order of the
court. (L. 1911, c. 503. Sec. 1.)
Masters may append to their reports made in accord-
ance with the provisions of the preceding section, such
recommendations to the parties as may be germane to.
and warranted by their findings of fact or rulings of law,
and as may tend to remove restraint or to prevent any
ground of complaint alleged in said complaint and found
by the master to be proven; but such recommendations
144 LAWS ON TRUSTS AND MONOPOLIES.
may, upon motion of any party, and upon order of the
court, be disaffirmed and expunged from the records of
the case. The report of the master, if affirmed by the
court, shall be transmitted by the clerk to the attorney-
general, who shall forthwith cause such further proceed-
ings, either civil or criminal, to be instituted as such
report may warrant. (Id., Sec. 2.)
Masters appointed under the provisions of this act
shall have all the powers conferred upon masters in
equity procedure. Their fees shall be fixed by the court
and paid out of the treasury of the commonwealth.
Upon request of a master appointed under the provisions
of this act a room or rooms for hearings shall be pro-
vided in the state house, if the cause be pending in the
county of Suffolk, Middlesex or Norfolk ; if elsewhere, in
some county court house within the county where the
cause is pending. Upon approval by the court, such mas-
ters may employ suitable clerical or stenographic as-
sistants to report the evidence taken and the findings.
Such assistants shall be paid out of the treasury of the
commonwealth. (Id., Sec. 3.)
At any hearing, pursuant to the provisions of this act,
no person shall be excused from answering any questions
material to the proof of the allegations of the complaint,
or from producing any books, papers or documents which
are so material, on the ground that the testimony or evi-
dence, documentary or otherwise, so required of him,
tends to incriminate him; but no person shall be prose-
cuted in any criminal proceeding, or subjected to any
penalty or forfeiture for or on account of any transac-
tion, matter or thing concerning which he may testify
or produce evidence, documentary or otherwise, in any
such hearing. Upon objection of a party, no book, paper
or document, or part thereof, produced by him at the re-
quest of the other party to the action shall, be examined
by the party making the request or his attorney, or of-
fered in evidence, unless it is so ordered by the master,
after examination thereof and a hearing thereon, and a
ruling by the master that such evidence is material and
:ompetent. (Id., Sec. 4.)
1912.
Any person, firm, association, or corporation, foreign
>r domestic, doing business in the commonwealth and en-
MASSACHUSETTS. 145
gaged in the production, manufacture or distribution of
any commodity in general use, that shall maliciously, or
for the purpose of destroying the business of a competitor
and of creating a monopoly in any locality, discriminate
between different sections, communities, towns or cities
of this commonwealth or between purchasers by selling
such commodity at a lower rate for such purpose in one
section, community, town or city than is charged for such
commodity by the vendor in another section, community,
town or city in the commonwealth, after making due al-
lowance for the difference, if any, in the grade or quality
and in the cost of transportation, shall be deemed guilty
of unfair discrimination, which is hereby prohibited and
declared unlawful. (L. 1912, c. 651, Sec. 1.)
It shall be unlawful for any person, firm, association
or corporation to combine with any other person, firm,
association or corporation for the purpose of destroying
the trade or business of an} 7 person, firm, association or
corporation, engaged in selling goods or commodities and
of creating a monopoly within this commonwealth, and
any such combination is hereby prohibited and declared
unlawful. (Id., Sec. 2.)
Any person, firm, association or corporation found
guilty of violating any provision of this act, if an indi-
vidual, shall be punished by a fine of not less than five
hundred dollars or more than five thousand dollars, or by
imprisonment for not less than one month or more than
one year, or by both such fine and imprisonment ; and if
the offender is a corporation, then by a fine as aforesaid.
(Id., Sec. 3.)
Whoever, in his individual capacity, or acting in behalf
of any firm, association or corporation, for the purpose
of evading any provision of this act, shall appoint agents,
secure or hold the control of corporate stock, or by agree-
ment with any other person, firm, association or corpora-
tion cause any of the commodities mentioned in section
one to be sold for the purpose of such evasion or attempt
to evade, shall be punished by imprisonment in the state
prison for not less than six months or not more than five
years, if an individual; and if any of the acts specified
in this section are done by a corporation, then the
directors, stockholders or agents authorizing such evasion
or discrimination shall each be held guilty thereof, and
shall be punished in the manner provided in this section
for individuals. (Id., Sec. 4.)
1649113 10
146 LAWS ON TRUSTS AND MONOPOLIES.
All contracts or agreements made in violation of any
provision of this act shall be void. (Id., Sec. 5.)
It shall be the duty of the district attorneys, in their
districts, and of the attorney-general, to enforce the pro-
visions of this act by appropriate actions in courts of
competent jurisdiction, but nothing herein shall limit the
right of any court to issue warrants and make commit-
ments to await the action of the grand jury under this act
in the case of crimes under the common law, and such
power is hereby given to the courts of the commonwealth.
(Id., Sec. 6.)
If complaint shall be made to the secretary of the
commonwealth that any person, firm, association or cor-
poration authorized to do business in this commonwealth
is guilty of any violation of this act, it shall be the duty
of the secretary of the commonwealth to refer the matter
to the attorney-general, who shall, if the facts justify it
in his judgment, institute proceedings in the courts
against such persons, firm, association or corporation.
(Id., Sec. T.)
If any corporation, foreign or domestic, authorized to
do business in this commonwealth is found guilty of any
violation of this act, such finding shall cause a forfeiture
of all the privileges and rights conferred upon the cor-
poration by general or special law of this commonwealth
and shall bar its right to do business in this common-
wealth. (Id., Sec. 8.)
If any corporation, after having been found guilty of
any violation of this act, shall continue or attempt to do
business in this commonwealth, it shall be the duty of
the attorney-general by a proper action in the name of
the commonwealth to oust such corporation from all
business of every kind and character in this common-
wealth. (Id., Sec. 9.)
Nothing in this act shall be construed as repealing any
other act, or part of an act, except such acts or parts of
acts, if any there be, as are inconsistent herewith. (Id.,
Sec/ 10.)
[Chap. 709.]
AN ACT To enlarge^the powers and duties of the attorney-general.
SECTION 1. It shall be the duty of the attorney-general,
and he is hereby authorized, to take cognizance of all vio-
lations of law or of orders of courts, tribunals or com-
MASSACHUSETTS. 147
missions affecting the general welfare of the people, in-
cluding combinations, agreements and unlawful practices
in restraint of trade or for the suppression of competition,
or for the undue enhancement of the price of articles or
commodities in common use, and to institute or cause to
be instituted such criminal or civil proceedings before the
appropriate state and federal courts, tribunals and com-
missions as the attorney-general may deem to be for the
interest of the public, and to investigate all matters 'in
which he has reason to believe that there has been such
violation. To carry out the purposes of this act he may
appoint such assistant or assistants as he may deem neces-
sary to act for him under his direction, and, with the ap-
proval of the governor and council, he shall fix their
compensation. In all criminal proceedings instituted un-
der this act the attorney -general may require district
attorneys to assist him and to act for him in their respec-
tive districts, and in all matters so referred to them the
district attorneys shall be under the jurisdiction and di-
rection of the attorney-general.
SECTION 2. To carry out the provisions of this act the
attorney-general, with the consent of the governor and
council, may expend a sum not exceeding five thousand
dollars from the treasury of the commonwealth.
SECTION 3. This act shall take effect upon its passage.
Approved May 28, 1913.
COURT DECISIONS.
Gloucester Isinglass and Glue Co. v. Russia Cement
Co., 154 Mass., 92.
Opinion of the Justices on the law of 1912, 211 Mass.,
620.
United Shoe Machinery Co. v. La Chapelle, 212 Mass.,
467.
MICHIGAN.
CONSTITUTION.
Xo railroad corporation shall consolidate its stock,
property, or franchises, with any other railroad corpora-
tion owning a parallel or competing line ; and in no case
shall any consolidation take place except upon public
notice given at least sixty days to all stockholders, in
such manner as shall be provided by law.
STATUTES.
ANTI-TRUST LAW OF 1899.
SECTION 1. That a trust is a combination of capital,
skill or arts by two or more persons, firms, partnerships,
corporations or associations of persons, or of any two or
more of them, for either, any or all of the following pur-
poses :
1. To create or carry out restrictions in trade or com-
merce ;
2. To limit or reduce the production, or increase or
reduce the price of merchandise or any commodity ;
3. To prevent competition in manufacturing, making,
transportation, sale or purchase of merchandise, produce
or any commodity;
4. To fix at any standard or figure, whereby its price to
the public or consumer shall be in any manner controlled
or established, any article or commodity of merchandise,
produce or commerce intended for sale, barter, use or con-
sumption in this state;
5. It shall hereafter be unlawful for two or more
persons, firms, partnerships, corporations or associations
of persons, or of any two or more of them, to make or
enter into or execute or carry out any contracts, obliga-
tions or agreements of any kind or description, by which
they shall bind or have bound themselves not to sell, dis-
pose of or transport any article or any commodity or any
149
150 LAWS ON TKUSTS AND MONOPOLIES.
article of trade, use, merchandise, commerce or consump-
tion below a common standard figure or fixed value, or
by which they shall agree in any manner to keep the
price of such article, commodity or transportation at a
fixed or graduated figure, or by which they shall in any
manner establish or settle the price of any article, com-
modity or transportation between them or themselves and
others, so as to directly or indirectly preclude a free and
unrestricted competition among themselves, or any pur-
chasers or consumers, in the sale or transportation of any
such article or commodity, or by which they shall agree to
pool, combine or directly or indirectly unite any interests
that they may have connected with the sale or transporta-
tion of any such article or commodity, that its price might
in any manner be affected. Every such trust as is defined
herein is declared to be unlawful, against public policy
and void.
SEC. 2. For a violation of any of the provisions of this
act by any corporation or association mentioned herein,
it shall be the duty of the attorney-general, or the prose-
cuting attorney of the proper county, to institute proper
suits or quo warranto proceedings in the court of compe-
tent jurisdiction in any of the county seats in the state
where such corporation or association exists or does busi-
ness, or may have a domicile. And when such suit is in-
stituted by the attorney-general in quo warranto, he may
also begin any such suit in the supreme court of the state,
or the circuit court of Ingham, Kent or Wayne counties.
for the forfeiture of its charter rights, franchises or
privileges and powers exercised by such corporation or
association, and for the dissolution of tl>e same under the
general statutes of the state.
SEC. 3. Every foreign corporation, as well as any for-
eign association, exercising any of the powers, franchises
or functions of a corporation in this state, violating any
of the provisions of this act, is hereby denied the right
and prohibited from doing any business in this state, and
it shall be the duty of the attorney-general . to enforce
this provision by bringing proper proceedings in quo
warranto in the supreme court, or the circuit court of the
county in which 'defendant resides or does business, or
other proper proceedings by injunction or otherwise.
The secretary of state shall be authorized to revoke the
certificate of any such corporation or association, hereto-
fore authorized by him to do business in this state.
MICHIGAX. 151
SEC. 4. \ny violation of either or all of the provisions
of this act shall be and is hereby declared a conspiracy
against trade, and any person who may become engaged
in any such conspiracy or take part therein, or aid or ad-
vise in its commission, or who shall, as principal, mana-
ger, director, agent, servant or employer, or in any other
capacity, knowingly carry out any of the stipulations,
purposes, prices, rates, or furnish any information to
assist in carrying out such purposes, or orders thereunder
or in pursuance thereof, shall be punished by a fine of not
less than fifty dollars nor more than five thousand dollars,
or be imprisoned not less than six months nor more than
one year, or by both such fine and imprisonment. Each
clay's violation of this provision shall constitute a sepa-
rate offense.
SEC. 5. In any indictment for any offense named in
this act, it is sufficient to state the purpose or effects of
the trust or combination, and that the accused is a mem-
ber of, acted with or in pursuance of it, or aided or as-
sisted in carrying out its purposes, without giving its
name or description, or how, when and where it was
created.
SEC. 6. In prosecutions under this act, it shall be suffi-
cient to prove that a trust or combination, as defined
herein, exists, and that the defendant belonged to it, or
acted for or in connection with it, without proving all the
members belonging to it, or proving or producing any
article of agreement, or any written instrument on which-
it may have been based ; or that it was evidenced by any
written instrument at all. The character of the trust or
combination alleged may be established by proof of its
general reputation as such.
SEC. 7. Each and every firm, person, partnership, cor-
poration or association of persons, who shall in any man-
ner violate any of the provisions of this act, shall for
each and every day that such violation shall be committed
or continued, after due notice given by the attorney-gen-
eral or any prosecuting attorney, forfeit and pay the sum
of fifty dollars, which may be recovered in the name of
the state, in any county where the offense is committed, or
where either of the offenders reside. And it shall be the
duty of the attorney-general, or the prosecuting attorney
of any county on the order of the attorney-general, to
prosecute for the recovery of the same. When the action
152 LAWS ON TKUSTS AND MONOPOLIES.
is prosecuted by the attorney-general against a corpo-
ration or association of persons, he may begin the action
in the circuit court of the county in which defendant re-
sides or does business.
SEC. 8. That any contract or agreement in violation of
the provisions of this act shall be absolutely void and not
enforceable either in law or equity.
SEC. 9. That the provisions hereof shall be held cumu-
lative of each other and all other laws in any way affect-
ing them now in force in this state.
SEC. 10. It shall not be lawful for any person, partner-
ship, association or corporation, or any agent thereof, to
issue or to own trust certificates, or for any person, part-
nership, association or corporation, agent, officer or em-
ployee, or the directors or stockholders of any corporation,
to enter into any combination, contract or agreement
with any person or persons, corporation or corporations,
or with any stockholder or director thereof, the purpose
and effect of which combination, contract or agreement
shall be to place the management or control of such com-
bination or combinations, or the manufactured product
thereof, in the hands of any trustee or trustees with the
intent to limit or fix the price or lessen the production
and sale of any article of commerce, use or consumption,
or to prevent, restrict or diminish the manufacture or
output of any such article, and any person, partnership,
association or corporation that shall enter into any such
combination, contract or agreement for the purpose afore-
said shall be deemed guilty of a misdemeanor, and on
conviction thereof shall be punished by a fine not less than
fifty dollars, nor more than one thousand dollars.
SEC. 11. In addition to the criminal and civil penalties
herein provided, any person who shall be injured in his
business or property by any other person or corporation
or association or partnership, by reason of anything for-
bidden or declared to be unlawful by this act, may sue
therefor in any court having jurisdiction thereof in the
county where the defendant resides or is found, or any
agent resides or is foiind, or where service may be ob-
tained, without respect to the amount in controversy,
and to recover twofold the damages by him sustained,
and the costs of suit. Whenever it shall appear to the
court, before which any proceedings under this act may
be pending, that the ends of justice require that other
parties shall be brought before the court, the court may
MICHIGAN. 153
cause them to be made parties defendant and summoned,
whether they reside in the county where such action is
pending or not.
SEC. lla. No person shall be excused from attending
and testifying, or from producing books, papers, con-
tracts, agreements and documents in any cause, suit or
proceeding, civil, criminal or otherwise, based upon or
growing out of any alleged violation of any of the pro-
visions of this act, or of any act amendatory or declara-
tory hereof, or supplemental hereto, in any court of com-
petent jurisdiction, on the ground or for the reason that
the testimony or evidence, documentary or otherwise, re-
quired of him, may tend to criminate him or subject him
to fine, punishment, penalty or forfeiture. The attend-
ance and testimony of such persons in such cases and the
production of such books, papers, contracts, agreement
and documents, may be enforced in the same manner as
in any other cause, suit or proceeding. But no person
shall be prosecuted or subjected to any fine, imprisonment,
penalty or forfeiture for or on account of any matter or
thing concerning which he may testify, or produce evi-
dence, documentary or otherwise, in any such case, suit
or proceeding. No testimony so given by him shall in
any prosecution be used as evidence, either directly or in-
directly, against him; provided, that immunity shall ex-
tend only to a natural person who in obedience to a sub-
poena gives testimony under oath, or produces evidence,
documentary or otherwise, under oath ; provided further,
that no person so testifying shall be exempt from prose-
cution and punishment for perjury committed in so testi-
fying. (Added, Public Acts 1911, No. 2.)
SEC. 12. The word " person " or " persons," whenever
used in this act, shall be deemed to include corporations,
partnerships and associations existing under or author-
ized by the laws of the state of Michigan, or any other
state, or any foreign country.
SEC. 13. All acts or parts of acts contravening the pro-
visions of this act are hereby repealed. (P. A. 1899, No.
255.)
ANTI-TRUST LAW OF JUNE 16, 1905.
SECTION 1. That all contracts, understandings, and
agreements, made or entered into by and between parties
capable of making a valid contract, the purpose or intent
of which is to prohibit, restrict, limit, control, or regu-
late the sale of any article of machinery, tools, imple-
154 LAWS ON TRUSTS AND MONOPOLIES.
ments, vehicles, or appliances designed to be used in any
branch of productive industry, or to enhance or control
or regulate the price thereof; or in any manner to re-
strict, limit, regulate or destroy free and unlimited com-
petition in the sale thereof, shall be deemed illegal and
void as in restraint of trade; provided, that nothing in
this act shall be construed to impair or invalidate agree-
ments or contracts known to the common law and in
equity as those relating to good will of trade.
SEC. 2. Contracts, understandings, and agreements of
the following nature, whether written or oral, are hereby
declared to be illegal and void under the provisions of
section 1 of this act :
First. Contracts compelling and requiring that any
particular make or brand of any article of machinery,
tools, implements, vehicles, or appliances designed to be
used in any branch of productive industry, shall be dealt
in or sold, by either party to such contract, to the exclu-
sion of all other makes or brands of such article or
articles.
Second. Contracts providing for the exclusive sale of
certain makes or brands of manufactured articles of ma-
chinery, tools, implements, vehicles, or appliances de-
signed to be used in any branch of productive industry,
and stipulating certain sums to be paid as liquidated
damages to either party for every article so sold of other
than the specified make or brand.
SEC. 3. Any person making or entering into any con-
tract, understanding, or agreement made illegal by the
terms of this act, or who shall do any act in pursuance
of carrying the same into effect in whole or in part, shall
be deemed guilty of a misdemeanor, and shall, upon
conviction, be punished by a fine of not less than ten
nor more than one hundred dollars, or by imprisonment
in the county jail not more than ninety days, or by both
such fine and imprisonment at the discretion of the court.
SEC. 4. Any partnership limited, or corporation, or-
ganized under the laws of this state, or authorized to
carry on business in this state, which shall make, execute
or enter into any contract, understanding or agreement
made illegal under, the terms of this act, or shall do any
act in pursuance of carrying the same into effect in
whole or in part, shall be deemed to be guilty of a mis-
user and shall forfeit its charter and all rights there-
under.
MICHIGAN. 155
SEC. 5. It shall be the duty of the attorney-general
to file an information in the nature of quo warranto,
upon his own relation, or the relation of any person, on
leave granted, against any corporate body whenever it
shall violate any of the provisions of this act.
SEC. 6. Any person who shall be injured in his busi-
ness or property, through the making or operating of
any contract, understanding or agreement, made in vio-
lation of this act, shall have a right of action against
the parties to such contract, understanding or agreement
for all damages sustained by him in consequence thereof,
and may recover the same in any court of competent
jurisdiction. (P. A., 1905, No. 229.)
ANTI-TRUST LAW OF JUNE 20, 1905.
SECTION 1. All agreements and contracts by which any
person, copartnership or corporation promises or agrees
not to engage in any avocation, employment, pursuit,
trade, profession, or business, whether reasonable or un-
reasonable, partial or general, limited or unlimited, are
hereby declared to be against public policy and illegal
and void.
SEC. 2. All combinations of persons, copartnerships,
or corporations made and entered into for the purpose
and with the intent of establishing and maintaining or
of attempting to establish and maintain a monopoly of
any trade, pursuit, avocation, profession, or business, are
hereby declared to be against public policy and illegal
and void.
SEC. 3. Any corporation organized under the laws of
this State for the purpose of establishing and maintain-
ing, or attempting to establish or maintain, any combi-
nation of persons, copartnerships or corporations with
intent to establish and maintain or of attempting to es-
tablish and maintain a monopoly of any trade, pursuit,
avocation, profession, or business, is hereby declared to
be against public policy and illegal and void.
SEC. 4. Any foreign corporation organized for the pur-
pose and with the intent of establishing and maintain-
ing or of attempting to establish and maintain a monop-
oly of any trade, pursuit, avocation, profession, or busi-
ness, is hereby prohibited from doing business in this
state, and any permission or authority heretofore ob-
tained by any such corporation to do business in this
state is hereby declared to be illegal and void.
150 LAWS OX TRUSTS AXD MONOPOLIES.
SEC. 5. This act shall apply to agreements, contracts,
and combinations in restraint of trade or commerce here-
tofore entered into or made, and which are sought to be
enforced or maintained after this act takes effect; and all
contracts and agreements in violation of this act hereto-
fore made, expressly or impliedly, continuing in force
after this act takes effect, are hereby declared to be
against public policy and illegal and void.
SEC. 6. This act shall not apply to any contract men-
tioned in this act nor in restraint of trade, where the only
object of the restraint imposed by the contract is to pro-
tect the vendee or transferee of a trade, pursuit, avo-
cation, profession, or business, or the good will thereof,
sold and transferred for a valuable consideration in
good faith and without any intent to create, build up,
establish, or maintain a monopoly.
SEC. 7. This act 'is declared to be supplementary to,
and declaratory of. and in addition to Act Xo. 255 of the
Public Acts of 1899, p. 409. (P. A., 1905, Xo. 329.)
[Xo. 135.]
AN ACT To prevent unfair commercial discrimination between
different localities for ilie purpose of ruining the business of a
competitor.
The People of the State of Michigan enact:
SECTION 1. Any person, firm, company, association or
corporation, foreign or domestic, doing business in the
State, and engaged in the production, manufacture or
distribution of any petroleum products, that shall inten-
tionally, for the purpose of destroying the business of a
competitor in any locality, discriminate between different
sections, communities or cities of this State, by selling
such commodity at a lower rate in one section, community
or city, than is charged for said commodity by said party
in another section, community or city, after making due
allowance for the difference, if any, in the grade or qual-
ity and in the actual cost of transportation from the
point of production, if a raw product, or from the point
of manufacture, if a manufactured product, shall be
deemed guilty of unfair discrimination, which is hereby
prohibited and declared unlawful.
SEC. 2. Any person, firm, company, association or cor-
poration violating any of the provisions of the preceding
section, and any officer, agent or receiver of any firm,
company, association or corporation, or any member of
MICHIGAN, 157
the same, or any individual found guilty of a violation
thereof, shall be fined not less than five hundred dollars
nor more than five thousand dollars or be imprisoned in
the county jail not to exceed one } 7 ear, or suffer both
penalties.
SEC. 3. All contracts or agreements made in violation
of any of the provisions of the two preceding sections
shall be void.
SEC. 4. It shall be the duty of the county prosecuting
attorneys in their counties, and the Attorney General of
the State, to enforce the pro visions, of the preceding sec-
tions of this act by appropriate actions in courts of
competent jurisdiction.
SEC. 5. If complaint shall be made to the Secretary of
State that any corporation authorized to do business in
this State is guilty of unfair discrimination within the
terms of this act, it shall be the duty of the Secretary of
State to refer the matter to the Attorney General who
shall, if the facts justify it in his judgment, institute pro-
ceedings in the courts against such corporation.
SEC. 6. If any corporation, foreign or domestic, au-
thorized to do business in this State, is found guilty of
unfair discrimination within the terms of this act, it
shall be the duty of the Secretary of State to immediately
revoke the permit of such corporation to do business in
this State.
SEC. 7. If after revocation of its permit such corpora-
tion, or any other corporation not having a permit and
found guilty of having violated any of the provisions
of this act, shall continue or attempt to do business in
this State, it shall be the duty of the Attorney General,
by a proper suit in the name of the State, to oust such
corporation from all business of overy kind and char-
acter in said State.
SEC. 8. Nothing in this act shall be construed as re-
pealing any other act, or part of act, but the remedies
herein provided shall be cumulative to all other reme-
dies provided by law.
Approved May 1, 1913.
COURT DECISIONS.
David M. Eichardson v. Christian H. Buhl and Russell
A. Alger, 77 Mich., 632.
Daniel Lovejoy and E. W. Lovejoy v. Jacob Michels,
88 Mich., 15.
158 LAWS ON TKUSTS AND MONOPOLIES.
Merz Capsule Co. v. United States Capsule Co., 67
Fed., 414.
Detroit Salt Co. v. National Salt Co., 10 Det. L. N.,
366; 96 N. W., 1.
Bingham v. Brands, 119 Mich., 255.
Hitchcock v. Anthony, 28 C. C. A., 80; 83 Fed., 779.
Wolverine Fish Co. v. Booth, 143 Mich., 89 ; 106 N. W.,
Booth v. Davis, 127 Fed., 875.
Hunt v. Riverside Co-operative Club, 140 Mich., 538;
104 N. W., 40; Am. St. Eep., 420.
Bigelow v. Calumet & Hecla Mining Co., 155 Fed., 869.
Grand Union Tea Co. v. Lewitsky, 153 Mich., 244; 116
N. W., 1090.
MINNESOTA.
STATUTES.
No person or association of persons shall enter into
any pool, trust agreement, combination or understanding
whatsoever with any other person or association, corpo-
rate or otherwise, in restraint of trade, within this state,
or between the people of this or of any other state or
country, or which tends in any way or degree to limit, fix,
control, maintain or regulate the price of any article of
trade, manufacture or use bought and sold within the
state, or which limits or tends to limit the production of
any such article, or which prevents or limits competition
in the purchase and sale thereof, or which tends or is
designed so to do. Every person violating any provision
of this section, or assisting in such violation, shall be
guilty of a felony, and upon conviction thereof shall be
punished by a fine of not less than five hundred dollars
nor more than five thousand dollars, or by imprisonment
in the state prison for not less than three nor more than
five years. (Sec. 5168.)
Every domestic corporation which shall, directly or in-
directly, violate any provision of section 5168, or which
shall in any way assist in carrying out any of the pur-
poses of such illegal pool, trust agreement, combination
or understanding, in addition to the penalties imposed
upon the members thereof by said section, shall forfeit all
its corporate franchises; and every foreign corporation
admitted to transact business in this state, guilty of like
conduct, shall thereafter be prohibited from continuing
its. business therein. The attorney-general and the sev-
eral county attorneys shall begin and conduct, in the dis-
trict court, all actions and proceedings necessary to en-
force the provisions of this section, and any citizen may
do so. Said court, by injunction or restraining order,
may prohibit the transaction of business by such corpo-
ration pending the trial of such action. (Sec. 5170.)
See also L. 1907, c. 269.
159
160 LAWS ON TRUSTS AND MONOPOLIES.
COURT DECISIONS.
Cornelius G. Kolff v. St. Paul Fuel Exchange et al.,
48 Minn., 215.
Bohn Manufacturing Co. v. W. G. Hollis et al., 54
Minn., 223.
Ertz v. Produce Exchange Co.. 82 Minn., 173; 51
L. R. A., 825.
Minnesota v. Northern Securities Co., 123 Fed., 692.
Berryhill v. St. Paul Gaslight Co., 100 N. W., 216.
Espenson v. Koepke. 93 Minn., 278; 101 K W.. 168.
MISSISSIPPI.
CONSTITUTION.
SEC. 198. The legislature shall enact laws to prevent all
trusts, combinations, contracts, and agreements inimical
t".n tint* Tin Kl i r> wl rayo
to the public welfare.
[Adopted, November 1, 1890.]
STATUTES.
Section 5002 of Mississippi Code of 1906, as amended
by L. 1908, c. 119, section 1, provides:
A trust and combine is a combination, contract, under-
standing, or agreement, expressed or implied, between
two or more persons, corporations or firms, or associa-
tions of persons, or between one or more of either with
one or more of the others :
(a) In restraint of trade;
(b) To limit, increase or reduce the price of a com-
modity ;
(c) To limit, increase or reduce the production or out-
put of a commodity ;
(d) Intended to hinder competition in the production,
importation, manufacture, transportation, sale or pur-
chase of a commodity;
(e) To engross or forestall a commodity;
(f) To issue, own or hold the certificate of stock of
any trust or combine;
(g) To place the control, to any extent, of business
or the products and earnings thereof, in the power of
trustee, by whatever name called;
(h) By which any other persons than themselves, their
proper officers, agents and employees shall, or shall have
the power to, dictate or control the management of busi-
ness; or
(i) To unite or pool interests in the importation,
manufacture, production, transportation, or price of a
commodity ; and is inimical to the public welfare, unlaw-
ful and a criminal conspiracy.
1649113 11 161
162 LAWS ON TKUSTS AND MONOPOLIES.
Any corporation organized under the la\vs of this or
any other state, or country, and transacting or conduct-
ing any kind of business in this state, or any partnership
or individual, or other association of persons whatever,
who are now, or shall hereafter create, enter into, or be-
come a member of, or party to, any pool, trust, combine,
agreement, combination, confederation or understanding,
whether the same is made in this state or elsewhere, with
any other corporation, partnership, individual, or with
any other person, or association of persons, to regulate
or fix in this state the price of any article of manufacture,
mechanism, merchandise, commodity, convenience, re-
pair, any product of mining, or any article or thing
whatsoever, or the price or premium to be paid for in-
suring property against loss or damage by fire, lightning
or tornado, or to maintain said price when so regulated
or fixed, or who are now, or shall hereafter enter into,
become a member of or party to, any pool, agree-
ment, contract, combination, association or confederation,
whether made in this state or elsewhere, to fix or limit
in this state the amount or quantity of any article of
manufacture, mechanism, merchandise, commodity, con-
venience, repair, any product of mining, or any article
or thing whatsoever, or the price or premiums to be paid
for insuring property against loss or damage by fire,
lightning, storm, cyclone, tornado, or any other kind of
policy issued by any corporation, partnership, individual,
or association of persons aforesaid, shall be deemed and
adjudged guilty of a conspiracy to defraud, and subject
to the penalties as provided by chapter 145, of the Code
of 1906.
Any corporation, domestic or foreign, or individual,
partnership or association of persons whatsoever;
(j) Who shall restrain, or attempt to restrain the free-
dom of trade or production ;
(k) Or who shall monopolize or attempt to monopolize
the production, control or sale of any commodity, or the
prosecution, management or control of any kind, class
or description of business;
(1) Or who shall engross or forestall,' or attempt to
engross or forestall any commodity;
(m) Or who shall destroy or attempt to destroy com-
petition in the manufacture or sale of a commodity, by
selling or offering same at a price below the normal cost
of production;
MISSISSIPPI. 163
(n) Or who shall destroy or attempt to destroy com-
petition in the manufacture or sale of a commodity, by
selling or offering* the same for sale at a lower price at
one place in this state than another, differences of freight
and other necessary expenses of sale and delivery con-
sidered ;
(o) Or who shall destroy or attempt to destroy com-
petition by rendering any service or manipulating, han-
dling or storing any commodity for a less price in one
locality than in another, the differences in the necessary
expenses of carrying on the business considered.
Shall be deemed and held a trust and combine within
the meaning and purpose of this act, and chapter 14 of
the code of 1906, and shall be liable to the pains, penal-
ties, fines, forfeitures, judgments and recoveries de-
nounced against trusts and combines in said chapter 145
of the code of 1906, and shall be proceeded against in
manner and form therein provided, as in case of other
trusts and combines. And it shall be sufficient to make
out a prima facie case of a violation of subdivision " n "
hereof to show a sale or offer of sale of commodity at a
lower price at one place in this state than another, or a
violation of subdivision " o " to show a lower charge for
the services therein mentioned in one locality than
another.
L. 1908, c. 119, Sec. 2, provides :
" No right, liability, pain, penalty, forfeiture, fine or
suit, prosecution, or offense committed, under laws ex-
isting prior to this amendment, of said section 5002 of
the code of 1906, shall be in any wise remitted, released,
taken away or affected by such amendment, but the same
shall be asserted, prosecuted, declared, inflicted, imposed,
proceeded with and adjudged according to the law in
force prior to this amendment."
Section 5003 of the Mississippi Code of 1906 provides :
" Every contract or agreement to enter into or pursue
any trust and combine, and every contract or agreement
made by another with any trust and combine, or with
any member of a trust and combine, for any purpose rela-
tive to the business of such trust and combine, is void,
and cannot be enforced in any court."
Section 5004, of the Mississippi Code of 1906, as
amended by L. 1910, c. 222, provides:
Any person, corporation, partnership, firm or associa-
tion, or any representative or agent thereof, violating
164 LAWS ON TKUSTS AND MONOPOLIES.
any of the provisions of this chapter shall forfeit not less
than twenty dollars nor more than five hundred dollars
for every such offense and each day any person, corpora-
tion, partnership, firm or association shall continue to
do so, shall be a separate offense; and the penalty in
such cases can be recovered by the state on the relation
of the attorney-general or district attorney; and it shall
be the duty of the several circuit judges to specially call
the attention of the grand juries to this provision; but
no prosecution, pain, penalty, or forfeiture for offenses
committed under laws already existing at the time of the
adoption of this act, shall be in anywise remitted, re-
leased, or taken away by reason hereof or anything con-
tained, but the same shall be proceeded with, adjudged,
imposed and inflicted in conformity with laws already
existing and in conformity with all the provisions of
chapter 145, Code of Mississippi of 1906, which may be
constitutionally applicable thereto.
Section 5005 of Mississippi Code of 1906, as amended
by L. 1910, c. 223, provides :
No corporation shall directly or indirectly hereafter
purchase, or in any manner acquire the capital stock or
any part thereof of any other competing corporation do-
ing business in this state, nor directly or indirectly here-
after purchase or in any manner acquire, the franchise,
plant or equipments of any other corporation doing busi-
ness in this state, if such other corporation be engaged
in the same kind of business and being a competitor
therein. Any corporation offending against this provi-
sion shall forfeit its charter, if a domestic corporation,
and if a foreign corporation shall forfeit its right to do
business in this state, and shall be proceeded against by
the attorney general in manner and form provided in
section 5004 of this chapter; but no prosecution, pain,
penalty, or forfeitures for offenses committed under laws
already existing at the time of the adoption of this act,
shall in any wise be remitted, released, or taken away, by
reason hereof or anything herein contained, but the same
shall be pro< needed with and in conformity with all the
provisions of Chapter 145, Code of Mississippi of 1906,
which may be constitutionally applicable thereto.
Section 5006 of the Mississippi Code of 1906 provides :
No corporation, domestic or foreign, shall engage in
any business not expressly authorized by its charter, nor
fairly and reasonably incidental to the business therein
MISSISSIPPI. 165
authorized. Any corporation offending against this pro-
vision shall, if a domestic corporation, forfeit its charter,
and if a foreign corporation, shall forfeit its right to do
business in this state and shall be proceeded against by
the attorney-general in manner and form provided in
section 5004.
Section 5007 of the Mississippi Code of 1906, as
amended by c. 250, L. 1912, provides:
Any person injured or damaged by a trust and com-
bine as herein defined, or its effects direct or indirect,
may, in each instance, of such injury or damage, recover
the sum of five hundred dollars, and all actual damages ;
and he may maintain his action therefor against one or
more of the parties to the trust and combine, their attor-
neys, officers and agents, and that whether or not all
parties to the trust and combine be known or whether
or not the trust and combine were made or shall exist in
this state. And in any suit under this section, proof by
any party plaintiff that he has been compelled to pay
more for any commodity, or to accept less for any com-
modity, or to pay more for any service rendered by any
corporation exercising a public franchise, by reason of
the unlawful act or agreement of the defendant trust,
its officers, agents or attorneys, than he would have been
compelled to give or accept, but for such unlawful act
or agreement, shall be prima facie evidence of damage,
and in every such case proof of an unlawful purpose or
agreement to raise or lower price or cost shall be prima
facie evidence that such price or cost was raised or low-
ered by reason of such purpose or agreement.
Section 5008 of the Mississippi Code of 1906 provides :
If any person, association, firm or corporation shall
combine with any other person, association, firm or cor-
poration, or if either of them combine with one or more
of the others to prevent, by pooling, any or either of said
persons, associations, firms or corporations from sep-
arately or individually bidding for the performance of a
public work for the state, or any county, municipality,
or levee board thereof; or if any person, association,
firm or corporation shall prevent, by persuasion or re-
ward, any other person, association, firm or corporation,
or any one or more of them, from bidding for the per-
formance of such public work, they, and each of them,
shall be guilty of a misdemeanor, and shall be fined not
less than twentv-five nor more than one thousand dollars.
166 LAWS ON TKUSTS AND MONOPOLIES.
Section 5009 of the Mississippi Code of 1906 provides :
All sums of money to be paid on any contract on behalf
of the state, or any county, municipality or levee board
thereof, when the provision of the last preceding section
had been violated, shall not be collectible, nor shall the
same be paid by any officer or board having the payment
thereof.
Section 5010 of the Mississippi Code of 1906 provides :
Proceedings of any and every kind for forfeiture of
charter, for forfeiture of right to do business in this state,
for recovery of damages and all civil proceedings of any
character whatever authorized by law for the execution
and enforcement of the anti-trust laws of this state may
be brought against any corporation in any county where
it has a domicile or place of business, or where any of its
officers or agents may be found.
Section 5011 of the Mississippi Code of 1906 provides:
Like proceedings against any two or more of any num-
ber of corporations or individuals, or of corporations and
individuals believed to be parties to any trust and com-
bine, may be brought in the county where the trust and
combine was formed, or where it exists or is carried on.
promoted, operated, practiced, employed, used or en-
joyed; or in any county in which either of the defendants
may have a domicile, or where an officer or agent of any
defendant corporation may be found. And all such pro-
ceedings may be prosecuted to final judgment or decree
against any one or more of the defendants thereto, not-
withstanding there may be a dismissal, acquittal, verdict,
judgment or decree in favor of the local or any other
defendant.
Section 5012 of the Mississippi Code of 1906 provides :
Criminal prosecutions, under the anti-trust laws of this
state, may be instituted and conducted to final judgment
against any one or more of any number of corporations
or individuals, or both in any county in which a violation
of said laws has been committed by them or in any county
in which they formed a trust and combine, or in which
such trust and combine, though formed elsewhere, is by
them, or any of them, carried on, promoted, employed,
operated, used or enjoyed.
Section 5013 of the Mississippi Code of 1906 provides :
No person called as a witness in any prosecution or
proceeding to enforce the anti-trust laws of this state,
MISSISSIPPI. 167
though himself a defendant therein or an officer, attor-
ney, agent or employee of a defendant or stockholder in
a defendant corporation, shall be excused from testifying
upon the ground that his evidence might criminate or
tend to criminate himself; but every person, otherwise
competent, when called as a witness in such cases, shall
be required to testify and to disclose all facts known to
him which are pertinent to the issue.
Section 5014 of the Mississippi Code of 1906 provides :
But the testimony so given shall not be used in any
prosecution or proceeding, civil or criminal, against the
person so testifying. A person so testifying shall not
thereafter be liable to indictment or presentment by in-
formation, nor to prosecution or punishment for the of-
fense with reference to which his testimom^ was given,
and may plead or prove the giving of testimony accord-
ingly in bar of such indictment, information or prose-
cution.
Section 5015 of the Mississippi Code of 1906 provides :
Every corporation shall be answerable for any unlaw-
ful act, contract, agreement, arrangement, understanding
or combination done, made or entered into for and on its
behalf by any officer, stockholder, agent or attorney per-
mitted or suffered to manage, direct, regulate or control
its business in that particular, and such unlawful act,
contract, agreement, arrangement, understanding or com-
bination shall be deemed and held to have been done,
made or entered into by the corporation itself as fully
as if done, made or entered into by its board of directors
by regular vote duly entered upon the minutes.
Section 5016 of Mississippi Code, as amended by L.
1908, c. 204, provides:
It shall be the duty of the district attorneys in their
several districts and of the attorney general of the state
to enforce the anti-trust laws of this state by proceeding
in the nature of quo warranto by injunction or any other
appropriate remedy, civil or criminal, at law or in equity.
Jurisdiction is hereby conferred upon the Chancery
Court to hear and determine all suits arising out of vio-
lations of the anti-trust laws, and such courts may grant
injunctions, appoint receivers, impose the penalties pro-
vided by law and enter such orders and decrees as may
be necessary to prevent the continued operation of unlaw-
ful trusts and combines within this state.
168 LAWS ON TRUSTS AND MONOPOLIES.
Section 5017 of the Mississippi Code of 1906 provides :
Any corporation may be required under a subpoena
duces tecum served upon its president, secretary or any
of its directors, to produce in court and submit to inspec-
tion upon the trial of any proceeding, civil or criminal,
under the anti-trust laws of this state, any books, minutes,
records, papers, documents, vouchers or writings belong-
ing to or in the possession of such corporation.
Section 5019 of the Mississippi Code of 1906 provides :
Any corporation failing or refusing to comply with
the order of such subpoena duces tecum, when duly served
as herein provided, shall be in contempt of court, and
shall be punished by a fine of not less than one hundred
dollars nor more than two thousand dollars.
Section 5020 of the Mississippi Code of 1906 provides :
No prosecution, pain, penalty or forfeiture for offenses
committed under laws already existing at the time of
the adoption of this chapter shall be in anywise remitted,
released, or taken away by reason thereof of anything
herein contained; but the same shall be proceeded with,
adjudged, imposed and inflicted in conformity with the
laws already existing and in conformity with all the
provisions of this chapter which may be constitutionally
applicable thereto; provided, that the trial court may
impose upon each person or corporation in a trust and
combine a fine of not less than two hundred nor more
than five thousand dollars; or the court may not impose
such fine but order and adjudge a forfeiture of its charter
if a domestic corporation, or the forfeiture of its right
or license to do business in this state if a foreign cor-
poration; or the court may impose such fine and adjudge
the forfeiture of charter or right or license to do business
in this state ; provided, that for offenses committed prior
to the adoption of this chapter the court may not inflict
both a fine and forfeiture of charter or license to do busi-
ness in this state.
Section 5021 of the Mississippi Code of 1906 provides:
All acts and parts of acts in conflict with this chapter
are hereby repealed ; but no right, liability, pain, penalty,
forfeiture or prosecution under laws existing prior to
the adoption of this chapter shall be in anywise affected
thereby, but the same may be asserted, prosecuted, de-
clared, inflicted and imposed under the laws in force
prior to the adoption of this chapter. This chapter shall
MISSISSIPPI. 169
be liberally construed in all courts to the end that trusts
and combines may be suppressed, and the benefits arising
from competition in business preserved to the people of
this state.
COURT DECISIONS.
American Fire Insurance Co. et al v. State, 75 Miss..
24 ; 22 So. Eep., 99.
Greenville Compress and Warehouse Co. v. Compress
and Warehouse Co., TO Miss., 669.
Houck v. Wright, 77 Miss., 476.
B. F. Johnson Pub. Co. v. Mills, 79 Miss., 543.
Barataria Canning Co. v. Joulian, 80 Miss., 555.
Kosciusko Oil Mill & Fertilizer Co. v. Wilson Cotton
Oil Co., 90 Miss., 551.
State v. Jackson Cotton Oil Co., 48 So. Eep., 300.
MISSOURI.
STATUTES.
Chapter 98 of the Revised Statutes as amended in 1913,
entitled " Pools, Trusts, Conspiracies and Discrimina-
tions."
SEC. 10298. Any person who shall create, enter into, be-
come a member of or participate in any pool, trust, agree-
ment, combination, confederation or understanding with
any person or persons in restraint of trade or competition
in the importation, transportation, manufacture, purchase
or sale of any product or commodity in this state, or any
article or thing bought or sold whatsoever, shall be
deemed and adjudged guilty of a conspiracy in restraint
of trade, and shall be punished as provided in this ar-
ticle.
SEC. 10299. Any person who shall create, enter into, be-
come a member of or participate in any pool, trust, agree-
ment, combination, confederation or understanding with
any other person or persons to regulate, control or fix the
price of any article of manufacture, mechanism, merchan-
dise, commodity, convenience or repair, or any product of
mining, or any article or thing whatsoever, of any class
or kind bought and sold, or the price or premium to be
paid for insuring property against loss or damage by
fire, lightning or storm, or to maintain said price when
so regulated or fixed, or shall enter into, become a mem-
ber of or participate in any pool, trust, agreement, con-
tract, combination, confederation or understanding, to
fix or limit the amount (or) quantity of any article of
manufacture, mechanism, (merchandise), commodity,
convenience, repair, any product of mining, or any ar-
ticle or thing whatsoever of any class or kind bought and
sold, or the price or premium to be paid for insuring
property against loss or damage by fire, lightning or
storm, shall be deemed and adjudged guilty of a con-
spiracy in restraint of trade, and be punished as pro-
vided for in this article.
171
172 LAWS ON TRUSTS AND MONOPOLIES.
SEC. 10300. Any two or more persons engaged in
buying or selling any article of commerce, manufac-
ture, mechanism, commodity, convenience, repair, any
product of mining, or any article or thing of any class or
kind whatsoever, who shall create, enter into, become
members of or participate in any pool, trust, agreement,
combination, confederation, association or understand-
ing to control or limit the trade in any such article or
thing, or to limit competition in such trade by refusing
to buy from or sell to any other person any such article
or thing aforesaid, for the reason that such other person
is not a member of or a party to such pool, trust, com-
bination, confederation, association or understanding, or
shall boycott or threaten any person from buying or sell-
ing to any other person who is not a member of or a
party to such pool, trust, agreement, combination, con-
federation, association or understanding in such article
or thing aforesaid, shall be deemed and adjudged guilty
of a conspiracy in restraint of trade, and punished as
provided for in this article.
SEC. 10301. All arrangements, contracts, agreements,
combinations or understandings made, or entered into
between any two or more persons, designed or made with
a view to lessen, or which tend to lessen, lawful trade,
or full and free competition in the importation, trans-
portation, manufacture or sale in this state of any prod-
uct, commodity or article, or thing bought and sold, of
any class or kind whatsoever, including the price or
premium to be paid for insuring property against loss or
damage by fire, lightning or storm, and all arrange-
ments, contracts, agreements, combinations or under-
standings made or entered into between any two or more
persons which are designed or made with a view to in-
crease, or which tend to increase the market price of any
product, commodity or article or thing, of any class or
kind whatsoever bought and sold, including the price or
premium to be paid for insuring property against loss or
damage by fire, lightning or storm, are hereby declared
to be against public policy, unlawful and void; and any
person or persons creating, entering into, becoming a
member of or participating in such arrangements, con-
tracts, agreements, combinations or understandings shall
be deemed and adjudged guilty of a conspiracy in re-
straint of trade, and punished as provided for in this
article.
MISSOURI. 173
SEC. 10302. Any person violating any of the pro-
visions of this act, or who shall do any act pro-
hibited or declared unlawful by the provisions of this act,
shall be adjudged guilty of a felony, and upon convic-
tion thereof shall be punished by imprisonment in the
penitentiary not exceeding five years or by imprison-
ment in the county jail not exceeding one year, or by a
fine of not less than five hundred dollars nor more than
five thousand dollars, or by both such fine and imprison-
ment.
SEC. 10303. The several circuit courts of this state
are hereby invested with jurisdiction to prevent and
restrain any person or persons, corporation (.) part-
nership, individual or association of individuals from en-
tering into any combinations, pools, agreements in the
form of trusts, confederation, conspiracy or understand-
ing declared illegal by this act, or any other law of this
state relative to pools, trusts, conspiracies and unlawful
combinations. And it shall be the duty of the attorney-
general and of the prosecuting attorneys to institute pro-
ceedings in equity to prevent and restrain all violations
of this act and of any other law concerning pools, trusts
and conspiracies and unlawful combinations. Such pro-
ceedings may be by way of petition, setting forth the
case and praying that such violation be enjoined or other-
wise 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 determina-
tion of the case; anS pending such petition, and before
final decree, the court may, at any time, make such tempo-
rary restraining order or prohibition as shall be deemed
just in the premises.
SEC. 10304. Any corporation created or organized by
or under the laws of this state which shall violate any
of the provisions of this act may, upon proper proof being
made thereof in any court of competent jurisdiction in
this state, be declared by the court to have forfeited its
corporate rights and franchises, and the same may by the
court be declared forfeited, void and of non-effect, and
shall thereupon cease and determine ; and such court may,
by such judgment and decree, also declare all or any part
of the property of such corporation forfeited unto the '
state, or in lieu of the forfeiture of its corporate rights
and franchises, or in lieu of the forfeiture of all or any
part of the property of such corporation, assess against it
174 LAWS ON TRUSTS AND MONOPOLIES.
a fine; and any corporation created or organized by or
under the laws of any other state or country which shall
violate any of the provisions of this act shall, upon proper
proof being made thereof in any court of competent juris-
diction in this state, be declared by the court to have
forfeited its right and privilege thereafter to do any busi-
ness in this state, and the same shall by the court be de-
clared forfeited, void and of non-effect, and shall there-
upon cease and determine; and such court may, by judg-
ment and decree, also declare all or any part of the prop-
erty in this state of such corporation forfeited unto the
state, or in lieu of the forfeiture of its right and privi-
lege to do business in this state, or in lieu of the forfeiture
of all or any part of the property of such corporation,
assess against it a fine; and in all proceedings for the
violation of any of the provisions of this act against any
corporation created or organized under the laws of this
or any other state or country, proof of the acts of any
person who has been acting as the agent of such corpora-
tion in transacting its business in this state in the name,
behalf or interest of such corporation shall be received
as prima facie proof of the acts of the corporation itself ;
and it shall be the duty of the clerk of the court in which
any judgment of forfeiture shall be rendered, as herein
provided for, to certify the decree thereof to the secretary
of state, and if it be an insurance company, also to the
superintendent of the insurance department, who shall
take notice and be governed thereby as to the corporate
powers and rights of said corporation; and in case any
court shall render a decree forfeiting all or any part of
the property of any corporation violating the provisions
of this act, such court shall also appoint a receiver thereof
to dispose of the same in such manner as the court may
direct, and the net proceeds arising from the sale thereof
shall be paid into the state treasury, as shall all fines that
may be imposed against any person or corporation vio-
lating the provisions of this act be paid into the state
treasury.
SEC. 10305. Any person injured in his business or
property by any other person or persons by reason of
anything forbidden- or declared to be unlawful by this
act may sue therefor in any circuit court of this state
in which the defendant or defendants, or any of them,
reside, or have any officer, agent or representative, or in
which any such defendant or any agent, officer or repre-
MISSOUKI. 175
sentative may be found, without regard to the amount in
controversy, and shall recover threefold the damages by
him sustained, and the costs of suit, including a reason-
able attorney's fee.
SEC. 10306. It shall not be lawful for any corporation
to issue or to own trust certificates, or for any corpora-
tion, agent, officer or employee, or the directors or stock-
holders of any corporation, to enter into any combina-
tion, contract or agreement with any person or persons,
corporation or corporations, or with any stockholder or
director thereof, the purpose and effect of which com-
bination, contract or agreement shall be to place the
management or control of such combination or combina-
tions, or the manufactured product thereof, in the hands
of any trustee or trustees, with the intent to limit or fix
the price or lessen the production and sale of any article
of commerce, use or consumption, or to prevent, restrict
or diminish the manufacture or output of any such
article.
SEC. 10307. Any purchaser of any article or commodity
from any individual, company or corporation transacting
business contrary to any provision of the preceding sec-
tions of this act shall not be liable for the price or pay-
ment of such article or commodity, and may plead this
act as a defense to any suit for such price or payment.
SEC. 10308. That whenever the corporate rights and
privileges of any corporation organized under the laws of
this state shall have been declared forfeited by a judg-
ment of a court of competent jurisdiction for any viola-
tion of the provisions of this act, and whenever the rights
and privileges of any corporation organized under the
laws of any other state or country to do business in this
state, have been declared forfeited by a judgment of a
court of competent jurisdiction for the violation of any of
the provisions of this act it shall thereafter be unlawful
for any person, corporation or association of persons to
deal in or offer for sale in this state any article of
manufacture, mechanism, merchandise, commodity, con-
venience, repair, any product of mining, or article or
thing whatsoever, or contract of insurance against loss or
damage by fire, lightning or storm, made, produced, man-
ufactured or dealt in by any corporation whose rights,
franchises or privileges have been so declared to be for-
feited; and the foregoing provisions of this section are
hereby made applicable in all respects to the successors
176 LAWS ON TKUSTS AND MONOPOLIES.
or assigns of any corporations whose rights, franchises
or privileges have been so declared to be forfeited.
SEC. 10309. That the word person or persons, used in
this act, shall be deemed to include natural persons, part-
nerships, associations of persons and corporations created
or organized by or under the laws of this state, or under
the laws of any other state or country.
SEC. 10310. In any suit that is now pending, or which
may hereafter be brought in which it is charged that any
person, corporation, partnership or association of persons
has created, entered into, become a member of or partici-
pate in any pool, trust, agreement, combination, confed-
eration or understanding in restraint of trade or competi-
tion with any other person, corporation, partnership or
association of persons, it shall not be necessary to allege
or plead the manner in which, or when or where such
pool,' trust, agreement, combination, confederation or un-
derstanding was made or effected.
SEC. 103-11. In any proceeding brought to enforce the
provisions of this act, no witness shall be permitted to
refuse to answer any question material to the matter in
controversy, or shall be permitted to refuse to produce
any books or papers material to such inquiry upon the
ground that to produce such books and papers or to
answer such questions might tend to incriminate him or
subject him to a penalty or a forfeiture; but no person
shall be subject to prosecution or to any action for a
penalty or a forfeiture on account of any transaction,
matter or thing concerning which he may testify or pro-
duce books or papers.
SEC. 10312. In any indictment or information for the
violation of any of the provisions of this act, or for the
doing of anything forbidden or declared unlawful by
the provisions of this act, it shall be sufficient to allege
that any person or persons have created, entered into,
become members of or participated in any pool, trust,
agreement, combination, confederation or understand-
ing without alleging the manner in which such pool, trust,
agreement, combination, confederation or understand-
ing has been effected, and it shall not be necessary to
allege how, when* or where such pool, trust, agreement,
combination, confederation or understanding was ef-
fected.
SEC. 10313. The enactment and taking effect of this
article shall not have the effect to release or extinguish
MISSOURI. 177
any penalty, forfeiture or liability incurred by any cor-
poration or person on account of the violation of any
law of this state prior to the taking effect of this article.
SEC. 10313a. In any proceeding against or prosecution
of an}/ insurance company under the provisions of this
article, it shall be prima facie evidence that such com-
pany is a member of a pool, trust, agreement, confedera-
tion or understanding to control, effect or fix the price
or premium to be paid for insuring property against loss
or damage by fire, lightning or storm, if it be shown that
such company or any agent or representative thereof, in
writing insurance, has used any insurance rate, or made
use of or consulted any rate book, paper or card contain-
ing any insurance rate, prepared, published, kept or fur-
nished by any person, association of persons or bureau
employed by, representing or acting on behalf of any
other insurance company or association in and about the
making and publishing of insurance rates for use in any
portion of this state.
SEC. 10314. Any person, firm, company, association or
corporation, foreign or domestic, doing business in the
state of Missouri and engaged in the production, manu-
facture, purchase, sale or distribution of any commodity
or article of commerce in general use, that intentionally,
for the purpose of destroying the competition of any
regular, established dealer of such commodity, or to pre-
vent the competition of any person, who in good faith
intends and attempts to become such dealer, shall dis-
criminate between different sections, localities, commodi-
ties, cities or towns of this state, by purchasing such
cohimodity or article at a higher price or rate in one sec-
tion, locality, community, city or town, than is paid for
the same commodity or article by the said person, firm,
company, association or corporation, in another section,
locality, community, city or town; or by selling such com-
modity or article in one section, locality, community,
city or town at a lower price or rate than such commodity
or article is sold for by said person, firm, company, asso-
ciation or corporation in another section, locality, com-
munity, city or town, after making due allowance for the
difference, if any, in the grade or quality and in the
actual cost of transportation from the point of purchase
to the point of manufacture or storage, or from the point
of production, manufacture, or storage to the place of
sale or distribution, or by giving or paying or promising
1649113 12
178 LAWS ON TRUSTS AND MONOPOLIES.
to give or pay a secret or private rebate or bonus in con-
nection with the purchase, sale or distribution of any
commodity or article of commerce, shall be deemed guilty
of unfair discrimination which is hereby prohibited and
declared unlawful.
SEC. 10315. Any person, firm, company, association or
corporation violating any of the provisions of the pre-
ceding section, and any officer, agent or receiver of any
firm, company, association or corporation, or any member
of the same, or any individual, found guilty of a viola-
tion thereof, shall be fined not less than five hundred
dollars nor more than five thousand dollars, or be im-
prisoned in the county jail not to exceed one year, or
suffer both penalties.
SEC. 10316. All contracts or agreements made in viola-
tion of any of the provisions of the two preceding sec-
tions shall be void.
SEC. 10317. It shall be the duty of the prosecuting at-
torneys, in their counties, and the attorney-general to
enforce the provisions of the preceding sections of this
article by appropriate actions in courts of competent
jurisdiction.
SEC. 10318. If complaint shall be made to the secre-
tary of state that any corporation authorized to do busi-
ness in this state is guilty of unfair discrimination within
the terms of this article, it shall be the duty of the secre-
tary of state to refer the matter to the attorney-general,
who may, if the facts justify it in his judgment, insti-
tute proceedings in the courts against such corporation.
SEC. .10319. If any corporation, foreign or domestic,
authorized to do business in this state, is found guilty
of unfair discrimination, within the terms of this article,
it shall be the duty of the secretary of state to immedi-
ately revoke the permit of such corporation to do business
in this state.
SEC. 10320. If, after revocation of its permit, such
corporation, or any other corporation not having a per-
mit, and found guilty of having violated any of the
provisions of this article, shall continue or attempt to
do business in this state, it shall be the duty of the attor-
ney-general, by a -proper suit in the name of the state of
Missouri, to oust such corporation from all business of
every kind and character in said state of Missouri.
SEC. 10321. Nothing in this article shall be construed
as repealing any other act, or part of act, but the reme-
MISSOURI. 179
dies herein provided shall be cumulative to all other
remedies provided by law.
SEC. 10322. It shall be the duty of the secretary of state,
on or about the first day of July of each year, to address
to the president, secretary or managing officer of each
incorporated company in this state, a letter of inquiry as
to whether the said corporation has all or any part of its
business or interest in or with any trust, combination
or association of persons or stockholders, as named in the
preceding provisions of this chapter, and to require an
answer, under oath, of the president, secretary or man-
aging officer of said company. A form of affidavit shall
be enclosed in said letter of inquiry, as follows:
AFFIDAVIT.
State of Missouri, County of , ss.
I, , do solemnly swear that I am the
(president, secretary or managing officer) of the corpora-
tion known and styled , duly incorporated un-
der the laws of on the day of ,
19 , and now transacting or conducting business in the
state of Missouri, and that I am duly authorized to rep-
resent said corporation in the making of this affidavit,
and I do further swear that the said , known
and styled as aforesaid, is not now and has not at any
time within one year from the date of this affidavit, cre-
ated, entered into, become a member of or participated in
any pool, trust, agreement, combination, confederation
or understanding with any other corporation, partner-
ship, individual, or any other person or association of
persons, to regulate or fix the price of any article of man-
ufacture, mechanism, merchandise, commodity, conven-
ience, repair, any product of mining, or any article or
thing whatsoever, or the price or premium to be paid for
insuring property against loss or damage by fire, light-
ning (or) or storm; and that it has not entered into, or
become a member of or a party to any pool, trust, agree-
ment, contract, combination or confederation to fix or
limit the amount or quantity of any article of manufac-
ture, mechanism, merchandise, commodity, convenience,
repair, any product of mining, or any article or thing
whatsoever, or the price (or) premium to be paid for in-
suring property against loss or damage by fire, lightning
or storm ; and that it has not issued and does not own any
180 LAWS ON TRUSTS AND MONOPOLIES.
trust certificates, and for any corporation, agent, officer
or employee, or for the directors or stockholders of any
corporation, has not entered into and is not now in any
combination, contract or agreement with any person or
persons, corporation or corporations, or with any stock-
holder or director thereof, the purpose and effect of which
said combination, contract or agreement would be to
place the management or control of such combination or
combinations, or the manufactured product thereof, in
the hands of any trustee or trustees, with the intent to
limit or fix the price or lessen the production and sale of
any article of commerce, use or consumption, or prevent,
restrict or diminish the manufacture or output of any
article; and that it has not made or entered into any (ar-
rangement) contract or agreement with any person, asso-
ciation or persons or corporation designed to lessen (or)
which tends to lessen, full and free competition in the
importation, manufacture or sale of any article, product
or commodity in this state, or under the terms of which
it is proposed, stipulated, provided, agreed or understood
that any particular or specified article, product or com-
modity shall be dealt in, sold or offered for sale in this
state to the exclusion in whole or in part, of any compet-
ing article, "product or commodity.
(President, Secretary or Managing Officer.)
Subscribed and sworn to before me, a ,
within and for the count}' of , this
day of , 19__.
(Seal.)
And thereupon it shall become the duty of such corpo-
ration to make, answer to such inquiry by filing or causing
to be filed the affidavit prescribed herein. And on re-
fusal to make oath in answer to said inquiry, or on fail-
ure to do so within thirty days from the mailing thereof,
the secretary of state shall certify said fact to the prose-
cuting attorney of the county (the circuit attorney in the
city of St. Louis) wherein said corporation is located, and
it shall be the duty of such prosecuting attorney or cir-
cuit attorney, at the earliest practicable moment, in the
name of the state, and at the relation of said prosecut-
ing or circuit attorney, to proceed against such corpora-
tion for the forfeiture of its charter or certificate of in-
corporation, or its right or privilege to do business in
this state; provided, however, that if such corporation
MISSOUEI. 181
shall file the affidavit required by the provisions of this
article prior to the rendition of final judgment in said
action, the court may assess against such corporation, in
lieu of a judgment forfeiting its charter or certificate of
incorporation, or its right or privilege to do business in
this state, a fine not to exceed five thousand ($5,000)
dollars, and not less than one hundred ($100) dollars;
provided, however, that any time before final judgment,
if such corporation shall file or cause to be filed with the
secretary of state the affidavit herein prescribed, the trial
court may, in his discretion, and for good cause shown,
upon the payment of all costs, together with the attor-
ney's fees of ten dollars, to be paid to the prosecuting at-
torney (or the circuit attorney in the city of St. Louis)
remit the penalty herein prescribed.
SEC. 10323. The affidavit required by this article shall
be made by the president, secretary, treasurer or manag-
ing officer of such corporation in this state, and shall be
made before some person authorized to administer oaths
in this state.
SEC. 10324. Every person who shall make, or cause to
be made, and file or cause to be filed, said affidavit, know-
ing the facts stated therein to be false, shall, on convic-
tion, be adjudged guilty of perjury, and shall be pun-
ished by imprisonment in the penitentiary for a term not
exceeding seven years.
SEC. 10325. It shall be the duty of the secretary of state,
at any time upon satisfactory evidence that any company
or association of persons duly incorporated under the
laws of this or any other state, doing business in this state,
has entered into any trust (,) combination or association,
in violation of the preceding sections of this article, to
demand that it shall make the affidavit as above set forth
in this article as to the conduct of its business. In case
of a failure of compliance on the part of the corporation,
then the same procedure shall ensue as is provided in
section 8980 of this article ; provided, that no person shall
be subject to any criminal prosecution on account of any
matter or thing truthfully disclosed by the affidavit re-
quired by this article ; and provided further, that in any
prosecution or proceeding brought to enforce the provi-
sion of this article, no witness shall be permitted to refuse
to answer any question material to the matter in con-
troversy, or shall be permitted to refuse to produce any
books or papers material to such inquiry upon the ground
182 LAWS ON TRUSTS AND MONOPOLIES.
that to produce such books and papers or to answer such
question might tend to incriminate him or subject him to
a penalty or a forfeiture; but no person shall be subject
to prosecution or to any action for a penalty or a for-
feiture on account of any transaction, matter or thing
concerning which he may testify or produce books or
papers.
SEC. 10326. It shall be the duty of the attorney-general,
the circuit attorney of the city of St. Louis, and the pros-
ecuting attorney of each county, respectively, to enforce
the provisions of this article. The attorney-general, the
circuit or prosecuting attorneys shall institute and con-
duct all suits begun in the circuit courts, and upon appeal
the attorney-general shall prosecute said suits in the
supreme court and courts of appeal. As compensation
for his services in this behalf, the attorney-general shall
be entitled to his actual expenses incurred in the (prose-
cution) of such suits, to be paid by the defendant or de-
fendants when judgment is rendered for the state. The
circuit and prosecuting attorneys shall receive for their
compensation one-fourth of the penalty collected.
SEC. 10327. In all suits instituted under this article to
forfeit the charter of corporations, or to forfeit the right
of a corporation to do business in this state, where a judg-
ment of forfeiture is obtained and the cause is not appealed
to the supreme court or court of appeals, the circuit court
rendering such judgment shall allow the circuit or prose-
cuting attorney a fee of not less than twenty-five ($25)
dollars nor more than five hundred ($500) dollars, to be
paid out of the assets of said corporation ; and when the
attorney-general takes part in said prosecution, he shall
be entitled to his actual expenses, to be paid in like
manner.
SEC. 10328. It is hereby made the duty of all county
officers in the state to furnish to the secretary of state any
information which he may request of them, to enable him
the more fully to execute the duties imposed upon him
by this article, and for such services the said county offi-
cer (s) shall be paid by their respective counties, upon al-
lowances by the county court, such fees as would accrue
for like services for the county.
SEC. 10329. Whenever any proceeding shall be com-
menced in any court of competent jurisdiction in this state
by the attorney-general against any corporation or corpo-
rations, individual or individuals, or associations of
MISSOURI. 183
individuals, or joint stock associations or co-part-
nership, under the law against the formation and
maintenance of pools, trusts of any kind, monop-
olies in commodities, -combinations or organizations
in restraint of trade,* to dissolve the same or to
restrain their formation or maintenance in this state,
then in such case, if the attorney-general desires to take
the testimony of any officer, director, agent or employee
of any corporation or joint stock association proceeded
against, or in case of a co-partnership, any member of
said partnership, or any employee thereof, in any court
in which said action may be pending or before any person
duly authorized by any court to take testimony in any
such action; and the individual or individuals, whose
testimony is desired, are without the jurisdiction of the
courts of this state, or reside without the state of Missouri,
then, in such case, the attorney-general shall file in said
court, in term time, or in vacation, or with any person,
duly authorized to take the testimony in such case, a
statement, in writing, setting forth the name or names
of the persons or individuals whose testimony he desires
to take, and the time when, and the place in the state
where he desires the said persons to appear; and, there-
upon, the court in which, or one of the judges thereof, or
the person before whom testimony is being taken, shall
issue immediately a notice, in writing, directed to the
attorney or attorneys of record in said cause, or any
agent, officer or employee of any corporation, joint stock
association or co-partnership which are parties to said
action, notifying said attorneys of record, or officer, agent
or employee, that the testimony of the person or persons
named in the application of the attorney-general is de-
sired, and requiring said attorney or attorneys of record,
or said officer, agent or employee, to whom said notice
is delivered, or upon whom j:he same is served, to have
said officer, agent or employee or representative of said
co-partnership or agent thereof, whose evidence it is de-
sired to take at the place named in the application of the
attorney-general, and at the time fixed in said applica-
tion, then and there to testify; provided, however, that
the said application shall always allow in fixing said
time, the same number of days for travel to reach the des-
ignated point in Missouri that would be now allowed by
law in case of taking depositions; provided, also, in ad-
184 LAWS ON TKUSTS AND MONOPOLIES.
dition to the above named time, six days shall be allowed
for the attorney or attorneys of record, or the agent,
officer or employee on whom notice is served, to notify
the person or persons whose testimony is to be taken.
Service of such notice and the return thereon, in writing,
may be made by any one authorized by law to serve a
subpoena; provided, that no such witness shall be per-
mitted to refuse to produce any books or papers in ac-
cordance with an order made under the provisions of this
article, or to answer any question in reference to the sub-
ject-matter of such litigation, upon the ground that to
produce such books and papers, or to answer such ques-
tions, would tend to incriminate him or subject him to a
penalty or a forfeiture; but no such witness shall be
liable to prosecution, or subject to an action of penalty
or forfeiture on account of any transaction, matter or
thing concerning which he may testify or produce books
or papers.
SEC. 10330. Whenever any attorney or attorneys of
record, or any agent, officer or employee of any
such corporation, joint stock association or co-part-
nership, shall be notified, as above provided, to request
any officer, agent, director or employee to attend before
any court or before any person authorized to take the
testimony in said proceeding, and the person or persons
whcse testimony is requested as above provided, shall fail
to appear and testify and produce whatever books, papers
and documents they may be ordered to produce by the
court, or the officer authorized to take said evidence, then
it shall be the duty of the court, upon the motion of the
attorney-general, to strike out the answer, motion, reply,
demurrer or other pleading then or thereafter filed in
said action or proceeding by said corporation, joint stock
association or co-partnership, whose officer, agent, direc-
tor or employee has neglected or failed to attend and to
testify and produce all books, papers and documents he
or they shall have been ordered to produce in said action
by the court or person authorized to take said testimony ;
. and said court shall proceed to render judgment by de-
fault against said corporation, joint stock association or
co-partnership.
SEC. 10331. And it is further provided, that in
case any officer, agent, employee, director or representa-
tive of any corporation, joint stock association or co-
partnership in such proceeding as hereinbefore men-
MISSOURI. 185
tioned, who shall reside or be found within this state,
shall be subpoenaed to appear and testify or to produce
papers, books and documents, and shall fail, neglect or
refuse to do so, then the answer, motion, demurrer or
other pleading then or thereafter filed by said corporation,
joint stock association or co-partnership in any such
proceeding shall, on motion of the attorney-general, be
stricken out and judgment in said cause rendered against
said corporation, joint stock association or co-partner-
ship.
SEC. 10332. For the purpose of determining whether an
action or proceeding should be commenced against any
pool, trust, conspiracy or combination in restraint of
trade, the attorney-general may examine and procure the
testimony of witnesses in the manner herein prescribed.
SEC. 10333. Whenever the attorney-general deems it
necessary or proper before beginning any action or pro-
ceeding against any pool, trust conspiracy or combination
made, arranged, agred upon or entered into whereby a
monopoly in the manufacture, production or sale in this
state of any article or commodity is or may be sought to
be created, established or maintained, or whereby compe-
tition in this state in the supply or price of any article or
commodity is or may be restrained or prevented, then in
such case the attorney-general may present to any justice
of the supreme court an application, in writing, for an
order directing such persons, as the attorney-general may
require, to appear before a justice of the supreme court or
any examiner designated in said order and answer such
relevant and material questions as may be put to them
concerning any illegal contract, arrangement, agreement
or combination in violation of the laws of this state
against pools, trusts, agreements, combinations and con-
spiracies in restraint of trade, or to regulate, fix or
maintain the price of any commodity or to create a mo-
nopoly therein, if it appears to the satisfaction of the
justice of the supreme court to whom the application for
the order is made that such an order is necessary or expe-
dient, then such order shall be granted. Such order shall
be granted without notice, unless notice is required to be
given by the justice of the supreme court to whom the
application is made, in which event an order to show
cause why such application should not be granted shall .
be made containing such preliminary injunction or stay
as may appear to said justice to be proper or expedient,
186 LAWS ON TRUSTS AND MONOPOLIES.
and shall specify the time when and the place where the
witnesses are required to appear, and such examination
shall be held in the city of Jefferson. The justice of the
supreme court or the examiner may adjourn such exami-
nation from time to time and witnesses must attend ac-
cordingly.
SEC. 10334. The order for such examination must be
signed by the justice making it; and the service of a copy
thereof, with an endorsement by the attorney-general
signed by him, to the effect that the person named
therein is required to appear and be examined
at the time and place and before the justice or
referee specified in such endorsement, shall be suffi-
cient notice for the attendance of witnesses. Such en-
dorsement may contain a clause requiring such person
to produce on such examination all books, papers and
documents in his possession or under his control relating
to the subject of such examination; provided, however,
that the production of books and papers for inspection
shall always be subject to the order of the supreme jus-
tice who has ordered such examination, and either party
may, by a petition, in writing, ask that the said justice
pass on the question as to whether or not said books and
papers should be produced and examined and introduced
in evidence. The order to appear as a witness may be
served and return of service made in the same manner
and by the same officer by whom a subpoena may now be
served.
SEC. 10335. The testimony of each witness must be sub-
scribed by him, and all testimony taken by such justice or
examiner appointed must be certified and delivered by
such justice or examiner to the attorney-general at the
close of the examination. The justice or examiner shall
cause said testimony to be taken down by a competent
stenographer ; provided, that no witness shall be permit-
ted to refuse to produce books or papers in accordance
with an order made under the provision of this article, or
to answer any questions in reference to the subject-matter
of such litigation upon the ground that to produce such
books and papers or to answer such questions would tend
to incriminate him or subject him to a penalty or a for-
feiture ; but no such witness shall be liable to prosecution,
or subject to an action of penalty or forfeiture on account
of any transaction, matter or thing concerning which he
may testify or produce books or papers.
MISSOURI. 187
SEC. 10336. An examiner appointed under this article
shall have his power and authority specified in the order
appointing him. And he shall have all the ordinary
power and authority of an examiner appointed by the
supreme court, in addition to what special duties may be
devolved on him by the order of appointment.
SEC. 10337. If any witness or witnesses be properly
served, as herein provided, with notice to appear and tes-
tify, and they fail to obey said notice, or appearing, re-
fuse to testify, the attorney-general may file a statement,
in writing, with the supreme court justice setting out such
facts, and said justice may, if he deems it proper, issue a
citation to said parties causing them to forthwith appear
and show cause why he or they should not be fined or im-
prisoned, or both, for contempt. And in such contempt
proceedings the justice of the supreme court shall have
full power to either fine or imprison or both, as a punish-
ment for either failing to appear and testify, or appear-
ing, failing to testify, or to produce books and papers
when so ordered to do.
SEC. 10338. The supreme court justice may make such
order concerning the taxation and payment of costs in
these proceedings against either the state of Missouri or
the person examined, or any corporation, co-partnership,
joint stock company or combination of persons interested
in or connected in any way with the subject of such exam-
ination. Costs taxed shall be collected in the ordinary
way costs are now collected in the supreme court, and an
itemized statement thereof shall be filed with the clerk
of the supreme court, to whom all costs must be paid.
COURT DECISIONS.
State ex rel. Crow, Attorney- General v. JEtna Insur-
ance Co. et al. Same v. American Cent. Insurance Co.,
51 S. W. Rep., 413.
National Lead Co. v. S. E. Grote Paint-Store Co., St.
Louis Court of Appeals, May 2, 1899.
State ex rel. Crow, Attorney-General v. Firemen's
Fund Insurance Co. et al., 152 Mo., 1 ; 52 S. W. Rep., 595.
State ex rel. Crow v. Armour Packing Co., 173 Mo.,
356; 61 L. R. A., 464.
National Lead Company v. S. E. Grote Paint Store Co..
80 Mo. App., 247.
188 LAWS ON TRUSTS AND MONOPOLIES.
Froelich v. Musicians' Mut. Ben. Asso., 93 Mo. App.,
383.
* Walsh v. Association of Master Plumbers, 97 Mo. App.,
280.
State ex rel. Crow v. Continental Tobacco Co., 177
Mo., 1.
MONTANA.
CONSTITUTION.
ART. XV, SEC. 20. No incorporation, stock company,
person or association of persons in the State of Montana
shall directly or indirectly combine or form what is
known as a trust, or make any contract with any person,
or persons, corporations, or stock company, foreign or
domestic, through their stockholders, trustees or in any
manner whatever, for the purpose of fixing the price or
regulating the production of any article of commerce, or
of the product of the soil, for consumption by the people.
The legislative assembly shall pass laws for the enforce-
ment thereof by adequate penalties to the extent, if neces-
sary for that purpose, of the forfeiture of their property
and franchises, and in case of foreign corporations pro-
hibiting them from carrying on business in the state.
STATUTES.
Every person, corporation, stock company or associa-
tion of persons in this state who, directly or indirectly,
combine or form what is known as a trust, or make any
contract with any person or persons, corporation or
stock companies, foreign or domestic, through their
stockholders, directors, officers or in any manner what-
ever, for the purpose of fixing the price or regulating the
production of any article of commerce. "The phrase"
i articles of commerce ' as herein employed shall and does
include not only those articles which are generally, pop-
ularly and legally known as articles of commerce, but
also gas, water, waterpower, electric light and electric
power for whatever purpose used or employed " or of
the product of the soil for consumption by the people, or
to create or carry out any restriction in trade, to limit
productions, or increase or reduce the price of merchan-
dise or commodities, or to prevent competition in mer-
chandise or commodities, or to fix a standard or figure
whereby the price of any article of merchandise, commerce
189
190 LAWS ON TRUSTS AND MONOPOLIES.
or product, intended for sale, use or consumption, will be
in any way controlled, or to create a monopoly in the
manufacture, sale or transportation of any such article
or to enter into an obligation by which they shall bind
others or themselves not to manufacture, sell or transport
any such articles below a common standard or figure or
by which they agree to keep such article or transporta-
tion at a fixed or graduated figure, or by which they settle
the price of such article, so as to preclude unrestricted
competition, is punishable by imprisonment in the county
jail for a period not less than twenty-four hours, or more
than one year, or by fine not exceeding twentj^-five thou-
sand dollars, or both. (L. 1909, c. 97, Sec. 1.)
The provisions of this Act do not apply to any arrange-
ments, agreement, or combination between laborers, made
with the object of lessening the number of hours of labor
or increasing wages. (Id., Sec. 2.)
No person shall be excused from testifying in any
prosecution brought pursuant to the provisions of this
Act, but no person testifying for the prosecution shall
be punished or prosecuted in any manner whatsoever
for any act committed by him personally, as to which he
is called upon to testify in a prosecution against any per-
son or corporation, stock company or association. (Id.,
Sec. 3.)
[Chapter 7, Acts 1913.]
A BILL For an Act entitled : "An Act to prohibit unfair compe-
tition and discrimination, and providing a penalty for the in-
fraction of the provisions thereof."
Be it enacted by the Legislative Assembly of the State of
Montana :
SECTION 1. Any person, firm or corporation, foreign
or domestic, doing business in the State of Montana, and
engaged in the production, manufacture or distribution
of any commodity in general use, that intentionally, for
the purpose of destroying the competition of any regu-
larly established dealer in such commodity, or to prevent
the competition of any person, firm or corporation who in
good faith intends and attempts to become such dealer,
shall discriminate, between different sections, communi-
ties or parts of this State, by selling such commodity at
a lower rate or price in one section, city or community,
or any portion thereof, than such person, firm or corpo-
ration, foreign or domestic, charges for such commodity
MONTANA. 191
in another section, community or city, after equalizing
the distance from the point of production, manufacture
or distribution and freight rates therefrom, shall be
deemed guilty of unfair discrimination.
SEC. 2. If 'complaint shall be made to the Attorney
General that any corporation is guilty of unfair discrimi-
nation as defined by this Act, he shall forthwith investi-
gate such complaint, and for that purpose he shall sub-
poena witnesses, administer oaths, take testimony and
require the production of books or other documents, and
if, in his opinion, sufficient grounds exist therefor, he
shall prosecute an action in the name of the State in the
proper Court to annul the charter or revoke the permit
of such corporation, as the case may be, and to perma-
nently enjoin such corporation from doing business in
this State, and if in such action the Court shall find
that such corporation is guilty of unfair discrimination as
defined by this Act, such Court shall annul the charter or
revoke the permit of such corporation, and may perma-
nently enjoin it from transacting business in this State.
SEC. 3. Any person, firm or corporation violating the
provisions of Section One (1) of this Act, whether as
principal or agent, shall, upon conviction thereof be fined
not less than Two Hundred (200) Dollars nor more than
Ten Thousand (10,000) Dollars, for each offense.
SEC. 4. Nothing in this Act shall be construed as re-
pealing any other Act or part of an Act, but the remedies
herein provided shall be cumulative to all other remedies
provided by law.
SEC. 5. This Act shall take effect and be in force from
and after its passage and approval.
Approved February 6, 1913.
[Chapter 8, Acts 1913.]
A BILL For ail Act entitled : "An Act to prohibit unfair compe-
tition and discrimination, and providing a penalty for the in-
fraction of the provisions thereof."
Be it enacted ~by the Legislative Assembly of the State of
Montana:
SECTION 1. Any person, firm or corporation, foreign or
domestic, doing business in the State of Montana, and
engaged in the buying, selling, production, manufacture
or distribution of any commodity in general use, that in-
tentionally, for the purpose of destroying the competition
192 LAWS ON TRUSTS AND MONOPOLIES.
of any regularly established dealer in such commodity, or
to prevent the competition of any person, firm or corpo-
ration, who in good faith intends and attempts to become
such dealer, shall discriminate between different persons,
sections or communities in, or parts of this State by buy-
ing such commodity at a higher rate or price in one sec-
tion, city or community, or any portion thereof, than such
person, firm or corporation, foreign or domestic, pays for
such commodity in another section, community or city,
after equalizing the distance from the point of produc-
tion, manufacture or distribution and freight rates there-
from, shall be deemed guilty of unfair discrimination.
SEC. 2. If complaint shall be made to the Attorney
General that any corporation is guilty of unfair discrimi-
nation as defined by this Act, he shall forthwith investi-
gate such complaint, and for that purpose he shall sub-
pcena witnesses, administer caths, take testimony, and
require the production of books or other documents, and
if, in his opinion, sufficient grounds exist therefor, he shall
prosecute an action in the name of the State in the proper
Court to annul the charter or revoke the permit of such
corporation, as the case may be, and to permanently en-
join such corporation from doing business in this State;
and if in such action the court shall find that such corpora-
tion is guilty of unfair discrimination as defined by this
Act, such Court shall annul the charter or revoke the
permit of such corporation, and may permanently enjoin
it from transacting business in this State.
SEC. 3. Any person, firm or corporation violating the
provisions of Section 1 (One) of this Act, whether as
principal or agent, shall, upon conviction, thereof be fined
not less than Two Hundred ($200) Dollars, nor more
than Ten Thousand ($10,000) Dollars, for each offense.
SEC. 4. Nothing in this Act shall be construed as re-
pealing any other Act or part of an Act, but the remedies
herein provided shall be cumulative to all other remedies
provided by law.
SEC. 5. This Act shall take effect and be in full force
from and after its passage and approval.
Approved February 6, 1913.
* COURT DECISIONS.
Mac Ginnis v. Boston & Montana Con. Mining Co., 29
Mon., 428.
State v. Cudahy Packing Co. et al., 33 Mon., 179.
NEBRASKA.
CON STITUTION .
ART. XI, SEC. 3. No railroad corporation or telegraph
company shall consolidate its stock, property, franchises,
or earnings, in whole or in part, with any other railroad
corporation or telegraph company owning a parallel or
competing line; and in no case shall any consolidation
take place, except upon public notice of at least sixty
days to all stockholders, in such manner as may be pro-
vided by law.
STATUTES.
CHAPTER 91A TRUSTS.
6281 Section I. 1 That a trust is a combination of
capital skilled or acts by any person or persons to fix the
price of any article or commodity of trade, use or mer-
chandise, with the intent to prevent others from con-
ducting or carrying on the same business or selling or
trafficking in the same article, use or merchandise, or a
combination of capital, skill or acts by two or more per-
sons or by two or more of them for either, any or all of
the following purposes : 1. To create or carry out restric-
tions in trade. 2. To limit or reduce the production or
1 Sec. 1 of "An act to define trusts and conspiracies against trade and
business, declaring the same unlawful and void, and providing means for
the suppression of the same, and remedies for persons injured thereby, and
to provide punishment for violations of this act, and to repeal chapter
ninety-one a (Ola), entitled 'Trusts,' of the Compiled Statutes of Ne-
braska for the year 1895." Laws 1897, chap. 79. Took effect July 10.
1897. See State v. Neb. Dis. Co., 29 Neb., 700; Mollyneaux v. Witten-
berg, 39 Id., 547 ; Downing v. Lewis, 56 Id., 386. Lumber dealers' asso-
ciations. This chapter does not grant special privileges, and is not special
legislation within sec. 15, art. HI, Const. Passage was constitutional.
Clelland v. Anderson, 66 Id., 252. But see Niagara Fire Ins. Co. v. Cor-
nell, 110 Fed. Rep.. 810. Conspiracy where one is driven out of business
a tort. Clelland v. Anderson, 66 Neb., 276. Right of action 'passes to
assignee in bankruptcy. S. C., 75 Id., 2715. Art. 1 does not limit art. 2.
Slate v. Omaha Elevator Co.. 75 Id., 637. Agreement by lumber dealer to
" protect another by asking higher price, or to divide territory and fix
prices,'' Is a violation of statute. Stato v. Adams, 81 Id., .".02.
1649113 13 193
194 LAWS ON TKUSTS AND MONOPOLIES.
increase or reduce the price of merchandise or commodi-
ties. 3. To prevent competition in insurance, either life,
fire, accident or any other kind, or in manufacture,
making, constructing, transportation, sale or purchase of
merchandise, produce or commodities. 4. To fix at any
standard or figure, whereby its price to the public shall
be in any manner controlled or established upon any arti-
cle of merchandise, produce or manufacture of any kind
intended for sale, use .or consumption in this state ; to
establish any pretended agency whereby the sale of any
such article, commodity, merchandise or product shall
be covered up, concealed or made to appear to be for the
original vendor, for a like purpose or purposes, and to
enable such original vendor, producer or manufacturer
to control the wholesale or retail price of any such article
of merchandise, product or commodity after the title to
the same shall have passed from such vendor or manufac-
turer. 5. To make or enter into, carry on or carry out
any contract, obligation or agreement of any kind or
description by which they shall bind, or have heretofore
bound themselves not to sell, dispose of, traffic in or trans-
port any article of merchandise or commodity, or article
of trade, product, use, merchandise, consumption or com-
merce, below a common standard figure, card or list price,
or by which they shall agree in any manner to keep the
price of such article, product, commodity or transporta-
tion, at a fixed or graduated figure or price, or by which
they shall in any manner establish or settle the price of
any article of merchandise, commodity, or of insurance,
fire, life or accident, or transportation between them or
between themselves and others, or with the intent to pre-
clude, or the tendency of which is to prevent or preclude
a free and unrestricted competition among themselves or
others or the people generally in the production, sale,
'traffic or transportation of any such article of merchan-
dise, product or commodity or conducting a like business
or by which they shall agree to pool, combine or unite any
interest they may have in connection with the sale, pro-
duction or transportation of any such article of merchan-
dise, product or commodity or the carrying on of any
such business, th^t its price might in any manner be
affected thereby.
6282-6294 Sees. 2-14. [Repealed. State v. Elevator
Co., 75 Neb. 637.]
NEBRASKA. 195
GRAINMEN.
6295 Sec. 15. 1 That it shall be unlawful for any person,
partnership, company, association or corporation engaged
in the business of grain dealing or owning or operating any
'grain elevator, or in buying, selling, handling, consigning,
'shipping or transporting grain, to enter into any under-
standing, contract, agreement, or combination with any
other persons, company, partnership, association or corpo-
ration, whether within or without this state engaged in a
like business, to form, enter into or maintain or contribute
money or anything of value to any trust, pool, combina-
tion or association of persons, partnerships, companies,
associations or corporations of whatever name, which has
for any of its objects the prevention of competition among
buyers, sellers or dealers in grain, or which by any of its
acts, or the acts of any of its officers, members, agents
or employes, hinders or prevents or tends to hinder or
prevent the fullest competition in the purchase, sale or
dealing in grain by any person, partnership, company,
association or corporation outside of, or not a member of,
or not doing business by or through such trust, pool, com-
bination or association, or any of its members, officers,
agents or employes, or which has for one of its objects
the prevention of competition by requiring or compelling
its members not to deal with shippers or dealers in grain
not members of such trust, pool, combination or associa-
tion ; or which requires its members to refuse to sell, pur-
chase or consign any grain, to any person, company, part-
nership or corporation which purchases or receives con-
signment of grain from any person, company or corpora-
tion not a member of such trust, pool, combination or
association, or not doing business through the same or
1 Sees. 15-18. "An act to prohibit combinations among grain elevator
men and to prohibit any person, company, partnership, association or
corporation engaged in the business of grain dealing or owning or oper-
ating any grain elevator, or in the buying, selling, handling, consigning
or transporting grain from entering into any understanding, contract,
agreement or combination with any other person, company, partnership,
association or corporation to form, enter into, maintain or contribute to
any trust, pool, combination or association of whatever name, having for
any of its objects the prevention of competition among buyers, sellers or
dealers in grain not members of, or not doing business through such
trust, pool, combination or association, by means of preventing such per-
sons from finding a market for their grain and by intimidating and pre-
venting purchase[r]s and exporters from buying from any person, not a
member of and not doing business through such trust, pool, combination
or association ; and to provide a penalty for the violations of this act."
Laws 1897, ch. 80. Took effect July 10, 1897. See, also, sec. 245x 12 ,
Crim. Code.
196 LAWS ON TRUSTS AND MONOPOLIES.
any of its members; or which has for any of its objects
the prevention of any person, company, partnership, asso-
ciation or corporation not shipping grain through grain
elevators, whether owned or operated by members of such
trust, pool, combination or association, or not, from find-
ing purchasers for their grain by boycotting or threaten-
ing to boycott such purchasers. [1897, chap. 80, 1.]
6296 Sec. 16. That in any case, any person, company
partnership, association, corporation, trust, pool or com-
bination of whatever name shall do, cause to be done, or
permit to be done, any act, matter or thing in this act pro-
hibited or declared to be unlawful, such person, partner-
ship, company, association, corporation, trust, pool or
combination shall be liable to the person, partnership,
company, association or corporation injured thereby for
the full amount of damages sustained in consequence of
any such violation of the provisions of this act, together
with a reasonable attorney fee. to be fixed by the court,
in every case of recovery to be taxed as part of the costs
in the case ; aud the property of any person who may be a
member of or interested in any such trust, pool, combina-
tion or association, violating the provisions of this act
shall be liable for the full amount of such judgment and
may be levied upon and sold to satisfy the same.
[Id, 2.]
6297 Sec. 17. Any person, partnership, company, asso-
ciation or corporation subject to the provisions of this act.
or any trust, combination, pool or association, or any
director, officer, receiver, trustee, employe agent or per-
son, acting for or employed by them, or either of them,
who shall violate any of the provisions of section 1 of
this act shall be declared to be guilty of a felony and shall
upon conviction thereof be fined in any sum not less than
one thousand dollars and not exceeding two thousand dol-
lars, and any person, officer, member, agent or employe of
any trust, combination, pool or association violating the
provisions of section 1 of this act, may in addition to the
foregoing fine, be sentenced by the court to a period not
exceeding six months to be served in the penitentiary of
the state. That half of the fine so imposed shall go to the
person or persons who furnish information and evidence
on which a conviction shall be founded. [Id., 3.]
6298 Sec. 18. Any person who may be aggrieved or in-
jured by section 1 of this act may prosecute the violator
in a criminal action by his own attorney, without the in-
NEBKASKA. 197
tervention of the county attorney, and in case of convic-
tion the court shall allow a reasonable attorney fee to be
taxed as costs in the case. [Id., 4.]
CHAPTER 117 (ACTS 1913).
AN ACT To amend Section 26 of Chapter 91A of the Compiled
Statutes of Nebraska for 1911, being Section 3777 of the Report
of Commission for Revision of General Laws of Nebraska, for
1913, [C. A. S., 12032] and to repeal said original section as
it now exists.
Section 1. That Section 26 of Chapter 91A of the
Compiled Statutes of Nebraska for 1911, being Section
3777 of the Report of Commission for Revision of Gen-
eral Laws of Nebraska, for 1913, [C. A. S., 12012] be
and the same is hereby amended to read as follows : Any
person, firm, or company, association or corporation, for-
eign or domestic, doing business in the state of Nebraska
and engaged in the production, manufacture or distribu-
tion of any commodity in general use, that shall inten-
tionally, for the purpose of destroying the business of a
competitor in any locality, discriminate between different
sections, communities, or cities of this state by selling
such commodity at a lower rate in one section, community
or city, than is charged for said commodity by said party
in another section, community or city, after making due
allowance for the difference, if any, in the grade or qual-
ity and in the actual cost of transportation from the point
of production, if a raw product, or from the point of
manufacture, if a manufactured product, shall be deemed
guilty of unfair discrimination, which is hereby prohib-
ited and declared unlawful. Proof that any person, firm,
company, association or corporation has been discrim-
inating between different sections, communities and cities
of this state by selling a commodity at a lower rate in one
section, community or city, than is charged for said com-
modity by said party, in another section, community or
city, after making an allowance for the difference, if any,
in the grade or quality and in the actual cost of transpor-
tation from the point of production, if a raw material,
and from the point of manufacture, if a manufactured
product, shall be prima facie evidence that the party so
discriminating is guilty of unfair discrimination. Any
person, firm, company, association, or corporation, for-
198 LAWS ON TRUSTS AND MONOPOLIES.
eign or domestic, doing business in the State of Nebraska
engaged in the business of collecting or buying any prod-
uct, commodity or property of any kind, that shall inten-
tionally, for the purpose of injuring or destroying the
business of a competitor in any locality, discriminate be-
tween the different sections, communities or cities of this
state by bu} T ing any product, commodity, or property of
any kind, and paying therefor a higher rate or price in
one section, community, or city than is paid for the same
kind of product, commodity or property by said party in
another section, community or city, after making due
allowance for the difference, if any, in the grade or qual-
ity and in the actual cost of the transportation from the
point where the same is purchased to the market where it
is sold, or intended to be sold, shall be deemed guilty of
unfair discrimination, which is hereby prohibited and
declared unlawful. Proof that any person, firm, com-
pany, association or corporation has been discriminating
between different sections, communities and cities by buy-
ing any product, commodity or property of any kind, and
paying therefor a higher rate or price in one section, com-
munity or city than is paid for the same kind of product,
commodity or property by said party in another section,
community or city, after making due allowance for the
difference, if any, in the grade or quality and in the actual
cost of transportation from the point where the same is
purchased to the market where same is sold or intended
to be sold shall be prima facie evidence that the party so
discriminating is guilty of unfair discrimination.
Sec. 2. That section 26 of Chapter 91A of the Com-
piled Statutes of Nebraska for 1911, being Section 3777
of the Report of the Commission for Revision of General
Laws of Nebraska, for 1913, [C. A. S., 12012] as it now
exists, be and the same is hereby repealed.
Approved, April 15, 1913.
6301f Sec. 27. Any person, firm, company, association
or corporation violating any of the provisions of the pre-
ceding section, and any officer, agent or receiver of any
firm, company, association or corporation, or any mem-
ber of the same, or any individual, found guilty of a vio-
lation thereof, shall be fined not less than Five Hundred
Dollars ($500.00) nor more than Five Thousand Dollars
($5,000.00), or be imprisoned in the county jail not to
exceed one year, or suffer both penalties. [Id., II.]
NEBRASKA. 199
6301g Sec. 28. All contracts or agreements made in vio-
lation of any of the provisions of the two preceding sec-
tions shall be void. [Id., III.]
6301h Sec. 29. It shall be the duty of the county attor-
neys, in their counties, and the attorney general, to en-
force the provisions of the preceding sections of this act
by appropriate actions in courts of competent jurisdic-
tion. [Id., IV.]
CHAPTER 114 (ACTS 1913).
AN ACT Amending Section 12016 of Cobbey's Annotated Statutes
for 1911, [C. S., Ch. 91a, 30] relating to prosecution of cor-
porations charged with unfair discrimination, requiring the
Attorney General to investigate upon complaint, and to repeal
said original section and all acts and parts of acts in conflict
herewith.
Section 1. That Section 12016 of Cobbey's Annotated
Statutes for 1911, [C. S., Ch. 91a, 30] is hereby amend-
ed to read as follows:
Section 12016. If complaint shall be made to the Attor-
ney General that any corporation is guilty of unfair dis-
crimination as defined by this act, he shall investigate
such complaint and for that purpose he may subpoena
witnesses, administer oaths, take testimony, and require
the production of books and other documents, and, if in
his opinion sufficient grounds exist therefor he may pros-
ecute an action in the name of the state in the proper
court to annul the charter or revoke the permit of such
corporation as the case may be, and to permanently en-
join such corporation from doing business in this state,
and if in such action the court shall find that such cor-
poration is guilty of unfair discrimination as defined by
this act, such court shall annul the charter or revoke the
permit of such corporation, and may permanently enjoin
it from transacting business in this state.
Sec. 2. That said original section 12016 of Cobbey's
Annotated Statutes for 1911, [C. S., Ch. 91a, 30] and
all acts and parts of acts in conflict herewith are hereby
repealed.
Approved, April 15, 1913.
6301 j Sec. 31. If any corporation, foreign or domestic,
authorized to do business in this state, is found guilty of
unfair discrimination, such finding shall cause a for-
200 LAWS ON TRUSTS AND MONOPOLIES.
feiture of all the privileges and rights conferred by the
laws of this state upon corporations, and shall bar its
right to do business in this state. [Id., VI.]
0301k Sec. 32. If any corporation having been found
guilty of a violation of any of the provisions of this act,
shall continue or attempt to do business in this state, it
shall be the duty of the attorney general by a proper
action in the name of the State of Nebraska, to oust such
corporation from all business of every kind and character
in this state. [Id., VII.]
6302 Sec. 33. Nothing in this act shall be construed as
repealing any other act, or part of act, but the remedies
herein provided shall be cumulative to all other remedies
provided by law. [Id., VIII.]
ARTICLE II. RESTRAINTS MONOPOLIES, REBATES.
0302a Section 1. That every contract, combination in
the form of trust or otherwise, or conspiracy in restraint
of trade or commerce, within this state, is hereby declared
to be illegal. Every person who shall make any such con-
tract or engage in any such combination or conspiracy,
shall be deemed guilty of a misdemeanor, and, on convic-
tion 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. 1
6302b Sec. 2. That 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, within this state, 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.
6302c Sec. 3. That any property owned under any con-
tract or by any combination, or pursuant to any con-
spiracy (and being the subject thereof), mentioned in the
foregoing sections of this act, shall be forfeited to the
state.
1 "An act to protect .trade and commerce against unlawful restraints
and monopolies and to prohibit the giving or receiving of rebates on the
transportation of property, and to provide a penalty for the violation
thereof." Laws 1905, H. R. 110. In effect July 1, 1905. Repeals by im-
plication art. I, except sec. 1. Not affected by sees. 15-18, chap. 91a, nor
sec. 245x 12 , Crim. Code. State v. O. Elevator Co., 75 Neb., 637. Indict-
ments should allege acts complained of were in restraint of trade within
this state. Proper respondents. Howell v. State, 83 Id., 448.
NEBRASKA. 201
CHAPTER 145 (ACTS 1913).
AN ACT To amend Section 12031 of Cobbey's Annotated Statutes
of Nebraska, 1911, [C. S., Ch. Ola, Art. 2, 4] and to repeal said
original section as now existing.
Section 1. That Section 12031 of Cobbey's Annotated
Statutes of Nebraska for the year 1911 be amended so as
to read as follows:
That no corporation, joint stock company or other asso-
ciation, whose stockholders are not personally liable for
their debts, except corporations incorporated under the
laws of the state of Nebraska, and .those required by law
to file annual reports with the Auditor of Public Ac-
counts, and common carriers and corporations owning or
using property exclusively in connection with the busi-
ness of transportation and corporations engaged in fur-
nishing additional accommodation to passengers as such
while being carried by such carriers, shall engage in busi-
ness within this state, or continue to carry on such busi-
ness, unless it shall comply with the following conditions :
It shall file a statement in the office of the attorney gen-
eral of this state, signed and sworn to by its president, its
treasurer, its general manager, and a majority of the
directors, or by persons exercising the powers usually
exercised by such officers and directors of such corpora-
tions, joint stock companies, and other associations, on or
before the 15th day of September, in the year 1906, and
shall on or before the 15th day of September, in each year
thereafter file a like statement for the year ending with
the 30th day of June in said year, respectively, showing:
(a) The amount of its capital stock, (b) The market
value of the same, (c) How much of the same has been
paid in full in cash ; or, if the same has not been paid in
full in cash, what has been received by the said corpora-
tion, joint stock company, or other association, in lieu
thereof, and the value of whatever shall have been so
received by it. (d) The names of all the officers and
directors of such corporation, joint stock company, or
other association, and all agents entrusted with the gen-
eral management of its affairs, (e) The amount it ha?
paid in dividends during the same period, the rate of per-
centage of such dividends, and times of paying the same,
(f) A statement of all the stock owned by it of any other
corporation, joint stock company, or other association,
specifying the corporation, joint stock company, or other
202 LAWS ON TRUSTS AND MONOPOLIES.
association, and the number of and value of shares in each ;
the amount of its own stock held by other corporations,
joint stock companies or other associations, and the value
thereof; and the amount of stock in other corporations,
joint stock companies, or other associations held in trust
for it or in which it has any interest, directly or in-
directly, absolute or conditional, legal or equitable, speci-
fying the corporations, joint stock companies or other
associations, (g) It shall also on or before the 30th day
of June, in the year 1906, file in the office of the attorney
general of this state, an undertaking signed by said offi-
cers, general managers, and directors, that they will com-
ply with the provisions of this and all other laws of this
state in the management of the affairs of said corporation,
joint companies, or other associations; and that they
accept the provisions and liabilities of this act, and the
obligations by it imposed, so long as they shall continue
to hold or exercise said office or authority, and shall there-
after within ten days of their entering upon the duties of
their offices, file a like undertaking signed by every officer,
general manager and director thereof elected or appointed
to such office or employment. This statement shall be in
addition to all statements now or hereafter required by
law, or by any other public authority in this state.
Sec. 2. That Section 12031 of Cobbey's Annotated Stat-
utes of Nebraska for the year 1911 [C. S., Ch. 91a, Art. 1,
4] as heretofore existing be and the same is hereby re-
pealed.
Sec. 3. Whereas an emergency exists, this act shall take
effect and be in force from and after its passage and
approval.
Approved, April 17, 1913.
6302e Sec. 5. The attorney general of this state may at
any time require of any corporation, joint stock company,
or other association so, engaged any statement he may
think fit in regard to the conduct of its business. And he
may especially require any such corporation, joint stock
company, or other association, to give a list of all con-
tracts or transactions entered into within the twelve
months preceding such requisition, in which it has sold
any article or product, or carried any article or product
within this state at a rate less than the ordinary market
price, of [if] such article or product had been sold or car-
ried by any other person than the party to such transac-
NEBRASKA. 203
tion. And he ma} 7 further require the reason for such
distinction and the circumstances attending the same.
6302f Sec. 6. That every person, corporation, joint
stock company, or other association engaged in business
within the state, who shall enter into any contract, com-
bination or conspiracy or who shall give any direction or
authority to do any act, for the purpose of drawing out of
business any other person engaged therein, or who for
such purpose shall in the course of such business sell any
article or product at less than its fair market value, or at
a less price than it is accustomed to demand or receive
therefor in any other place under like conditions ; or who
shall sell any article upon a condition, contract or under-
taking that it shall not be sold again by the purchaser, or
restrain such sale by the purchaser, shall be deemed guilt} r
of a misdemeanor, and, on conviction thereof, shall be
punished by a fine not exceeding five thousand dollars, or
by imprisonment not exceeding one year, or by both said
punishments, in the discretion of the court.
6302g Sec. 7. That no corporation, joint stock company,
or other association, shall engage in business within this
state, a majority of whose stock is owned by or controlled
or held in trust for any manufacturing or other corpora-
tion, which, in the course of its manufacture or produc-
tion, conducts its business, or any part thereof, in a man-
ner which would be prohibited by this act. if it were so
conducted in the course of such business within this state.
6302h Sec. 8. That all the books of record and papers
of every such corporation, joint stock company, or other
association, engaged in business within this state, shall
be subject to inspection by the attorney general of the
state, or by any agent he may designate for that purpose,
and such corporation joint stock company, or other asso-
ciation shall, at such times as he shall prescribe, make
such further returns, verified as aforesaid, as shall be by
him prescribed either by general regulations or by special
direction.
6302i Sec. 9. That any president, director, treasurer,
officer, corporator, copartner, associate, or agent of such
corporation, joint stock company, or other association,
who shall in its behalf do anything by this act prohibited
to such corporation, joint stock company, or other associa-
tion, or who shall support, vote for, aid and abet, or take
part in doing such action by said corporation, joint stock
company, or other association, or any instrumentality
204 LAWS ON TRUSTS AND MONOPOLIES.
thereof, shall be liable to the penalties by this act pro-
vided.
630*2] See. 10. That no corporation, joint stock com-
pany, or other association, after the 30th day of June,
190(5. which shall manufacture or produce any article, for
sale or transportation within this state, which shall do
any of the acts or things prohibited to be done by this
act. shall engage in business within this state.
6302k Sec. 11. That any corporation, joint stock com-
pany, or other association that shall have been twice ad-
judged to have violated the provisions of this act by the
final judgment of any court having jurisdiction of the
question, in any civil suit or proceeding in which said
corporation, joint stock company, or other association
shall have been a party, who shall thereafter violate this
act. or who shall fail to make the returns herein required
at the times specified, shall no longer be allowed to en-
gage in business within this state: Provided, That such
prohibition shall only be enforced after such corporation,
joint stock company, or other association shall have been
enjoined against further engaging in such business, on
an information or suit brought in a court of competent
jurisdiction, by the attorney general in behalf of this
state. It shall be the duty of the attorney general in
such case, unless he shall be satisfied that such corpora-
tion, joint stock company, or other association has de-
sisted and abstained and will in future desist and abstain
from such violation, to enforce the provision by pro-
ceeding either by information or by indictment, as he
may in his discretion think best. Any corporation, joint
stock company, or other association which shall be
charged with violating this act, and any president, direc-
tor, treasurer, officer, or agent thereof,, nr ' be joined as
a party in any proceeding, civil or criminal, to enforce
this act. If. in the judgment of the attorney general, such
corporation, joint stock company, or other association
against which any civil proceeding may be instituted be
one on which the public is so depending that the inter-
ruption of its business will cause serious public loss or
inconvenience, he may, in his discretion, refrain from
proceeding to obtam a decree which will absolutely pre-
vent the continuance of such business, and may apply for
a limited or conditional decree, or one to take effect at a
future day. as the public interest shall seem to require,
if. in the judgment *of the court before whom such
NEBRASKA. 205
proceeding may be pending, the interruption of the busi-
ness of the defendant corporation, joint stock company,
or other association, will cause such serious public loss or
inconvenience, the court may decline to enter an absolute
decree enjoining it against proceeding with its business,
and may enter a modified or conditional decree, or such
decree to take effect at a future time, as justice shall
require. The court may also, in its discretion, enjoin such
officers or agents or servants of such corporation, joint
stock company, or other association from continuing its
service, and enjoin any such corporation, joint stock com-
pany, or other association from continuing their employ-
ment therein, as the case shall seem to require. 1
63021 Sec. 12. That any corporation, joint stock com-
pany, or other association, and any president, director,
treasurer, officer, corporator, copartner, associate, or agent
thereof who shall in its behalf, after the 30th day of June,
in the year 1006. engage in such business in violation of
this act. shall for each offense, in addition to such penalty
for contempt, as the court in case of disobedience to its
lawful order may impose, be punished by a fine not ex-
ceeding five thousand dollars, or by imprisonment not
exceeding one year, or by both said punishments, in the
discretion of the court.
6302m Sec. 13. That every president, treasurer, general
manager, agent or other person usually exercising the
po\\ T ers of such officers of any corporation, joint stock
company, or other association, who has himself, in his be-
half, violated, united to violate, or voted for or consented
to the violation of any of the provisions of this act, shall
thereafter be personally liable for all the debts and obli-
gations of any such corporation, joint stock company, or
other association, created while such person holds such
office or agency, whether under the same or subsequent
elections or appointments.
6302n Sec. 14. That it shall be unlawful for any per-
son or persons to offer, grant, or give, or to solicit, accept,
or receive, any rebate, concession, or service in respect of
the transportation of any property within this state by
airy common carrier, whereby any such property shall, by
any device whatever, be transported at a less rate than
that named in the tariffs published and filed by such car-
rier, as is required by law or charged others for like serv-
1 In action to restrain violation of act court cannot in first instance
declare forfeiture of corporate charter. State v. Omaba. ~~> N*eb., <.~>4.
206 LAWS ON TKUSTS AND MONOPOLIES.
ice. Every person who shall offer, grant, or give or
solicit, accept or receive any such rebate, concession, or
service shall be deemed guilty of a misdemeanor^ and
on conviction thereof, shall be punished by a fine of not
less than five thousand dollars.
6302o Sec. 15. That if any joint stock company, cor-
poration, or combination or any agent thereof, shall
solicit, accept, or receive any such rebate, concession or
service as is hereinbefore declared to be unlawful, it shall
be unlawful thereafter to transport within this state any
article owned or controlled by such company, corpora-
tion, or combination, or produced or manufactured by it.
by whomsoever the same may be owned or controlled. If
any such joint stock company, corporation, or combina-
tion, shall offer, grant, or give any special prices, induce-
ments, or advantages for the sale of articles produced,
manufactured, OAviied, or controlled by it to purchasers
in any particular locality in order to restrict or destroy
competition in that locality in the sale of such articles, it
shall be unlawful thereafter to transport within this state
any article owned or controlled by it, or produced or
manufactured by it, by whomsoever the same may be
owned or controlled. Provided, however, That the pro-
hibition imposed under this section shall not apply to any
article purchased bona fide before decree made in pur-
suance hereof a'gainst the joint stock compan}', corpora-
tion, or combination producing, manufacturing, or there-
tofore owning ov controlling the same; and provided
further, That even after decree any such article may be
relieved from the prohibition imposed under this section,
if the owner thereof shall show to the satisfaction of the
court having jurisdiction of the matter, hereinafter pro-
vided, that such article was purchased bona fide, without
notice, and within thirty days after the entry of such de-
cree. Any transportation company, and any officer, agent,
or representative thereof^ knowingly concerned in the
transportation of articles within this state, contrary to the
prohibitions of this section, shall be punished by a fine
of not less than five thousand dollars.
6302p Sec. 1C. That the several courts of record of this
state having equity jurisdiction are hereby invested with
jurisdiction to prevent and restrain all violations of this
act, and especially the offering, granting, giving, solicit-
ing, accepting, or receiving any such rebate, concession,
or service by any person or persons; and to prevent or
NEBRASKA. 207
restrain any such joint stock company, corporation, or
combination, who shall have solicited, accepted, or re-
ceived any such rebate, concession, or service, or who shall
have offered, granted, or given any special prices, induce-
ments^, or advantages in order to restrict or destroy com-
petition in particular localities from engaging in com-
merce within this state. Such proceedings may be by
way of petition setting forth the cause of action and .pray-
ing that the acts hereby made unlawful shall be enjoined
or otherwise prohibited. When the parties complained of
shall be duly notified of such petition, the court shall
proceed as soon as may be to the hearing and determina-
tion of the case, and upon such petition and before final
decree the court may at any time make such temporary
restraining order or prohibition as shall be deemed just.
The court may retain jurisdiction of the cause after the
decree, for the purpose of such subsequent modification of
the same as may be made to appear equitable and just in
the premises.
6302q Sec. IT. That whenever it shall appear to the
court before which any civil proceedings under this act
shall be pending, that the ends of justice require that
other parties shall be brought before the court, the court
may cause them to be summoned, whether they reside in
the county where the court is held or not, and subpoenas
to that end may be served in any county by the sheriff
thereof.
6302r Sec. 18. That any person who shall be injured in
his business or property by any other person or persons
by reason of anything forbidden or declared to be un-
lawful by this act, may sue therefor in any court of rec-
ord in this state, in the county in which the defendant
or defendants reside or are found, without respect to the
amount in controversy, and shall recover threefold the
damages by him sustained and the costs of suit, including
a reasonable attorney's fee.
6302s Sec. 19. That the word " person " or " persons "
as used in sections, one. three and five, of this act^ shall
be deemed to include all corporations, associations, com-
binations or concerns whatsoever.
6302t Sec. 20. That any suit in equity brought in any
court of this state under this act, wherein the state is com-
plainant, the attorney general may file with the clerk of
such court a certificate that, in his opinion, the case is
of general public importance, a copy of which shall be
208 LAWS ON TRUSTS AND MONOPOLIES.
immediately furnished by such clerk to the judge of the
court in which the case is pending. Thereupon such
case shall be given precedence over and in every way
expedited, and be assigned for hearing at the earliest
practicable day. An appeal from the final decree of the
court will lie only to the Supreme Court and must be
taken within sixty days from the entry thereof.
6302u Sec. 21. That, in all prosecutions, hearings, and
proceedings under the provisions of this act, whether
civil or criminal, no person shall be excused from attend-
ing and testifying^ or from producing books, papers, con-
tracts, agreements, and documents before the courts of
this state, or in obedience to the subpoena of the same, on
the ground or for the reason that the testimony or evi-
dence, documentary or otherwise, required of him may
tend to criminate him or subject him to a penalty or for-
feiture. Any person who shall neglect or refuse to make
returns, attend and testify or answer any lawful require-
ment hereinbefore provided for, or produce books, papers,
contracts, agreements, and documents, if in his custody,
control, or power to do so, in obedience to the subpoenas
of the court or lawful requirements of the attorney gen-
eral, shall be deemed guilty of a misdemeanor, and upon
conviction thereof by a court of competent jurisdiction
shall be punished by a fine of not less than five hundred
dollars nor more than five thousand dollars. That who-
ever knowingly swears to a return or report required by
this act that is false in any material particular, or know-
ingly swears to an answer to any of the requirements of
this act, that is false in any material particular, shall be
deemed guilty of perjury and punished as provided by
the laws of this state in reference to perjury. Whoever
shall knowingly prepare, or cause to be prepared, a re-
port, return or answer required by this act that is false,
as aforesaid, shall be guilty of subornation of perjury
and punished as provided by law.
6302v Sec. 22. That there is hereby appropriated out
of any money in the treasury not otherwise appropriated,
to be expended under the direction of the governor and
attorney general of this state, the sum of Ten Thousand
dollars for the enforcement of the provisions of this act
in the employment of special counsel and agents by tin?
governor or attorney general to conduct proceedings, suits
and prosecutions under this act, in the courts of this state.
It is hereby made the duty of the attorney general and
NEBRASKAc 209
the county attorney of the state under direction of the
attorney general to institute and prosecute such proceed-
ings as may be necessary to carry into effect all of the
provisions of this act. Provided, That no person shall
be prosecuted or be subjected to any penalty or forfeiture
for or on account of any transaction, matter, or thing
concerning which he may testify or produce evidence,
documentary or otherwise, in any proceedings, suit, or
prosecution under this act: Provided further, that no
person testifying shall be exempt from prosecution or
punishment for perjury committed in so testifying.
COURT DECISIONS.
Downing v. Lewis, 56 Neb., 386.
Cleland v. Anderson, 66 Neb., 252; 92 N. W., 306.
Niagara Fire Ins. Co. v. Cornell, 110 Fed., 816.
State v. Omaha Elevator Co., 75 Neb., 637; 106 N. W.,
979.
1649113 14
NEVADA.
There are no anti-trust laws in Nevada.
211
NEW HAMPSHIRE.
There is no specific statutory provision which prohibits
the making of contracts and combinations for the pur-
pose of controlling, limiting or regulating the produc-
tion of any article or commodity, or the market price
thereof, or to resist free competition in its production or
sale.
But see, act July 5, 1867, which provides that two or
more railroad corporations chartered by the legislature
of this state constituting the whole or part of different
lines of route for public travel and transportation between
any two cities or towns, or between any city and town
either within or without this state, forming rival and
competing lines of route between such points, shall not
be allowed to consolidate such roads or lines ; and neither
of said lines, or any road or roads composing the same,
shall be run or operated by any such rival and competing
line, or any road or roads, or portion thereof, under any
business contract, lease, or other arrangement; but each
and every railroad corporation so situated shall be run,
managed, and operated separately by its own officers and
agents, and be dependent for its connection with other
roads, and the facilities and accommodations it shall
afford the public for travel and transportation under fair
and open competition, unless such lease, contract, or ar-
rangement be first authorized by the legislature and
approved by the government and council.
COURT DECISIONS.
Currier v. Concord E. Corp., 48 K H., 321.
Morrill v. Boston & M. R. Co., 55 N. H., 531.
213
NEW JERSEY.
STATUTES.
CHAPTER 13, LAWS OF 1913.
AN ACT To define trusts, and to provide for criminal penalties and
punishment of corporations, firms and persons, and to promote
free competition in commerce and all classes of business, both
intrastate business and interstate business, engaged in and car-
ried on by or through any corporation, firm or person.
1. A trust is a combination or agreement between cor-
porations, firms or persons, any two or more of them, for
the following purposes, and such trust is hereby declared
to be illegal and indictable:
(1) To create or carry out restrictions in trade or to
acquire a monopoly, either in intrastate or interstate busi-
ness or commerce.
(2) To limit or reduce the production, or increase the
price of merchandise or of any commodity.
(3) To prevent competition in manufacturing, making,
transporting, selling and purchasing of merchandise, pro-
duce or any commodity.
(4) To fix at any standard or figure, whereby its price
to the public or consumer shall in any manner be con-
trolled, any article or commodity or merchandise, produce
or commerce intended for sale, use or consumption in this
State or elsewhere.
(5) To make any agreement by which they directly or
indirectly preclude a free and unrestricted competition
among themselves, or any purchaser or consumers, in the
sale or transportation of any article or commodity, either
by pooling, withholding from the market or selling at a
fixed price, or in any other manner by which the price
might be affected.
(6) To make any secret oral agreement or arrive at an
understanding without express agreement by which they
directly or indirectly preclude a free and unrestricted
215
216 LAWS ON TRUSTS AND MONOPOLIES.
competition among themselves, or any purchaser or con-
sumer, in the sale or transportation of any article, either
by pooling, withholding from the market, or selling at a
fixed price, or in any other manner by which the price
might be affected.
2. Any person or corporation guilty of violating any of
the provisions of this act shall be adjudged guilty of a
misdemeanor, and punished accordingly on conviction.
3. Whenever an incorporated company shall be guilty
of the violation of any of the provisions of this act, the
offence shall be deemed to be also that of the individual
directors, of such corporation, ordering or doing any of
such prohibited acts and on conviction thereof they shall
be punished accordingly.
4. In addition to the punishment which may be imposed
for the misdemeanor the charter of the offending corpo-
ration may be revoked in appropriate proceedings by the
Attorney-General of this State.
5. Nothing in this act contained shall operate to de-
prive any corporation of any right or power given or
granted by section forty-nine of the act entitled "An act
concerning corporations (Revision of 1896," and the
words " article " and " commodities " in this act are to be
construed as synonymous with natural products, manu-
factured products, and goods, wares and merchandise.
6. If any part or parts of this act shall be held to be in-
valid or unconstitutional the validity of the other parts
hereof shall not thereby be affected or impaired.
Approved February 19, 1913.
[Chapter 14, Laws of 1913.]
A FURTHER SUPPLEMENT To an act entitled "An act concern-
ing corporations (Revision of 1896)," approved April twenty-
first, one thousand eight hundred and ninety-six, for the purpose
of amending section forty-nine thereof.
1. Section forty-nine of the act entitled "An act con-
cerning corporations (Revision of 1896)," be and the
same is hereby amended so as to read as follows :
49. (1). Any corporation formed under this act may
purchase property, real and personal, and the stock of any
corporation, necessary for its business, and issue stock to
the amount of the value thereof in payment therefor, sub-
ject to the provisions hereinafter set forth, and the stock
so issued shall be full paid stock, and not liable to any
NEW JERSEY. 217
further call; and said corporation may also issue stock
for the amount it actually pays for labor performed.
Provided, that when property is purchased the purchas-
ing corporation must receive in property or stock what
the same is reasonably worth in money at a fair, bona fide
valuation ; and provided further, that no fictitious stock
shall be issued; that no stock shall be issued for profits
not yet earned, but only anticipated; and provided fur-
ther, that when stock is issued on the basis of the stock
of any other corporation it may purchase, no stock shall
be issued thereon for an amount greater than the sum it
actually pays for such stock in cash or its equivalent ; and
provided further, that the property purchased or the
property owned by the corporation whose stock is pur-
chased shall be cognate in character and use to the prop-
erty used or contemplated to be used by the purchasing
corporation in the direct conduct of its own proper busi-
ness ; and in all cases when stock is to be issued for prop-
erty purchased, or for the stock of other corporations
purchased, a statement in writing, signed by the directors
of the purchasing company or by a majority of them,
shall be filed in the office of the Secretary of State, show-
ing what property has been purchased, and what stock
of any other corporation has been purchased, and the
amount actually paid therefor.
(2) That if any certificate made in pursuance of this
act shall be false in any material representation, all the
officers who sign the same, knowing it to be false, shall be
guilty of misdemeanor, and the directors, officers and
agents of the corporation, who wilfully participate in
making it, shall be guilty of misdemeanor. And pro-
vided further, that any corporation which shall purchase
the stock of any other corporation, or any property, for
the purpose of restraining trade or commerce, or acquir-
ing a monopoly, and the directors thereof participating
therein, shall be guilty of a misdemeanor.
2. This act shall take effect immediately.
Approved February 19, 1913.
[Chapter 15, Laws of 1913.]
A FURTHER SUPPLEMENT To the act entitled "An act for the
punishment of crimes (Revision of 1898)."
1. It shall be unlawful for any person, firm, corporation
or association, engaged in the production, manufacture.
218 LAWS ON TRUSTS AND MONOPOLIES.
distribution or sale of any commodity of general use, or
rendering any service to the public, to discriminate be-
tween different persons, firms, associations or corpora-
tions, or different sections, communities or cities of the
State, by selling such commodity or rendering such serv-
ice at a lower rate in one section, community or city than
another, or at a different rate or price at a point aw T ay
from that of production or manufacture as at the place of
production or manufacture, after making due allowance
for the difference, if any. in the grade, quality or quantity,
and in the actual cost of transportation from the point of
production or manufacture, if the effect or intent thereof
is to establish or maintain a virtual monopoly, hindering
competition, or restriction of trade.
2. Any person or corporation violating this act shall be
guilty of a misdemeanor and on conviction thereof shall
be punished accordingly.
3. This act shall take effect immediately.
Approved February 19, 1913.
[Chapter 16. Laws of 191H.I
AN ACT To anieiid an act entitled "A further supplement to the
act entitled 'An act for the punishment of crimes.' approved
June fourteenth, one thousand eight hundred and ninety-eight
(Revision of 1898)," which supplement was approved June
second, one thousand nine hundred and five.
1. Section one of the act entitled "A further supple-
ment to the act entitled 'An act for the punishment of
crimes,' approved June fourteenth, one thousand eight
hundred and ninety-eight (Revision of 1898)," which sup-
plement was approved June second, one thousand nine
hundred and five, be and the same is hereby amended so
as to read as follows :
1. Any person or persons, who shall organize, or incor-
porate, or procure to be organized, or incorporated, any
corporation or body politic, under the laws of this State,
with intent thereby to further, promote or conduct any
object which is fraudulent or unlawful under the laws of
this State, or which is intended to be used in restraint of
trade or in acquiring a monopoly, when such corporation
or body politic engages in interstate or intrastate com-
merce, shall be guilty of a misdemeanor.
2. Section two of the said supplement shall be and the
same is hereby amended so as to read as follows :
NEW JERSEY. 219
2. Any person, or persons, being officers, directors,
managers or employees of any corporation or body politic,
incorporated under the laws of this State, who shall
wilfully use, operate or control said corporation or body
politic, or suffer the same to be used for the furtherance
or promotion of any object fraudulent or unlawful under
the laws of this State, or who shall use the same directly
or indirectly in restraint of trade or in acquiring a mo-
nopoly, when such corporation or body politic engages in
interstate or intrastate commerce, shall be guilty of a
misdemeanor.
3. If any part or parts of this act shall be declared to
be invalid or unconstitutional, the other parts hereof shall
not thereby be affected or impaired.
4. This act shall take effect immediately.
Approved February 19, 1913.
[Chapter 17, Laws of 1913.]
AN ACT To amend section one hundred and nine of an act entitled
"An act concerning corporations (Revision of 1896)," approved
April twenty-first, one thousand eight hundred and ninety-six.
1. Section one hundred and nine of the act entitled "An
act concerning corporations (Revision of 1896)," be and
the same is hereby amended so as to read as follows :
109. When two or more corporations are merged or
consolidated the consolidated corporation shall have
power and authority to issue bonds or other obligations,
negotiable or otherwise, and with or without coupons or
interest certificates thereto attached, to an amount suf-
ficient with its capital stock to provide for all the pay-
ments it will be required to make or obligations it will be
required to assume, in order to effect such merger or
consolidation: to secure the payment of which bonds or
obligations it shall be lawful to mortgage its corporate
franchises, rights, privileges and property, real, personal
and mixed: provided, such bonds shall not bear a greater
rate of interest than six per centum per annum ; the con-
solidated corporation may issue capital stock, either com-
mon or preferred, or both, to such an amount as may be
necessary, to the stockholders of such merging or consoli-
dating corporation in exchange or payment for their
original shares, in the manner and on the terms specified
in the agreement of merger, or consolidation, which may
fix the amount and provide for the issue of preferred
220 LAWS ON TRUSTS AND MONOPOLIES.
stock based on the property or stock of the merging or
consolidating corporation conveyed to the consolidated
corporations, as well as upon money capital paid in.
2. This act shall take effect immediately.
Approved February 19, 1913.
[Chapter IS, Laws 1913. J
AN ACT To amen;! an act entitled "An act concerning corporations
(Revision of ]8fl6)," approved April twenty-first, eighteen hun-
dred and ninety-six.
1. Section fifty-one of the act referred to in the title of
t his act is hereby amended to read as follows :
51. No corporation heretofore organized or hereafter to
be organized under the provisions of this act to which this
is an amendment, or the amendments thereof or supple-
ments thereto, except as otherwise provided therein or
thereby, shall hereafter purchase, hold, sell, assign, trans-
fer, mortgage, pledge, or otherwise dispose of the shares
of the corporate stock of any other corporation or corpo-
rations of this or any other State, or of any bonds, se-
curities or other evidences of indebtedness created by any
other corporation or corporations of this or any other
State, nor as owner of such stock exercise any of the
rights, powers and privileges of ownership, including the
right to vote thereon. Provided, that nothing herein con-
tained shall operate to prevent any corporation or cor-
porations from acquiring the bonds, securities or other
evidences of indebtedness created by any non-competing
corporation in payment of any debt or debts due from
any such non-competing corporation ; nor to prevent any
corporation or corporations created under the laws of this
State from purchasing as a temporary investment out of
its surplus earnings, reserved under the provisions of this
act, as a working capital, bonds, securities or evidences
of indebtedness created by any non-competing corpora-
tion or corporations of this or any other State, or from
investing in like securities any funds held by it for the
benefit of its employees or any funds held for insurance,
any such non-competing corporation ; nor to prevent any
corporation or corporations created under the laws of this
State from purchasing the bonds, securities or other evi-
dences of indebtedness created by any corporation the
stock of which may lawfully be purchased under the au-
thority given by section forty-nine of the act entitled
NEW JERSEY. 221
"An act concerning corporations (Revision of 1896)";
provided, also, that nothing herein contained shall be held
to affect or impair any right heretofore acquired in pur-
suance of the section hereby amended, by any corporation
created under the laws of this State.
2. All acts and parts of acts inconsistent herewith are
hereby repealed, and this act shall take effect immedi-
ately.
Approved February 19, 1913.
[Chapter 19, Laws 1913.]
A FURTHER SUPPLEMENT To an act entitled "An act concern-
ing corporations (Revision of 1896)." approved April twenty-
first, one thousand eight hundred and ninety-six.
1. A merger of corporations made under the provisions
of the act to which this act is a supplement, shall not in
any manner impair the rights of any creditor of either
of the merged corporations.
2. Before any merger of corporations can be made, the
approval thereof in writing by the Board of Public
Utility Commissioners of this State shall be obtained by
said corporations and filed in the office of the Secretary
of State, with the names of the directors of each of said
corporations which assent to the merger.
3. Ever} 7 corporation, and the directors thereof, pro-
curing or assenting to such merger without complying
with the provisions hereinbefore contained, shall be guilty
of a misdemeanor and punishable accordingly.
4. This act shall take effect immediately.
Approved February 19, 1913.
COURT DECISIONS.
John P. Stockton, Attorney-General of New Jersey, at
the Relation of John R. Miller et al. v. The American
Tobacco Co. et al., 55 N. J. Eq., 352.
Trenton Potteries Co. v. Richard C. Oliphant et al.
56 N. J. Eq., 680 ; 43 At. Rep., 723.
NEW MEXICO.
STATUTES.
Every contract or combination between individuals,
associations or corporations, having for its object or
which shall operate to restrict trade or commerce or con-
trol the quantity, price or exchange of any article of
manufacture or product of the soil or mine, is hereby
declared to be illegal.
Every person, whether as individual or agent or officer
or stockholders of any corporation or association, who
shall make any such contract or engage in any such com-
bination shall be deemed guilty of a misdemeanor, and
on conviction thereof shall be punished by a fine not ex-
ceeding one thousand dollars, nor less than one hundred
dollars, and by imprisonment at hard labor not exceed-
ing one year, or until such fine has been paid. (C. L.
1897, Sec. 1292.)
Every person who shall monopolize or attempt to
monopolize, or combine or conspire with any other per-
son or persons to monopolize any part of the trade or
commerce of this territory, shall be deemed guilty of a
misdemeanor, and on conviction thereof shall be pun-
ished by a fine not exceeding one thousand dollars, or by
imprisonment not exceeding one year, or by both said
punishments in the discretion of the court. (C. L. 1897.
Sec. 1293.)
All contracts and agreements in violation of sections
1292 and 1293 shall be void, and the person or persons,
corporation or corporations, association or associations
who shall violate the provisions of either of said sec-
tions shall be civilly liable to the party injured for any
and all damage occasioned by such violation, and any
purchaser of any commodity from any individual, cor-
poration or association transacting business in violation
of this act shall not be liable for the payment for such
commodity. (C. L. 1897. Sec. 1294, as amended by Laws
of 1907, c. 18, p. 19.)
228
NEW YORK.
STATUTES.
No domestic stock corporation and no foreign corpora-
tion doing business in this state shall combine with any
other corporation or person for the creation of a
monopoly or the unlawful restraint of trade, or for the
prevention of competition in any necessary of life. (S. C.
L., Sec. 14.)
Every contract, agreement, arrangement or combina-
tion whereby a monopoly in the manufacture, production
or sale in this state of any article or commodity of com-
mon use is or may be created, established or maintained,
or whereby competition in this state in the supply or
price of any such article or commodity is or may be re-
strained or prevented, or whereby for the purpose of
creating, establishing or maintaining a monopoly within
this state of the manufacture, production or sale of any
such article or commodity, the free pursuit in this state
of any lawful business, trade or occupation is or may be
restricted or prevented, as hereby declared to be against
public policy, illegal and void. (Cons. Laws, c. 20, Sec.
240.)
Every person or corporation, or any officer or agent
thereof, who shall make or attempt to make or enter
into any such contract, agreement, arrangement or com-
bination, or who within this state shall do any act pur-
suant thereto, or in, toward or for the consummation
thereof, wherever the same may have been made, is guilty
of a misdemeanor, and on conviction thereof shall, if a
natural person, be punished by a fine not exceeding five
thousand dollars, or by imprisonment for not longer than
one. year, or by both such fine and imprisonment ; and if
a corporation, by a fine of not exceeding twenty thousand
dollars. An indictment based on a violation of any of
the provisions of this section must be found within two
years after its commission. (Cons. Laws, c. 20, Sec. 341,
as amended by L. 1910, c. 633.)
1649113 15 225
226 LAWS ON TKUSTS AND MONOPOLIES.
The attorney-general may bring an action in the name
and in behalf of the people of the state against any per-
son, trustee, director, manager or other officer or agent
of a corporation, or against a corporation, foreign or
domestic, to restrain and prevent the doing in this state
of any act herein declared to be illegal, or an} 7 act in>
toward or for the making or consummation of any con-
tract, agreement, arrangement or combination herein
prohibited, wherever the same may have been made.
Id., Sec. 342.)
Whenever the attorney-general has determined to com-
mence an action or proceeding under this article, he may
present to any justice of the supreme court, before be-
ginning such action or proceeding, an application in
writing, for an order directing the persons mentioned in
the application to appear before a justice of the supreme
court, or a referee designated in such order, and answer
such questions as may be put to them or to any of them,
and produce such papers, documents and books concern-
ing any alleged illegal contract, arrangement, agreement
or combination in violation of this article; and it shall
be the duty of the justice of the supreme court, to whom
such application for the order is made, to grant such
application. The application for such order made by
the attorney-general may simply show, upon his in-
formation and belief, that the testimony of such person
or persons is material and necessary. The provisions of
the code of civil procedure, chapter nine, title three,
article one, relating to the application for an order for
the examination of witnesses before the commencement of
an action and the method of proceeding on such examina-
tion shall not apply except as herein prescribed. The
order shall be granted by the justice of the supreme court
to whom the application has been made, with such pre-
liminary injunction or stay as may appear to such justice
to be proper and expedient, and shall specify the time
when and place where the witnesses are required to ap-
pear, and such examination shall be held either in the
city of Albany, or in the judicial district in which \ the
witness resides, or in which the principal office, within
this state, of the- corporation affected is located. The
justice or referee may adjourn such examination from
time to time, and witnesses must attend accordingly.
The testimony of each witness must be subscribed by him.
and all must be filed in the office of the clerk of the county
NEW YORK. 227
in which such order for examination is filed. (Id., Sec.
343.)
The order for such examination must be signed by the
justice making it, and the service of a copy thereof, with
an indorsement by the attorney-general, signed by him,
to the effect that the person named therein is required to
appear and be examined at the time and place, and before
the justice or referee specified in such indorsement, shall
be sufficient notice for the attendance of witnesses. Such
indorsement may contain a clause requiring such person
to produce on such examination all books, papers and
documents in his possession, or under his control, relating
to the subject of such examination. The order shall be
served upon the person named in the indorsement afore-
said, by showing him the original order, and delivering
to and leaving with him, at the same time, a copy thereof
indorsed as above provided, and by paying or tendering
to him the fee allowed by law to witnesses subpoenaed to
attend trials of civil actions in a court of record in this
state. (Id., Sec. 344.)
No person shall be excused from answering any ques-
tions that may be put to him, or from producing any
books, papers or documents, on the ground that the testi-
mony or evidence, documentary or otherwise, required of
him may tend to incriminate him, but no person shall be
prosecuted in any criminal action or proceedings, or sub-
jected to any penalty or forfeiture, for or on account of
any transaction, matter or thing concerning which he
may testify, or produce evidence, documentary or other-
wise, before said justice or referee appointed in the order
for his examination, or in obedience to the subpoena of
the court, or referee acting under such order, or either of
them or in any such case or proceeding. (Id., Sec. 345.)
A referee appointed as provided in this article pos-
sesses all the powers and is subject to all the duties of a
referee appointed under section ten hundred and eighteen
of the code of civil procedure, so far as practicable, and
may punish for contempt a witness duly served as pre-
scribed in this article for nonattendance or refusal to be
sworn or to testify, or to produce books, papers and doc-
uments according to the direction of the indorsement
aforesaid, in the same manner, and to the same extent as
a referee appointed to hear, try and determine an issue of
fact or of law. (Id., Sec. 346.)
228 LAWS ON TRUSTS AND MONOPOLIES.
If two or more persons conspire. * * * 6. To
commit any act injurious to trade or com-
merce is guilty of a misdemeanor. (Penal
Law, Art. LIV, Sec. 580.)
No person shall be excused from attending and testify-
ing, or producing any books, papers or other documents
before any court, magistrate, or referee, upon any in-
vestigation, proceeding or trial, for a violation of any of
the provisions of this article, upon the ground or for the
reason that the testimony or evidence, documentary or
otherwise, required of him may tend to convict him of a
crime or subject him to a penalty or *for forfeiture; but
no person shall be prosecuted or subjected to any penalty
or forfeiture for or on account of any transaction, mat-
ter or thing concerning which he may so testify or pro-
duce evidence, documentary or otherwise, and no testi-
mony so given or produced shall be received against him
upon any criminal investigation, proceeding or trial.
(Penal Law, Sec. 584, added by L. 1910, c. 395.)
ACTS 1913.
Commissioner of agriculture may revoke milk dealer's
license :
* * * * *
3. Where there have been combinations to fix prices.
*****
(Sec. 57, Chap. 408, Acts 1913.)
Commissioner of agriculture may revoke license of
commission merchants:
*****
6. Where there has been a combination or combinations
to fix prices :
*****
(Sec. 286, Chap. 458, Acts 1913.)
COURT DECISIONS.
The People of the State of New York v. Carson J.
Sheldon et al., 139 N. Y., 251.
Harvey F. Drake et al. v. Steverin Siebold, 81 Hun.,
178.
The National Harrow Co. v. E. Bement & Sons, 21
N". Y. App. Div., 290.
In the Matter of the Application of the Attorney-Gen-
eral for an Order for the Examination of Witnesses
NEW YORK. 229
under the Provisions of Chapter 383 of the Laws of 1897.
The Attorney -General, appellant ; Eobt M. Olyphant. re-
spondent. 21 Misc. Eep., 101; 22 App. Div., 285; 155
X. Y., 441.
John G. Walsh and G. Wells Walsh v. John Dwight et
al, 40 N. Y. App. Div., 513.
Diamond Match Co. v. Koeber, 106 N. Y., 473.
John L. Leslie v. Jacob Lorillard et al., 110 N. Y., 519.
John Good v. William S. Daland et al., 121 N. Y., 1.
The People of the State of New York v. The North
River Sugar Refining Co., 121 N. Y., 582.
Strait et al. v. National Harrow Co. et al., 18 N. Y.
Supp., 224.
De Witt Wire Cloth Co. v. New Jersey Wire Cloth Co.
9 Ry. and Corp. L. J., 314.
Sylvanus Judd v. Dennis Harrington, 139 N. Y., 105.
Ernest St. George Lough et al. v. A. Emilius Outer-
bridge et al.. 143 N. Y., 271.
The People of the State of New York v. The Milk Ex- ,
change, 145 N. Y., 267.
Brooklyn Distilling Co. v. Standard Distilling Co., 120
App. D., 237.
Rourke v. Elk Drug Co., 75 App. D., 145.
Continental Securities Co. v. Interborough Rapid
Transit Co., 165 Fed., 945.
Burrows v. Interborough Rapid Transit Co., 156 Fed.,
389.
Attorney General v. Consolidated Gas. Co., 124 App. D.,
401.
Alexandria Bay Steamboat Co. v. New York Central,
etc., R. R. Co., 18 App. D., 527.
Rafferty v. Buffalo City Gas Co., 37 App. D., 618.
Watson v. Harlem & N. Y. Navigation Co., 52 How.
Pr., 348.
Strauss v. American Publishers' Ass'n., 177 N. Y., 473.
See opinion of U. S. Sup. Ct. rendered Dec. 1, 1913.
Park v. National Wholesale Druggists' Ass'n.. 175
N. Y. ; 62 L. R. A., 632.
People v. Duke, 19 Misc., 292; 44 N. Y. Suppl., 336.
Re Davies, 168 N. Y., 89 ; 56 L. R. A., 855.
NORTH CAROLINA.
STATUTES.
It shall be unlawful for any person or corporation to
directly or indirectly be guilty of any of the acts and
things specified in any of the subsections of this section,
(a) For any person, firm, corporation or association to
make a sale or sales of any goods, wares, merchandise,
articles or things of value whatsoever in North Carolina,
whether directly or indirectly, or through any agent or
employee, upon the condition that the purchaser thereof
shall not deal in the goods, wares, merchandise, articles
or things of value of a competitor or rival in the business
of the person, firm, corporation or association making
said sales, (b) For any person, firm, corporation or as-
sociation to directly or indirectly wilfully destroy or in-
jure, or undertake to destroy or injure, the business of
any opponent or business rival in the state of North Car-
olina, by circulating false reports tending to damage the
credit or character of said opponent or rival, or tending
to interfere with the trade of said opponent or rival,
with the purpose or intention of attempting to fix the
price of anything of value when the competition is re-
moved, (c) For any person, firm, corporation, or asso-
ciation to wilfully injure or destroy or undertake to in-
jure or destroy the business of any rival or opponent, by
loAvering the price of any article or thing of value sold so
low, or by raising the price of any article or thing of
value bought so high, as to leave an unreasonable or in-
adequate profit, (d) For any person, firm, corporation,
or association to injure or destroy or undertake to injure
or destroy the business of any rival or opponent by lower-
ing the price of any article or thing of value bought so
low, or by raising the price of any article or thing of
value bought so high, as *to leave an unreasonable or
inadequate profit, and with the purpose of increasing the
profit on the business when such rival or opponent is
231
232 LAWS ON TRUSTS AND MONOPOLIES.
driven out of business or its business is injured, (e)
For any person, firm, corporation, or association dealing
in any thing of value within the State of North Caro-
lina to give away, or sell, at a place where there is com-
petition, such thing of value at a price lower than is
charged by such person, firm, corporation, or association
for the same thing at another place, where there is not
sufficient reason for charging less at the one place than
at the other, with the view of injuring the business of
another, (f) For any person, firm, corporation, or asso-
ciation engaged in buying or selling any thing of value
in North Carolina to make or have any agreement or un-
derstanding, express or implied, with any other person,
firm, corporation or association not to buy or sell things
of value within certain territorial limits within the state,
with the intention of preventing competition in selling
or to fix the price or prevent competition in buying of
said things of value within these limits; provided, noth-
ing herein shall be construed to prevent an agent from
representing more than one principal. But nothing in
this proviso shall be construed to authorize two or more
principals to employ a common agent for the purpose of
suppressing competition or lowering prices, (g) For
any person, firm, corporation, or association, with intent
to injure another, to conspire or agree with any other per-
son, firm, corporation, or association to put down or keep
down the price of any article produced in this state by
the labor of others, which said article the said person,
firm, corporation, or association intends to buy or is en-
gaged in buying, (h) For any person, firm, corporation
or association to solicit the trade, patronage, or good will
of any person, firm, corporation, or association within the
State of North Carolina, by the means of false statements
as to his, their or its connection, alliance, or relationship
to other persons, firms, corporations, or associations, or as
to the ownership of his, their, or its business. (L. 1911,
c. 167, Sec. 1.)
That if it shall be made to appear to the Attorney-
General by satisfactory affidavit (which affidavit may be
made up on information and belief, and when so made
shall state the grcrund thereof) that any corporation is
violating any of the provisions of this act within the
State, it shall be the duty of the Attorney-General to
apply to a judge of the Superior Court for an order to
KOBTH CAROLINA. 233
cause such corporation, its officers and agents, or any
of them, to appear before such judge at a time and place
to be named by him, which time shall not be less than five
days from the service of such order, to show cause why
such corporation, its officers and agents, or any of them
should not produce before such judge, at a time and place
to be named, all the papers, books and records of such
corporation; and if the judge shall be satisfied that such
books, papers and records should be so produced he shall
make an order requiring such corporation, its officers and
agents, or any of them, to produce all or any of its pa-
pers, books and records, to be examined by the Attorney-
General in the presence of such judge. Upon application
by the attorney-general or any solicitor to a judge of the
superior court, the judge may order any person or per-
sons to appear before him to be examined in regard to
any violations of this act, and persons so summoned
shall be paid the usual fees and expenses allowed to wit-
nesses. If any corporation, its officers or agents, or other
person, shall fail to appear or shall fail to produce such
papers, books or records as may be required, it or he shall
be guilty of a misdemeanor, and it shall be the duty of
the attorne}^-general to cause such corporation or person
to be prosecuted therefor. When it shall be made to ap-
pear that the papers, books or records of any such cor-
poration, or any of them, are without the limit of the
state or that they cannot conveniently be produced before
the judge for examination, as hereinbefore provided, such
judge may issue a commission for the examination of
such papers, books and records before a commissioner to
be named by him. All examinations under this section
shall be under oath, and false swearing shall constitute
perjury, punishable as in other cases of perjury. Re-
fusal to answer any question or questions asked on such
examination, and required by the judge to be answered^
shall constitute and be punishable as contempt. (Id.,,
Sec. 2.)
That no person who is subpoenaed and required by the
state to testify under the provisions of this act shall be
prosecuted or convicted on account of matters disclosed
by the testimony of such witnesses, nor shall the testi-
mony of such witnesses be received from any court in
any prosecution against such person. (Id., Sec. 3.)
That any corporation, either as agent or principal, vio-
lating any of the provisions of this act, shall be guilty of
234 LAWS ON TRUSTS AND MONOPOLIES.
n, misdemeanor, and such corporation shall upon convic-
tion be fined not less than one thousand dollars for each
jind every offense, and any person violating any of the
provisions of this act shall be guilty of a misdemeanor
and upon conviction shall be fined not less than fb T e hun-
dred dollars or imprisoned within the discretion of the
court. (Id., Sec. 6.)
That any person being either within or without the
state, who encourages or wilfully allows or permits any
agent or associates in business in this state to violate any
of the provisions of this act, shall be guilty of a misde-
meanor and upon conviction shall be punished as pro-
vided in section 6 hereof. (Id., Sec. 7.)
That violation of any of the provisions of this act shall
subject the offender to a penalty of one hundred dollars
per day, which may be recorded for his own benefit by
any citizen of the state. (Id., Sec. 7-J.)
That where the things prohibited in section 1 of this
act are continuous, then in such event after the first vio-
lation of any of the provisions hereof, the violations of
the provisions of this act for each week during which
such violations shall continue shall constitute a separate
offense. (Id., Sec. 8.)
That the provisions of this act shall not be construed
so as to repeal or restrict the common law doctrine pre-
venting unlawful combination in trade and commerce,
which are hereby re-enacted and declared to be in full
force in this state, except as may be inconsistent with
the other provisions of this act. (Id., Sec. 9.)
That it shall be competent to charge any or all of the
offenses mentioned in section one of this act in a single
bill of indictment in separate counts. Exclusive original
jurisdiction of all violations of this act shall be in the
superior courts of this state, anything in this act estab-
lishing a recorder's court to the contrary notwithstand-
ing. (Id., Sec. 10.)
ACT 1913.
4
AN ACT To declare illegal trusts and combinations in restraint of
trade.
combinations SECTION 1. That- every contract, combination in the
? fe d s decred ^ orm ^ ^ ru . s t or otherwise, or conspiracy in restraint of
illegal. trade or commerce in the State of North Carolina is
NORTH CAROLINA. 235
hereby declared to be illegal. Every person or corpora- c <f ""p* c t s
tion who shall make any such contract expressly or shall U^^JJ* mis "
knowingly be a party thereto by implication, or who shall
engage in any such combination or conspiracy, shall be
guilty of a misdemeanor, and upon conviction thereof men?
such person shall be fined or imprisoned or both in the so
discretion of the court, whether such person entered into
such contract individually or as an agent representing a
corporation, and such corporation shall be fined in the Punishment
as to corpora-
discretion of the court not less than one thousand dollars,
SEC. 2. That any act, contract, combination in the form
trust, and conspiracies in restraint of trade or commerce
which violates the principles of the common law is hereby
declared to be in violation of section one of this act.
SEC. 3. That all contracts, combinations in the form of Contracts,
' combinations
trust, and conspiracies in restrain of trade or commerce and conapira-
cies declared
prohibited in sections one and two of this act, are hereby J[J,j[ e 1 a 1 | * 1 able
declared to be unreasonable and illegal, unless the persons
entering into such contract, combination in the form of Burden of
. . , , proof on de-
trilSt, or conspiracy in restraint of trade or commerce canfendant.
show affirmatively upon an indictment or civil action for
violation of sections one and two of this act that such
contract, combination in the form of trust, conspiracy in
restraint of trade or commerce does not injure the busi-
ness of any competitor, or prevent any one from becoming
a competitor because his or its business will be unfairly
injured by reason of such contract, combination in the
form of trust, or conspiracy in restraint of trade or com-
merce.
SEC. 4. That no contract or agreement hereafter made, contracts
... . 1 not enforceable
limiting the rights of any person to do business anywhere unless executed
in the State of North Carolina shall be enforceable un-
less such agreement is in writing duly signed by the party
who agrees not to enter into any such business within such
territory : Provided, nothing herein shall be construed to . Proviso : con-
J . . t r a c t s no t
legalize any contract or agreement not to enter into busi- legalized.
ness in the State of North Carolina, or at any point in the
State of North Carolina, which contract is now illegal, or
which contract is made illegal by any other section of
this act.
SEC. 5. That in addition to the matters and things here- lar atfon e of d un-
inbef ore declared to be illegal, the following acts are de- lawful acts.
clared to be unlawful, that is, for any person, firm, cor-
poration. or association to directly or indirectly do or
236 LAWS ON TRUSTS AND MONOPOLIES.
have any contract, express or knowingly implied, to do,
any of the acts or things specified in any of the subsec-
tions of this section.
cons gr ira? ent to ( a ) ^ a &' ree or conspire with any other person, firm,
reduce prices, corporation or association to put down or keep down the
price of any article produced in this State by the labor of
others, which said article said person, firm, corporation
or association intends, plans or desires to buy.
on S con S dftion (b) To make a sale or sales of any goods, wares, mer-
shlii P not h deti chandise, articles or things of value whatsoever in North
with rival. Carolina, whether directly or indirectly, or through any
agent or employee, upon the condition that the purchaser
thereof shall not deal in the goods, wares, merchandise,
articles or things of value of a competitor or rival in the
business of the person, firm, corporation or association
making said sales.
attempt 1 ^ in' ( c ) ^ ^iU^ulty destroy or injure, or undertake to
intent 1 va to Wi fix destroy r injure, the business of any opponent or business
from es competi e r * va * * n ^ State * North Carolina with the piurpose or
tlon - intention of attempting to fix the price of anything of
value when the competition is removed.
sei5n y wii in' (^ Who directly or indirectly buys or sells within the
or n in*ure e busi y State, through himself or itself, or through any agent of
b es ^aff f ectin alan y kind or as agent or principal, or together with or
tent e of Tncreas through any allied, subsidiary or dependent person, firm,
ing profit by corporation or association, any article or thing of value
change of x ?./
s rlC n S desfruc r w ^ c ^ ^ s so ^ or bought in the State to injure or destroy
tion and in- O r undertake to injure or destroy the business of any rival
or opponent, by lowering the price of any article or thing
of value sold, so low, or by raising the price of any article
unreasonable or thing of value bought, so high as to leave an unreason-
able or inadequate profit for a time, with the purpose of
increasing the profit on the business when such rival or
opponent is driven out of business, or his, their or its
business is injured.
prile* ri between ( e ) Who deals in any thing of value within the State
intent ie to W iiJ ^ North Carolina, to give away or sell, at a place where
of r another iness there is competition, such thing of value at a price lower
than is charged by such person, firm, corporation or as-
sociation, for the same thing at another place, where there
is not good and sufficient reason, on account of transpor-
tation or the expense of doing business, for charging less
at the one place than at the other, with the view of injur-
ing the business of another.
NORTH CAROLINA. 237
(f) Who is engaged in buying or selling any thing of
value in North Carolina, to make or have any agreement
or understanding, express or implied, with any other per-
son, firm, corporation or association, not to buy or sell such localities.
said things of value within certain territorial limits
within the State, with intention of preventing competi-
tion in selling or to fix the price or prevent competition
in buying of said things of value within these limits:
Provided, nothing herein shall be construed ito prevent an Proviso:
. . , -r, . agent repre-
agent from representing more than one principal. Butsenting more
. . than one prin-
nothing in this proviso shall be construed to authorize cipai.
two or more principals to employ a common agent for
the purpose of suppressing competition or lowering
prices: Provided, further, that nothing herein shall be of ^jg^^J
construed to prevent a person, firm or corporation from good wil1 -
selling his or its business and good will to a competitor,
and agreeing in writing not to enter the business in com-
petition with the purchaser in a limited territory, as is
now allowed under the common law: Provided, such Proviso : con-
dition of sale
agreement shall not violate the principles of the common JJf UBt go {J t Jg}. 1
law against trusts and shall not violate the provisions of
this act.
That any corporation, either as agent or principal, vio- Ru my P of ra S? s n -
lating any of the provisions of this section shall be guilty demeanor -
of a misdemeanor, and such corporation shall upon con-
viction be fined not less than one thousand dollars for Punishment.
each and every offense, and any person, whether acting Person guilty
for himself or as officer of any corporation or as agent meaner.
of any corporation or person violating any of the provi-
sions of this act shall be guilty of a misdemeanor and
upon conviction shall be fined or imprisoned, or both, in Punishment.
the discretion of the court.
SEC. 6. That any person, being either within or with-
out the State, who encourages or willfully allows or per-
mits any agent or associates in business in this State to *^5 t y f m j B
violate any of the provisions of this act, shall be guilty of demean or.
a misdemeanor, and upon conviction shall be punished Punishment.
as provided in section five hereof.
SEC. 7. That where the things prohibited in this act co ^ t inuou b s! tion
are continuous, then in such event, after the first viola-
tion of any of the provisions hereof, each week that the
violation of such provision shall continue shall be a sepa- fe n S e e P s arate *
rate offense.
SEC. 8. That the Attorney-General of the State of ^Ft*!!?
North Carolina shall have the power, and it shall be his J?jj on g * cor "
238 LAWS ON TRUSTS AND MONOPOLIES.
duty, to investigate, from time to time, the affairs of all
corporations doing business in this State, which are or
may be embraced within the meaning of the statutes of
this State defining and denouncing trusts and combina-
tions against trade and commerce, or which he shall be of
opinion are so embraced, and all other corporations in
North Carolina doing business in violation of law; and
all other corporations of every character engaged in busi-
ness in this State of transporting property or passengers,
or transmitting messages and all other public service cor-
porations of any kind or nature whatever which are doing
business in the State for hire, with a view of ascertaining
whether the law or any rule of the North Carolina Corpo-
ration Commission is being or has been violated by any
such corporation, officers or agents or employees thereof,
and if so, in what respect, with the purpose of acquiring
such information as may be necessary to enable him to
prosecute any such corporation, its agents, officers and
employees for crime, or prosecute civil actions against
them if he discovers they are liable and should be prose-
cuted.
Powers ot SEC. 9. That to this end the Attorney-General shall
attorney-gen- 1 ^
erai in making have power, at any and all times, to require the omcers,
investigations. J /? a it ^
4 agents or employees of any such corporation, and all other
persons having knowledge with respect to the matters and
affairs of such corporations, to submit themselves to ex-
amination by him, and produce for his inspection any
of the books and papers of any such corporations, or
which are in any way connected with the business thereof ;
minister oathl an( l the Attorney- General is hereby given the right to ad-
minister oath to any person whom he may desire to ex-
f or 1 P order U of amme - He shall also, if it may become necessary, have
discovery. a right to apply to any judge of the Supreme or Superior
Court, after five days notice of such application, for an
order on any such person or corporation he may desire
to examine to appear and subject himself or itself to such
Disobedience examination, and disobedience of such order shall con-
of order con-
an pt unisnabie s ^^ u ^ e contempt, and shall be punishable as in other
as such. cases of disobedience of a proper order of such judge:
Proviso: im- Provided, that no person so examined shall be subject to
munity to wit- L
nesses. indictment, prosecution, punishment or penalty by reason
or on account of anything disclosed by him upon such ex-
amination, and full immunity to prosecution and punish-
ment by reason or on account of anything so disclosed is
hereby extended to all persons so examined.
NORTH CAROLINA. 239
SEC. 10. That any corporation unlawfully refusing or Refusal or
J J & neglect of cor-
will fully neglecting to furnish the information required SSf ti ^J*JJ'
by this act when it is demanded as herein provided shall tion m l s d e -
* , *- meanor.
be guilty of a misdemeanor and fined not less than one Punishment,
thousand dollars: Provided, that if any corporation shall time'anS \5ace
in writing notify the Attorney- General that it objects to
the time or place designated by him for the examination
or inspection provided for in the ninth section hereof, it order of court <
shall be his duty to apply to a judge of the Supreme or
Superior Court who shall fix an appropriate time and
place for such examination or inspection, and such corpo- corporation
ration shall, in such event, be guilty under this section, 5re! t refusai a oi
only in the event of its failure, refusal or neglect to ap- pe,?r ec and fur-
pear at the time and place so fixed by said judge and fur- ?ioJ. informa -
nish the information required by this act. False swearing Fa i se swear-
by any person examined under the provisions of this act
shall constitute perjury, and the person guilty of it shall
be punishable as in other cases of perjury.
SEC. 11. If it shall become necessary to do so, the At- Remedy by
-, . ., *Y. . ' mandamus.
torney- General may prosecute civil actions in the name
of the State on relation of the Attorney-General to ob-
tain a mandatory order to carry out the provisions of
this act, and the venue shall be in any county as selected venue,
by the Attorney-General.
SEC. 12. That it shall be the duty of the Attorney-Gen- Attorney-gen?
J eral to prose.
eral, upon his ascertaining that the laws have been vio- cu *e actions,
lated by any trust or public service corporation, so as to
render it liable to prosecution in a civil action, to prose-
cute such action in the name of the State, or any officer
or department thereof, as provided by law, or in the name
of the State on relation of the Attorney-General, and to
prosecute all officers or agents or employees of such corpo- of P eS?g ecilti01 *
rations, whenever in his opinion the interests of the pub-
lic require it.
SEC. 13. That the Attorney- General in carrying out the Attorney gen-
J . i . e f al ma y send
provisions of this act shall have a right to send bills of wii^ of indict-
indictment before any grand jury in any county in which
it is alleged this act has been violated or in any adjoining
county, and may take charge of and prosecute all cuses ch M a 3^ * **
coming within the purview of this act, and shall have the ecution.
power to call to his assistance in the performance of any
of these duties of his office which he may assign to them sol tcftor ance f
any of the solicitors in the State, who shall, upon being
so required to do so by the Attorney- General, send bills of
indictment and assist him in the performance of the duties
240 LAWS ON TBUSTS AND MONOPOLIES.
payments 1 s t o of his office : Provided, that the State shall pay the actual
solicitors. an( j necessary expenses of the solicitor incurred while per-
forming such duties and not over one hundred dollars as
an extra fee when the expense account is approved by the
Attorney-General and Governor, and duly audited, and
the amount of the fee is fixed by them.
act f That the necessary expenses incident to carrying out
the provisions of this act shall, when approved by the
Governor and audited, be paid out of any money in the
state treasury not otherwise appropriated,
injury SEC. 14. That if the business of any person, firm or
o business, corporation shall be broken up, destroyed or injured by
reason of any act or thing done by any other person, firm
or corporation in violation of the provisions of this act,
such person, firm or corporation so injured shall have a
right of action on account of such injury done, and if
Treble dam- damages are assessed by a jury in such case judgment
shall be rendered in favor of the plaintiff and against the
defendant for treble the amount fixed by the verdict.
Acts hereto SEC. 15. That nothing herein shall be construed to re-
rorecom-
mitted. peal the present law so far as it applies to acts committed
prior to the ratification of this act. With this exception
all laws and clauses of laws in conflict with this act are
repealed as of the date when this act becomes effective.
In the General Assembly read three times and ratified
this the 3d day of March, 1913.
COURT DECISIONS.
Thrift v. Elizabeth City, 122 N. C., 31 ; 44 L. E. A., 427,
State v. Biggs, 133 N. C., 729 ; 64 L. K. A., 139.
St. George v. Hardie, 147 N. C., 88.
NORTH DAKOTA.
CONSTITUTION.
ART. VII, SEC. 146. Any combination between indi-
viduals, corporations, associations, or either, having for
its object the effect of controlling of the price of any
product of the soil or any article of manufacture or com-
merce, or the cost of exchange or transportation, is pro-
hibited and hereby declared unlawful and against public
policy; and any and all franchises heretofore granted or
extended, or that may hereafter be granted or extended
in this state, whenever the owner or owners thereof vio-
late this article, shall be deemed annulled and become
void.
STATUTES.
ANTI-TRUST LAW OF 1907.
SECTION 1. Any corporation organized under the laws
of this state or any other state or country for transacting
or conducting any kind of business in this state, or any
partnership, association or individual creating, entering
into or becoming a member of, or a party to, any pool,
trust, agreement, contract, combination, confederation or
individual, to regulate or fix the price of any article of
merchandise, commodity or property, or to fix or limit
the amount or quantity of any article, property, mer-
chandise or commodity to be manufactured, mined, pro-
duced, exchanged or sold in this state, shall be guilty of a
misdemeanor.
SEC. 2. A pool or a trust is a combination of capital,
skill or acts by two or more persons, firms, corporations
or associations of persons, or two or more of them for
either, any or all of the following purposes :
1. To create or carry out restrictions in trade.
2. To limit or reduce the production, or increase or
reduce the price, of property, merchandise or commod-
ities.
1649113 16 241
242 LAWS OX TRUSTS AND MONOPOLIES.
3. To fix at any standard or figure, whereby its price
to the public shall be in any manner controlled or estab-
lished, upon any property, article or commodity of mer-
chandise, produce or manufacture intended for sale, use
or consumption in this state; or to establish any pre-
tended agency whereby the sale of any such property,
article or commodity shall be covered up or made to ap-
pear to be for the original vendor, or a like purpose or
purposes.
4. To make or enter into or carry out any contract,
obligation or agreement of any kind or description by
which they shall bind or have bound themselves not to
sell, dispose of or transport any property, commodity or
article of trade, use, merchandise, commerce or consump-
tion below a common standard figure, or card price list,
or by which they shall agree in any manner to keep the
price of such article, commodity or transportation at a
fixed or graduated figure, or by which they shall in any
manner establish or settle the price of any property, ar-
ticle or commodity or transportation between them or
themselves and others to preclude a free and unrestricted
competition among themselves or others in the sale or
transportation of any such article or commodity, or by
which they shall agree to pool, combine or unite any in-
terest they may have in connection with the sale or trans-
portation of any article or commodity that its price might
in any manner be affected.
SEC. 3. Every corporation whether organized under
the laws of this state or any other state or country, doing
business in this state, and every person, partnership or
association of individuals so doing business, violating
any of the provisions of this chapter, is guilty of a mis-
demeanor and upon conviction thereof shall be punished
by a fine of not less than one hundred dollars nor more
than five thousand dollars.
SEC. 4. Every person who, as president, manager, di-
rector, stockholder^ receiver or agent or other employee
of any corporation, on behalf of such corporation men-
tioned in the last section, or as a member of any partner-
ship or association of individuals, violates any of the
provisions of this-. chapter, upon conviction shall be fined
not to exceed two thousand dollars, or imprisoned in the
county jail not to exceed one year, and, in the discretion
of the court, a sentence of both fine and imprisonment
may be imposed.,
NORTH DAKOTA. 243
SEC. 5. Every domestic or foreign corporation author-
ized to do business in this state, which shall have been
found guilty in any court of competent jurisdiction of
violating any of the provisions of this chapter, is hereby
denied the right of any prohibited from doing business
in this state, and the charter, articles of incorporation or
authority granted, authorizing such corporation to do
business in this state, shall cease and become void ; and it
shall become the duty of the secretary of state, upon the
filing in his office of a certified copy of such judgment, to
immediately cancel the authorization or charter of such
corporation and give such corporation written notice of
such cancellation.
SEC. 6. In any information or indictment for any of-
fense named in this chapter it is sufficient to state the
purposes of the trust or combination and that the ac-
cused is a member of, acted with or in pursuance to it,
without giving its name or description, or how or where
it was created.
SEC. 7. In prosecutions under this chapter it shall be
sufficient to prove that a trust or combination exists and
that the defendant belonging to it or acted for or in con-
nection with it, without proving all the members belong-
ing to it or proving or producing any articles of agree-
ment or any written instrument on which it may have
been based : or that it was evidenced by any written in-
strument at all, and proof that any person has been act-
ing as agent of any defendant in transacting the business
of such defendant in this state, was, while agent of such
defendant and in the name, behalf or interest of such
defendant, violated any of the provisions of this chapter,
shall constitute prima facie proof that the same was the
act of such defendant.
SEC. 8. Any contract or agreement in violation of the
provisions of this chapter shall be absolutely void and
not enforceable either in law or in equity.
SEC. 9. No purchaser of any property, article or other
commodity from any individual^ company, association or
individuals or corporation transacting business contrary
to any provisions of the preceding sections of this chap-
ter, shall be liable for the price or payment of such prop-
erty, article or commodity, and may plead this chapter as
a defense in any suit for such price or payment.
SEC. 10. Whenever any proceeding shall have been
commenced in any court of competent jurisdiction in
244 LAWS ON TEUSTS AND MONOPOLIES.
this state by the attorney-general against any corpora-
tion or corporations, individual or individuals, or asso-
ciation of individuals, co-partnership or joint stock
company or other association, under any of the pro-
visions of this chapter, and the attorney-general desires
to take the testimony of any officer, director, agent or
employee of any such corporation, individual, co-part-
nership, joint stock company or association proceeded
against, or any member or employee thereof in any court
in which said action may be pending, or before any per-
son duly authorized by any court to take testimony in any
such action, and such individual or individuals whose tes-
timony is desired are without the jurisdiction of the
courts of this state or reside without the state of North
Dakota, or cannot be found within this state, then in
such case, the attorney-general may file in the court in
which said action is pending, in term time or in vacation,
or with any judge thereof or with any person duly au-
thorized to take the testimony in such action, an appli-
cation in writing stating therein the name or names of
the persons or individuals whose testimony he desires to
take, and the time when and place where he desires the
said person to appear and testify, and thereupon the
court in which said action is pending, or a judge thereof,
or the person before whom testimony is being taken,
shall immediately issue a notice in writing, directed to
the attorney or attorneys of record, if any. in said cause
appearing for any such defendant or defendants or to
any defendant, agent, officer or employee of any such
defendant or defendants who are parties to said action,
notifying said defendant, attorney or attorneys of record
for such defendant or other officer, agent or employee of
any such party defendant that the testimony of the per-
son or persons named in the application of the attorney-
general is desired and requiring such persons named to
appear at the time and place therein stated then and there
to testify in said action, and requiring said defendant,
attorney or attorneys of record for any such defendant
or such officer, agent or employee of any such defendant
to whom said notice is delivered, or upon whom the same
is served, to have-^aid officer, agent, employee or repre-
sentative of such defendant or defendants named in such
notice whose evidence it is desired to take, at the place
named in said notice and at the time therein fixed, then
and there to testify ; provided, however, that such notice
NOKTH DAKOTA. 245
shall always allow the persons required to testify such
reasonable time for travel to the designated point where
such testimony is required to be given as will, in the
judgment of the court, be sufficient to permit the person
cited to appear, to be present at the time and place des-
ignated in such notice ; provided also, that such time shall
in no case be less than ten days from the service of such
notice. Such notice may be served by any person au-
thorized by law to serve a subpoena.
SEC. 11. Whenever any defendant, attorney or at-
torneys of record, or any agent, officer or employee
of any such party defendant shall have been notified
as provided in the preceding section to require any
officer, agent, director or other employee to attend be-
fore any court or other person authorized to take the
testimony as therein provided, shall fail to appear and
testify or fail to produce such books, papers or documents
as he or they shall have been ordered to produce by the
court or the person authorized to take said evidence, then
it shall be the duty of the court before whom said action
is pending, upon motion of the attorney-general, to strike
out the answer, motion, reply, demurrer or other plead-
ing then or thereafter filed in said action or proceeding
by any such party defendant whose officer, agent, director
or employee has neglected or failed to attend or testify
or to produce any such book, papers or documents as he
or they shall have been ordered to produce in said action
by the court or the person authorized to take such testi-
mony, and said court, upon motion of the attorney-gen-
eral, shall render judgment by default against any such
defendant. In case any officer, agent, employee, director
or other representative or any such defendant as here-
inbefore mentioned, who shall reside in or be found with-
in this state, shall be subpoenaed to appear and testify
in any suit or proceeding brought under the provisions
of this chapter, or to produce such papers, books and
documents as shall have been ordered produced by the
court, or other person authorized to take such testimony,
then the answer, motion, demurrer or other pleading then
or thereafter filed by any such defendant shall, on motion
of the attorney-general, be stricken out and judgment in
said cause rendered as on default.
SEC. 12. The court in which any action or suit is
brought under the provisions of this chapter shall, upon
the relation of the attorney-general made either at
246 LAWS ON TRUSTS AND MONOPOLIES.
the time of the beginning of said suit or at any time
thereafter during its pendency, issue an injunction en-
joining any defendant, agents or other employees of any
such defendant from selling or assigning or in any other
manner disposing of or secreting any of the property or
assets of such defendant then situated in this state during
the pendency of such suit and enjoining the removal of
tiny such assets or other property from the jurisdiction of
this state or the courts thereof; provided, however, that
such injunction shall, on motion of any such defendant,
be dissolved upon the filing of a bond in an amount to be
approved by the court, conditioned that the defendant
shall pay any judgment, fine and costs finally entered
against the defendant in the action or proceeding 1 ' in
which such bond is filed.
SEC. 13. Judgment for fine and costs shall be entered
in the same manner as in civil cases, and shall be enforced
in like manner.
SEC. 14. In addition to the penalties and costs provided
for in this chapter, the court shall allow in any action
brought under the provisions of this chapter, a reasonable
attorney's fee, to be assessed as part of the costs of said
action, which attorney's fee, so assessed shall go to the
attorney-general or state's attorney who conducted the
prosecution, and shall be retained by such attorney-
general or state's attorney as additional compensation to
that otherwise allowed by the laws of this state as such
attorney-general's or state's attorney's salary. (L. 1907,
c. 259.)
UNFAIR COMPETITION (AMENDED ACT MAR. 12, 1913).
1. Any person, firm, corporation^ foreign or domes-
tic, doing business in the state of North Dakota and
engaged in the production, manufacture or distribu-
tion of any commodity in general use, that shall inten-
tionally, for the purpose of destroying or preventing
competition, discriminate between different sections^
communities or cities of this state by selling any such
commodity at a lower rate or price in one section, com-
munity or city, or any portion thereof, than is charged
for such commodity in any other section, community or
city, after equalizing the distance from the point of man-
ufacture, production or distribution and freight rates
therefrom, or who shall wilfully, for the purpose of such
NOBTH DAKOTA. 247
discrimination and unfair competition, refuse to sell any
commodity in general use, and in the manufacture, pro-
duction or distribution of which such person, firm or
corporation may be engaged, to any other person, firm
or corporation which may desire to purchase the same
and who shall comply with all reasonable regulations of
such person, firm or corporation and who shall tender
payment therefor, shall be deemed guilty of a misde-
meanor.
2. If any complaint is made to the secretary of state
that any corporation chartered in this state, or authorized
to do business therein, is or has been guilty of unfair dis-
crimination within the terms of this act, it shall be the
duty of such secretary to at once institute an inquiry as to
such discrimination, giving the corporation complained
of notice of such complaint and an opportunity to be
heard, and if in the opinion of such secretary of state
any corporation, foreign or domestic, shall have been
guilty of any such unfair discrimination under the terms
of this act, the said secretary shall so find and shall
make a record of such finding upon the records in his
office, and shall at once forfeit the charter of such cor-
poration, if it be a domestic corporation, or if it be a
foreign corporation he shall immediately revoke and for-
feit its permit to do business in this state.
3. If, after the revocation of such charter in the case
of a domestic corporation, or of its permit if it be a for-
eign corporation, any such corporation shall continue or
attempt to do business within this state, it shall be the
duty of the attorney-general of this state by a proper
action commenced in the name of the state, to oust such
corporation from any and all business of any kind or
character within the state of North Dakota.
4. Any firm, person or corporation violating any of
the provisions of this act shall, upon conviction thereof,
forfeit to the state of North Dakota a sum not less than
two hundred nor more than five hundred dollars for each
and every violation of this act, said sum to be recovered
by action commenced by the attorney-general in the name
of the state of North Dakota, in any court of competent
jurisdiction. All sums so collected shall be credited to
the general school fund of this state.
5. Nothing in this act contained shall in any manner
be construed as repealing or in any manner altering any
248 LAWS ON TRUSTS AND MONOPOLIES.
other act or part of act heretofore adopted by the legisla-
ture of this state, but the remedies herein provided shall
be cumulative to all other remedies now existing. (L.
1907, c. 258.)
DISCRIMINATION.
1. Any person, firm, company, association or corpora-
tion, foreign or domestic, doing business in the state
of North Dakota, and engaged in the production, manu-
facture or distribution of any commodity in general
use, that shall intentionally for the purpose of destroy-
ing the business of a competitor in any locality, dis-
criminate between different sections, communities or
cities of this state, by selling such commodity at a
lower rate in one section, community or city than is
charged for said commodity by said party in another
section, community or city, after making due allowance
for the difference, if any, in the grade or quality, and
in the actual cost of transportation from the point of
production, if a raw product, or from the point of manu-
facture, if a manufactured product, shall be deemed
guilty of unfair discrimination, which is hereby pro-
hibited and declared to be unlawful.
2. Any person, firm, company, association or corpora-
tion violating any of the provisions of the preceding
section, and any officer, agent or receiver of any firm,
company, association or corporation, or any member of
the same or any individual, found guilty of a violation
thereof, shall be fined not less than five hundred dollars,
nor more than five thousand dollars, or be imprisoned in
the county jail not to exceed one year, or suffer both
penalties.
3. All contracts or agreements made in violation of
any of the provisions of the two preceding sections shall
be void.
4. It shall be the duty of the county attorneys, in their
counties, and the attorney-general, to enforce the pro-
visions of the preceding sections of this act by appropri-
ate actions in courts of competent jurisdiction.
5. If complaint shall be made to the secretary of state
that any corporation authorized to do business in this
state is guilty of unfair discrimination within the terms
of this act, it shall be the duty of the secretary of state
to refer the matter to the attorney-general, who may, if
the facts justify it in his judgment, institute proceedings-
in the courts against such corporation.
NORTH DAKOTA. 249
6. If any corporation, foreign and domestic, authorized
to do business in this state, is found guilty of unfair
discrimination, such finding shall cause a forfeiture of
all the privileges and rights conferred by the laws of this
state upon corporations and shall bar its right to do busi-
ness in this state.
7. If any corporation, having been found guilty of a
violation of any of the provisions of this act, shall con-
tinue or attempt to do business in this state, it shall be
the duty of the attorney-general by a proper action in
the name of the state of North Dakota to enjoin such
corporation from transacting all business of every kind
and character in the state of North Dakota.
8. Nothing in this act shall be construed as repealing
any other act, or part of act, but the remedies herein pro-
vided shall be cumulative to all other remedies provided
by law. (L. 1907, c. 260.)
TRUSTS UNFAIR COMPETITION.
[Chapter 287, acts of 1913.]
AN ACT To amend Sections 1, 2 and 4 of Chapter 258 of the Ses^
sion Laws of 1907, Relating to Trade Discrimination and Unfair
Competition.
Be it Enacted by the Legislative Assembly of the State of
North Dakota:
1. AMENDMENT.] That Section 1 of Chapter 258 of
the Session Laws of 1907, be amended to read as follows :
1. UNFAIR COMPETITION.] Any person, firm or cor-
poration, foreign or domestic, doing business in the state
of North Dakota and engaged in the production, manu-
facture, distribution, purchase or selling of milk, cream,
butter fat, grain or any commodity in general use that
shall, with the intention of creating a monopoly, or of
destroying the business of a competitor, or of any regular
established dealer, or to prevent competition of any per-
son who in good faith intends and attempts to become
such a dealer, discriminate between different sections,
communities, towns or cities, or portions thereof, in this
state, by purchasing at a higher or selling at a lower
rate or price in one section, community, town or city or
portion thereof^ in this state, than is paid or charged by
such person, firm or corporation for such milk, cream,
butter fat, grain or commodity in general use in another
250 LAWS ON TEUSTS AND MONOPOLIES.
section, community, town or city, or portion thereof, in
this state, after making due allowance for the difference,
if any, in the actual cost of transportation of such com-
modities, shall be guilty of unfair discrimination.
2. AMENDMENT.] That Section 2 of Chapter 258 of
the Session Laws of 1907 be amended to read as follows :
2. FORFEITURE OF CHARTER.] If complaint shall be
made to the attorney general that any person, firm or cor-
poration, is guilty of unfair discrimination, as defined by
this Act, he shall investigate the matter complained of,
and for that purpose may subpoena witnesses, administer
oaths, take testimony and require the production of
books or other documents belonging to such persons, firm
or corporation, and if, in his opinion, sufficient grounds
exist therefor, he shall prosecute an action in the name of
the state of North Dakota, in the proper court, to annul
the charter or revoke the permit or license of such per-
son, firm or corporation^ as the case may be.
3. AMENDMENT.] That Section 4 of Chapter 258 of
the Session Laws of 1907 be amended to read as follows :
4. PENALTY.] Any person, firm or corporation con-
victed of unfair discrimination shall be fined in any sum
not less than two hundred dollars nor more than three
thousand dollars.
5. EMERGENCY.] An emergency is hereby declared to
exist, and this Act shall take effect immediately upon its
passage and approval.
Approved March 12, 1913.
OHIO.
DEFINITIONS OF TERMS.
The word " person " or " persons " as used in this
chapter includes corporations, partnerships and associa-
tions existing under or authorized by any state or terri-
tory of the United States, or a foreign country. (G. C.
Sec. 6390.)
TRUSTS DEFINED.
A trust is a combination of capital, skill or acts by two
or more persons, firms, partnerships, corporations or as-
sociations of persons, for any or all of the following pur-
poses :
1. To create or carry out restrictions in trade or com-
merce.
2. To limit or reduce the production or increase, or
reduce the price of merchandise or a commodity.
3. To prevent competition in manufacturing, making,
transportation, sale or purchase of merchandise, produce
or a commodity.
4. To fix at a standard or figure, whereby its price to
the public or consumer is in any manner controlled or
established, an article or commodity of merchandise,
produce or commerce intended for sale, barter, use or
consumption in this state.
5. To make, enter into, execute or carry out contracts,
obligations or agreements of any kind or description, by
which they bind or have bound themselves not to sell,
dispose of or transport an article or commodity, or an
article of trade, use, merchandise, commerce or consump-
tion below a common standard figure or fixed value, or
by which they agree in any manner to keep the price of
such article, commodity or transportation at a fixed or
graduated figure, or by which they shall in any manner
establish or settle the price of an article, commodity or
transportation between them or themselves and others,
so as directly or indirectly to preclude a free and unre-
251
252 LAWS ON TRUSTS AND MONOPOLIES.
stricted competition among themselves, purchasers or
consumers in the sale or transportation of such article
or commodity, or by which they agree to pool, combine
or directly or indirectly unite any interests which they
have connected with the sale or transportation of such
article or commodity, that its price might in any manner
be affected. Such trust as is defined herein is unlawful,
against public policy and void. (G. C.. Sec. 6391.)
OWNING TRUST CERTIFICATE OR ENTERING INTO COMBI-
NATION.
It shall not be lawful for a person, partnership, as-
sociation or corporation, or an agent thereof, to issue or
to own trust certificates, or for a person, partnership,
association or corporation, or an agent, officer or em-
ploye thereof, or a director or stockholder of a corpora-
tion, to enter into a combination, contract* or agreement
with any person or persons, corporation or corporations,
or a stockholder or director thereof, the purpose and
effect of which is to place the management or control of
such combination or combinations, or the manufactured
product thereof, in the hands of a trustee or trustees with
the intent to limit or fix the price or lessen the produc-
tion and sale of an article of commerce, use or consump-
tion, or to prevent, restrict or diminish the manufacture
or output of such article. (G. C., Sec. 6392.)
ILLEGAL, CONTRACT.
A contract or agreement in violation of any provision
of this chapter is void and not enforceable either in law
or equity. (G. C., Sec. 6393.)
PROHIBITION AGAINST FOREIGN CORPORATIONS:
A foreign corporation or foreign association exercis-
ing any the powers, franchises or functions of a corpo-
ration in this state, violating any provision of this chap-
ter shall not have the right of, and be prohibited from,
doing any business in this state. The attorney-general
shall enforce this provision by proceedings in quo war-
ranto in the supreme court, or the court of appeals of the
county in which the defendant resides or does business, or
by injunction or otherwise. The secretary of state shall
OHIO. 253
revoke the certificate of such corporation or association
theretofore authorized by him to do business in this state.
(G. C.. Sec. 6394 as amended by act of May 8, 1913.)
CIVIL PENALTY.
A person, firm, partnership, corporation or association
violating any provision of this charter shall forfeit and
pay the sum of fifty dollars for each day that such vio-
lation is committed or continued after due notice given
by the attorney-general or a prosecuting attorney. Such
sum may be recovered in the name of the state in any
county where the offense is committed or where any of
the offenders reside; and the attorney-general, or the
prosecuting attorney of any county upon the order of
the attorney-general, shall prosecute for the recovery
thereof. When such action is prosecuted by the attorney-
general against a corporation or association, he may begin
it in the circuit court of the county in which the defend-
ant resides or does business. (G. C., Sec. 6395.)
CRIMINAL PENALTY.
A violation of any or all of the provisions of this chap-
ter is a conspiracy against trade, and a person engaged
in such conspiracy or taking part therein, or aiding or
advising in its commission, or, as principal, manager,
director, agent, servant or employer, or in any other ca-
pacity, knowingly carrying out any of the stipulations,
purposes, prices or rates, or furnishing any information
to assist in carrying out such purposes, or orders thereun-
der, or in pursuance thereof, or in any manner violating
a provision of this chapter, shall be fined not less than
fifty dollars nor more than five thousand dollars or im-
prisoned not less than six months nor more than one year,
or both. Provided, however, that when the violatijn of
the provisions of this chapter consists of a combination
to control the price or supply, or to prevent competition
in the sale of bread, butter, eggs, flour, meat or vegetables
or any one of said articles, the persdn or persons thus en-
gaged shall upon conviction thereof be fined in any sun*
not less than five hundred dollars and be imprisoned in
the penitentiary not less than one nor more than five
years. Each day's violation of any of the provisions of
this chapter shall constitute a separate offense. (G. C.
6396 as amended by act May 3, 1913.)
254 LAWS ON TEUSTS AND MONOPOLIES.
LIABILITY FOR DAMAGES.
In addition to the civil and criminal penalties pro-
vided in this chapter, the person injured in his business
or property by another person, or by a corporation, as-
sociation or partnership, by reason of anything forbidden
or declared to be unlawful in this chapter, may sue there-
for in any court having jurisdiction thereof in the
county where the defendant or his agent resides or is
found, or where any service may be obtained, without
respect to the amount in controversy, and recover two-
fold the damages sustained by him and his costs of suit.
When it appears to the court, before which a proceeding
under this chapter is pending, that the ends of justice re-
quire other parties to be brought before such court, the
court may cause them to be made parties defendant and
summoned whether they reside in the county where such
action is pending, or not. (G. C., Sec. 6397.)
WHAT INDICTMENT SHALL CONTAIN.
In an indictment for an offense provided for in this
chapter, it is sufficient to state the purpose or effects of
the trust or combination, and that the accused is a mem-
ber thereof, or acted with or in pursuance of it or aided
or assisted in carrying out its purposes, without giving
its name or description, or how, when and where it was
created. (G. C., Sec. 6398.)
EVIDENCE.
In prosecutions under this chapter, it shall be suf-
ficient to prove that a trust or combination as defined
herein exists, and that the defendant belonged to it, or
acted for or in connection with it, without proving all
the members belonging to it, or proving or producing an
article of agreement, or a written instrument on which it
may have been based ; or that it was evidenced by a writ-
ten instrument. The character of the trust or combina-
tion alleged may be established by proof o,f its general
reputation as such. (G. C., Sec. 6399.)
DUTY OF ATTORNEY-GENERAL AND PROSECUTING ATTORNEY.
The several courts of common pleas in the State are
hereby invested the jurisdiction to restrain and enjoin
violators of this chapter. For a violation of any pro-
OHIO. 255
vision of this chapter by a corporation or association men-
tioned herein, the attorney general, or the prosecuting
attorney of the proper county, shall institute proper pro-
ceeding in a court of competent jurisdiction in any county
in the state where such corporation or association exists,
does business or has a domicile. When such suit is insti-
tuted by the attorney general in quo warranto, he may
begin the same in the supreme court of the state or the
court of appeals of Franklin county. When such suit is
instituted by the attorney general to restrain and enjoin
a violation of any provision of this chapter, he may begin
the same in the court of common pleas of Franklin
county. Such proceeding to restrain and enjoin such vio-
lation, or violations, shall be by way of petition setting
forth the case, and praying that such violation shall be
enjoined or otherwise prohibited.
Upon the filing of such petition, and before final decree*
the court may at any time make such temporary restrain-
ing order or prohibition as shall be deemed just in the
premises. In any action or proceeding in quo warranto
by the attorney general or a prosecuting attorney against
the corporation the court in w y hich such action or proceed-
ing is pending may, ancillary to such action or proceed-
ing, restrain or enjoin the corporation and its officers and
agents from continuing or committing during the pend-
ency of the action the alleged act or acts by reason which
the action is brought. When, in a proceeding quo vrar-
ranto by the attorney general or any prosecuting attor-
ney, any corporation incorporated under the laws of this
state is, on final hearing, found guilty of violating any
of the provisions of this act, the court may declare a for-
feiture of all its rights, privileges, and franchises to the
state and may order the incorporation dissolved and ap-
point a trustee or trustees to wind up its affairs, as is
provided in other cases of quo warranto. (0. C. Sec*
6400 as amended act May 8, 1913.)
WITNESS NOT EXCUSED FROM TESTIFYING.
If a court of record or in vacation a judge thereof, in
w r hich is pending a civil, criminal or other action or pro-
ceeding brought or prosecuted by the attorney-general or
a prosecuting attorney for the violation of any provision
of this chapter, or an action or proceeding for a violation
of a law. common or statute, against a conspiracy or com
256 LAWS OX TRUSTS AXD MONOPOLIES.
bination in restraint of trade, so orders, no person shall
be excused from attending, testifying or producing books,
papers, schedules, contracts, agreements or other docu-
ments in obedience to the subpoena or order of such coud
or a commissioner, referee or master appointed by such
court to take testimony, or a notary public or other per-
son authorized by the laws of this state to take deposi-
tions, when the order made by such court or judge in-
cludes a witness whose deposition is being taken before
such notary public or other officer, for the reason that
the testimony or evidence required of him may tend to
criminate him or subject him to a penalty ; but no person
shall be prosecuted or subject to a penalty for or on ac-
count of a transaction, matter or thing concerning whioli
he may so testify or produce evidence, documentary or
otherwise, before such court, person or officer. (G. C.,
Sec. 6401.)
CUMULATIVE PROVISIONS.
The provisions of this chapter shall be cumulative of
each other and of all other laws in any manner affecting
them. G. C., Sec. 6402.)
See Nos. 71 and 74.
COURT DECISIONS.
The Central Ohio Salt Co. v. Stephen H. Guthrie,
35 O. St., 666.
Emery et al. v. The Ohio Candle Co., 47 O. St., 320.
State ex rel. v. Standard Oil Co., 49 O. St., 137.
United States Telephone Co. v. Telephone Co., 32
O. C. C. 18;13N. S., 337.
Gould v. Railway, 21 Dec., 729.
Freeman v. Miller, 21 Dec., 766; 9 N. S., 26.
Corn Products Refining Co. v. Roser-Runkle Co., 22
Bee., 663; 10 N. S., 596.
Mannihgton v. Railway, 16 O. F. D., 552 ; 8 O. L. R., 451.
State v. Jacobs, 7 Ohio K P., 261.
Kevil v. Standard Oil Co., 8 Ohio N. P., 311.
Gage v. State, 24 Ohio C. C., 724.
OKLAHOMA.
CON STITUTION.
POWER TO HOLD STOCKS AND BONDS OF OTHER CORPORATIONS.
ART. IX, SEC. 41. No corporation chartered or licensed
to do business in this state shall own, hold or control, in
any manner whatever, the stock of any competitive cor-
poration or corporations engaged in the same kind of
business, in or out of the state, except such stock as may be
pledged in good faith to secure bona-fide indebtedness ac-
quired upon foreclosure, execution sale or otherwise for
the satisfaction of debt. In all cases where any corpora-
tion acquires stock in any other corporation, as herein
provided, it shall be required to dispose of the same
within twelve months from the date of acquisition; and
during the period of its ownership of such stock it shall
have no right to participate in the control of such corpo-
ration, except when permitted by order of the corporation
commission. No trust company, or bank or banking com-
pany, shall own, hold or control, in any manner what-
ever, the stock of any other trust company, or bank or
banking company, except such stock as may be pledged in
good faith to secure bona fide indebtedness, acquired
upon foreclosure, execution sale or otherwise for the sat-
isfaction of debt; and such stock shall be disposed of in
the time and manner hereinbefore provided.
ART. II, SEC. 32. Perpetuities and monopolies are con-
trary to the genius of a free government, and shall never
be allowed, nor shall the law of primogeniture or entail-
ments ever be in force in this state.
ART. V, SEC. 44. The legislature shall define what is
an unlawful combination, monopoly, trust, act or agree-
ment, in restraint of trade, and enact laws to punish per-
sons engaged in any unlawful combination, monopoly,
trust, act or agreement in restraint of trade, or composing
any such monopoly, trust or combination.
1649113 17 257
258 LAWS ON TRUSTS AND MONOPOLIES.
ART. IX, SEC. 45. Until otherwise provided by law, no
person, firm, association or corporation engaged in the
production, manufacture, distribution or sale of any com-
modity of general use, shall, for the purpose of creating
a monopoly or destroying competition in trade, discrimi-
nate between different persons, associations or corpora-
tions, or different sections, communities or cities of the
state, by selling such commodity at a lower rate in one
section, community or city than in another, after making
due allowance for the difference, if any, in the grade,
quantity or quality, and in the actual cost of transporta-
tion from the point of production or manufacture.
STATUTES.
That every act, agreement, contract or combination in
the form of trust or otherwise, or conspiracy in restraint
of trade or commerce, within this state, which is against
public policy, is hereby declared to be illegal. (Act of
June 10, 1908, L. 1908, p. 750, Sec. 1.)
If the attorney general shall have sufficient evidence
that the provisions of the constitution, or any law pur-
suant thereto, against the establishment or maintenance
of any trust, monopoly or unreasonable restraint of trade,
or any violation of this act, or any of its provisions, are
about to be or have been violated, by any person, firm,
corporation or association engaged in any quasi-public
business, or having a virtual monopoly of any commodity
or business with the intention or effect of destroying com-
petition or restraining trade contrary to the provisions
of this act, he may file information in the supreme court,
and by proceeding as against nuisance, enjoin and re-
strain said combination or arrangement, or any of its
members or by proceeding analogous to libel, cause any
or all the personal property of said offending person, finr
or corporation or association used or to be used in whole
or in part in any transaction which in effect or intent
hinders competition, or unreasonable restriction of trade,
to be forfeited to the state in the discretion of the court,
together with all the commodities in the possession or
control of such offending corporation, person, firm or as-
sociation, used or intended for such use in violation of
the constitution or laws pursuant thereto, or this act ; and
may take both said proceedings.
OKLAHOMA. 259
Upon the filing of such petition, or at any time there-
after, the attorney general may apply for an in junction
pending the action and the appointment of a receiver for
any or all of the property of such person, firm, corpora-
tion or association. Upon such application, the court,
or a majority of the judges thereof, if in vacation, is au-
thorized to issue a restraining order pending the action
enjoining the defendant or defendants from in any way
changing the business, records, books, instruments, 01
property to them belonging, or by them used, directly or
indirectly, and issue a rule to show cause why a receiver
should not be appointed, and after notice of such rule
shall have been served on the defendant or defendants,
or any managing agent of said defendant or defendants
within this state, and an opportunity to be heard having
been given, said receiver may be appointed in the discre-
tion of the court to take charge of the property of the
defendant or defendants so notified. Such receiver shall
preserve said property free from any illegal arrange-
ment until determination of the litigation, and thereafter
to dispose of the same according to law, or any other
remedy may be applied, or both, to more effectually pro-
duce and consummate such preservation or forfeiture, or
both; and said court shall be authorized by appointed
master in chancery, or otherwise in his discretion, to
receive evidence in any county in the state according to
the rules of civil procedure, and make the findings of fact
thereon for said court ; and said master in chancery shall
have compulsory process for witnesses, and the produc-
tion of books and papers from any part of the state, and
for this purpose the executive officers of the said court, or
any of the district courts of the state, shall be empowered
to serve mesne and final process ; and the services of said
master in chancery, or other person appointed by the
court shall be paid for as costs by the losing parties in
said cause, in an amount equal to the fees that would
have been earned therein if a notary public had received
said testimony, together with a sum of not exceeding ten
dollars ($10) per day, in the discretion of the court, and
the actual expenses for each day that testimony is actually
received ; and testimony and evidence in such action may
also be taken by deposition anywhere within or without
this state, as in civil actions in the district court.
In the event of a violation of any order of the court
therein, and a proceeding grows out of the same in the
260 LAWS ON TKUSTS AND MONOPOLIES.
nature of contempt, if the defendant demand a trial by
jury, the court may transfer the said contempt proceed-
ings to any district court of the state for trial by jury,
and a verdict, but the judgment, if any, shall be rendered
by said supreme court, and sentence, if proper, passed by
it. This proceeding shall be in addition to, and cumula-
tive as to any other provisions of the law applicable to
the same situation; provided, that the appointment of
such receiver may be stayed, or after appointment and
possession taken the receiver shall be discharged, upon
the defendant giving bond in an amount and with sure-
ties to be approved by said court, or a justice thereof,
conditioned for the payment of all damages and costs
which may be assessed against the defendant in said
proceeding in favor of the state, or any officer, or person.
(Id., Sec. 2.)
Any person, firm, corporation or association, who shall
be injured in his or their business or property, by any
other person, firm, corporation or association, by reason
of anything forbidden, or declared to be unlawful by
this act, may sue therefor in the courts of this state, and
shall receive three- fold the damages by him or them sus-
tained, and the costs of suit, and a reasonable attorney's
fee, to be fixed by the court. (Id., Sec. 3.)
Every foreign corporation, as well as any foreign as-
sociation, exercising any of the powers, franchises or
functions of a corporation in this state, violating any of
the provisions of this act is hereby denied the right and
prohibited from doing business in this state, and the sec-
retary of state, upon the order of the corporation com-
mission, or any competent court, made after due notice
and in due course of law shall revoke the license of any
such corporation or association heretofore authorized to
do business in this state. (Id., Sec. 4.)
It shall be unlawful for any person, firm, corporation
or association, engaged in the production, manufacture,
distribution or sale of any commodity of general use, or
rendering any service to the public to discriminate be-
tween different persons, firms, associations or corpora-
tions, or different sections, communities or cities of the
state by selling such commodity or rendering such serv-
ice at a lower rate in one section, community or city than
another, or at the same rate or price at a point away from
that of production or manufacture as at the place of pro-
duction or manufacture, after making due allowance for
OKLAHOMA. 261
the difference, if any, in the grade, quantity or quality,
and in the actual cost of transportation from the point
of production or manufacture, if the effect or intent
thereof is to establish, or maintain, a virtual monopoly
hindering competition, or restriction of trade. (Id.,
Sec. 5.)
Any person who shall violate any of the provisions
of this act, or take any part or aid or advise in the viola-
tion of any such provisions, or who shall, as officer, man-
ager, director, agent, servant or employee, of any firm,
corporation or association, knowingly carry out any of
the stipulations, purposes, prices, rates, or furnish any
information, knowingly, to assist in carrying out such
purposes, or in pursuance thereof, in violation of said
provisions, shall be punished by a fine of not less than $50
nor more than $10,000, and by imprisonment not less than
ten days nor more than ten years, at the discretion of the
court; and each day's violation of the provisions, or any
of them, of this act, shall constitute a separate offense.
And any sum w r hich might be assessed, as a fine by way
of punishment for a crime as in this act provided may be
recovered by the state as a penalty in civil action, in addi-
tion to, or irrespective of, the assessment and assessability
of said fine, either before, or later, or simultaneously
with the pendency of said criminal action. (Id., Sec. 6.)
In any indictment or information for any offense
named in this act it is sufficient to state the purpose, or
facts of the trust, monopoly, unlawful combination in
restraint of trade or commerce, and that the accused is a
member of, acted with or in pursuance of it, or aided or
assisted in carrying out its purpose, without giving its
name, or description, or stating how, when or where it
was created. (Id., Sec. 7.)
It shall be the duty of the court before whom any pro-
ceeding under this act may be brought, upon the applica-
tion of the attorney general, to cause to be issued by the
clerk of said court subpoenas for such witnesses as may be
named in the application and cause the same to be served
by the sheriff of the county where or whither such sub-
poena is issued; and such witnesses shall be compelled to
appear before such court or judge at the time and place
set forth in the subpoena, and shall be compelled to testify
as to any knowledge they may have of the violations of
any of the provisions of this act; and any witness who
fails or refuses to attend and testify shall be punished
262 LAWS ON TKUSTS AND MONOPOLIES.
as for contempt, as provided by law. Any person so sub-
poenaed and examined shall not be liable to criminal pros-
ecution for any violation of this act about which he may
testify; neither shall the evidence of any such witness be
used against him in any criminal proceeding. The evi-
dence of all the witnesses shall, at the option of the at-
torney general, be taken down, and shall be transcribed
and placed in the hands of the attorney general and he
shall be authorized to prosecute such violator or violators
of this act as the testimony so taken shall disclose. Wit-
nesses subpoenaed as provided in this act shall be com-
pelled to attend from any county in the state. (Id.,
Sec. 8.)
It shall be the duty of the county attorneys of the sev-
eral counties of this state, as well as the attorney general
of the state, to prosecute all actions to enforce the crimi-
nal provisions of this act. (Id,, Sec. 9.)
It shall be unlawful for any person, partnership, firm,
association or corporation or joint stock company, or
agent thereof, to issue or to own trust certificates, or
for any person, firm, partnership, association, joint stock
company or corporation agent, officer, employee or the
directors or stockholders of any corporation, association
or joint stock company, to enter into any combination,
contract or agreement with any person or persons, corpo-
ration or associations, firm or firms, partnership or part-
nerships, or with any stockholder, director or officer,
agent or employee of the same, the purpose or effect of
which combination, contract or agreement shall be to
place the management or control of such combination or
combinations, or the conduct or operation of the same,
or the output of manufactured product thereof, or the
marketing of the same in the hands of any trust or trus-
tees, holding corporation or association, firm or com-
mittee, with the intent or effect to limit or fix the price
or lessen the production or sale of any product or article
of commerce or the use or consumption of the same, or
to prevent, restrict, limit or diminish the manufacture
or output of any such article of commerce, use or con-
sumption, and every person, firm, partnership, associa-
tion, joint stock company or corporation, or any agent,
employee, officer, or director of the same that shall enter
into such combination, contract, management or agree-
ment for the purpose aforesaid, shall be deemed and ad-
judged guilty of conspiracy in restraint of trade, and
OKLAHOMA. 263
punished as provided for in section 6 of this act, in so
far as applicable ; provided, this section shall not be con-
strued to extend beyond the scope and meaning of sec-
tion 1 of this act. (Id., Sec. 10.)
Every corporation who shall own, hold or control in
any manner whatever, the stock of any competitive cor-
poration or corporations engaged in the same kind of
business in or out of the state, in violation of the Consti-
tution and laws of this state, shall forfeit its charter or
license to do business in this state, and shall be subject
to a penalty of not less than one thousand dollars
($1,000.00) nor more than ten thousand dollars
($10,000.00), to be recovered at the suit of the state, in
any court of competent jurisdiction. (Id., Sec. 11.)
Whenever any corporation created under the laws of
this state, or any foreign corporation authorized to do
business in this state, shall violate any law of this st.fte,
for the violation of which fines, penalties or forfeitures
are provided, all property of such corporation within
this state at the time of such violation, or which may
hereafter come within the state, shall, by reason of such
violation, become liable for such fine or penalties, and
for all costs of suit, and of collection. The state of Okla-
homa shall have a lien on all such property from the date
that the suit shall be instituted by the attorney general
in any court of competent jurisdiction within this state,
for the purpose of forfeiting the charter or canceling +he
permit of such corporation, or for the recovery of such
fines or penalties. The institution of such suit for the
recovery of such fines, penalties or forfeitures shall con-
stitute notice of such lien. (Id., Sec. 12.)
Whenever any business, by reason of its nature, ex-
tent or the existence of a virtual monopoly therein, is
such that the public must use the same or its services, or
the consideration by it given or taken or offered, or the
commodities bought or sold therein or offered or taken
by purchase or sale in such a manner as to make it of
public consequence, or to affect the community at large
as to supply, demand or price, or rate thereof, or said
business is conducted in violation of the first section of
this act, said business is a public business, and subject
to be controlled by the state, by the corporation commis-
sion, or by an action in any district court of the state, as
to all of its practices, prices, rates and charges. And it
is hereby declared to be the duty of any person, firm or
264 LAWS ON TKUSTS AND MONOPOLIES.
corporation engaged in any public business to render its
services and offer its commodities, or either, upon reason-
able terms, without discrimination and adequately to the
needs of the public, considering the facilities of said busi-
ness. (Id., Sec. 13.)
In all prosecutions or proceedings under this act it
shall be sufficient to prove that a trust, monopoly, com-
bination in restraint of trade or commerce, existed with-
out the period not barred by the statute of limitations,
and was continued in any form into and during any por-
tion of the period not so barred, and that defendant be-
longed to it, or acted for or in connection with it, with-
out proving all the members belonging to it, or proving
or producing any article or agreement, or any written
instrument on which it may have been based, or that it
was evidenced by any written instrument at all. (Id.,
Sec. 14.)
Any violation of this act committed before its passage,
and continued in any illegal form after its passage, is
within its terms. (Id., Sec. 15.)
The remedies provided for by this act are applicable
to all pending actions. (Id., Sec. 16.)
Nothing in this act shall abridge or alter any remedy
or remedies now, or hereafter, existing either at common
law or by statute, but the provisions of this act are in
addition to such remedies. (Id., Sec. IT.)
[Chapter 114.]
MONOPOLIES UNFAIR COMPETITION AND DISCRIMINATION.
AN ACT To define and prohibit unfair competition and discrimi-
nation, and to define the powers and duties of the Attorney
General in regard thereto ; and declaring an emergency.
" UNFAIR DISCRIMINATION " DEFINITION.
SECTION 1. Any person, firm or corporation, foreign or
domestic, doing business in the State of Oklahoma, and
engaged in the production, manufacture or distribution
of any commodity in general, that intentionally, for the
purpose of destroying the competition of any regular,
established dealer in such commodity, or to prevent the
competition of any person who, in good faith, intends
and attempts to become such dealer, shall discriminate
OKLAHOMA. 265
between different sections, communities or cities of this
state by selling such commodity at a lower rate in one
section, community or city, or any portion thereof, than
such person^ firm or corporation, foreign or domestic,
charges for such commodity in another section, commu-
nity or city, or that shall discriminate between different
sections, communities or cities of this state by selling
such commodity at a lower rate in one section, commu-
nity or city, or any portion thereof, than such person,
firm or corporation; foreign or domestic, charges for such
commodity in another section, community or city after
equalizing the distance from the point of production,
manufacture or distribution and freight rates therefrom,
shall be deemed guilty of unfair discrimination, which is
hereby declared to be a misdemeanor.
INVESTIGATIONS ACTIONS REVOCATION OF CHARTERS AND PERMITS.
SEC. 2. If complaint shall be made to the Attorney
General that any corporation is guilty of unfair discrim-
ination, as defined by this act, he shall investigate such
complaint and for that purpose he may subpoena wit-
nesses, administer oaths ; take testimony, and require the
production of books or other documents, and if in his
opinion sufficient grounds exist therefor, he may admin-
ister oaths, take testimony, and require the production
of books or other documents, and if in his opinion suffi-
cient grounds exist therefor, he may prosecute an action
in the name of the state in the proper court to annul the
charter or revoke the permit of such corporation^ as the
case may be, and to permanently enjoin such corporation
from doing business in this state, and if in such action
the court shall find that such corporation is guilty of un-
fair discrimination, as defined by this act, such court shall
annul the charter or revoke the permit of such corpora-
tion, and may permanently enjoin it from transacting
business in this state.
VIOLATIONS OF ACT PUNISHMENT.
SEC. 3. Any person, or the managing agent or agents
of any firm or corporation violating the provisions of sec-
tion one (1) of this act shall upon conviction thereof, be
fined not less than one hundred ($100.00) dollars, nor
more than five hundred ($500.00) dollars for each
offense.
266 LAWS ON TEUSTS AND MONOPOLIES.
" COMBINATION " OF CORPORATIONS DEFINITION.
SEC. 4. Where two or more corporations engaged in the
same lines of business shall have or may hereafter be-
come associated together by the owning, holding or con-
trolling of certificates of stock, or other interest, in more
than one of such corporations by one of such corporations,
or any stockholder thereof, the same shall be deemed, and
is hereby declared to be, a " combination/' and all cor-
porations so linked together, and all auxiliary corpora-
tions and business plants owned or controlled by them, or
either of them, directly or indirectly, are declared to be
members of such combination.
" UNFAIR COMPETITION " DEFINITION EXCEPTIONS.
SEC. 5. Raising or lowering by such combination, or
any member thereof, in the immediate territory of a
financially weaker competitor^ the price of a commodity
handled by such competitor or lowering the price charged
for services rendered the public by such competitor, while
at the same time the same combination, or some member
thereof, is engaged in buying or selling a like commodity
for a different and more advantageous price, or is charg-
ing a greater rate for like services rendered the public
at another point within the State of Oklahoma, is
hereby declared to be unfair and destructive competition
and is hereby prohibited ; and the doing of any act which,
directly or indirectly, brings about a similar effect on
such weaker competitor shall be a violation of this act;
provided^ a proper allowance shall be made for grade or
quality of product and freight rate. Provided nothing
herein contained shall prevent such combination, or any
member thereof, from meeting any price, made by any
one not connected in any way with, or influenced by, any
member thereof, at any point within this state without be-
ing required to make such price generally, so long as such
outside party maintains such price in good faith, but no
longer, if such point be within the immediate territory of
a financially weaker competitor.
DAMAGES TO WEAKER COMPETITOR LIABILITY OF " COMBINATION."
SEC. 6. Every such weaker competitor injured by rea-
son of any of the acts herein prohibited in the foregoing
section may recover, as damages, of the offending combi-
nation, or any of the offending members thereof, three
OKLAHOMA. 267
times the amount of actual damages sustained thereby,
together with a reasonable attorney fee for collecting such
damages. Lost profits may be recovered as damages, and
lost profits may be ascertained by taking the difference in
the price paid or received for a commodity or for serv-
ices rendered the public in the territory of such weaker
competitor and the price paid or received for a like com-
modity or like services rendered at any other point within
this state by such combination^ or any member thereof.
Grade or quality of product and freight rate to be con-
sidered as in previous section. Suit for such damages
and attorney fees may be brought in any court of compe-
tent jurisdiction in the county wherein such damage may
be sustained.
ACT CUMULATIVE TO OTHER LEGAL REMEDIES.
SEC. 7. Nothing in this act shall be construed as re-
pealing any other act, or part of an act, but the remedies
herein provided shall be cumulative to all other remedies
provided by law.
EMERGENCY.
SEC. 8. An emergency is hereby declared by reason
whereof it is necessary for the immediate preservation of
the public health and safety that this act take effect and
be in force from and after its passage and approval.
Approved, March 29, 1913.
COURT DECISIONS.
State v. Coyle, 130 Pac., 316.
Anderson v. Shawnee Compress Co., 17 Okla.. 231; 15
L. R. A. N. S., 846.
Territory v. Long Bell Lumber Co.. 99 Pac., 911.
OREGON.
There are no anti-trust laws in Oregon.
COURT DECISIONS.
White v. Holman (Or.) 74 Pac., 933.
269
PENNSYLVANIA.
There are no anti-trust laws in Pennsylvania.
COURT DECISIONS.
The Morris Run Company v. The Barclay Coal Co.,
68 Penn. St., 173.
Nester et al. v. Continental Brewing Co. et al., 161
Penn., 473.
271
RHODE ISLAND.
There are no statutory provisions on anti-trust subjects.
COURT DECISIONS.
Oakdale Mfg. Co. et al. v. Sebastian Garst, 18 E. L,
484.
Macauley Brothers v. Tierney, 19 R. L, 255.
State v. Eastern Coal Co., 29 R. L, 254.
1649113 18 273
SOUTH CAROLINA.
CONSTITUTION.
ART. IX, SEC, 13. The general assembly shall enact
laws to prevent all trusts, combinations, contracts and
agreements against the public welfare; and to prevent
abuses, unjust discriminations and extortion in all
charges of transporting and transmitting companies ; and
shall pass laws for the supervision and regulation of such
companies by commission or otherwise, and shall provide
adequate penalties, to the extent, if necessary for that
purpose, of forfeiture of their franchises.
STATUTES.
All arrangements, contracts, agreements, trusts or com-
binations between two or more persons as individuals,
firms or corporation made with a view to lessen, or which
tend to lessen, full and free competition in the importa-
tion or sale of articles imported into this state, or in the
manufacture or sale of articles of domestic growth, or of
domestic raw material, and all arrangements, contracts,
agreements, trusts or combinations between persons or
corporations, designed or which tend to advance, reduce
or control the price or the cost to the producer or to the
consumer of any such product or article, and all arrange-
ments, contracts, trusts, syndicates, associations or com-
binations between two or more persons as individuals,
firms, corporations, syndicates or associations, that may
lessen or affect in any manner the full and free competi-
tion in any tariff, rates, tolls, premiums or prices, or
seeks to control in any way or manner such tariffs, rates,
tolls, premiums or prices in any branch of trade, business
or commerce, are hereby declared to be against public
policy, unlawful and void ; and any violation of the pro-
vision hereof shall be deemed, and is hereby declared to
be, destructive of full and free competition and a con-
spiracy against trade, and any person or persons who
may engage in any such conspiracy, or who shall, as prin-
275
276 LAWS ON TRUSTS AND MONOPOLIES.
cipal, manager, director or agent, or in any other capac-
ity, knowingly carry out any of the stipulations, pur-
poses, prices, rates or orders made in furtherance of such
conspirac}^, shall, on conviction, be punished by a fine of
not less than one hundred dollars or more than five thou-
sand dollars, and by imprisonment in the penitentiary
not less than six months, or more than ten years, or, in
the judgment of the court, by either such fine or such
imprisonment. (Criminal Code, Sec. 212.)
Whenever complaint is made upon affidavit or affi-
davits showing a prima facie case of violation of the pro-
visions of the preceding section by any corporation, do-
mestic or foreign, it shall be the duty of the attorney-
general to bring action against such domestic corporation
to forfeit its charter, and for the purpose of such for-
feiture he shall apply to any court of competent juris-
diction for an order restraining such offending corpora-
tion, and in cases where, in his discretion, it is necessary,
for the immediate appointment of a receiver for such
offending corporation, where such forfeiture affects a
creditor or creditors of such offending corporation, and
in case such violation shall be established the court shall
adjudge the charter of such corporation to be forfeited,
and such corporation shall be dissolved and its charter
shall cease and determine ; and in the case of such show-
ing as to a foreign corporation an action shall be begun
by the attorney-general in said court to determine the
truth of such charge, and in case such charge shall be
considered established the effect of the judgment of the
court shall be to deny such corporation the recognition
of its corporate existence in any court of law or equity
in this state. But nothing in this section shall be con-
strued to affect any right of action then existing against
such corporation. (Criminal Code, Sec. 213.)
Any person or persons or corporation that may be in-
jured or damaged by any such arrangement, contract,
agreement, trust or combination described in section 212
may sue for and recover, in any court of competent juris-
diction in this state, of any person, persons or corporation
operating such trust or combination, the full consideration
or sum paid by him or them for any goods, wares, mer-
chandise or articles the sale of which is controlled by
such combination or trust. (Criminal Code, Sec. 214.)
Any and all persons may be compelled to testify in
any action or prosecution under the three preceding sec-
SOUTH CAROLINA. 277
tions; provided, that such testimony shall not be used in
any other action or prosecution against such witness or
witnesses, any such witness or witnesses shall forever be
exempt from any prosecution for the act or acts concern-
ing which he or they testify. (Criminal Code, Sec. 215.)
See also sees. 2840-7 of the Civil Code to same effect.
ANTI-TRUST ACT OF 1902.
SECTION 1. Be it enacted by the general assembly of the
state of South Carolina: Any corporation organized
under the laws of this or any other state or country, and
transacting or conducting any kind of business in this
state, or any partnership or individual, or other associa-
tion of persons whatsoever, who shall create, enter into,
become a member of or a party to any pool, trust, agree-
ment, combination, confederation or understanding with
any other corporation, partnership, individual or any
other person or association of persons, to regulate or fix
the price of any article of manufacture, mechanism, mer-
chandise, commodity, convenience, repair, any product
of mining or any article or thing whatsoever, or to main-
tain said price when so regulated or fixed, or shall enter
into, become a member of or a party to any pool, agree-
ment, combination, contract, association or confederation
to fix or limit the amount or quantity of any article of
manufacture, mechanism, merchandise, commodity, con-
venience, repair, any product of mining, or any article
or thing whatsoever, or the price or premium to be paid
for insuring property against loss or damage by fire,
lightning, storm, cyclone, tornado, or any other kind of
policy issued by any corporation, partnership, individual
or association of persons aforesaid, shall be deemed and
adjudged guilty of a conspiracy to defraud, and to be
subject to the penalties as provided by this act.
SEC. 2. A " monopoly " is any union, or combination,
or consolidation, or affiliation of capital, credit, property,
assets, trade, custom, skill or acts, or any other valuable
thing or possession, by or between persons, firms or cor-
porations, whereby any one of the purposes or objects
porations, or associations of persons, firms or corpora-
tions, whereby any one of the purposes or objects
mentioned in this act is accomplished, or sought to be
accomplished, or whereby any one or more of said pur-
poses are promoted or attempted to be executed or carried
278 LAWS ON TKUSTS AND MONOPOLIES.
out, or whereby the several results described herein are
reasonably calculated to be produced ; and a " monopoly "
as thus defined and contemplated, includes not merely
such combinations by and between two or more persons,
firms or corporations acting for themselves, but is espe-
cially defined and intended to include all aggregations,
amalgamations, affiliations, consolidations or incorpora-
tions of capital, skill, credit, assets, property, custom
trade, or other valuable thing or possession, whether ef-
fected by the ordinary methods of partnership or by
actual union under the legal form of a corporation, or
an incorporated body resulting from the union of one or
more distinct firms or corporations, or by the purchase,
acquisition or control of shares or certificates of stocks
or bonds, or other corporate property or franchises, and
all corporations or partnerships that have been or may
be created by the consolidation or amalgamation of the
separate capital, stock, bonds, assets, credits, properties,
custom, trade or corporate or firm belongings of two or
more firms or corporations or companies, are especially
declared to constitute monopolies, within the meaning of
this act, if so created or entered into for any one or more
of the purposes named in this act ; and a " monopoly,"
as defined in this section, is hereby declared to be unlaw-
ful and against public policy; and any and all persons,
firms, corporations or associations of persons engaged
therein shall be deemed and adjudged guilty of a con-
spiracy to defraud, and shall be subject to the penalties
prescribed in this act.
SEC. 3. If any person, persons, company, partnership,
association or corporation engaged in the manufacture
or sale of any article of commerce or consumption from
the raw material produced or mined in this state shall,
with the intent or purpose of driving out competition, or
for the purpose of financially injuring competitors, sell
at less than the cost of manufacture, or give away their
manufactured products, for the purpose of driving out
competition or financially injuring competitors engaged
in the manufacture and refining of raw material in this
state, said person, persons, company, partnership, asso-
ciation or corporation resorting to this method of secur-
ing a monopoly in the manufacture, refining and sale of
the finished product produced or mined in this state, shall
be deemed guilty of a conspiracy to form or secure a
SOUTH CAROLINA. 279
trust or monopoly in restraint of trade, and, on convic-
tion, shall be subject to the penalties of this act.
SEC. 4. Any person, partnership, firm or association,
or any representative or agent thereof, or any corpora-
tion or company, or any officer representative or agent
thereof, violating any of the provisions of this act, shall
forfeit not less than two hundred dollars, nor more than
five thousand dollars, for every such offense, and each
day such person, corporation, partnership or association
shall continue to do so, shall be a separate offense, the
penalties in such cases to be recovered by an action in
the name of the state, at the relation of the attorney-
general or the solicitor of the judicial circuit within
which the offense was committed; the moneys thus col-
lected to go into the state treasury, and to become a part
of the general fund except as hereinafter provided. The
amount of the forfeit to be fixed by the judge before
whom the case is tried in each case, within the aforesaid
limits; the collection of which penalty shall be enforced
as the collections of fines against defendants upon con-
viction of a misdemeanor.
SEC. 5. If any two or more persons or corporations,
who are engaged in buying or selling any article of com-
merce, manufacture, mechanism, merchandise, com-
modity, convenience, repair, any product of mining or
any article or thing whatsoever, shall enter into any pool,
trust, agreement, combination, confederation, association
or understanding to control or limit the trade in any such
article or thing; or to limit competition in such trade
by refusing to buy from or sell to any other person or
corporation any such article or thing aforesaid, for the
reason that such other person or corporation is not a
member of or a party to such pool, trust, agreement, com-
bination, confederation,* association or understanding; or
shall boycott or threaten any person or corporation for
buying from or selling to any other person or corporation
who is not a member of or a party to such pool, trust,
agreement, combination, confederation, association or
understanding, any such article or thing aforesaid, it
shall be a violation of this act; and any person, firm,
corporation or association of persons committing such
violation shall be deemed and adjudged guilty of a con-
spiracy to defraud, and shall be subject to the penalties
prescribed in this act.
280 LAWS ON TRUSTS AND MONOPOLIES.
SEC. 6. Any corporation created or organized by or
under the laws of this state which shall violate any of
the provisions of the preceding sections of this act shall
hereby forfeit its corporate rights and franchises; and
its corporate existence shall, upon the proper proof being
made thereof in any court of competent jurisdiction in
the state, be by the court declared forfeited, void and of
no effect, and shall thereupon cease and determine; and
any corporation created or organized by or under the
law of any other state or country which shall violate any
of the provisions of the preceding sections of this act,
shall thereby forfeit its right and privilege thereafter to
do any business in this state; and upon proper proof
being made thereof in any court of competent jurisdic-
tion in this state, its rights and privileges to do business
in this state shall be declared forfeited; and in all pro-
ceedings to have such forfeiture declared, proof that any
person who has been acting as agent of such foreign cor-
poration in transacting its business in this state has been,
while acting as such agent and in the name, behalf or in-
terest of such foreign corporation, violating any pro-
visions of the preceding sections of this act, shall be re-
ceived as prima facie proof of the act of the corporation
itself; and it shall be the duty of the clerk of said court
to certify the decree thereof to the secretary of state.
SEC. 7. It shall be the duty of the attorney-general and
the prosecuting attorney of each circuit where the offense
is committed, respectively, to enforce the provisions of
this act. The prosecuting attorney or solicitor shall in-
stitute and conduct all suits begun in the circuit courts,
and upon appeal the attorney-general shall prosecute said
suits in the supreme court.
SEC. 8. The provisions of the foregoing sections and
the pains and penalties provided 'for violations of this
act shall be held and construed to be cumulative to all
laws now in force in this state; and provided, that the
provisions of this act shall not exempt from punishment
or forfeiture any person, firm, association of persons or
corporations, who may have violated or offended against
any law now in existence that may be or may be con-
strued to be repealed by this act or in conflict herewith ;
and provided further, that nothing in this act shall be
deemed or construed to affect any suits or prosecutions
now pending or hereafter to be instituted upon any
SOUTH CAROLINA. 281
course of action, forfeiture or penalty accruing or to
accrue prior to the date of the taking effect of this act,
but all such rights to maintain, institute or prosecute all
such causes of action are hereby reserved to the state in
the same manner and with the same effect as if this law
had not been passed. (L. 1902, No. 574.)
COURT DECISIONS.
Edwards v. Southern E. Co., 66 S. C., 277 ; 44 S. E., 748.
State v. Virginia-Carolina Chemical Co., 71 S. C., 544.
Walter A. Wood Mowing, etc., v. Greenwood Hardware
Co., 75 S. C., 378.
Packard v. Byrd, 73 S. C., 1 ; 6 L. E. A. K S., 547.
State v. Warehouse Commission, 92 S. C., 81.
SOUTH DAKOTA.
CONSTITUTION.
ART. XVII, SEC. 20. Monopolies and trusts shall never
be allowed in this state and no incorporated company, co-
partnership or association of persons in this state shall
directly or indirectly combine or make any contract with
any incorporated company, foreign or domestic, through
their stockholders or the trustees or assigns of such stock-
holders, or with any co-partnership or association of per-
sons, or in any manner whatever to fix the prices, limit
the production or regulate the transportation of any
product or commodity so as to prevent competition in
such prices, production or transportation or to establish
excessive prices therefor.
The legislature shall pass laws for the enforcement of
this section by adequate penalties and in the case of in-
corporated companies, if necessary for that purpose may,
as a penalty, declare a forfeiture of their franchises.
STATUTES.
ANTI-TRUST ACT OF 1909.
SECTION 1. Within the meaning of this act a trust or
monopoly is a combination of capital or skill, by two or
more persons, firms, corporations, or association of per-
sons.
First. To create or carry out restrictions in trade.
Second. To limit the production or to increase or re-
duce the price of commodities.
Third. To prevent competition in the manufacture,
transportation, sale or purchase of merchandise, produce
or commodities.
Fourth. To fix any standard or figure whereby the
price to the public shall be in any manner established
or controlled.
SEC. 2. That it shall be unlawful for any person or per-
sons, corporations, co-partnership or association of per-
283
284 LAWS ON TRUSTS AND MONOPOLIES.
sons in this state, directly or otherwise, to fix prices,
limit the production, or regulate the transportation of
any produce or commodity so as to obstruct or delay or
prevent competition in such production or transportation,
or to obstruct or prevent competition in the purchase or
sale of any product or commodity.
SEC. 3. That it shall be unlawful for any person or
persons, corporation, co-partnership, or association of
persons in any other state to directly or otherwise com-
bine or make any contract, understanding or agreement
with any person or persons, corporation, co-partnership
or association of persons in this state to fix prices, limit
the production of commodities or regulate the transpor-
tation, directly or otherwise, of any product or com-
modity so as to obstruct or prevent competition, or to
prevent or obstruct competition in the purchase or sale
of any product or commodity.
SEC. 4. That it shall be unlawful for any person or per-
sons, corporation, co-partnership or association of per-
sons in this state to directly or otherAvise combine or
make any contract, understanding or agreement with
any person or persons, corporation, co-partnership or
association of persons within or without this state to fix
prices, limit the production of commodities, or regulate
the transportation directly or otherwise of any product
or commodity so as to obstruct or prevent competition
within this state or so as to obstruct competition in the
purchase or sale of any product or commodity within this
state.
SEC. 5. That it shall be unlawful for two or more cor-
porations, co-partnerships or associations of persons or-
ganized or existing without the State, but doing business
within this state, to directly or otherwise combine or
make any contract, understanding or agreement with
each other to fix prices, limit the production of com-
modities or regulate the transportation directly or other-
wise of any product or commodity so as to obstruct or
prevent competition within this state or so as to ob-
struct or prevent competition in the purchase or sale of
any product or commodity within this state.
SEC. 6. Any person or persons, co-partnership or asso-
ciation of persons or corporation, or any officer, agent or
servant of any corporation, or association of persons con-
victed of violating any of the provisions of this act shall
SOUTH DAKOTA. 285
be deemed guilty of a misdemeanor and upon conviction
thereof shall be fined for the first offense not more than
five thousand dollars and upon conviction of the second
or any subsequent offense shall be fined not more than
ten thousand dollars.
SEC. 7. All fines recovered under this act shall be paid
as follows : One-half thereof into the general fund of the
county in which the action is prosecuted and one-half into
the general fund of the state.
SEC. 8. It shall be the special duty of the state's attor-
ney of each county of this state, upon the affidavit of any
person or persons, showing that any corporation, person
or persons, association of persons, or any officer, agent or
servant of any corporation, co-partnership or association
of persons have violated any of the provisions of this
act, or without such affidavit when he has reason to be-
lieve that any of the provisions of this act have been or
are being violated to make complaint and cause the ar-
rest of such person or persons, corporation, officer, agent
or servant of any such corporation, co-partnership or
association of persons and to prosecute such action in the
court or courts having jurisdiction thereof, and it shall
be the duty of such state's attorney to immediately upon
making such complaint notify the attorney general there-
of and it shall thereupon be the duty of such attorney
general to aid in such prosecution. Provided, that the
provisions of this section shall not be construed to pre-
vent any person from making complaint to any court of
competent jurisdiction for any violations of the provi-
sions of this act, and in such case the court shall issue a
warrant and proceed the same as though the state's at-
torney had made the complaint, and the court may also
permit any attorney whom the complainant may employ
to appear and prosecute such action at any stage of the
proceedings therein. Provided further, that the provi-
sions of this section shall not be construed to in any man-
ner prevent the attorney general of this state from mak-
ing a* complaint in any court of competent jurisdiction
for any violations of the provisions of this act and prose-
cute the same in the same manner and with the same
powers as herein provided for state's attorneys.
SEC. 9. Any corporation organized and doing business
under the laws of this state, which shall violate any of
the provisions of this act, in addition to the penalties
286 LAWS ON TRUSTS AND MONOPOLIES.
hereinbefore provided, shall forfeit its charter and it
shall be the duty of any state's attorney in this state
and the attorney general to prosecute an action in the
name of the state by quo warranto or other proper pro-
ceeding against any such offending corporation.
SEC. 10. Any foreign corporation authorized to do busi-
ness within this state, which shall violate any of the pro-
visions of this act shall in addition to the penalties here-
inbefore provided, forfeit its right to do business in this
state, and such foreign corporation may be restrained by
an order of injunction issued by any court of competent
jurisdiction in this state from further conducting busi-
ness in this state.
The order of injunction mentioned herein may be
issued upon affidavits which shall show to the satisfac-
tion of the court or judge thereof to whom application
is made that such corporation named as defendant in
application and affidavit for an order of injunction, has
violated some provisions of this act.
The order of injunction issued upon such affidavit may
be served in the manner now provided by law for the
service of such orders and in the absence of the defend-
ant therein, such order of injunction may be served on
the duly authorized resident agent of such corporation
or upon any officer or managing agent thereof.
Any judge of a circuit court or of the supreme court
may in like manner enjoin and restrain any corporation
organized under the laws of this state from carrying on
any manufacturing or wholesale or retail business, being
conducted or carried on in violation of any of the provi-
sions or spirit and intent of this act, in this state, and all
final restraining orders may be perpetual or for such
period and upon such terms and conditions as the court
or judge thereof shall determine. All laws, rules and
regulations now in force relative to applications for and
granting orders of injunction in this state shall apply to
proceedings under the provisions of this act, so far as
the same are not different from or in conflict with the
provisions of this act.
SEC. 11. That in all prosecutions, hearings and proceed-
ings, under the provisions of this act, whether civil or
criminal, no person shall be excused from attending and
testifying, or from producing books, papers, contracts,
agreements, or documents, before the courts of this state,
SOUTH DAKOTA. 287
or in obedience to the subpoena of the same, on the
grounds or for the reason that the testimony or evidence,
documentary or otherwise required of him, may tend to
criminate him or subject him to penalty or forfeiture,
but the testimony so taken shall not be used against such
witness in any criminal proceedings instituted against
such witness in any of the courts of this state. Any per-
son, or any officer or agent in the service or employ of
any corporation, co-partnership or association of persons,
who shall neglect or refuse to make returns, attend and
testify or answer any lawful requirement hereinbefore
provided for, or produce books, papers, contracts, agree-
ments, and documents, if in his custody, or power to do
so, in obedience to the subpoenas of the courts, shall be
deemed guilty of contempt and be punished as is pro-
vided by law.
SEC. 12. That any suit in equity brought in any court
in this state under this act, wherein the state is com-
plainant, the attorney-general or the state's attorney may
file with the clerk of such court a certificate that, in his
opinion, the case is of general public importance, a copy
of which shall be immediately furnished by such clerk
to the judge of the court in which said case is pending.
Thereupon such case shall be given precedence over others
and in every way expedited, and be assigned for hearing
at the earliest practicable day.
SEC. 13. That whenever it shall appear to the court be-
fore which any civil or criminal proceedings under this
act shall be pending, that the ends of justice require that
other parties shall be brought before the court, the court
may cause them to be summoned whether they reside in
the county where the court is held or not, and subpoenas
to that end may be served in that county.
SEC. 14. Any person or persons, co-partnership, corpo-
ration or association of persons, who may suffer damage
by reason of the unlawful operation as hereinbefore pro-
vided, of any pool, trust or combination, may maintain
a civil action therefor in any of the courts of this state
having competent jurisdiction thereof, and may recover
the amount of damages sustained, together with the costs
of suit, including a reasonable attorney's fee to be fixed
by the court.
SEC. 15. It shall be the duty of the secretary of this
state, on application for a charter to establish any cor-
288 LAWS ON TRUSTS AND MONOPOLIES.
poration, to require at least two of the incorporators to
make oath or affirmation that such corporation is not
formed for the purpose of enabling any corporation or
corporations to avoid the provisions of this act and if
such oath or affirmation be not made or is not satisfac-
tory to the secretary of the state he is authorized to
withhold such charter. (L. 1909, c. 224.)
XX)TJRT DECISIONS.
Hartford Fire Ins. Co. v. Perkins, 125 Fed., 502.
State v. Central Lumber Co., 24 S. D., 136; 226 U. S.,
157.
TENNESSEE.
CONSTITUTION.
ART. I, SEC. 22. Perpetuities and monopolies are con-
trary to the genius of a free state, and shall not be
allowed.
[Adopted, February 23, 1870.]
STATUTES.
ANTI-TRUST LAW OF 1903.
That from and after the passage of this act all ar-
rangements, contracts, agreements, trusts or combina-
tions between persons or corporations made with a view
to lessen, or which tend to lessen full and free competi-
tion in the importation or sale of articles imported into
this state, or in the' manufacture or sale of articles of
domestic growth or of domestic raw material, and all ar-
rangements, contracts, agreements, trusts or combinations
between persons or corporations designed, or which tend
to advance, reduce or control the price or the cost to the
produced or the consumer of any such product or article,
are hereby declared to be against public policy, unlawful
and void.
That any corporation chartered under the laws of the
state which shall violate any of the provisions of this
act shall thereby forfeit its charter and its franchise,
and its corporate existence shall thereupon cease and de-
termine. Every foreign corporation which shall violate
any of the provisions of this act is hereby denied the
right to do, and is prohibited from doing, business in this
state. It is hereby made the duty of the attorney -gen-
eral of this state to enforce these provisions by due proc-
ess of law.
That any violation of the provisions of this act shall
be deemed, and is hereby declared to be, destructive of
full and free competition and a conspiracy against trade,
and any person or persons who may engage in any such
conspiracy or who shall, as principal, manager, director
1649113 19 289
290 LAWS ON TEUSTS AND MONOPOLIES.
or agent, or in any other capacity, knowingly carry out
any of the stipulations, purposes, prices, rates or orders
made in furtherance of such conspiracy, shall upon con-
viction be punished by a fine of not less than one hundred
dollars or more than five thousand dollars, and by im-
prisonment in the penitentiary not less than one year nor
more than ten years; or in the judgment of the court, by
either such fine or imprisonment.
That any person or persons or corporations that may
be injured or damaged by any such arrangement, con-
tract, agreement, trust or combination, described in sec-
tion 1 of this act, may sue for and recover in any court
of competent jurisdiction in this state of any person or
persons or corporation operating such trusts or combina-
tions, the full consideration or sum paid by him or them
of any goods, wares, merchandise or articles, the sale of
which is controlled by such combination or trust. ' (L.
1903, c. 140; Sees. 1-4.)
See also note to section 6622 of Supplement to Shan-
non's Code (1903).
It shall be unlawful for any person, firm or corpora-
tion engaged in the business of manufacturing in this
or any other state to give away or sell for a less price
than the cost of manufacture any manufactured article
in this state with the intent and purpose of destroying
honest competition.
Any person or persons violating [the preceding sec-
tion] shall be deemed guilty of a misdemeanor, and, upon
conviction, shall be fined not less than ten nor more than
five thousand dollars; provided, however, that nothing
in this act shall be construed to prohibit the distribution
to consumers of specimens of proprietary articles in good
faith as a sample. (L. 1907. c. 36 ; as amended by L. 1907,
c. 360.)
COURT DECISIONS.
Bailey et al. v. Ass'n of Master Plumbers of Memphis,
52 S. W., 853; 103 Tenn., 99; 46 L. R. A., 561.
Mallory v. Hanaur Oil Works, 86 Tenn., 598.
American Handle Co. v. Standard Handle Co., Tenn.
Ch. App., 59; S/W., 709'.
State v. Witherspoon, 115 Tenn.. 138.
Standard Oil Co. v. State. 117 Tenn., 618, 662; 10
L. R. A. N. S., 1027.
Post v. Railroad, 103 Tenn., 184.
TEXAS.
CONSTITUTION.
ART. I, SEC. 26. Perpetuities and monopolies are con-
trary to the genius of a free government and shall never
be allowed.
ART. X, SEC. 5. No railroad or other corporation, or
the lessees, purchasers or managers of any railroad cor-
poration, shall consolidate the stock, property or fran-
chises of such corporation with, or lease or purchase the
works or franchises of or in any way control any railroad
corporation owning or having under its control a parallel
or competing line; nor shall any officer of such railroad
corporation act as an officer of any other railroad cor-
poration owning or having the control of a parallel or
competing line.
SEC. 6. No railroad company organized under the laws
of this state shall consolidate by private or judicial sale
or otherwise with any railroad company organized under
the laws of any other state or of the United States.
[Adopted, November 24, 1875.]
. STATUTES.
That a trust is a combination of capital, skill or acts
by two or more persons, firms, corporations or associa-
tions of persons, or either two or more of them, for either,
any or all of the following purposes:
1. To create or which may tend to create or carry out
restrictions in trade or commerce or aids to commerce or
in the preparation of any product for market or trans-
portation, or to create or carry out restrictions in the
free pursuit of any business authorized or permitted by
the laws of this state.
2. To fix, maintain, increase or reduce the price of
merchandise, produce or commodities, or the cost of in-
surance, or of the preparation of any product for market
or transportation.
291
292 LAWS ON TRUSTS AISD MONOPOLIES.
3. To prevent or lessen competition in the manufac-
ture, making, transportation, sale or purchase of mer-
chandise, produce or commodities, or the business of in-
surance, or to prevent or lessen competition in aids to
commerce, or in the preparation of any product for
market or transportation.
4. To fix or maintain any standard or figure whereby
the price of any article or commodity of merchandise,
produce or commerce, or the cost of transportation, or
insurance, or the preparation of any product for market
or transportation, shall be in any manner affected, con-
trolled or established.
5. To make, enter into, maintain, execute or carry out
any contract, obligation or agreement by which the par-
ties thereto bind, or have bound themselves not to sell, dis-
pose of, transport or to prepare for market or transpor-
tation any article or commodity, or to make any contract
of insurance at a price below a common standard or fig-
ure, or by which they shall agree in any manner to keep
the price of such article or commodity or charge for trans-
portation or insurance, or the cost of the preparation of
any product for market or transportation at a fixed or
graded figure, or by which they shall in any manner
affect or maintain the price of any commodity or article
or the cost of transportation or insurance or the cost of
the preparation of any product for market or transpor-
tation between them or themselves and others, to pre-
clude a free and unrestricted competition among them-
selves or others in the sale or transportation of any such
article or commodity or business of transportation or in-
surance or the preparation of any product for market
or transportation, or by which they shall agree to pool,
combine or unite any interest they may have have in con-
nection with the sale or purchase of any article or com-
modity or charge for transportation or insurance or
charge for the preparation of any product for market or
transportation whereby its price or such charge might be
in any manner affected.
6. To regulate, fix or limit the output of any article or
commodity which may be manufactured, mined, produced
or sold, or the amount of insurance which may be under-
taken, or the amount of work that may be done in the
preparation of any product for market or transportation.
7. To abstain from engaging in or continuing business
or from the purchase or sale of merchandise, produce or
TEXAS. 293
commodities partially or entirely within the State of
Texas, or any portion thereof.
SEC. 2. That a monopoly is a combination or consolida-
tion of two or more corporations when effected in either
of the following methods :
1. When the direction of the affairs of two or more
corporations is in any manner brought under the same-
management or control for the purpose of producing, or
where such common management or control tends to cre-
ate a trust as defined in the first section of this act.
2. Where any corporation acquires the shares or cer-
tificates of stock or bonds, franchise or other rights, or
the physical properties, or any part thereof, of any other
corporation or corporations, for the purpose of prevent-
ing or lessening, or where the effect of such acquisition
tends to affect or lessen competition, whether such acqui-
sition is accomplished directly or through the instrumen-
tality of trustees or otherwise.
SEC. 3. That either or any of the following acts shall
constitute a conspiracy in restraint of trade :
1. Where any two or more persons, firms, corporations
or associations of persons who are engaged in buying or
selling any article of merchandise, produce or any com-
modity, enter into an agreement or understanding to re-
fuse to buy from or sell to any other person, firm, cor-
poration or association of persons any article of mer-
chandise, produce or commodity.
2. Where any two or more persons, firms, corporations
or associations of persons shall agree to boycott or
threaten to refuse to buy from or sell to any person, firm,
corporation or association of persons for buying from or
selling to any other person, firm, corporation or associa-
tion of persons.
SEC. 4. Any and all trusts, monopolies and conspiracies
in restraint of trade as herein defined, are hereby pro-
hibited and declared to be illegal.
SEC. 5. 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 and
determine.
SEC. 6. For a violation of any of the provisions of this
Act, or any anti-trust laws of this State, by any corpora-
tion, it shall be the duty of any judge or court, to insti-
tute suit or quo warranto proceedings in Travis county,
294 LAWS ON TRUSTS AND MONOPOLIES.
or at the county seat of any county in the State which the
Attorney General may select, for the forfeiture of its
charter rights and franchises, and the dissolution of its
corporate existence, and for such purposes, venue is
hereby given to each district court in the State of Texas.
(As amended by Acts of 1909, p. 281.)
- SEC. 7. When a corporation organized under the laws
of this state shall have been convicted of a violation of
any of the provisions of this act, and its charter and
franchise has been forfeited, as provided in section 5, no
other corporation to which the defaulting corporation
may have transferred its properties and business, or
which has assumed the payment of its obligations, shall
be permitted to incorporate or do business in Texas.
SEC. 8. Every foreign corporation violating any of the
provisions of this act is hereby denied the right, and is
prohibited from doing any business within this state, and
it shall be the duty of the attorne} T -general to enforce this
provision by injunction or other proceedings in the dis-
trict court of Travis county, in the name of the State of
Texas.
SEC. 9. The provisions of chapter 92 of the Revised
Statutes of this state of 1895, to prescribe the remedy
and regulate the proceedings by quo warranto, etc., shall,
except in so far as they conflict herewith, govern and
control the proceedings when instituted to forfeit any
charter under this act.
SEC. 10. When any foreign corporation has been con-
victed of a violation of any of the provisions of this act,
and its right to do business in this state has been for-
feited, as provided in section 8 of this act, no other cor-
poration to which the defaulting corporation may have
transferred its properties and business, or which has
assumed the payment of its obligations, shall be per-
mitted to incorporate or do business in Texas.
SEC. 11. Each and every firm, person, corporation or
association of persons, who shall in any manner violate
the provisions of this Act shall for each and every day
that such violation shall be committed or continued, for-
feit and pay a sum of not less than fifty nor more than
fifteen hundred xiollars, which may be recovered in the
name of the State of Texas, in the district court of any
county in the State of Texas, and venue is hereby given
to such district courts; provided, that when any such
suit shall have been filed in any county and jurisdiction
TEXAS. 295
thereof acquired, it shall not be transferred to any other
county except upon change of venue allowed by the court,
and it shall be the duty of the Attorney General, or the
district or county attorney, under the direction of the
Attorney General, to prosecute for the recovery of the
same, and the fees of the district or county attorney for
representing the State in all anti-trust proceedings, or
for the collection of penalties for the violation of the
anti-trust laws of this State, shall be ten per cent, of the
amount collected up to and including the sum of fifty
thousand dollars, to be retained by him when collected,
and all such fees w T hich he may collect shall be over and
above the fees allowed under the general fee bill; pro-
vided, that the provisions of this Act as to the fees al-
lowed the prosecuting attorney shall not apply to any
case in which judgment has heretofore been rendered in
any court nor to any moneys to be hereafter collected
upon any such judgment heretofore rendered in any court,
whether such judgment or judgments are pending upon
appeal or otherwise; and provided, further, that the dis-
trict or county attorney who joins in the institution or
prosecution of any suit for the recovery of penalties for a
violation of any of the anti-trust laws of this State, who
shall, previous to the collection of such penalties, cease
to hold office, he shall be entitled to an equal division with
his successor of the fee collected in said cause, and in
case of the employment of special counsel by any such
district or county attorney, the contract so made shall be
binding upon such prosecuting officer making such con-
tract and thereafter retiring from office; provided, fur-
ther, that in case an}' suit is compromised any final judg-
ment in the trial court is had, then the fees herein pro-
vided for shall be reduced one-half. (As amended by
Acts of 1909, pp. 281-2.)
SEC. 12. Any contract or agreement in violation of the
provisions of this act shall be absolutely void and not
enforcible either in law or equity.
SEC. 13. And in addition to all other penalties and for-
feitures herein provided for, every person violating the
provisions of this act shall be further punished by im-
prisonment in the penitentiary not less than two nor
more than ten years.
SEC. 14. In prosecutions for the violation of any of the
provisions of this act, evidence that any person has acted
as the agent of a corporation in the transaction of its
296 LAWS ON TRUSTS AND MONOPOLIES.
business in this state shall be received as prima facie
proof that his act in the name, behalf or interest of the
corporation of which he was acting as the agent, was the
act of the corporation.
SEC. 15. Upon the application of the attorney-general
or of any of his assistants, or of any district or county
attorney, acting under the direction of the attorney-gen-
eral, made to any county judge, or any justice of the
peace, in this state, stating that he has reason to believe
that a witness, who is to be found in the county in which
such county judge or justice of the peace is an officer r
knows of a violation of any of the provisions of this act,
it shall be the duty of the county judge, or of the justice
of the peace, as the case may be, before whom such appli-
cation is made, to have summoned and to have examined
such witness in relation to violations of any of the pro-
visions of this act, said witness to be summoned as pro-
vided for in criminal cases. The said witness shall be
duly sworn, and the county judge, or justice of the peace y
as the case may be, shall cause the statements of the wit-
ness to be reduced to writing and signed and sworn to
before him, such sworn statement shall be delivered to
the attorney-general, his assistants or the district or
county attorney, upon whose application the witness was
summoned. Should the witness summoned as aforesaid
fail to appear, or to make statements of the facts within
his knowledge, under oath, or to sign the same after it
has been reduced to writing, he shall be guilty of con-
tempt of court, and may be fined not exceeding one hun-
dred dollars, and may be attached and imprisoned in
the county jail until he shall make a full statement of all
the facts within his knowledge with reference to the mat-
ter inquired about. Any person who shall testify before
any county judge, or justice of the peace, as provided for
in this act, or who shall testify as a witness for the state
in the course of any statutory proceeding to secure testi-
mony for the enforcement of this act, or in the course of
any judicial proceeding to enforce the provisions of this
act, shall not be subject to indictment or prosecution for
any transaction, matter or thing concerning which he
shall so give evidence, documentary or otherwise.
SEC. 16. All actions authorized and brought under this
act shall have precedence, on motion of the prosecuting
attorney or the attorney-general, of all other business.
TEXAS. 297
civil and criminal, except criminal cases where the de-
fendants are in jail.
SEC. 17. That all laws and parts of laws in conflict with
this act be and the same are hereby repealed, and that
Title CVIII of the Revised Civil Statutes of the State of
Texas of 1895, and Arts. 5313, 5314, 5315, 5316, 5317, 5318,
5319, 5320, 5321 and 5321a thereof, be and the same are
hereby expressly repealed; and that Arts. 976, 977, 978,
979, 980, 981, 982, 983, 984, 985, 986, 987, 988, 988a, 988b,
988c, 988d, of c. 7, in Title XVIII, of the Penal Code
of the State of Texas of 1895, be and the same are hereby
expressly repealed; and that an act entitled "An act to
define trusts, provide for penalties and punishment of
corporations, persons, firms and associations of persons
connected with them, and promote free competition in
the State of Texas, and to repeal all laws and parts of
laws in conflict with this act," approved April 30, 1895.
and known and published as c. 83 of the General Laws
of the Twenty-fourth Legislature, be and the same is
hereby expressly repealed; and that an act entitled "An
act to prohibit pools, trusts, monopolies and conspiracies
to control business and prices of articles, to prevent the
formation or operation of pools, trusts, monopolies and
combinations of charters of corporations that violate the
terms of this act, and to authorize the institution and
prosecution of suits therefor," approved May the 25th,
1899, and published and known as Chapter CXLVI of
the General Laws of the Twenty-sixth Legislature, be
and the same are hereby expressly repealed ; and that an
act entitled "An act to amend Art. 5318, Title 108, of the
Revised Civil Statutes of the State of Texas, prescribing
penalties against trusts and conspiracies against trade,"
approved June 5th, 1899, and known as Chapter CLXXII
of the General Laws of the Twenty-sixth Legislature, be
and the same is hereby expressly repealed; provided
nothing in this act shall be held or construed to affect or
destroy any rights of the State of Texas to recover pen-
alties or forfeit charters of domestic corporations, or
prohibit foreign corporations from doing business in this
state, for acts committed before this act takes effect.
SEC. 18. If any person shall enter into an agreement
or understanding of any character to form a trust, or
to form a monopoly or to form a conspiracy in restraint
of trade (as these offenses are defined by Chapter XCIV
of the Acts of the Twenty-eighth Legislature, which
298 LAWS ON TKUSTS AND MONOPOLIES.
chapter this act amends) , or shall form a trust, monopoly
or conspiracy in restraint of trade, or shall be a party to
the formation of a trust, or monopoly, or conspiracy in
restraint of trade, or shall become a party to a trust, or
monopoly or conspiracy in restraint of trade, or shall do
any act in furtherance of, or aid to, such trust or monop-
oly or conspiracy in restraint of trade, he shall be pun-
ished by imprisonment in the penitentiary for a period of
not less than two years, nor more than ten years. If any
person shall, as a member, agent, employee, officer, di-
rector or stockholder of any business, firm, corporation
or association of persons, form, in violation of the provi-
sions of Chapter XCIV of the Acts of the Twenty-eighth
Legislature, which chapter this act amends, or shall oper-
ate in violation of the provisions of this act any such busi-
ness, firm, corporation or association formed in violation
of Chapter XCIV of the Acts of the Twenty-eighth
Legislature, which chapter this act amends, or shall
make any sale, or purchase, or any other contract, or do
business for such business, firm, corporation or associa-
tion, or shall do any other act which has the effect of
violating or aiding in the violation of the provisions of
Chapter XCIV of the Acts of the Twenty-eighth Legis-
lature, which chapter this act amends, he shall be pun-
ished by confinement in the penitenaitry for a period of
not less than two years nor more than ten years. If any
person shall outside of this state do anything which if
done within this state would constitute the formation of
a trust, or monopoly, or conspiracy in restraint of trade,
and shall cause or permit the trust or monopoly so
formed by him to do business within this state, or shall
cause or permit such trust, monopoly or conspiracy in
restraint of trade to have any operation or effect within
this state, or if such trust, monopoly or conspiracy in
restraint of trade, having been formed outside of this
state, any person shall give effect to such trust, monopoly
or conspiracy in this state, or shall do anything to help
or aid it in doing business in this state, or otherwise vio-
late the antitrust laws of this state, or if any person shall
buy or sell, or otherwise make contracts for or aid any
other business for-ny business firm, corporation or asso-
ciation of persons, formed or operated in violation of the
provisions of Chapter XCIV of the Acts of the Twenty-
eighth Legislature, which chapter this act amends, or so
formed or operated as would be in violation of the laws
TEXAS. 299
of this state, if it had been formed within this state, shall
be punished by confinement in the penitentiary for a
period of not less than two years nor more than ten years.
If any person or employee or employees, or agent or
agents, stockholder or stockholders, officer or officers, of
any person, firm, association of persons, or corporations
now doing business in this state, who has formed a trust
as defined in Chapter XCIV of the Acts of the Twenty-
eighth Legislature, which act this chapter amends, or
formed a monopoly as defined in Chapter XCIV of the
Acts of the Twenty-eighth Legislature, which chapter
this act amends, or has formed a conspiracy in restraint
of trade as defined in Chapter XCIV of the Acts of the
Twenty-eighth Legislature, which chapter this act
amends, shall do or perform any act of any character to
carry out such trust, monopoly or conspiracy in restraint
of trade, such person, employee or employees, agent or
agents, stockholder or stockholders, officer or officers shall
be punished by confinement in. the penitentiary for not
less than two years nor more than ten years.
SEC. 18. Criminal prosecutions under this act may be
conducted in Travis county, Texas, or in any county in
this state wherein a trust or conspiracy in restraint of
trade is being carried on, a recovery or prosecution
against any person for any violation of this act, or shall,
with the intent or purpose of driving out competition, or
for the purpose of financially injuring competitors, sell
within this state at less than cost of manufacture or pro-
duction, or sell in such a way, or give away within this
state products for the purpose of driving out competition
or financially injuring competitors engaged in a similar
business, or give secret rebates on such purchase for the
purpose aforesaid, shall not bar a prosecution of or re-
covery against any other person or persons for the same
offense.
SEC. 19. If any person shall enter into an agreement
or understanding of any character to form a trust, or to
form a monopoly, or to form a conspiracy in restraint of
trade as these offenses are defined by Chapter XCIV of
the Acts of the Twenty-eighth Legislature, or shall form
a trust, monopoly or conspiracy in restraint of trade, or
shall be a party to the formation of a trust or monopoly
or conspiracy in restraint of trade, or shall become a
party to a trust or monopoly or conspiracy in restraint
of trade, or shall do any act in furtherance of or aid to
LAWS OX TRUSTS AND MONOPOLIES.
such trust or monopoly or conspiracy in restraint of
trade, he shall be punished by imprisonment in the peni-
tentiary for a period of not less than two years nor more
than ten years.
If any person shall, as a member, agent, employee, offi-
cer, director or stockholder of any business, firm, corpora-
tion or association of persons, form, in violation of the
provisions of Chapter XCIV of the Acts of the Twenty-
eighth Legislature, or shall operate in violation of the
provisions of this act any such business, firm, corporation
or association formed in violation of Chapter XCIV of
the Acts of the Twenty-eighth Legislature, or shall make
any sale, or purchase, or any other contract, or do busi-
ness for such business, firm, corporation or association,
or shall do any other act which has the effect of violating
or aiding in the violation of the provisions of Chapter
XCIV of the Acts of the Twenty-eighth Legislature, or
shall with the intent or purpose of driving out competi-
tion or for the purpose of financially injuring competi-
tors sell within this state at less than cost of manu-
facture or production or sell in such a way or give away
within this state products for the purpose of driving out
competition or financially injuring competitors engaged
in a similar business, or give secret rebates on such pur-
chase for the purpose aforesaid, he shall be punished by
confinement in the penitentiary for a period of not less
than two years nor more than ten years.
If any person shall outside of this state do anything
which, if done within this state, would constitute the
formation of a trust or monopoly or conspiracy in the
restraint of trade as defined by Chapter XCIV, p. 119,
of the Acts of the Twenty-eighth Legislature, and shall
cause or permit the trust or monopoly so formed by him
to do business within this state, or shall cause or permit
such trust, monopoly or conspiracy in restraint of trade
to have any operation or effect within this state, or if
such trust, monopoly or conspiracy in restraint of trade
having been formed outside of said state, any person
shall give effect to such trust, monopoly or conspiracy in
this state, or he shall do anything to help or aid it doing
business in this state, or otherwise violate the anti-trust
laws of this state, or if any person shall buy or sell or
otherwise make contracts for or aid any business, firm,
corporation or association of persons, formed or oper-
ated in violation of the provisions of Chapter XCIV,
TEXAS. 301
p. 119, of the Acts of the Twenty-eighth Legislature, or
so formed or operated as would be in violation of the
laws of this state if it had been formed within this state,
shall be punished by confinement in the penitentiary for
a period of not less than two years nor more than ten
years.
If any person or employee or employees, or agent or
agents, stockholder or stockholders, officer or officers of
any person, firm, association of persons or corporation
now doing business in this state, who have formed a
trust as defined in Chapter XCIV, p. 119, of the Acts of
the Twenty-eighth LegHatnre, or formed a monopoly
as defined in Chapter XCIV, p. 119, of the Acts of the
Twenty-eighth Legislature, or has formed a conspiracy
in restraint of trade, as defined in Chapter XCIV, p.
119, of the Acts of the Twenty-eighth Legislature, or.
shall do or perform any act of any character to carry out
such trust, monopoly or conspiracy in restraint of trade,
such person, employee or employees, agent or agents,
stockholder or stockholders, officer or officers shall be
punished by confinement in the penitentiary for not less
than two years nor more than ten years.
SEC. 20. Criminal prosecutions under this act may be
conducted in Travis county, Texas, or in any county in
this state wherein a trust, monopoly or conspiracy in
restraint of trade is being carried on, a recovery or prose-
cution against any person for any violation of this act
shall not bar a prosecution of or recovery against any
other person or persons for the same offense.
SEC. 21. Prosecutions under this act may be instituted
and prosecuted by any county or district attorney of
this state, and when any such prosecutions have been in-
stituted by any county or district attorney, such officer
shall forthwith notify the attorney-general of such fact,
and it is hereby made the duty of the attorney-general,
when he shall receive such notice, to join such officer in
such prosecution and do all in his power to secure the
enforcement of this act.
SEC. 22. For every conviction obtained under the pro-
visions of this act, the state shall pay to the county or
district attorney in such prosecution the sum of $250, and
if both the county and district attorney shall serve to-
gether in such prosecution, such fee shall be divided be-
tween them as follows: $100 to the county attorney and
$150 to the district attorney.
302 LAWS ON TRUSTS AND MONOPOLIES.
SEC. 23. That this act shall not repeal, modify or in any
manner affect said Chapter XCIV, p. 119, of the Acts
of the Twenty-eighth Legislature, or any section or pro-
visions thereof, and this act is and is intended to be
cumulative of said Chapter XCIV of the Acts of the
Twenty-eighth Legislature of Texas.
(G. L. of 1903, 28th Legislature, chapter XCIV, p. 119.
as amended by G. L. of 1907, amending Sec. 13, p. 194;
Sees. 15, 221 ; Sees. 18, 19, 20 and 21 added by G. L. of
1907, p. 322, and as amended by G. L. of 1907. p. 456 ;
G. L. of 1909, p. 281.)
MISCELLANEOUS ANTI-TRUST LAWS.
Procedure ~by which evidence may be taken against trusts.
SECTION 1. Whenever any suit shall be instituted or is
pending in any court of competent jurisdiction in this
state, by the attorney-general or by any district or county
attorney, acting under his direction against any corpora-
tion, or corporations, individual or individuals, or asso-
ciation of individuals, or joint stock associations, or co-
partnerships under any law of this state, against trusts,
monopolies or conspiracies in restraint of trade, or under
any laws of this state regulating or controlling corpora-
tions, domestic or foreign, the attorney-general, district
or county attorney, as the case may be, may. in addition
to the means now provided by law, examine and procure
the testimony or evidence of Avitnesses and have books,
papers and documents produced as evidence, in the man-
ner herein provided.
SEC. 2. Whenever any action is commenced or is pend-
ing, as contemplated in section 1 of this act, by the at-
torney-general, or by any district or county attorney,
acting under his direction, and said officer representing
the state, either upon trial of the case, or in preparation
for the trial thereof, desires to take the testimony of any
officer, director, agent or employee of any foreign or do-
mestic corporation, or joint stock association proceeded
against, or in case of any copartnership, any member
thereof, or in case of any individual or individuals, either
of them, and the person or persons whose testimony is
desired, resides either within or without the State of
Texas, the said officer shall file in said court where the
action is brought, either in term time or in vacation, or
TEXAS. 303
with any special commissioner who may be appointed by
the court to take testimony, as provided for in this act, a
statement in writing setting forth the name or names and
residence of the person or persons whose testimony he
desires to take, and in a general way shall designate any
books, papers or documents he desires produced, and the
time when and place where, either within or without this
state, he desires such person to appear and testify, or to
produce books, papers and documents, if any are desired ;
and thereupon the judge of said court, or the commis-
sioner, as the case may be, before whom said testimony is
being or shall be taken, shall immediately issue a notice
in writing, directed to the attorney or attorneys of record,
in said cause, or the agent, officer or employee of any cor-
poration or joint stock association, or directed to the at-
torney or attorneys of record of any copartnership, in-
dividual or individuals, or to any member of such copart-
nership, or to any individual or individuals who are de-
fendant or defendants in said action, notifying said
attorney or attorneys of record, or officer, agent, or em-
ployee, aforesaid, or member or members of any copart-
nership, or individual as herein provided, that the testi-
mony of the person or persons, named in said notice, is
desired, and requiring said attorney or attorneys of
record, or such officer, agent, or employee aforesaid, or
member of such copartnership, or any individual to whom
said notice is delivered, or upon whom the same is served,
to notify and have said witness or witnesses whose testi-
mony or evidence it is desired to take, at the place named
in said notice, at the time fixed therein, before the court
or special commissioner named, then and there to testify,
and then and there to have and produce such books,
papers and documents as are called for, and for any of
the purposes herein provided; provided, that if the tak-
ing of such evidence be not concluded on the day and
date specified in said notice, the court or the commis-
sioner, as the case may be, may continue the taking of
same from day to day, or adjourn from day to day, at
the same place, until the taking of such evidence has been
concluded.
SEC. 3. Whenever any officer, director, agent or em-
ployee of any foreign or domestic corporation or joint
stock association, authorized to do business in this state,
or a"ny member of any copartnership or any individual,
against whom suit has been filed, or is pending, as pro-
304 LAWS ON TKUSTS AND MONOPOLIES.
vided for in this act, or the attorney or attorneys of
record of any such corporation, joint stock association,
copartnership or individual, shall be notified in accord-
ance with the provisions of this act, that any of the books,
papers or documents belonging to such corporation, joint
stock association, copartnership or individual are wanted
before the court, or special commissioner, as provided in
this act, it shall be the duty of such defendant corpora-
tion, joint stock association, copartnership or individual,
as the case may be, to produce and present, or cause to be
produced and presented, as required in said notice, all
such books, papers and documents belonging to any such
defendant or under such defandent's control as may be
specified in said notice, in court or before said special
commissioner, at the time and place so specified, and in
the event of the failure or refusal of any such corpora-
tion, joint stock association, copartnership or individual
to comply with any of the provisions of this section, it
shall be the duty of the court, upon the motion of the
officer representing the state, to strike out all the plead-
ings, answers, motions, reply or demurrer theretofore or
thereafter filed in such case by such defendant, corpora-
tion, joint stock association, copartnership or individual,
as "the case may be, and render judgment by default
against any such defendant.
SEC. 4. Whenever any attorney or attorneys of record,
or any agent, officer, employee of any corporation or joint
stock association proceeded against, as herein provided,
shall be notified that any officer, director, agent or em-
ployee of any such corporation or joint stock association
is wanted before said court, or any special commissioner.
as provided herein, to give his testimony or to produce
any such books, papers or documents of said corporation
or joint stock association, as the case may be, or if any
attorney or attorneys of record of any copartnership or
individual shall be notified that any member or members
of said copartnership, or any individual, who are de-
fendants in any such action are desired as witnesses, or
to produce books, papers or documents, before any court
or before any special commissioner appointed to take
testimony in said proceeding, as herein provided ; it shall
be the duty of such attorney or attorneys of record, or
any such officer, director, agent or employee to immedi-
ately notify any such person of the time and place where
he shall attend and give his testimony, or produce any
TEXAS. 305
such books, papers or documents, if any are desired ; and
if the person or persons whose testimony is desired, as
herein provided, shall fail to appear, or appearing shall
refuse to testify or shall fail to produce whatever books,
papers or documents he or they may be ordered to pro-
duce, as before provided, then it shall be the duty of the
court, upon motion of the attorney-general, district or
county attorney, as the case may be, on proof of such
refusal, failure or dereliction to strike out the answer,
motion, reply, demurrer or other pleading theretofore or
thereafter filed in such action, by said delinquent defend-
ant, who has himself, or being a corporation or joint
stock association, whose officer, agent, director or em-
ployee, as herein provided, has refused or failed to
attend and testify, or to produce all books, papers or
documents demanded, which were in the custody or sub-
ject to the control of such witness or witnesses, or cor-
poration or joint stock association; and said court shall,
in the event of any such refusal or failure, proceed to
render judgment by default against any such defendant;
provided, however, that if any such defendant shall file
a sworn denial in writing, in said court, setting forth
that such failure or refusal did not arise by reason of
any fault or procurement of defendant, the court shall
hear evidence upon that issue, and if the defendant shows
to the satisfaction of the court that any witness who
failed to attend did not do so at the instance or pro-
curement of said defendant, or that the books, papers or
documents demanded were not in its possession or con-
trol and could not be produced, and that such defendant
had complied with all the provisions of this act, within
such defendant's power to perform, then in that event
the answer, motion, reply, demurrer or other pleadings
shall not be stricken out or judgment by default taken
because of the failure of the witness to attend, who could
not be so procured, or because of the failure to produce
the books, papers or documents not in the possession or
under the control of such defendant; but the court shall
have the power to enter such further orders in respect
to the matter in controversy as it may deem necessary for
the proper administration of justice; provided further,
that in any proceeding had before a special commissioner,
as herein provided, the certificate of the special commis-
sioner showing the failure or refusal of any such witness
or witnesses to appear and testify, or to produce any
1649113 20
306 LAWS ON TKUSTS AND MONOPOLIES.
books, papers or documents desired, shall be sufficient
prima facie evidence of such failure, refusal or dereliction
on the part of any such defendant, when same is filed in
court. Any witness attending any proceeding herein pro-
vided for in compliance with any notice or subpoena
issued by authority of this act, shall receive as compensa-
tion one dollar per day for each day of his attendance,
and four cents per mile traveled computed upon the short-
est practicable route ; any claim for fees and mileage shall
be filed with the court, or special commissioner, and
sworn to by said witness, and shall be taxed up as costs
and collected as other costs in civil cases.
SEC. 5. The court, or presiding judge thereof, in w T hich
any proceeding as herein provided is pending, in term
time or in vacation, upon application therefor, made by
the attorney-general, or district or county attorney, act-
ing under his direction, shall appoint some well qualified
disinterested person as special commissioner, to take testi-
mony, in any such case, at any point either within or
without the state, as designated in such application, or
where requested by either party to said cause of action,
upon the issues joined in said cause, such special com-
missioner shall have full power and authority to issue
notices provided for in section 2 of this act, and to issue
subpoenas for witnesses, compelling the attendance of
such witnesses, the production of books, papers or docu-
ments, to issue attachments, to punish for contempt to
the same extent as provided by law for said court; to
administer oaths to witnesses; to have all witnesses ex-
amined orally, which testimony shall be reduced to writ-
ing and may be taken down by a competent stenographer
and transcribed, and shall be signed and sworn to by said
witness. The person appointed as special commissioner
in any case shall qualify by taking oath prescribed by
the constitution of this state for officers, and shall, with
all convenient speed, certify and return the testimony
taken by him to the court appointing him ; and said com-
missioner shall note all objections to testimony, and shall
not exclude any testimony, and all questions as to the
materiality or admissibility of same shall be reserved for
the court trying "the case, and such testimony so taken
may be read in evidence upon the trial of the suit in
which same was taken, subject to any legal objections
which might be made to same. The compensation of such
TEXAS. 307
commissioner shall be his actual expenses in traveling
and such fees as are allowed a notary public in taking
depositions, to be taxed up as costs and collected in the
same manner as now provided by law for district clerks
in civil cases.
SEC. 6. When any notice is issued and served, as pro-
vided for in this act, ten full daj 7 s exclusive of the day
of service shall elapse before any witness so requested
shall be compelled to appear and testify, or produce any
books, papers or documents called for, and if the taking
of testimony shall not be concluded on the date named in
said notice, the witness or witnesses shall remain in at-
tendance from day to day until the same is completed or
said witness is finally discharged by the court, or com-
missioner, as the case may be; service of said notice and
the return thereon may be made by any sheriff or con-
stable of this state, or by any disinterested person com-
petent to make oath of the fact, and shall be made by
said person executing the same, by delivering to the per-
son or persons, attorney or attorneys to be served a true
copy of such notice, and return of such service shall be
endorsed on or attached to the original notice; it shall
state when the same was served and the manner of service,
and upon whom served, and shall be signed, and if served
by any person other than an officer, shall be sworn to by
the party making the service before some officer author-
ized by law to take affidavits, and such affidavit shall be
certified under the hand and official seal of such officer.
SEC. 7. Any witness for the state who shall testify or
produce any books, papers or documents in any proceed-
ing or examination under the provisions of this act shall
not be subject to indictment or prosecution for any
transaction, matter or thing concerning which he truth-
fully testifies or produces evidence, documentary or other-
wise.
SEC. 8. The provisions of this act shall be cumulative
of all laws of this state, and shall not be construed as
repealing any other law relating to the taking of testi-
mony or evidence; but shall be construed as providing an
additional means of securing evidence for the enforce-
ment of the laws, as herein provided. (G. L. of 1907,
p. 16.)
308 LAWS OX TRUSTS AND MONOPOLIES.
STATUTE RELATING TO FINES, PENALTIES AND FORFEITURES
DUE THE STATE OF TEXAS.
SECTION 1. Whenever any corporation created under the
laws of this state, or airy foreign corporation authorized
to do business in this state, shall violate any law of this
state, including any law against trusts, monopolies and
conspiracies, or combinations or contracts in restraint of
trade, for the violation of which fines or penalties or for-
feitures are provided, all property of such corporation
within this state at the time of such violation, or which
may thereafter come within this state, shall, by reason
of such violation, become liable for such fines or penalties
and for all costs of suit and of collection, and the state
of Texas shall have a lien on all such property from the
date that suit shall be instituted by the attorney general
or district or county attorney acting under his direction
in any court of competent jurisdiction within this state
for the purpose of forfeiting the charter or canceling the
permit of such corporation, or for such fines or penalties.
The institution of such suit for such fine, penalties or for-
feiture shall constitute notice of such lien. Where any
such law has heretofore been violated, or shall be vio-
lated before the taking effect of this act, and a cause of
action exists for such fine, penalties or forfeiture, or shall
come into existence before the taking effect of this act,
and suit shall be filed in such case, the state shall have a
lien to secure the payment of such fine, penalties and costs
from the time this act shall take effect on all property
of such corporation within this state of which shall there-
after become or be brought within the state.
SEC. 2. Any action or cause of action for any fine, for-
feiture or penalty that the state of Texas has or may have
against any corporation chartered under the laws of this
or any other state, territory or nation, shall not abate or
become abated by reason of the dissolution of such cor-
poration, whether voluntary or otherwise, or by the for-
feiture of its charter. Whenever a corporation against
which the state has heretofore instituted suit, or shall
hereafter institute suit, for forfeiture of its charter, or
cancellation of its permit, or for fines or penalties under
any law of this state, shall dissolve in this or any other
state, or shall have a judgment rendered against it in
this or any other state, for the forfeiture of its charter,
the court in this state in which such suit is pending shall
TEXAS. 309
appoint a receiver for the property and business of such
corporation within this state or that may come or be
brought within this state during such receivership, or the
court may, in any case wherein the state is suing any such
corporation for the forfeiture of its charter, or of its
permit to do business in this state, or for fines or penal-
ties, appoint a receiver for such corporation, whenever
the interest of the state may seem to require such action.
If such dissolution shall take place or judgment of for-
feiture be rendered against such corporation before this
act takes effect, the court shall, upon the taking effect of
this act, appoint a receiver for the property and business
of such corporation in this state ; and the state shall have .
the right to the writs of attachment, garnishment, se-
questration or injunction, without bond, to aid in the
enforcement of its rights created by this act; and all
property that may come into the possession of any re-
ceiver appointed under the provisions of this act, not
otherwise exempt by law, shall be subject to the lien
herein created, and for the payment of any such fine or
penalty.
SEC. 3. The attorney-general, or any district or county
attorney acting under his direction, may bring suit in
the name of the State of Texas for the foreclosure of such
lien in the district court of any county in the State of
Texas, and in case the suit for foreclosure should be
brought against any corporation which has dissolved or
had a judgment for the forfeiture of its charter or the
cancellation of its permit rendered .against it. pending
any suit by the State of Texas against such corporation
for the forfeiture of its charter or cancellation of its
permit or for penalties or fines, service may be had upon
any person within this state who acted and was acting
as agent of any such corporation in this state at the time
of such dissolution or forfeiture of charter or cancella-
tion of permit.
SEC. 4. The rights and remedies given by this act shall
be construed as cumulative of all other laws in force in
this state, a-nd shall not affect, change or repeal any other
remedies or rights now existing in this state for the en-
forcement, payment or collection of fines, penalties and
forfeitures.
SEG. 5. In case any suit should heretofore be brought
in any of the courts of this state for the recovery of pen-
alties mentioned in this act, the same shall not be settled
310 LAWS ON TKUSTS AND MONOPOLIES.
or compromised without trial upon the merits thereof
without the consent and approval of the attorney-general
of the state. (G. L., 1907, p. 175.)
COUKT DECISIONS.
Gulf, C. & S. F. Ey. Co. v. State, 72 Tex., 401.
Texas Standard Oil Co. v. Adoue, 83 Tex., 650.
Wiggins v. Bisso, 92 Tex., 219.
Beer v. Landman, 88 Tex., 450.
Welch v. Phelps & Bigelow Wind Mill Co., 89 Tex., 655.
Texas & P. Coal Co. v. Lawson, 89 Tex., 394.
Texas Brewing Co. v. Templeman, 90 Tex., 277.
Fuqua v. Pabst Brewing Co., 90 Tex., 298.
Houck & Dieter v. Anheuser-Busch Brewing Co., 88
Tex., 184; 27 S. W., 692.
Queen Ins. Co. v. State, 86 Tex., 250.
State v. Shippers Comp. & Warehouse Co., 95 Tex.,
603; 67 S. W., 1049.
State v. Laredo Ice Co., 96 Tex., 461.
Gates v. Hooper, 90 Tex., 563.
Fort Worth & D. C. Ry. Co. v. State, 99 Tex., 34; 88
S. W., 370.
State v. Missouri, K. & T. Ry. Co., 99 Tex., 516.
Norton v. Thomas & Sons Co., 99 Tex., 578.
Lytle v. Galveston, H. & S. A. Ry. Co., 100 Tex., 292.
Atoertype Co. v. Gust Fiest Co., 102 Tex., 219; 109
S. W., 1139.
Lone Star Salt Co. v. Blount, 49 Tex. Civ. App., 138.
Crystal Ice Mfg. Co. v. San Antonio Brewing Assn., 8
Tex. Civ. App., 1.
Anderson v. Rowland, 18 Tex. Civ. App., 460.
Wolff v. Hirschfield, 23 Tex. Civ. App., 670.
Wolf Co. v. Galbraith, 35 Tex. Civ. App., 505.
Crystal Ice, etc., Co. v. State, 23 Tex. Civ. App., 293.
Jones v. Carter, 45 Tex. Civ. App., 450.
Clark v. Cyclone Woven Wire Fence Co., 22 Tex. Civ.
App., 41.
San Antonio Gas Co. v. State, 22 Texas Civ. App., 118.
Mason v. Adoue, 30 Tex. Civ. App., 276.
Crump v. Ligon, 37 Tex. Civ. App., 172.
Redland Fruit Co. v. Sargent, 51 Tex. Civ. App., 619.
Waters-Pierce Oil Co. v. State, 48 Tex. Civ. App., 162;
affirmed, 212 U. S., 86; and see Atty. Gen. v. Waters-
Pierce Oil Co., 67 S. W., 1057.
TEXAS. 311
Pasteur Vaccine Co. v. Burkey, 22 Tex. Civ. App., 232.
Columbia Carriage Co. v. Hatch, 19 Tex. Civ. App., 120.
Lewis v. Weatherf ord, M. W. & N. W. Ey. Co., 36 Tex.
Civ. App., 48.
Waters-Pierce Oil Co. v. State, 19 Tex. Civ. App., 1 ;
affirmed, 177 U. S., 28.
Vanderweghe v. American Brewing Co., 61 S. W., 526".
S. S. White Dental Mfg. Co. v. Hertzberg, 51 S. W., 355.
.Troy Buggy Works v. Fife & Miller, 74 S. W., 956.
Simmons & Co. v. Terry, 79 S. W., 1103.
Star Mill & Elevator Co. v. Ft. Worth Grain & Elev.
Co., 146 S. W., 604.
Nickels v. Prewitt Auto Co., 149 S. W., 1094.
Wheatley v. Kollaer, 133 S. W., 903.
State v. Eacine Sattley Co., 134 S. W., 400.
Forrest Photo. Co. v. Hutchinson Gro. Co., 108. S. W.,
768.
National Cotton Oil Co. v. State, 72 S. W., 615.
Comer v. Burton-Lingo Co., 58 S. W., 969.
Springfield F. & M. Ins. Co. v. Cannon, 46 S. W., 375.
Jersey Creme Co. v. McDaniel Bros., 152 S. W., 1187.
Texas Brewing Co. v. Durrum, 46 S. W., 880.
Texas Brewing Co. v. Anderson, 40 S. W., 337.
Texas Brewing Co. v. Meyer, 38 S. W., 263.
Erwin v. Hayden, 43 S. W., 610.
Patterson v. Crabb, 51 S. W., 870.
Cases frequently cited in these proceedings, but which
involve not the statute but the constitutional provision
forbidding the creation of monopolies, are :
City of Brenham v. Brenham Water Co.. 67 Tex., 561.
Hartford Fire Ins. Co. v. City of Houston, 102 Tex.,
317.
Edwards County v. Jennings, 89 Tex., 618.
Altgelt v. City of San Antonio, 17 S. W. 75 ; 81 Tex.,
436.
UTAH.
CONSTITUTION.
ART. 12, SEC. 20. Any combination by individuals, cor-
porations, or associations, having for its object or effect
the controlling of the price of any products of the soil,
or of any article of manufacture or commerce, or the cost
of exchange or transportation, is prohibited, and hereby
declared unlawful, and against public policy. The legis-
lature shall pass laws for the enforcement of this section
by adequate penalties, and in case of incorporated com-
panies, if necessary for that purpose, it may declare a for-
feiture of their franchise.
STATUTES.
Any combination by persons having for its object or
effect the controlling of the prices of any professional
services, any products of the soil, any article of manu-
facture or commerce, or the cost of exchange or trans-
portation, is prohibited and declared unlawful. (Sec.
1752.)
Any person or association of persons who shall create,
enter into, become a member of, or a party to, any pool,
trust, agreement, combination, confederation or under-
standing with any other person or persons, to regulate or
fix the price of any article of merchandise or commodity ;
or shall enter into, become a member of, or a party to.
any pool, trust, agreement, contract, combination or con-
federation to fix or limit the amount or quantity of
'any article, commodity or merchandise to be manufac-
tured, mined, produced or sold in this state, shall be
deemed and adjudged guilty of a conspiracy to defraud,
and be subject to punishment as hereinafter provided.
(Sec. 1753.)
It shall not be lawful for any corporation to issue or
to own trust certificates; or for any corporation, agent,
officer or employee, or the directors or stockholders of
313
314 LAWS ON TRUSTS AND MONOPOLIES.
any corporation, to enter into any combination, contract
or agreement with any person or persons, the purpose or
effect of which combination, contract or agreement shall
be to place the management or control of such combina-
tion or combinations, or the manufactured products
thereof, in the hand of any trustee or trustees, with the
intent to limit or fix the price, or lessen the production
and sale of any article of commerce, use, or consumption,
or to prevent, restrict, or diminish the manufacture or
output of any such article, or to monopolize any part of
the trade or commerce within this state. (Sec. 1754.)
If a corporation, a company, a firm or association shall
be found guilty of a violation of any provision of this
title, it shall be punished by a fine in any sum not less
than one hundred dollars nor more than two thousand
dollars for the first offense; and for the second offense,
not less than five hundred dollars nor more than five
thousand dollars ; and for the third offense, not less than
five thousand dollars nor more than ten thousand dollars ;
and for every subsequent offense shall be liable to a fine
of fifteen thousand dollars. (Sec. 1755.)
Any president, manager, director or other officer, agent
or receiver of any corporation, company, firm or associa-
tion, or any member of any company, firm or association,
or any individual found guilty of a violation of any pro-
vision of this title, may be punished by a fine of not less
than one hundred dollars nor more than one thousand
dollars, or by confinement in the county jail not more
than one year, or by both, in the discretion of the court
before which such conviction may have been had. (Sec.
1756.)
Any contract or agreement in violation of any pro-
vision of this title shall be absolutely void. (Sec. 1757.)
Any corporation organized or existing under the laws
of this state that shall violate any provisions of this title
shall thereby forfeit its corporate rights and franchises,
and its corporate existence shall thereupon cease and
determine. (Sec. 1758.)
It shall be the duty of the secretary of state, upon satis-
factory evidence that any corporation or association of
persons, incorporated, or operating under the laws of this
state, has entered into any trust, combination or associa-
tion, as mentioned in the preceding provisions of this
title, to give notice to such corporation that unless it
withdraws from and severs all business connections with
-
UTAH.
said trust, combination or association, its corporate right
and franchise will be revoked at the expiration of thirty
days from the date of such notice. (Sec. 1759.)
At the expiration of thirty days, if such withdrawal
or severance be not theretofore made, the secretary of
state shall cause a certified statement of the facts to be
filed in the office of the attorney-general of the state, who
shall commence, or direct any county attorney in the state
to commence, an action, in any district court of the state
of competent jurisdiction, to forfeit and revoke the cor-
porate rights arid franchise of such corporation. On the
iinal decision of the same, should the defendant be found
guilty of a violation of any of the provisions of this title,
the court shall render judgment that the charter, cor-
porate rights and franchises of such corporation be re-
voked and the secretary of state shall thereupon make
publication of such revocation in four newspapers in
general circulation in four of the largest cities of the
state. (Sec. 1760.)
In case any person or persons shall do, cause to be done,
or permit to be done, any act, matter or thing in this title
prohibited or declared to be unlawful, such person or per-
sons shall be liable to the person or persons injured
thereby for treble the amount of damages sustained in
consequence of any such violation. (Sec. 1761.)
The word " person " or " persons," whenever used in
this title, shall be deemed to include corporations, com-
panies and associations, existing under or authorized by
the laws of either the United States or any of the terri-
tories, any state, or any foreign country. (Sec. 1762.)
[Charter 12. Acts 1913.]
UNFAIR DISCRIMINATION AND COMPETITION IN THE BUYING
AND SELLING OF DAIRY PRODUCTS, POULTRY AND EGGS.
SECTION 1. Any person, firm, company, association or
corporation, foreign or domestic, doing business in the
State of Utah and engaged in the business of buying milk,
cream or butter fat for the purpose of manufacture or
sale, or of buying poultry or eggs for the purpose of sale
or storage, that shall for the purpose of creating a mo-
nopoly or destroying the business of a competitor, dis-
criminate between different sections, communities, locali-
ties, cities or towns of this State by purchasing such com-
16 LAWS OX TRUSTS AND MONOPOLIES.
niodity or commodities at a higher price or rate in one
section, community, location, city or town than is paid for
the same commodity by said person, firm, company, asso-
ciation or corporation in another section, community,
locality, city or town after making due allowance for the
difference, if any, in the grade or quality, and in the
actual cost of transportation from the point of purchase
to -the pomt of manufacture, sale or storage, shall be
deemed guilty of unfair discrimination which is hereby
prohibited and declared to be unlawful, but prices made
to meet competition in such locality shall not be in viola-
tion of this act ; and any person, firm, company, associa-
tion or corporation or any officer, agent, receiver or mem-
ber of such firm, company, association or corporation
found guilty of unfair discrimination as herein defined
shall be punished by a fine in any sum not more than five
thousand dollars, or by imprisonment in the county jail
not exceeding one year, or by both such fine and impris-
onment.
. Approved February 21, 1913.
[Chapter 41. Acts 1913.]
UNFAIR COMPETITION AND DISCRIMINATION.
SECTION 1. Any person, firm or corporation, foreign or
domestic, doing business in the State of Utah, and en-
gaged in the production, manufacture or distribution of
any commodity in general use, that intentionally, for the
purpose of destroying the competition of any regular,
established dealer in such commodity, or to prevent the
competition of any person, who in good faith intends and
attempts to become such dealer, shall discriminate be-
tween different sections, communities, or cities, of this
State by selling such commodity at a lower rate in one
section, community or city, or any portion thereof, than
such person, firm or corporation, foreign or domestic,
charges for such commodity in another section, commu-
nity or city, after equalizing the distance from the point
of production, manufacture, or distribution and freight
rates therefrom, shall be deemed guilty of unfair dis-
crimination.
SEC. 2. If complaint shall be made to the attorney-
general that any corporation is guilty of unfair discrimi-
nation as defined by this act, he shall investigate such
UTAH. 317
complaint and for that purpose he may subpoena wit-
nesses, administer oaths, take testimony, and require the
production of books or other documents, and, if in his
opinion sufficient grounds exist therefor, he may prose-
cute an action in the name of the State in the proper c6urt v
to annul the charter or revoke the permit of such corpora-
tion, as the case may be, and to permanently enjoin such
corporation from doing business in this State, and if in
such action the court shall find that such corporation is
guilty of unfair discrimination as defined by this act,
such court shall annul the charter or revoke the permit of
such corporation, and may permanently enjoin it from
transacting business in this State.
SEC. 3. Any person, firm, or corporation violating the
provisions of Section 1 of this act, shall upon conviction
thereof, be fined not less than one hundred dollars, nor
more than three thousand dollars for each offense.
Approved March 12th, 1913.
VERMONT.
STATUTES.
The capital stock of such corporation shall not be less
than five hundred dollars, and shall be divided into shares
not exceeding one hundred dollars each. Such capital
stock may be increased at a meeting of the stockholders
warned for that purpose. But no articles of association
or certificates of increase of capital stock, increasing the
capital stock of any corporation organized under this
chapter to an amount exceeding ten million dollars, shall
be filed by the secretary of state until the same have been
submitted to a judge of the supreme court, who shall have
the power to determine, with or without hearing, whether
such proposed corporation may or may not be organized
under the provisions of this chapter. Such judge shall
not permit the organization of such corporation if in his
opinion its organization is liable to create a monopoly or
result in restraining trade. Shares of stock may be issued
as preferred stock both as to dividends and on liquida-
tion, under such terms and provisions as the articles of
association or certificate of increase of capital stock may
provide. But no stock shall be in any way preferred
unless the terms of preference are definitely stated in the
stock certificate; nor, in the case of stock issued under a
certificate of increase of capital stock, unless its prefer-
ence is authorized and approved by the unanimous vote
of the common stock. (Sec. 4311, as amended bv L. 1910.
No. 143, Sec. 4.)
319
VIRGINIA.
CONSTITUTION.
SEC. 165. The general assembly shall enact laws pre-
venting all trusts, combinations and monopolies inimical
to the public welfare.
1649113 21
WASHINGTON.
CONSTITUTION.
ART. XII, SEC. 22. Monopolies and trusts shall never
be allowed in this state, and no incorporated company,
copartnership or association of persons in this state shall
directly or indirectly combine or make any contract with
any other incorporated company, foreign or domestic,
through their stockholders, or the trustees or assignees of
such stockholders, or with any copartnership or associa-
tion of persons, or in any manner whatever, for the pur-
pose of fixing the price or limiting the production or
regulating the transportation of any product or com-
modity. The legislature shall pass laws for the enforce-
ment of this section by adequate penalties, and in case of
incorporated companies, if necessary for that purpose,
may declare a forfeiture of their charter.
COURT DECISIONS.
Wood v. City of Seattle, 23 Wash., 1 ; 52 L. E. A, 369.
323
WEST VIRGINIA.
NOTE: There are no anti-trust statutes in West Vir-
ginia.
325
WISCONSIN.
STATUTES.
Any corporation organized under the laws of this state
which shall enter into any combination, conspiracy, trust,
pool, agreement or contract intended to restrain or pre-
vent competition in the supply or price of any article or
commodity in general use in this state, or constituting a
subject of trade or commerce therein, or which shall in
any manner control the price of any such article or com-
modity, fix the price thereof, limit or fix the amount or
quantity thereof to be manufactured, mined, produced or
sold in this state, or fix any standard or figure by which
its price to the public shall be in any manner controlled
or established, shall upon proof thereof, in any court
of competent jurisdiction have its charter or authority
to do business in this state cancelled and annulled.
Every * * * corporation shall, upon filing its an-
nual * * * report with the secretary of state, make
and attach thereto the affidavit of its president, secretary
or general managing officer, fully stating the facts in
regard to the matters specified in this section. (S., Sec.
1791 j;L. 190T, p. 432.)
Upon complaint being made to the attorney-general
and evidence produced to him which shall satisfy him that
any such corporation has violated any of the conditions
specified in sections 1791J and 1791k, he shall forthwith
bring an action in the name of the state in any circuit
court of this state to have the charter of such corporation
forfeited, cancelled and annulled, and upon due proof
being made thereof to the satisfaction of the court, judg-
ment shall be entered therefor. (S., Sec. 17911; L. 1905.
p. 944.)
Any foreign corporation which shall enter into any
combination, conspiracy, trust, pool, agreement or con-
tract intended to restrain or prevent competition in the
supply or price of any article or commodity in- general
327
328 LAWS ON TRUSTS AND MONOPOLIES.
use in the state, or constituting a subject of trade or com-
merce therein, or which shall in any manner control the
price of any such article or commodity, fix the price
thereof, limit or fix the amount or quantity thereof to be
manufactured, mined, produced or sold in this state, or
fix any standard or figure by which its price to the public
shall be in any manner controlled or established, shall,
upon proof thereof, in any court of competent jurisdic-
tion, have its license or authority to do business in this
state cancelled and annulled. (S., Sec. I770g; L. 1905.
p. 937.)
No foreign corporation shall be authorized to file its
charter or articles of incorporation or association with
the secretary of state, or be authorized to do business in
this state unless it shall at the time of making applica-
tion therefor file with the secretary of state an affidavit
executed by its president, secretary or general managing
officer stating that such corporation has not violated any
of the provisions of section ITTOg; and every such corpo-
ration shall, upon filing its annual statement with the sec-
retary of state, make and attach thereto the affidavit of
its president, secretary or general managing officer, fully
stating the facts in regard to the matters specified in
section I770g. (S., Sec. I770h ; L. 1905, p. 937.)
Upon complaint being made to the attorney-general
and evidence produced to him which shall satisfy him
that any such foreign corporation has violated any of
the conditions specified in sections I770f and I770g, he
shall forthwith bring an action in the name of the state
in any circuit court of this state to have the license of
such corporation to do business in this state cancelled
and annulled and upon due proof being made thereof to
the satisfaction of the court, judgment shall be entered
therefor. The provisions of section 1791m shall extend
to all proceedings under this and the two foregoing sec-
tions. (S., Sec. I770i; L. 1905, p. 937.)
POWER TO HOLD STOCKS AND BONDS OF OTHER CORPORATIONS.
In all cases in. which one corporation shall hold stock
in another, such stock shall, at all meetings of the stock-
holders of the latter corporation, be voted by the presi-
dent of the former, unless its board of directors, by reso-
lution adopted at any regular or special meeting of such
WISCONSIN. 329
board, designate some other person for that purpose ; and
any one or more officers of the former corporation may be
chosen, qualify and act as directors and officers of the
latter corporation, as in the case of other stockholders.
(S. Sec. I776a; L. 1905, p. 30.)
Acts 1913.
[No. 77, A.]
SECTION 1791n 9. 1. Any person, firm, or corporation,
foreign or domestic, doing business in this state and en-
gaged in the production, manufacture or distribution of
any commodity in general use> that shall intentionally, for
the purpose of destroying the competition of any regular,
established dealer in such commodity or to prevent com-
petition of any person who, in good faith, intends or at-
tempts to become such dealer, discriminate between differ-
ent sections, communities, or cities of this state, by sell-
ing such commodity at a lower rate in one section, com-
munity, or city, or any portion thereof, than such person,
firm, or corporation, foreign or domestic, charges for
such commodity in another section, community, or city,
after making due allowance for the difference, if any, in
the grade or quality and in the cost of transportation
from the point of production, if a raw product, or from
the point of manufacture, if a manufactured product,
shall be deemed guilty of unfair discrimination, which is
hereby prohibited and declared unlawful.
2. Any person, firm, company, association or corpora-
tion, and any officer, agent or receiver of any firm, com-
pany, association or corporation, or any member of the
same, or any individual violating any of the provisions
of this section shall be deemed guilty of a misdemeanor
and upon conviction thereof shall be punished by a fine
of not less than two hundred dollars, nor more than five
thousand dollars for each offense, or by imprisonment in
the county jail not to exceed one year, or by both such
fine and imprisonment.
SECTION lT91n 10. 1. Any person, firm, company, as-
sociation or corporation, foreign or domestic, doing busi-
ness in this state and engaged in the business of collecting
or buying any product, commodity or property of any
kind, that shall intentionally, for the purpose of injuring
or destroying the business or trade of a competitor in any
330 LAWS ON TRUSTS AND MONOPOLIES.
locality, or to prevent competition by any person who in
good faith intends or attempts to engage in such business,
discriminate between the different sections, communities,
or cities of this state, or between persons, firms, associa-
tions or corporations in any locality, by buying any prod-
uct, commodity or property of any kind, and paying
therefor a higher rate or price in one section, community,
or city, or to any person, firm, association or corporation
than is paid for the same kind of product, commodity or
property by said person, firm, company, association or
corporation, foreign or domestic, in another section, com-
munity or city, or to another person, firm, association or
corporation, after making due allowance for the differ-
ence, if any, in the grade or quality and in the actual cost
of the transportation from the point where the same is
purchased to the market where it is sold, or intended to
be sold, shall be deemed guilty of unfair discrimination,
which is hereby prohibited and declared unlawful.
2. Any person, firm, company, association or corpora-
tion, and any officer, agent or receiver of ajiy firm, com-
pany, association or corporation, or any member of the
same, or any individual violating any of the provisions
of this section shall be deemed guilty of a misdemeanor
and upon conviction thereof shall be punished by a fine
of not less than two hundred dollars nor more than five
thousand dollars for each offense, or by imprisonment in
the county jail not to exceed one year, or by both such fine
and imprisonment.
SECTION lT91n 11. The attorney general shall insti-
tute, manage, control, and direct, by himself, his deputy
or any of his assistants, in the proper county, all prosecu-
tions for violations of sections 1791n 9 and 1791n 10
and for such purpose shall have and exercise all powers
conferred upon district attorneys in such cases. It shall
be the duty of the district attorney in the county in which
any such prosecution may be instituted or pending to co-
operate with and assist the attorney general in such pros-
ecution.
SECTION lT91n 12. If complaint shall be made to the
attorney general that any corporation is guilty of unfair
discrimination, as. defined by the provisions of section
I791n 9 or 1791n 10, he shall investigate such com-
plaint and for that purpose he may subpoena witnesses,
administer oaths, take testimony and require the produc-
tion of books or other document?, and, if in his opinion
WISCONSIN. 331
sufficient grounds exist therefor, he may prosecute an ac-
tion in the name of the state in the proper court to annul
the charter or revoke the permit of such corporation, as
the case may be, and to permanently enjoin such corpora-
tion from doing business in this state, and if in such
action the court shall find that such corporation is guilty
of unfair discrimination, as defined by the provisions of
said section 179 In 9 or 179 In 10, such court shall annul
the charter or revoke the permit of such corporation, and
may permanently enjoin it from transacting business in
this state.
SECTION 2. This act shall take effect and be in force
from and after its passage and publication. (Chapter
165, Acts, 1913.)
COURT DECISIONS.
National Distilling Co. v. Cream City Importing Co.,
86 Wis., 352.
Ha warden v. Youghiogheny & L. Coal Co., Ill Wis.,
545 ; 55 L. R. A., 828.
Bratt v. Swift, 99 Wis., 579; 75 N. W., 411.
Rubber Tire Wheel Co. v. Milwaukee Rubber Works
Co., 142 Fed., 531.
WYOMING.
CONSTITUTION.
ART. X, SEC. 6. No corporation shall have power to
engage in more than one general line or department of
business, which line of business shall be distinctly speci-
fied in its charter of incorporation.
STATUTES.
Any person, firm, or corporation, foreign or domestic,
doing business in the State of Wyoming and engaged
in the production, manufacture or distribution of any
commodity in general use, that shall, intentionally, for
the purpose of destroying competition, discriminate be-
tween different sections, communities or cities of this
state, by selling such commodity at a lower rate in one sec-
tion, community or city, or any portion thereof, than is
charged for such commodity in another section, com-
munity or city, after equalizing the distance from the
point of production, manufacture or distribution and
freight rates therefrom, shall be deemed guilty of unfair
discrimination ; provided, however, that this act shall not
apply to any case where by reason of different railroad
rates or other natural things in favor of any manufac-
turer or dealer of goods of this or another state such
manufacturer or dealer sells at a different price than he
does in another, in order to meet the competitive rates
or other natural things in favor of such other manufac-
turer or dealer ; provided, further, that this act shall not
apply to any case where any manufacturer of or dealer
in goods manufactured or produced in this state sells
products in one place cheaper than in another to meet
upon the same or more favorable basis any competition
from foreign states, or this state; provided, further, that
this act shall not prevent the sale of goods at proper com-
mercial discount customary in the sale of such particular
goods. (L. 1911, c. 62, Sec. 1.)
334 LAWS ON TRUSTS AND MONOPOLIES.
If complaint shall be made to the attorney-general of
the state of Wyoming, or the county and prosecuting at-
torney of any county thereof, that any corporation, char-
tered in this state or any foreign corporation, doing
business in this state by virtue of compliance with the
laws thereof, or any person or firm of persons doing
business in this state, is guilty of unfair discrimination,
within the terms of this act, it shall be the duty of the
attorney-general, and the county and prosecuting attor-
neys of this state to institute an inquiry as to such dis-
crimination, giving to the party complained against
notice and reasonable opportunity to be heard, and if
in the judgment of such prosecuting officers, or either of
them, any corporation, foreign or domestic, or any per-
son or firm of persons shall have been guilty of unfair
discrimination, within the terms of this act, it shall be
their duty to institute quo warranto proceeding, to for-
feit the charter of said domestic corporation, or if a for-
eign corporation to procure an order of court to cause
the permit of said corporation to do business in this state,
immediately forfeited. (Id., Sec. 2.)
If after the revocation of such charter, in the case of
domestic corporation; or if its permit, if it be a foreign
corporation, any corporation shall continue or attempt to
do business in the State of Wyoming, it shall be the duty
of the attorney-general, by a proper suit, in the name of
the State of Wyoming to oust such corporation from all
business of every kind and character in said State of
Wyoming. (Id., Sec. 3.)
Any person, firm or corporation violating the provi-
sions of this act shall be deemed guilty of a misdemeanor,
and upon conviction thereof, shall forfeit to the State
of Wyoming the sum of not less than two hundred dol-
lars for each and every violation of this act. Said sum
to be recovered by a suit, in the name of the State of
Wyoming, in any court of competent jurisdiction, by the
attorney-general. (Id., Sec. 4.)
Nothing in this act shall be construed as repealing any
other act or part of an act, but the remedies herein pro-
vided shall be cumulative to all other remedies provided
bylaw. (Id., Sed. 5.)
LAWS ON TRUSTS AND MONOPOLIES.
FOREIGN COUNTRIES. 1
AUSTRALIA.
THE AUSTRALIAN INDUSTRIES PRESERVATION ACT,
1906.
[As amended by the acts of 1907, 1909, and 1910.]
AN ACT For the preservation of Australian industries, and for
the repression of destructive monopolies.
[Assented to Sept. 24, 1906.]
Be it enacted by the King's Most Excellent Majesty,
the Senate, and the House of Representatives of the Com-
monwealth of Australia, as follows:
PART I. Preliminary.
1. This act may be cited as the Australian industries
preservation act, 1906-1910.
2. This act is divided into parts as follows: Part I,
preliminary; Part II, repression of monopolies; Part
III, prevention of dumping. .
3. In this act, unless the contrary intention appears
" Commercial trust " includes a combination, whether
wholly or partly within or beyond Australia, of separate
and independent persons (corporate or unincorporate) ,
whose voting power or determinations are controlled or
controllable by (a) the creation of a trust as understood
in equity, or of a corporation wherein the trustees or cor-
poration hold the interests, shares, or stock of the con-
stituent persons; or (b) an agreement; or (c) the creation
of a board of management or its equivalent; or (d) some
similar means; and includes any division, part, constit-
uent person, or agent of a commercial trust.
" Inadequate remuneration for labor " includes inade-
quate pay or excessive hours or any terms or conditions of
labor or employment unduly disadvantageous to workers.
1 Acknowledgment of indebtedness is made to Fred. A. Johnson.
335
336 LAWS OX TRUSTS AND MONOPOLIES.
" Person " includes corporation and firm and u com-
mercial trust.
" The comptroller general " means the comptroller gen-
eral of customs.
"Answer questions " means that the person on whom
the obligation of answering questions is cast shall, to the
best of his knowledge, information, and belief, truly
answer all questions on the subject mentioned that the
comptroller general or the person named by him shall ask.
" Produce documents " means that the person on whom
the obligation to produce documents is cast shall, to the
best of his power, produce to the comptroller general or
to the person named by him all documents relating to
the subject matter mentioned.
PART II. Repression of monopolies.
4. (1) Any person who, either as principal or as agent,
makes or enters into any contract, or is or continues to be
a member of or engages in any combination in relation
to trade or commerce with other countries or among the
States (a) in restraint of or with intent to restrain
trade or commerce; or (b) to the destruction or injury
of or with intent to destroy or injure by means of unfair
competition any Australian industry the preservation of
which is advantageous to the Commonwealth, having due
regard to the interests of producers, workers, and con-
sumers, is guilty of an offense.
Penalty, 500, or, in the case of a continuing offense.
500 for each day during which the offense continues.
(2) Every contract made or entered into in contra-
vention of this section shall be absolutely illegal and void.
(3) It shall be a defense to a proceeding for an offense
under paragraph (a) of subsection (1) of this section,
and an answer to an allegation that a contract was made
or entered into in restraint of, or with intent to restrain,
trade or commerce, if the party alleged to have contra-
vened this section proves (a) that the matter or thing
alleged to* have been done in restraint of, or with intent
to restrain, trade or commerce was not to the detriment
of the public; and (ft) that the restraint of trade or com-
merce effected or intended was not unreasonable.
(Section 5 repealed.)
6. (1) For the purposes of section 4 and section 10 of
this act. unfair competition means competition which is
AUSTRALIA. 837
unfair in the circumstances; and in the following cases
the competition shall be deemed to be unfair unless the
contrary is proved:
(a) If the defendant is a commercial trust.
(&) If the competition would probably or does in fact
result in an inadequate remuneration for labor in the
Australian industry.
(c) If the competition would probably or does in fact
result in an inadequate remuneration for labor in the
liari industry or throwing workers out of employment.
(d) If the defendant, with respect to any goods or
services which are the subject of the competition, gives,
offers, or promises to any person any rebate, refund, dis-
count, or reward upon condition that that person deals, or
in consideration of that person having dealt, with the
defendant to the exclusion of other persons dealing in
similar goods or services.
(2) In determining whether the competition is unfair,
regard shall be had to the management, the processes, the
plant, and the machinery employed or adopted in the
Australian industry affected by the competition being
reasonably efficient, effective, and up to date.
7. ( 1 ) Any person who monopolizes or attempts to mo-
nopolize, or combines or conspires with any other person
to monopolize, any part of the trade or commerce with
other countries or among the States, is guilty of an indict-
able offense.
Penalty, 500 for each day during which the offense
continues, or one year's imprisonment, or both ; or, in the
case of a corporation, 1,000 for each day during which
the offense continues.
(2) Every contract made or entered into in contra-
vention of this section shall be absolutely illegal and void.
(3) The attorney general may elect, instead of proceed-
ing by indictment for an offense against this section, to
institute proceedings in the high court by way of civil
action for the recovery of the pecuniary penalties for the
offense; in which case the action shall be tried before a
justice of that court without a jury.
7A. (1) Any person who, in relation to trade or com-
merce with other countries or among the States, either as
principal or agent, in respect of dealings in any goods or
services gives, offers, or promises to any other person any
rebate, refund, discount, concession, or reward for the
reason, or upon the condition, express or implied, that the
1649113 -22
338 LAWS ON TRUSTS AND MONOPOLIES.
latter person (a) deals, or has dealt, or will deal, or in-
tends to deal exclusively with any person, either in rela-
tion to any particular goods or services or generally; or
(b) deals, or has dealt, or will deal, or intends to deal
exclusively with members of a commercial trust, either
in relation to any particular goods or services or gener-
ally; or (c) does not deal, or has not dealt, or will not
deal, or does not intend to deal with certain persons,
either in relation to any particular goods or services or
generally ; or (d) is or becomes a member of a commercial
trust ; is guilty of an offense.
Penalty, 500.
(2) Every contract made or entered into in contraven-
tion of this section shall be absolutely illegal and void.
(3) It shall be a defense to a prosecution under this
section, and an answer to an allegation that a contract
was made or entered into in contravention of this section,
if the party alleged to have contravened this section
proves that the matter or thing alleged to have been done
in contravention of this section was not to the detriment
of the public, and did not constitute competition which
was unfair in the circumstances, and was not destructive
of or injurious to any Australian industry.
7B. Any person who, in relation to trade and commerce
with other countries or among the States, either as prin-
cipal or agent, refuses either absolutely or except upon
disadvantageous conditions to sell or supply to any other
person any goods or services for the reason that the latter
person (a) deals, or has dealt, or will deal, or intends to
deal with any person; or (b) deals, or has dealt, or will
deal, or intends to deal with persons who are not members
of a commercial trust; or (c) is not a member of a com-
mercial trust ; is guilty of an offense.
Penalty, 500.
(Section 8 repealed.)
9. Whoever aids, abets, counsels, or procures, or by act
or omission is in any way, directly or indirectly, know-
ingly concerned in or privy to (a) the commission of any
offense against this part of this act; or (5) the doing of
any act outside Australia which would, if done within
Australia, be an. offense against this part of this act;
shall be deemed to have committed the offense.
Penalty, 500.
10. (1) The attorney general, or any person thereto
authorized by him, may institute proceedings in the high
AUSTRALIA. 339
court to restrain by injunction after hearing and deter-
mining the merits and not by way of interlocutory order
the carrying out of any contract made or entered into
after the commencement of this act or any combination
which (a) is in restraint of trade or commerce; or (5) is
destructive or injurious, by means of unfair competition,
to any Australian industry the preservation of which is
advantageous to the Commonwealth, having due regard
to the interests of producers, workers, and consumers.
Provided, that this section shall only apply to con-
tracts or combinations in relation to commerce with other
countries or among the States.
(2) On the conviction of any person for an offense
under this part of this act the justice before whom the
trial takes place shall, upon application by or on behalf
of the attorney general or any person thereto authorized
by him, grant an injunction restraining the convicted
person and his servants and agents from the repetition or
continuance of the offense of which he has been convicted.
10A. (1) Any person who does any act or thing in
disobedience of an injunction granted under this part of
this act shall be guilty of an offense.
Penalty, 500 for each day during which the offense
continues.
(2) This section shall not be deemed to derogate from
the power of the high court, apart from this section, to
enforce obedience to the injunction.
11. (1) Any person who is injured in his person or
property by any other person, by reason of any act or
thing done by that other person in contravention of this
part of this act, or by reason of any act or thing done
in contravention of any injunction granted under this
part of this act, may, in the high court, before a justice,
without a jury, sue for and recover treble damages for the
injury.
(2) No person shall, in any proceeding under this sec-
tion, be excused from answering any question put either
viva voce or by interrogatory, or from making any dis-
covery of documents, on the ground that the answer or
discovery may criminate or tend to criminate him; but
his answer shall not be admissible in evidence against
him in any criminal proceeding other than a prosecution
for perjury.
12. The jury panel for the trial of any offense against
this part of this act. or for the trial of any action or
340 LAWS ON TRUSTS AND MONOPOLIES.
issue under this part of this act, shall be taken from the
list of special jurors (if any) in the State or part of the
Commonwealth in which the trial takes place.
13. (1) Proceedings for the recovery of pecuniary pen-
alties for offenses against this part of this act (other than
indictable offenses or offenses against section 15B, section
15C, or section 15E) shall be instituted in the high court
by way of civil action and shall be tried before a justice
of that court without a jury.
(2) Any offense against this part of this act committed
by the person who has previously been convicted of any
offense against this part of this act shall be an indictable
offense, punishable on conviction by a penalty not exceed-
ing 500 or imprisonment for any term not exceeding one
year, or both; in the case of a corporation by a penalty
not exceeding 500.
14. (1) No proceeding for an indictable offense or for
the recovery of penalties shall be instituted under this
part except by the attorney general or some person au-
thorized by him.
(2) No other proceeding shall be instituted under this
part without the written consent of the attorney general.
14A. In any proceeding for an offense against this
part of this act, any indictment, information, statement
of claim, conviction, warrant, or other process shall suffice
if the offense is set forth as nearly as may be in the words
of this act.
14B. No person shall, in any proceeding for an offense
against this part of this act, be excused from answering
any question, put either viva voce or by interrogatory,
or from making any discovery of documents, on the
ground that the answer or discovery may tend to crimi-
nate him or make him liable to a penalty ; but his answer
shall not be admissible in evidence against him in any
civil or criminal proceeding other than a proceeding for
an offense against this act or a prosecution for perjury.
14C. In any proceeding for an offense against this part
of this act, wherein a combination or conspiracy or at-
tempted combination or conspiracy in contravention of
this act is alleged, any book, document, paper, or writing
containing (a) any minute, note, record, or memorandum
of any proceeding at any meeting of the persons or any of
the persons alleged to have been parties or privy to the
combination, conspiracy, or attempt; or (b) any entry
purporting to be a copy of or extract from any such book.
AUSTRALIA. 341
document, paper, or writing, shall, upon proof that it
was produced by or came from the custody of those per-
sons, or any of them, or of a responsible officer or a repre-
sentative of those persons, or any of them, (1) be admis-
sible in evidence against those persons; and (2) be evi-
dence that the matter and things thereby appearing to
have been done by those persons, or any of them, were so
done, and that any person thereby appearing to have been
present at the meeting was so present.
14D. In any proceeding for an offense against this part
of this act, any book, letter, document, paper, or writing,
or anything purporting to be a copy of, or extract from,
any book, letter, document, paper, or writing, containing
any reference to any matter or thing alleged to be done
in contravention of this act. shall, upon proof that it was
produced by or came from the custody of a person
charged with the offense, or a responsible officer or a rep-
resentative of that person (a) be admissible in evidence
against that person; and (5) be evidence of the matters
and things thereby appearing, and that the book, letter,
document, paper, or writing (or, in the case of a copy,
that the original thereof) was written, signed, dispatched,
and received by the persons by whom it purports to have
been written, signed, dispatched, and received, and that
any such copy or extract is a true copy of, or extract
from, the original of or from which it purports to be a
copy or extract.
15. (1) Any person party to a contract or member of
a combination or in any way concerned in carrying out
the contract or the objects of the combination may (a)
lodge with the attorney general a statutory declaration by
himself, or in the case of a corporation by some one ap-
proved of in that behalf by the attorney general, setting
forth truly, fully, and completely the terms and particu-
lars of the contract, or the purposes, objects, and terms of
agreement or constitution of the combination, as the case
may be, and an address in Australia to which notices may
be sent by the attorney general; and () publish the
statutory declaration in the Gazette.
(2) The attorney general may at any time send notice
to the person above mentioned (hereinafter called the de-
clarant), to the address mentioned in the statutory decla-
ration, that he considers the contract or combination
likely to restrain trade or commerce to the detriment of
342 LAWS ON TRUSTS AND MONOPOLIES.
the public, or to destroy or injure an Australian industry
by unfair competition,
(3) In any proceeding against the declarant in respect
of any offense against section 4 of this act, alleged to have
been committed by him in relation to the contract or com-
bination after the time the statutory declaration has been
lodged and published, and before any notice as aforesaid
has been sent to him by the attorney general, it shall be
deemed (but as regards the declarant only and not as
regards any other person) that the declarant had no
intent to contravene the provisions of the section if he
proves that the statutory declaration contains a true, full,
and complete statement of the terms and particulars of
the contract or the purposes, objects, and terms of agree-
ment or constitution of the combination, as the case may
be, at the date of the statutory declaration and at the
date of the alleged offense.
15A. In any prosecution for an offense against sec-
tions 4, 7, 7 A, 7B, or 9 of this act the averments of the
prosecutor contained in the information, declaration, or
claim shall be deemed to be proved in the absence of
proof to the contrary, but so that (a) the averment in
the information of intent shall not be deemed sufficient
to prove such intent; and (b) in all proceedings for an
indictable offense the guilt of the defendant must be
established by evidence.
15B. (1) If the comptroller general believes that an
offense has been committed against this part of this act.
or if a complaint has been made in writing to the comp-
troller general that an offense has been committed against
this part of this act and the comptroller general believes
that the offense has been committed, he may, by writing
under his hand, require any person whom he believes to
be capable of giving any information in relation to the
alleged offense to answer questions and to produce docu-
ments to him or to some person named by him in relation
to the alleged offense.
(2) No person shall refuse or fail to answer questions
or produce documents when required to do so in pur-
suance of this section.
Penalty, 50.
(3) The comptroller general or any person to whom
any documents are produced in pursuance of this section
may take copies of or extracts from those documents.
AUSTRALIA. 343
(4) No person shall be excused from answering any
questions or producing any documents when required to
do so under this section on the ground that the answer to
the question or the production of the document might
tend to criminate him or make him liable to a penalty;
but his answer shall not be admissible in evidence against
him in any civil or criminal preceding other than a pro-
ceeding for an offense against this part of this act.
15C. (1) Whenever a complaint on oath has been made
in writing to the comptroller general that any person
or any foreign corporation or any trading or financial
corporation formed within the Commonwealth has been
guilty of any offense against this part of this act, the
comptroller general, if he believes the complaint to be
well founded, may, by writing, require any such person
or foreign corporation or trading or financial corporation
or any member, officer, or agent of any such corporation,
to produce and hand over to him or to some person ap-
pointed by him in writing all books and documents relat-
ing to the subject matter of the complaint and all books
any documents of any kind whatsoever wherein any entry
or memorandum appears in any way relating to the sub-
ject matter of the complaint.
(2) Every person or foreign corporation or trading or
financial corporation required by the comptroller general
as aforesaid to produce to him or to some person ap-
pointed by him in writing any books or documents shall
forthwith produce and hand over such books o* docu-
ments accordingly.
Penalty, 100.
(3) The comptroller general or any person appointed
by him in writing may inspect all books and documents
produced in pursuance of this section and may make
copies of or extracts from those books or documents."
15D. The comptroller general may impound or retain
any book or document produced to him or to any person
so appointed by him in pursuance of the preceding -sec-
tion, but the person or corporation otherwise entitled to
such book or document shall in lieu thereof be entitled to
a copy certified as correct by the comptroller general, and
such certified copy shall be receivable in all courts as evi-
dence and of equal validity with the original. And until
such certified copy is supplied the comptroller general
may at such times and places as he shall think proper
permit such person, or in the case of a corporation any
344 LAWS ON TRUSTS AND MONOPOLIES.
person appointed for the purpose by the corporation, to
inspect and take extracts from the books or documents so
impounded or retained.
15E. No person shall disclose any information gained
by him in the exercise of the powers conferred by the last
three preceding sections except (a) to the attorney gen-
eral or some person authorized by him; (>) to the comp-
troller general; (c) when giving evidence in any proceed-
ing for an offense against this part of this act.
Penalty, 50.
PART III. Prevention of dumping?
16. Iii this part of this act
" Justice " means a justice of the high court.
" The comptroller general " means the comptroller
general of customs.
" Imported goods " and "Australian goods " include
goods of those classes, respectively, and all parts or
ingredients thereof.
" Produced " includes manufactured, and " Producer "
includes manufacturer.
" Trade " includes production of every kind.
" Industries " shall not include industries in which, in
the opinion of the comptroller general or justice as the
case may be, the majority of workers do not receive ade-
quate remuneration or are subject to unfair terms or con-
ditions of labor or employment.
IT. Unfair competition has in all cases reference to
competition with those Australian industries, the preser-
vation of which, in the opinion of the comptroller general
or a justice as the case may be, is advantageous to the
Commonwealth, having due regard to the interests of
producers, workers, and consumers.
18. (1) For the purposes of this part of this act, com-
petition shall be deemed to be unfair, unless the contrary
is proved, if (a) under ordinary circumstances of trade
it would probably lead to the Australian goods being no
longer produced or being withdrawn from the market
or being sold at a loss unless produced at an inadequate
remuneration for- labor; or (6) the means adopted by the
person importing or selling the imported goods are, in
1 Acts of the Commonwealth of Australia, 1901. No. 6 of 1901 An act
relating to the customs. (Assented to Oct. 3, 1901.) Part I Introduc-
tory. 1. This act may be cited as the customs act of 1901. * * *
50. No prohibited goods shall be imported. Penalty, 100,
AUSTRALIA. 345
the opinion of the comptroller general or a justice as the
case may be, unfair in the circumstances; or (c) the
competition would probabl} r or does in fact result in an
inadequate remuneration for labor in the Australian in-
dustry; or (d) the competition would probably or does
in fact result in creating any substantial disorganization
in Australian industry or throwing workers out of em-
ployment; or (e) the imported goods have been pur-
chased abroad by or for the importer, from the manu-
facturer or some person acting for or in combination with
him or accounting to him, at prices greatly below their
ordinary cost of production where produced or market
price where purchased; or (/) the imported goods are
imported by or for the manufacturer or some person
acting for or in combination with him or accounting to
him, and are being sold in Australia at a price which is
less than gives the person importing or selling them a
fair profit upon their fair foreign market value, or their
fair selling value if sold in the country of production,
together with all charges after shipment from the place
whence the goods are exported directly to Australia (in-
cluding customs duty).
(2) In determining whether the competition is unfair
regard shall be had to the management, the processes, the
plant, and the machinery employed or adopted in the
Australian industry affected by the competition being
reasonably efficient, effective, and up to date.
19. (1) The comptroller general, whenever he has re-
ceived a complaint in writing and has reason to believe
that any person (hereinafter called the importer), either
singly or in combination with any other person within or
beyond the Commonwealth, is importing into Australia
goods (hereinafter called imported goods) with intent
to destroy or injure any Australian industry by their sale
or disposal within the Commonwealth in unfair competi-
tion with any Australian goods, may certify to the min-
ister accordingly.
(2) The certificate of the comptroller general shall
specify (a) the imported goods; (b) the Australian in-
dustry and goods; (c) the importer; (d) the grounds or
unfairness in the competition; (e) the name, address, and
occupation of any person (not being an officer of the pub-
lic service) upon whose information he may have acted.
(3) The comptroller general may add to his certificate
a statement of such other facts as in his opinion ought to
346 LAWS ON TRUSTS AND MONOPOLIES.
be specified to give the importer fair notice of the matters
complained of.
(4) The comptroller general shall, before making his
certificate, give to the importer an opportunity to show
cause why the certificate should not be made and furnish
him with a copy of the complaint.
(5) On receipt of the certificate the minister may (a)
by order in writing refer to a justice the investigation
and determination of the question whether the imported
goods are being imported with the intent alleged ; and if
so, whether the importation of the goods should be pro-
hibited, either absolutely or subject to any specified con-
ditions or restrictions or limitations; (4) notify in the
Gazette that the question has been so referred; and (<?)
forward to the justice a copy of the certificate.
20. From the date of the Gazette notice until the pub-
lication in the Gazette of the determination of the ques-
tion by the justice, goods, the subject of the investigation,
shall not be imported unless the importer (a) gives to the
minister a bond with such sureties as the minister ap-
proves, for such amount (not exceeding the true value of
the goods for customs purposes) as the minister con-
siders just and reasonable by way of precaution in the
circumstances, and conditioned to be void if the justice
determines the question in favor of the importer; or (b)
gives such other security and complies with such other
conditions as the minister approves; and those goods
shall, if imported in contravention of this section, be
deemed to be prohibited imports within the meaning of
the customs act 1901, and the provisions of that act shall
apply to the goods accordingly.
21. (1) The justice shall proceed to expeditiously and
carefully investigate and determine the matter, and for
the purpose of the proceeding shall have power to inquire
as to any goods, things, and matters whatsoever which he
considers pertinent, necessary, or material.
(2) For the purpose of the proceeding the justice shall
sit in open court, and shall have all the powers of a jus-
tice in the exercise of the ordinary jurisdiction of the
high court. He may, if he thinks fit and shall on the
application of either party, state a case for the opinion of
the full court upon any question of law arising in the
proceeding. And he may, if he thinks fit at any stage
of the proceeding, refer the investigation and determina-
AUSTRALIA. 347
tion of the matter to the full court, which shall in that
case have all the powers and functions of a justice under
this part of this act.
(3) The certificate of the comptroller general shall be
prima facie evidence of facts by subsection (2) of section
19 of this act, required to be specified therein.
(4) In addition to the comptroller general and the im-
porter the justice may, if he thinks fit, allow any person
interested in importing imported goods to be represented
at the investigation.
(5) The justice shall be guided by good conscience and
the substantial merits of the case, without regard to legal
forms or technicalities, or whether the evidence before
him is in accordance with the law of evidence or not.
(6) No person shall in any proceeding before a justice
be excused from answering any question or producing
documents on the ground that the answer or production
may criminate or tend to criminate him, but his answer
shall not be admissible in evidence against him in any
criminal proceeding other than a prosecution for perjury.
(7) The justice shall forward his determination to the
minister.
(8) In the case o*f the following agricultural imple-
ments, plows of all kinds over li hundredweight, tine
harrows, disk harrows, grain drills, combined grain-seed
and manure drills, land rollers, cultivators, chaff cutters,
seed cleaners, stripper harvesters, and any other imple-
ment usually used in agriculture, the justice shall inquire
into and determine the question whether the goods are
being imported with the effect of benefiting the primary
producers without unfairly injuring any other section
of the community of the Commonwealth.
(9) The determination of the justice shall be final and
conclusive and without appeal and shall not be questioned
in any way.
22. (1) Upon the receipt of the determination of the
justice the minister shall forthwith cause it to be pub-
lished in the Gazette.
(2) If the justice determines that the imported goods
are being imported with the intent alleged, and that their
importation should be prohibited either absolutely or
subject to any specified conditions or restrictions or limi-
tations of any kind whatsoever (a) the determination
when so published shall have the effect of a proclamation
848 LAWS ON TEUSTS AND MONOPOLIES.
under the customs act, 1901, prohibiting the importation
of the goods either absolutely or subject to those condi-
tions or restrictions or limitations as the case may be;
and in that case the provisions of that act shall apply to
goods so prohibited; and (&) the justice may by order
reduce the amount recoverable under any bond given in
pursuance of this part of this act to such sum as the
importer satisfies him is reasonable and just in the cir-
cumstances.
23. The governor general may at any time, by procla-
mation, simultaneously with or subsequently to any pro-
hibition under this part of this act, rescind in whole or
in part the prohibition or any condition or restriction or
limitation on importation imposed thereby.
24. In all cases of prohibition the determination of the
justice, and any proclamation affecting the same, shall
be laid before both houses of the Parliament within
seven days after the publication in the Gazette, or, if the
Parliament is not then sitting, within seven days after
the next meeting of Parliament.
25. The justices of the high court or a majority of
them may make rules of court not inconsistent with this
act, for regulating the proceedings before a justice under
this part of this act and for carrying this part of this
act into effect.
26. (1) Any person who willfully (a) makes to the
comptroller general or to any officer of customs any
false statement in relation to any action or proceedings
taken or proposed to be taken under this part of this act ;
or (&) misleads the comptroller general in any particular
likely to affect the discharge of his duty under this act
shall be guilty of an offense.
Penalty, 100 or 12 months' imprisonment,
(2) Any person convicted under the last preceding sub-
section may be ordered by the justice to whom a question
is referred under this part of this act to pay the whole
or part of the costs incurred by the importer in whose
favor the question is determined.
AUSTRALIA.
349
EXCISE TARIFF.
[No. 16 of 1906.]
AN ACT Relating to duties of excise. 1
[Assented to Oct. 12, 1906.]
Be it enacted ~by the King^s Most Excellent Majesty, the
Senate and the House of Representatives of the Com-
monwealth of Australia, as follows :
1. This act may be cited as the excise tariff, 1906. short title.
2. Duties of excise shall on and from the 1st day of <
January, 1907. be imposed on the dutiable goods specified machinery.
in the schedule at the rates specified in the said schedule.
Provided, That this act shall not apply to goods manu-
factured by any person in any part of the Commonwealth
under conditions as to the remuneration of labor which
(a) are declared by resolution of both houses of the Par-
liament to be fair and reasonable; or (b) are in accord-
ance with an industrial award under the Commonwealth
conciliation and arbitration act, 1094; or (<?) are in ac-
cordance with the terms of an industrial agreement filed
under the Commonwealth conciliation and arbitration
act, 1904; or (d) are, on an application made for the pur-
pose to the president of the Commonwealth court of con-
ciliation and arbitration, declared to be fair and reason-
able by him or by a judge of the supreme court of a State
or any person or persons who compose a State industrial
authority to whom he may refer the matter.
THE SCHEDULE.
Excise duties.
Dutiable goods.
FIXED RATES.
Stripper harvesters... .................................. each..
Strippers ............................................................... do....
Metal parts of stripper harvesters and strippers ................... per pound. .
AD VALOREM RATES. '
Stump-jump plows ................................................. per cent.
Disk cultivators ........................................................ do
Winnowers, horse and other power ..................................... do
Combined corn sheller, husker, and bagger .............................. do
Combined corn sheller and husker ...................................... do
Drills:
Fertilizer ........................................................... do
Seed ................................................................ do
Grain ............................................................... do
And attachments thereto ....................................... do.
Duties.
6
3
12*
1 The act relating to agricultural machinery (No. '16 of 1906) was de-
clared unconstitutional by the high court in July, 1908.
350 LAWS ON TRUSTS AND MONOPOLIES.
Excise duties Continued.
Dutiable goods. Duties
AD VALOREM BATES continued.
Plows, other per cent.
Plowshares do . . .
Harrows , do. . .
Chaff cutters and horse gear . . .do.
Cultivators, other than disk do.
Scarifiers do.
Plow moldboards do
Cornshellers do.
Corn buskers do.
10
EXEMPTIONS.
Hand-worked rakes and plows combined.
Hay tedders.
Maize harvesters.
Maize binders.
Maize planters.
Moldboard plates in the rough and not cut into shape.
Potato sorters.
Potato raisers or diggers.
(Commonwealth Acts: Australia, vol. 5, 1906, No. 16, p. 59.)
THE PATENTS ACT 19O3.
[No. 21 of 1903. As amended by the patents act 1906 (No. 19 of 1906),
and by the patents act 1909 (No. 17 of 1909).]
AN ACT Relating to patents of inventions.
[Assented to Oct. 22, 1903.]
PART V. Working of patents and compulsory licenses.
Compulsory 87. (1) Any person interested may, after the expira-
Bdw. 7, c. '34, tion of two years from the granting of the patent, present
a petition to the commissioner alleging that the reason-
able requirements of the public with respect to a patented
invention have not been satisfied and praying for the
grant of a compulsory license, or, in the alternative, for
the revocation of the patent.
(2) The commissioner shall consider the petition, and
if the parties do not come to an arrangement between
themselves, the commissioner, if satisfied that a prima
facie case has been made out, shall refer the petition to
the high court or the supreme court, and if the commis-
sioner is not so satisfied he may dismiss the petition.
(3) Where any such petition is referred by the com-
missioner to the high court or the supreme court, and it
is proved to the satisfaction of the court that the reason-
able requirements" of the public with reference to the
patented invention have not been satisfied, the patentee
may be ordered, by rule or order, to grant licenses on such
terms as the said court thinks just, or if the court is of
AUSTKALIA. 351
opinion that the reasonable requirements of the public
will not be satisfied by the grant of licenses the court
may order the revocation of the patent.
Provided, that no order of revocation shall be made
before the expiration of three years from the date of the
patent or if the patentee gives satisfactory reasons for
his default.
(4) On the hearing of any petition under this section
the patentee, and any person claiming an interest in the
patent as exclusive licensee or otherwise, shall be made
parties to the proceedings, and the commissioner shall be
entitled to appear and be heard.
***** Subsec. (5)
omitted ; No.
(6) For the purposes of this section the reasonable re- 17% 7 1 Edw S 7 1 c'
quirements of the public shall not be deemed to have been 29 ' s - 24 < 5 >-
satisfied (a) if, by reason of the default of the patentee hy Su ^ 8 tltut 1 ^
(1) to manufacture to an adequate extent and supply on 1009 - 8 - 14 -
reasonable terms the patented article or any parts thereof,
which are necessary for its efficient working, or (2) to
carry on the patented process to an adequate extent, or
(3) to grant licenses on reasonable terms; any existing
trade or industry, or the establishment of any new trade
or industry, in Australia is unfairly prejudiced; or the
demand for the patented article or the article produced
by the patented process is not reasonably met; or (b) if
any trade or industry in Australia is unfairly prejudiced
by the conditions attached by the patentee, before or
after the commencement of this subsection, to the pur-
chase, hire, or use of the patented article, or to the using
or working of the patented process.
(7) A rule or order directing the grant of any license
under this section shall, without prejudice to any other
method of enforcement, operate as if it were embodied in
a deed granting a license and made between the parties to
the proceeding.
87a. (1) At any time not less than four years after the w
date of a patent, and not less than two years after the j* ^
commencement of this section, any person may apply to ^ Xt ei j
the high court or the supreme court for an order declar- wealth -
ing that the patented article or process is not manufac-
tured or carried on to an adequate extent in the Common-
wealth.
(2) If, on the hearing of the application, the court is
satisfied that the patented article or process is manufac- s
tured or carried on exclusively or mainly outside the
352 LAWS ON TKUSTS AND MONOPOLIES.
Common wealth, then, subject to the provision of this sec-
tion, and unless the patentee proves that the article or
process is manufactured or carried on to an adequate
extent in the Commonwealth, or gives satisfactory reasons
why the articles or process is not so manufactured or
carried on, it shall make the order applied for, to take
effect either (a) forthwith or (b) at the expiration of
such reasonable time as is specified in the order, unless in
the meantime it is shown to the satisfaction of the court
that the patented article or process is manufactured or
carried on to an adequate extent in the Commonwealth :
Provided, that no such order shall be made which is at
variance with any treaty, convention, arrangement, or
engagement with any foreign country or part of the
King's dominions.
(3) If, within the time specified in the order, the pat-
ented article or process is not manufactured or carried on
to an adequate extent in the Commonwealth, but the pat-
entee gives satisfactory reasons why it is not so manu-
factured or carried on, the court may make a further
order extending the time so specified for any specified
time not exceeding 12 months.
(4) From and after the time when an order under sub-
section (2) of this section takes effect the patent shall not
be deemed to be infringed by the manufacture or carry-
ing on in the Commonwealth of the patented article or
process or by the vending within the Commonwealth of
the patented article made within the Commonwealth.
(5) If at any time after the making of an order under
subsection (2) of this section the court is satisfied that
the patented article or process is not manufactured or
carried on in the Commonwealth by any other person
than the patentee, and that the patentee is manufacturing
it or carrying it on to an adequate extent in the Common-
wealth, the court may in its discretion, if it thinks it just
so to do, revoke the order, which shall thenceforth cease
to have effect.
(6) In any case in which the court is empowered by
this section to make an order under subsection (2) there-
of, it may, in its discretion, if it thinks it just so to do,
instead of making such an order, order the patentee to
grant a compulsory license to the applicant on such terms
as the court thinks just.
(7) In any proceedings under this section the court
may make such order as to costs as it thinks just, and
AUSTKALIA. 353
may order the applicant to give such security as it thinks
just for the costs of the proceedings and of any appeal
therefrom, and in default of such security being given
within the time specified by the order the proceedings or
appeal shall be deemed to be abandoned.
875. (1) It shall not be lawful in any contract made Avoidance of
J . certain condi-
after the commencement of this section in relation to the *!<>"* attached
to the sale,
sale or lease of. or license to use or work, any article or etc.. of patent-
J ed articles. 7
process protected by patent, to insert a condition the Bdw. 7, c. 29,
effect of which would be (a) to prohibit or restrict the Ins ] e 7 ted 19( J ) <f
purchaser, lessee, or licensee from using any article or s. in.
class of articles or process, whether patented or not, sup-
plied or owned by any person other than the seller, lessor,
or licensor, or his nominees; or (b) to require the pur-
chaser, lessee, or licensee to acquire from the seller, lessor,
or licensor, or his nominees, any article or class of articles
not protected by the patent ; and any such condition shall
be null and void :
Provided, that this subsection shall not apply if (1)
the seller, lessor, or licensor proves that, at the time the
contract was entered into, the purchaser, lessee, or licensee
had the option of purchasing the article or obtaining a
lease or license on reasonable terms, without any such
condition; and (2) the contract entitles the purchaser,
lessee, or licensee to relieve himself of his liability to
observe any such condition on giving the other party three
months' notice in writing, and on payment in compensa-
tion for such relief in the case of a purchase of such sum,
or in the case of a lease or license of such rent or royalty
for the residue of the term of the contract, as may be fixed
by an arbitrator appointed by the minister.
(2) Any contract relating to the lease of or license to
use or work any patented article or patented process,
whether made before or after the commencement of this
section, may at any time after the patent or all the patents
by which the article or process was protected at the time
of the making of the contract has or have ceased to be in
force, and notwithstanding anything in the same or in
any other contract to the contrary, be determined by
either party on giving three months' notice in writing to
the other party.
(3) Any contract made before the commencement of
this section relating to the lease of or license to use or
work any patented article or process, and containing any
condition which, had the contract been made after the
1649113 23
354 LAWS ON TRUSTS AND MONOPOLIES.
commencement of this section, would by virtue of this
section have been null and void, may, at any time before
the contract is determinable under the last preceding sub-
section, and notwithstanding anything in the same or
any other contract to the contrary, be determined by
either party on giving three months' notice in writing to
the other party.
(4) Where under either of the two last preceding sub-
sections any notice is given determining a contract made
before the commencement of this section, the party giving
the notice shall be liable to pay such compensation as,
failing agreement, may be awarded by an arbitrator
appointed by the minister.
(5) The insertion by the patentee in a contract, made
after the commencement of this section, of any condi-
tion which by virtue of this section is null and void, shall
be available as a defense to an action for infringement
of the patent, to which the contract relates, brought while
that contract is in force.
(6) Nothing in this section shall (a) affect any con-
dition in a contract Avhereby a person is prohibited from
selling any goods other than those of a particular person ;
or (Z>) be construed as validating any contract which
would, apart from this section, be invalid; or (c) affect
any right of determining a contract or condition in a
contract exercisable independently of this section; or
(d) affect any condition in a contract for the lease of or
license to use a patented article, whereby the lessor or
licensor reserves to himself or his nominees the right to
supply such new parts of the patented article as may be
required to put or keep it in repair.
(Australia, Commonwealth Acts, 1909, vol. 8, The
Patents Act, Pt. V, pp. 269 to 273.)
CANADA.
CRIMINAL LAW OF CANADA RELATIVE TO RE-
STRAINTS OF TRADE AND COMPETITION.
OFFENSES CONNECTED WITH TRADE AND BREACHES OF
CONTRACT.
496. A conspiracy in restraint of trade is an agreement
between two or more persons to do or procure to be done trade
any unlawful act in restraint of trade. (55-56 V, c. 29,
s. 516.)
497. The purposes of a trade union are not, bv reason A v t! ? in re -
1 ' - stralnt not un-
merely that they are in restraint of trade, unlawful within 'a^fui.
the meaning of the last preceding section. (55-56 V.
c. 29, s. 517.)
498. Every one is guilty of an indictable offense and i >en j lt: y for
liable to a penalty not exceeding $4,000 and not less than
$200, or to two years' imprisonment, or, if a corporation,
is liable to a penalty not exceeding $10,000 and not less
than $1,000, who conspires, combines, agrees, or arranges
with any other person, or with any railway, steamship,
steamboat, or transportation company
(a) To unduly limit the facilities for transporting. TO limit
-. * , . . -IT transportation
producing, manufacturing, supplying, storing, or dealing facilities,
in any article t or commodity which may be subject of
trade or commerce ; or,
(b) To restrain or injure trade or commerce in relation Restrain
_ , . , n . , commerce.
to any such article or commodity; or,
(c) To unduly prevent, limit, or lessen the manufac- Lessen man-
, ,/ - ,. , ufacturlng.
ture or production of any such article or commodity, or
to unreasonably enhance the price thereof; or,
(d) To unduly prevent or lessen competition in the ^essen com "
production, manufacture, purchase, barter, sale, trans-
portation, or supply of any such article or commodity.
or in the price of insurance upon person or property.
2. Nothing in this section shall be construed to apply saving,
to combinations of workmen or employees for their own
reasonable protection as such workmen or employees.
(63-64 V, c. 46, s. 3.)
355
356 LAWS ON TKUSTS AND MONOPOLIES.
(Revised Statutes of Canada, 1906, Vol. Ill, chap. 146,
' sees. 496-498, p. 2549.)
CANADIAN LEGISLATION CONCERNING PATENTS.
vaHdit di o t f i cr 1 ^" ^e va lidity of any patent granted before the 13th
t a i n patents day of August, 1903, shall not be impeached, nor shall
granted before * & ' '
Aug. is, 1903. such patent be deemed to have lapsed or expired by rea-
son of the failure of the patentee to construct or manu-
facture the patented invention, if the patentee within the
period of two years from the date of the patent allowed
for such construction or manufacture, or within an au-
thorized extension of that period, became, and at all times
thereafter continued to be, ready either to furnish the
patented invention himself or to license the right of
using it, on reasonable terms, to any person desiring to
use it, and if the patentee, or his legal representatives,
within six months from the 13th day of August, 1903,
had-
(a) Commenced, and after such commencement con-
tinuously carried on in Canada, the construction or man-
ufacture of the patented invention in such manner as
to enable any person desiring to use it to obtain it, or
cause it to be made for him, at a reasonable price, at some
manufactory or establishment for making or constructing
it in Canada ; or,
(/>) Applied for and thereupon obtained an order of
the commissioner making the patent subject to the con-
dition hereinafter provided for authorizing application
for the issue of licenses to make, construct, use, and sell
the patented invention. (3 E. VII., c. 46, s. 10.)
Rights of 43. In the case of any patent which before the 13th day
saved. E Q6> of August, 1903, had become void or the validity of
which might have been impeached, and which was re-
vived or protected from impeachment by any provision
of the act. passed in the third year of His Majesty's
reign, chapter 46, entitled "An act to amend the patent
act," or which, by reason of any such provision, is to be
deemed not to have elapsed or expired, any person who
had, between the time when fcuch patent became void or
the ground for such impeachment arose, and the 13th day
of August, 1903, aforesaid, commenced to manufacture,
use, or sell in Canada the invention covered by such pat-
ent, may continue to manufacture, use,' or sell it in as full
and ample a measure as if such revival or protection from
CANADA. 357
impeachment had not been effected ; and, in case any per-
son had, before the 13th day of August aforesaid, con-
tracted with the owner of the patent for the right to
manufacture, use, or sell such invention in Canada, the
contract shall be deemed to have remained in full force
and effect, notwithstanding that the patent had become
void as aforesaid, unless the person who had so con-
tracted with such owner can show that in the meantime,
by reason or on the faith of such invalidity or lapsing, he
has materially altered his position with respect to such
invention, and that the revival of such contract would
cause him damage. (3 E. VII., c. 46. s. 14.)
44. On the application of the applicant for a patent wh gj n ^^ io j|
previous to the issue thereof, or on the application within substituted.
six months after the issue of a patent of the patentee or
his legal representatives, the commissioner, having regard
to the nature of the invention, may order that such patent
instead of being subject to the condition with respect to
the construction and manufacture of the patented inven-
tion hereinbefore provided, shall be subject to the follow-
ing conditions, that is to say :
(a) Any person, at any time while the patent continues Application
. \ . . .... by any person
in force, may apply to the commissioner by petition for to use patent,
a license to make, construct, use, and sell the patented
invention, and the commissioner shall, subject to general
rules which may be made for carrying out this section,
hear the person applying and the owner of the patent,
and, if he is satisfied that the reasonable requirements of
the public in reference to the invention have not been
satisfied by reason of the neglect or refusal of the patentee
or his legal representatives to make, construct, use, or
sell the invention, or to grant licenses to others on reason-
able terms to make, construct, use, or sell the same, may
make an order under his hand and the seal of the Patent C oSmimioner! f
Office requiring the owner of the patent to grant a license
to the person applying therefor in such form and upon
such terms as to the duration of the license, the amount
of the royalties, security for payment, and otherwise as
the commissioner, having regard to the nature of the
invention and the circumstances of the case, deems just;
(&) The commissioner may. if he thinks fit, and shall Assessors -
on the request of either of the parties to the proceedings,
call in the aid of an assessor, specially qualified, and hear
the case wholly or partially with his assistance;
358 LAWS ON TRUSTS AND MONOPOLIES.
one 1 n r c e en h se ( c ^ The existence of one or more licenses shall not be a
may be gran ted. Dar to an order by the commissioner for or to the grant-
ing of a license on any application under this section;
and
p ft?nt ur f e o r (d) The patent and all rights and privileges thereby
ii e c f e U n?e l . t0 srant S ran t e( i shall cease and determine and the patent shall
be null and void if the commissioner makes an order
requiring the owner of the patent to grant any license
and the owner of the patent refuses or neglects to comply
with such order within three calendar months next after
a copy of it is addressed to him or to his duly authorized
agent. (3 E. VII, c. 46, s. 7.)
th? ef excnequer 45. Any question which arises as to whether a patent
or any interest therein has or has not become void under
any of the provisions of the seven last preceding sections
of this act may be adjudicated upon by the exchequer
court of Canada, which court shall have jurisdiction to
decide any such questions upon information in the name
of the attorney general of Canada or at the suit of any
person interested; but this section shall be not held to
of oth r e 1 r s cou t r i ts n ta ^ e awav or affect the jurisdiction which any court other
than the exchequer court of Canada possesses. (3 E. VII,
c. 46, s. 8.)
(Kevised Statutes of Canada, 1906, Vol. II, chap. 69,
sees. 42, 43, 44, and 45.)
CONCERNING BOOKS.
^* ^ a book as to which there is subsisting copyright
Cwfada ctlonlnim( ^ er tn ^ s act ^ as ^ )een ^ rst l^fully published in any
part of His Majesty's dominions, other than Canada, and
if it is proved to the satisfaction of the minister that the
owner of the copyright so subsisting and of the copyright
acquired by such publication has lawfully granted a
license to reproduce in Canada, from movable or other
types, or from stereotype plates, or from electroplates, or
from lithograph stones, or by any process for facsimile
reproduction, an edition or editions of such book designed
i^w?im m o/ ^ or sa * e on ty * n Canada, tne m ster may, notwithstand-
totion. ing anything in this act, by order under his hand, pro-
hibit the importation into Canada, except with the writ-
ten consent of the licensee, of any copies of such book
Proviso. printed elsewhere ; provided that two such copies may be
specially imported for the bona fide use of any public
free library or any university or college library, or for the
CANADA. 359
library of any duly incorporated institution or society
for the use of the members of such institution or society.
(63-64 V, c. 25, s. 1.)
29. The minister may at any time in like manner, by re ^P^ on JJJ
order under his hand, suspend or revoke such prohibition prohibition.
upon importation if it is proved to his satisfaction that
(a) The license to reproduce in Canada has terminated
or expired; or
(b) The reasonable demand for the book in Canada is
not sufficiently met without importation; or
(c) The book is not, having regard to the demand
therefor in Canada, being suitably printed or published ;
or
(d) Any other state of things exists on account of
which it is not in the public interest to further prohibit
importation. (63-64 Y, c. 25, s. 2.)
30. At any time after the importation of a book has T ^iriotiu-
been so prohibited, any person resident or being in Can- jj* e $Jf y n of
ada may apply, either directly or through a bookseller
or other agent, to the person so licensed to reproduce such
book, for a copy of any edition of such book then on sale
and reasonably obtainable in the United Kingdom or any
other part of His Majesty's dominions, and it shall there-
upon be the duty of the person so licensed, as soon as rea-
sonably may be, to import and sell such copy to the per-
son so applying therefor, at the ordinary selling price of
such copy in the United Kingdom, or such other part of
His Majesty's dominions, with the duty and reasonable
forwarding charges added.
2. The failure or neglect, without lawful excuse, of the p ^^IMUO"
person so licensed to supply such copy within a reasonable may be revoked.
time shall be a reason for which the minister may, if he
sees fit, suspend or revoke the prohibition upon importa-
tion. (63-64 V, c. 25, s. 3.)
(Revised Statutes of Canada, Vol. II, 1906, chap. 70,
sees. 28, 29, 30.)
LICENSES.
17. No person, unless licensed as herein provided, shall wh ? cn is n4y e not
carry on the business or trade of a distiller, rectifier, com- ^ j^Jj 16 ^ u t
pounder, brewer or malster, manufacturer of tobacco or license,
cigars, or bonded manufacturer, or use any utensil, ma-
chinery, or apparatus suitable for carrying on any such
trade or business, or any business subject to excise, or im-
port, make, or begin to make any still, rectifier, or other
apparatus suitable for the manufacture of wash, beer, or
360 LAWS ON TRUSTS AND MONOPOLIES.
spirits, or for the rectification or compounding of spirits.
(K. S., c. 34, s. 9.)
(Revised Statutes of Canada, 1906. Vol. II. chap. 51.
sec. 17.)
[4 Edward VII, chap. 17.]
AN ACT To amend tbe inland revenue act.
[Assented to Aug. 10, 1904.]
His Majesty, by and with the advice and consent of
the Senate and House of Commons of Canada, enacts as
follows :
*' ^ e ^ n l an( ^ revenue act, chapter 34 of the Revised
Statutes, is amended by inserting the following section
immediately after section 96:
o L r le f e e S i't t0 e b | " 96a - The minister of inland revenue ma declare
any license authorized by this act in any case
r wnere a person who, being a manufacturer of any class
of goods subject to a duty of excise, either directly or
indirectly (a) makes a sale of any such goods, or consigns
them for sale upon commission, to another person, sub-
ject to the condition that the purchaser or the consignee
shall not sell or deal in goods of a like kind produced by.
or obtained or to be obtained from, any other manu-
facturer or dealer; or (b) makes a sale of any such goods,
or consigns them for sale upon commission, to another
person, upon such terms as would, in their application,
give more profit to the purchaser or the consignee if he
should not sell or deal in goods of a like kind produced
by, or obtained or to be obtained from, any other manu-
fei Notice of for- f acturer or dealer, and the collector of inland revenue
shall thereupon cause a notice of such forfeiture to be
of C forfe?tif?o es forthwith inserted in The* Canada Gazette, and from and
after the insertion thereof the license shall be null and
void, and no new license shall be granted to such person.
and no license shall be granted to any other person for
carrying on any business in the premises occupied by
him until the minister of inland revenue is satisfied that
the dealings above referred to have ceased.
miSi e s c te S rto f " 2 ' Tne deci sion of the minister of inland revenue as
anal. to whether any sale or consignment of goods is, or is not,
subject to any such conditions, or upon any such terms,
as is or are defined in subsection 1 of this section shall
be final."
(Statutes of Canada, 4 Edw. VII, 1904. Vols. I and II,
chap 17.)
CANADA. ;H)
POWER OF THE GOVERNOR IX COUNCIL TO REDUCE DUTIES OR
PLACE ON FREE LIST.
18. Whenever the governor in council has reason to be- . lu } u ^ ulr - v hy
lieve that with regard to any article of commerce there
exists any trust, combination, association, or agreement
of any kind among manufacturers of the article or deal-
ers therein to unduly enhance the price of the article, or
in any other way to unduly promote the advantage of
the manufacturers or dealers at the expense of the con-
sumers, the governor in council may commission or em
power any judge of the supreme court of Canada or of
the exchequer court of Canada, or of any superior court
in any Province of Canada, to inquire in a summary way
into and report to the governor in council whether such
trust, combination, association, or agreement exists.
2. The judge may compel the attendance of witnesses.
and examine them under oath, and require the produc-
tion of books and papers, and shall have such other neces-
sary powers as are conferred upon him by the governor
in council for the purposes of such inquiry.
3. If the judge reports that such trust, combination,
association, or agreement exists, and if it appears to the
governor in council that the disadvantage to the consum-
ers is facilitated by the duties of customs imposed on a
like article when imported, then the governor in council
shall place the article on the free list, or so reduce the
duty on it as to give to the public the benefit of reason-
able competition in such article. (60-61 V., c. 16, s. 18.)
(Revised Statutes of Canada, 1906, vol. 1, p. 834.)
12 Whenever, from or as a result of a judgment ol' al jj ^
the supreme court or exchequer court of Canada, or of l ' u ' s -
any superior court, or circuit, district, or county court in
Canada, it appears to the satisfaction of the governor in
council that with regard to any article of commerce there
exists any conspiracy, combination, agreement, or ar
rangement of any kind among manufacturers of such ar-
ticles or dealers therein to unduly promote the advantage
of the manufacturers or dealers at the expense of the con-
sumers, the governor in council may admit the article
free of duty, or so reduce the duty thereon as to give the
public the benefit of reasonable competition in the article,
if it appears to the governor in council that such disad- .- o v e' r n
vantage to the consumer is facilitated by the duties of ln c ' ouncil -
customs imposed on a like article.
(Repealed by sec. 47, combines investigation act, 1910.)
362
LAWS ON TRUSTS AND MONOPOLIES.
judge 0111 by 2 - Whenever the governor in council deems it to be in
the public interest to inquire into any conspiracy, combi-
nation, agreement, or arrangement alleged to exist among
manufacturers or dealers in any article of commerce to
unduly promote the advantage of the manufacturers or
dealers in such article at the expense of the consumers, the
governor in council may commission or empower any
judge of the supreme court or of the exchequer court of
Canada, or of any superior court or county court in Can-
ada, to hold an inquiry in a summary way and report to
the governor in council whether such conspiracy, combi-
nation, agreement, or arrangement exists.
Evidence. 3. The judge may compel the attendance of witnesses
and examine them under oath and require the production
of books and papers, and shall have such other necessary
powers as are conferred upon him by the governor in
council for the purpose of such inquiry.
R e p o r t of 4. If the judge reports that such conspiracy, combina-
tion, agreement, or arrangement exists in respect of such
p o w e r s of article, the governor in council may admit the article free
|cmncli rn there 1 - of duty, or so reduce the duty thereon as to give to the
public the benefit of reasonable competition in the article^
if it appears to the governor in council that such disad-
vantage to the consumer is facilitated by the duties of
customs imposed on a like article.
(Canada, The Customs Tariff, 1907, chap. 11, sec. 12.)
COMBINES INVESTIGATION ACT.
[9-10 Edward VII, chap. 9.]
AN ACT To provide for the investigation of combines, monopolies,
trusts, and mergers.
[Assented to May 4, 1910.]
His Majesty, by and with the advice and consent of
the Senate and House of Commons of Canada, enacts
as follows:
1. This act may be cited as the " combines investigation
act."
from.
Short title.
INTERPRETATION .
Definitions. 9 Ill this act, unless the context otherwise requires
Application. ( a ) "Application " means an application to a judge
for an order directing an investigation under the provi-
sions of this act;
CANADA.
363
(b) "Board" means a board of investigation estab-
lished under the provisions of this act ;
(c) " Combine " means any contract, agreement, ar- r mbine.
rangement, or combination which has, or is designed to
have, the effect of increasing or fixing the price or rental
of any article of trade or commerce or the cost of the
storage or transportation thereof, or of the restricting
competition in or of controlling the production, manufac-
ture, transportation, storage, sale, or supply thereof, to
the detriment of consumers or producers of such article
of trade or commerce, and includes the acquisition, leas-
ing, or otherwise taking over, or obtaining by any per-
son to the end aforesaid, of an} 7 control over or interest
in the business or any portion of the business of any
other person, and also includes what is known as a trust,
monopoly, or merger;
(d) " Department " means the department of labor;
(e) " Judge " means, in the Province of Ontario, any
judge of the high court of justice; in the Province of Que-
bec, any judge of the superior court; in the Provinces of
Nova Scotia, New Brunswick, British Columbia, Prince
Edward Island, Saskatchewan, and Alberta, any judge
of the supreme court; in the Province of Manitoba, any
judge of the court of King's bench; and in the Yukon
Territory, any judge of the territorial court ;
(/) " Minister " means the minister of labor;
(g) " Order " means an order of a judge under the order,
provisions of this act;
(k) "Prescribed" means prescribed by this act or by
any rule or regulation made thereunder;
(i) " Registrar " means the registrar of boards of in-
vestigation appointed under this act.
Depart meat.
Judge*
Minister.
Prescribed.
Itogistrar.
ADMINISTRATION .
3. The minister shall have the general administration t i 1 Y. lmInistra '
of this act.
4. The governor in council shall appoint a registrar of b( .^f s lstrai ' of
boards of investigation, who shall have the powers and
perform the duties prescribed.
(2) The office of registrar may be held either sepa-> e A t P and* t<4-
rately or in conjunction with any other office in the public ure of office -
service, and in the latter case the registrar may, if the
governor in council thinks fit, be appointed by reference
to such other office, whereupon the person who for the
;if)4 LAWS OX TRUSTS AND MONOPOLIES.
time being holds such office or performs its duties shall,
by virtue thereof and without thereby being entitled to
any additional remuneration, be the registrar.
ORDER FOR INVESTIGATION.
order for in- 5. Where six or more persons, British subjects resident
vestigatton.
in Canada and of full age, are of opinion that a combine
exists, and that prices have been enhanced or competition
restricted by reason of such combine, to the detriment of
consumers or producers, such persons may make an appli-
cation to a judge for an order directing an investigation
into such alleged combine.
r, -r\rd\M- c:Jltion (^) Such application shall be in writing addressed to
the judge, and shall ask for an order directing an investi-
gation into the alleged combine, and shall also ask the
judge to fix a time and place for the hearing of the appli-
cants or their respresentative.
i>iicatSn f ap (3) The application shall be accompanied by a state-
ment setting forth
(a) The nature of the alleged combine and the persons
believed to be concerned therein;
(b) The manner in which the alleged combine affects
prices or restricts competition, and the extent to which
the alleged combine is believed to operate to the detri-
ment of consumers or producers;
(<?) The names and addresses of the parties making the
application and the name and address of one of their
number or of some other person whom they authorize to
act as their representative for the purposes of this act
and to receive communications and conduct negotiations
on their behalf.
of applicants 011 (4) The application shall also be accompanied by a
statuton* declaration from each applicant declaring that
the alleged combine operates to the detriment of the
declarant as a consumer or producer, and that to the best
of his knowledge and belief the combine alleged in the
statement exists and that such combine is injurious to
trade or has operated to the detriment of consumers or
producers in the manner and to the extent described,
and that it is in the public interest that an investigation
should be had into such combine.
u>?cat?o g n f ^ ^iti" 11 10 days a fter the judge receives the appli-
cation he shall fix a time and place for hearing the appli-
cants and shall send due notice, by registered letter, to
CANADA. 365
the representative authorized by the statement to receive
communications on behalf of the applicants. At such
hearing the applicants may appear in person or by their
representative or by counsel.
7. If upon such hearing the judge is satisfied that there ve Si^fi on 1 by
is reasonable ground for believing that a combine exists ^ udse -
which is injurious to trade or which has operated to the
detriment of consumers or producers, and that it is in the
public interest that an investigation should be held, the
judge shall direct an investigation under the provisions
of this act; or if not so satisfied, and the judge is of
opinion that in the circumstances an adjournment should Adjourn-
. . . mont for fur-
be ordered, the ]udge may adjourn such hearing until ther evidence.
further evidence in support of the application is given,
or he may refuse to make an order for an investigation.
(2) The judge shall have all the powers vested in the jiu {l e wers of
court of which he is a judge to summon before him and
enforce the attendance of witnesses, to administer oaths,
and to require witnesses to give evidence on oath or on
solemn affirmation (if they are persons entitled to affirm
in civil matters), and to produce such books, papers, or
other documents or things as the judge deems requisite.
8. The order of the judge directing an investigation Transmission
n , . . & . & _ of order and
shall be transmitted by him to the registrar by registered evidence to reg-
letter, and shall be accompanied by the application, the
statement, a certified copy of any evidence taken before
the judge, and the statutory declarations. The order
shall state the matters to be investigated, the names of the
persons alleged to be concerned in the combine, and the
names and addresses of one or more of their number with
whom, in the opinion of the judge, the minister should
communicate in order to obtain the recommendation for
the appointment of a person as a member of the board
as hereinafter provided.
APPOINTMENT OF BOARDS.
9. Upon receipt by the registrar of the order directing of '^!r,! d ntment
an investigation the minister shall forthwith proceed to
appoint a board.
10. Every board shall consist of three members, who of f ,ioa? ( i! tlUion
shall be appointed by the minister under his hand and
seal of office.
11. Of the three members of the board one shall be bo ^ mbors of
appointed on the recommendation of the persons upon
366
LAWS OX TRUSTS AKD MONOPOLIES.
whose application the order has been granted, one on the
recommendation of the persons named in the order as
being concerned in the alleged combine, and the third on
the recommendation of the two members so chosen.
ti?n c 5 m third 12 ' ^ e P ersons upon whose application the order has
member. been granted and the persons named in the order as being
concerned in the alleged combine, within seven days after
being requested so to do by the registrar, may each re-
spectively recommend the name of a person who is will-
ing and .ready to act as a member of the board, and the
minister shall appoint such persons members of the board.
communica- (2) For the purpose of obtaining the recommendations
resentatives of referred to in subsection 1 of this section it shall be suffi-
cient, as respects the applicants, for the registrar to com-
municate with the representative mentioned in the state-
ment as authorized to receive communications on their
behalf, and as respects the persons concerned in the
alleged combine it shall be sufficient for the registrar to
communicate with the persons named in the order as the
persons with whom the minister should communicate for
this purpose.
( 3 ) If the parties, or either of them, fail or neglect to
make any recommendation within the said period, or
such extension thereof as the minister, on cause shown.
grants, the minister shall, as soon thereafter as possible.
select and appoint a fit person or persons to be a member
or members of the board.
W The two members so appointed may, within seven
thrd 4 a y s a ^er their appointment, recommend the name of a
member. judge of any court of record in Canada who is willing
and ready to act as a third member of the board, and the
minister shall appoint such judge as a member of the
board, and if they fail or neglect to make a recommenda-
tion within the said period, or such extension thereof as
the minister on cause shown grants, the minister shall.
as soon thereafter as possible, select and appoint a judge
of any court of record in Canada to be the third member
of the board.
chairman. 5 The third member of the board shall be its chair-
ter w m e ay
man.
vacancies.
members.
(6) A vacancy in the membership of a board shall be
filled in the same manner as an original appointment is
made.
d as ^' ^ P erson sna ^ act as a member of the board who
j g one o f fa e applicants for the board or who has any
CANADA. 367
direct pecuniary interest in the alleged combine that is
the subject of investigation by such board, or who is not
a British subject.
14. As soon as possible after all the members of the S0 neiof board"
board have been appointed by the minister the registrar
shall notify the parties of the names of the chairman and
other members of the board.
15. Before entering upon the exercise of the functions Oath of office.
of their office the members of the board shall take the
following oath:
I, - , do solemnly swear
That I will truly, faithfully, and impartially perform
my duties as a member of the board appointed to in-
vestigate .
That I am a British subject.
That I have no direct pecuniary interest in the alleged
combine that is to be the subject of investigation.
That I have not received nor will I accept, either
directly or indirectly, any perquisite, gift, fee, or gratuity
from any person in any way interested in any matter or
thing to be investigated by the board.
That I am not immediately connected in business with
any of the parties applying for this investigation, and
am not acting in collusion with any person herein.
16. The department may provide the board with a
stenographer and such clerical and other assistance as to board -
the minister appears necessary for the efficient carrying
out of the provisions of this act. The department shall
also repay any reasonable and proper disbursements made
or authorized and certified by the judge who grants the
order directing the investigation.
17. Upon the appointment of the board the registrar m( Co m
shall forward to the chairman copies of the application, tigation.
statement, evidence, if any, taken before the judge, and
order for investigation, and the board shall forthwith
proceed to deal with the matters referred to therein.
INQUIRY AND REPORT.
18. The board shall expeditiously, fully, and carefully inquiry.
inquire into the matters referred to it and all matters
affecting the merits thereof, including the question of
whether or not the price or rental of any article con-
cerned has been unreasonably enhanced, or competition
in the supply thereof unduly restricted, in consequence
368 LAWS ON TRUSTS AND MONOPOLIES.
Report to min- O f a combine, and shall make a full and detailed report
istov
thereon to the minister, which report shall set forth the
various proceedings and steps taken by the board for the
purpose of fully and carefully ascertaining all the facts
and circumstances connected with the alleged combine,
including such findings and recommendations as, in the
opinion of the board, are in accordance with the merits
and requirements of the case.
scoi>. of m- (2) In deciding any question that may affect the scope
valuation. /- xi ir j- v. j u n -j
or extent of the investigation, the board shall consider
what is required to make the investigation as thorough
and complete as the public interest demands.
K P o i i of 19. Xhe board's report shall be in writing, and shall be
signed by at least two of the members of the board. The
report shall be transmitted by the chairman to the regis-
trar, together Avith the evidence taken at such investiga-
tion certified by the chairman, and any documents and
papers remaining in the custody of the board. A minor-
ity report may be made and transmitted to the registrar
by any dissenting member of the board.
publication of 20. Upon receipt of the board's report and of the
minority report, if any, a copy thereof shall be sent free
of charge to the parties and to the representative of any
newspaper in Canada who applies therefor, and the
report and minority report, if any, shall also be pub-
mstributionLLshed without delay in the Canada Gazette. The min-
of copirs. J
ister n ay distribute copies of the report, and of any
minority report, in such manner as to him seems most
desirable, as a means of securing a compliance with the
i i iip<7 \>opU ( >er " board's recommendations. The registrar shall, upon pay-
ment of such fees as may be prescribed, supply a certified
copy of any report or minority report to any person
applying for it.
custom^ Ct duties ^1. Whenever, from or as a result of an investigation
pe- un der the provisions of this act, or from or as a result of
a judgment of the supreme court or exchequer court of
Canada or of any superior court, or circuit, district, or
county court in Canada, it appears to the satisfaction of
the governor in council that with regard to any article
there exists any combine to promote unduly the advan-
tage of the manufacturers or dealers at the expense of the
consumers, and if it appears to the governor in council
(hat such disadvantage to the consumer is facilitated by
the duties of customs imposed on the article, or on any
like article, the governor in council may direct either that
CANADA. 369
such article be admitted into Canada free of duty or that
the duty thereon be reduced to such amount or rate as
will, in the opinion of the governor in council, give the
public the benefit of reasonable competition.
22. In case the owner or holder of any patent issued
under the patent act has made use of the exclusive rights tai
and privileges which, as such owner or holder he con-
trols, so as unduly to limit the facilities for transporting,
producing, manufacturing, supplying, storing, or deal-
ing in any article which may be a subject of trade or
commerce, or so as to restrain or injure trade or commerce
in relation to any such article, or unduly to prevent,
limit, or lessen the manufacture or production of any
article or unreasonably to enhance the price thereof, or
unduly to prevent or lessen competition in the produc-
tion, manufacture, purchase, barter, sale, transportation,
storage, or supply of any article, such patent shall be
liable to be revoked. And, if a board reports that a pat- court
ent has been so made use of, the minister of justice may
exhibit an information in the exchequer court of Canada
praying for a judgment revoking such patent, and the
court shall thereupon have jurisdiction to hear and de-
cide the matter and to give judgment revoking the pat-
ent or otherwise as the evidence before the court may
require.
23. Any person reported by a board to have been guilty
of unduty limiting the facilities for transporting, pro-
ducing, manufacturing, supplying, storing, or dealing in
any article which may be a subject of trade or commerce;
or of restraining or injuring trade or commerce in rela-
tion to any such article; or of unduly preventing, limit-
ing, or lessening the manufacture or production of any
such article; or of unreasonably enhancing the price
thereof; or of unduly preventing or lessening competi-
tion in the production, manufacture, purchase, barter,
siile, transportation, storage, or supply of any such ar-
ticle, and who thereafter continues so to offend, is guilty
of an indictable offense and shall be liable to a penalty
not exceeding $1.000 and costs for each day after the ex-
piration of 10 days, or such further extension of time as
in the opinion of the board may be necessary, from the
date of the publication of the report of the board in the
Canada Gazette during which such person so continues to
offend.
1649113 24
370 LAWS ON TRUSTS AND MONOPOLIES.
SITTINGS OF BOARD.
| siMinLs of 24. The sittings of the board shall be held at such
times and places as are fixed by the chairman, after con-
sultation with the other members of the board, and the
parties shall be notified by the chairman as to the times
jind places at which sittings are to be held ; provided that,
so far as practicable, the board shall sit in the locality
within which the subject matter of the proceedings be-
fore it arose.
Proceedings. 2 5. The proceedings of the board shall be conducted in
public, but the board may order that any portion of the
proceedings shall be conducted in private.
Decisions. 26. The decision of any two of the members present at
a sitting of the board shall be the decision of the board.
Quorum. 27. The presence of the chairman and at least one
other member of the board shall be necessary to constitute
i\ sitting of the board.
member! 66 f 28 - ^ n case ^ the absence of any one member from a
meeting of the board the other two members shall not
proceed, unless it is shown that the absent member has
been notified of the meeting in ample time to admit of
his attendance.
paiS. 1 ance f 29. Any party to an investigation may appear before
the board in person or may be represented by any other
person or persons, or, with the consent of the board, may
be represented by counsel.
appointed "" by 30 - Whenever in the opinion of the minister the public
minister. interest so requires, the minister may apply to the min-
ister of justice to instruct counsel to conduct the investi-
gation before a board, and upon such application the
minister of justice may instruct counsel accordingly.
The fees and expenses allowed to such counsel by the
minister of justice shall be paid out of such appropria-
tions as are made by Parliament to provide for the cost
of administering this act.
board ltempt f ^1- -^> i n an y P rocee( iings before the board, any person
willfully insults any member of the board, or willfully
interrupts the proceedings, or without good cause refuses
to give evidence, or is guilty in any other manner of any
willful contempt in the face of the board, any officer of
the board, or any constable may take the person offending
into custody and remove him from the precincts of the
board, to be detained in custody until the conclusion of
that day's sitting of the board, and the person so offend-
CANADA. 371
ing shall be liable, upon summar}^ conviction, to a penalty penalty.
not exceeding $100.
WITNESSES AND EVIDENCE.
32. For the purposes of an investigation the board shall Ayitnesses and
have all powers which are vested in any court of record * A
in civil cases for the following purposes, namely: The
summoning of witnesses before it, and enforcing their
attendance from any part of Canada, of administering
oaths, and of requiring witnesses to give evidence on oath
or on solemn affirmation (if they are persons entitled to
affirm in civil matters), and to produce such books, pa-
pers, or other documents or things as the board deems
requisite to the full investigation of the matters into
which it is inquiring.
(2) Any member of the board may administer an oath. Oath -
(3) Summonses to witnesses and all other orders, proc- , signature of
chairman.
ess, and proceedings shall be signed by the chairman.
33. All books, papers, and other documents or things (1 J^ection of
produced before the board, whether voluntarily or in pur-
suance of summons, may be inspected by the board, and
also by such parties as the board allows.
84. Any party to the proceedings shall be competent .Parties as
and may be compelled to give evidence as a witness.
35. Every person who is summoned and duly attends Expenses of
it it t> i witnesses.
as a witness shall be entitled to an allowance for attend-
ance and traveling expenses according to the scale in force
with respect to witnesses in civil suits in the superior
courts of the Province in which the inquiry is being con-
ducted.
36. If any person who has been duly served with a sum- ^Jess^to a t-
mons and to whom at the time of service payment or J e Jce r d5 cu-
tender has been made of his reasonable traveling expenses ments -
according to the aforesaid scale, fails to attend or to pro-
duce any book, paper, or other document or thing as re-
quired by his summons, he shall, unless he shows that
there was good and sufficient cause for such failure, be
guilty of an offense and liable upon summary conviction Penalty.
to a penalty not exceeding $100.
37. The board may, with the consent of the minister, experts.
employ competent experts to examine books or official
reports, and to advise it upon any technical or other mat-
ter material to the investigation, but the information ob-
tained therefrom shall not, except in so far as the board
372 LAWS ON TRUSTS AND MONOPOLIES.
deems it expedient, be made public, and such parts of
the books, papers, or other documents as in the opinion
of the board are not material to the investigation may
be sealed up.
REMUNERATION AND EXPENSES OF BOARD.
oS?d eration 38. The members of a board shall be remunerated for
their services as follows :
(a) To the two members first appointed an allowance
of $5 each per day for a time not exceeding three days
during which they may be actually engaged in selecting
the third member of the board.
(ft) To each member an allowance at the rate of $20
for each day's sitting of the board.
pens r ?s vellnsex " 39 - Each member of the board shall be entitled to his
actual and necessary traveling expenses and an allowance
of $10 per day for each day that he is engaged in travel-
ing from or to his place of residence for the purpose of
attending or after having attended a meeting of the
board.
grltfi1ty an pTO- 40. No member of the board shall accept, in addition to
nibited. fa s traveling expenses and allowances as a member of the
board, any perquisite, gift, fee, or gratuity of any kind
from any person in' any way interested in any matter or
thing that is being investigated by the board. The ac-
ceptance of any such perquisite, gift, fee, or gratuity by
any member of the board shall be an offense, and shall
Penalty. render such member liable upon summary conviction to a
fine not exceeding $1,000, and he shall thereafter be dis-
qualified to act as a member of any board.
expenses ers f or 41. All expenses of the board, including expenses for
transportation incurred by the members thereof or by
persons under its order in making investigations under
this act, salaries of employees and agents, and fees and
traveling expenses of witnesses, shall be allowed and
paid upon the presentation of itemized vouchers therefor,
approved and certified by the chairman of the board,
which vouchers shall be forwarded by the chairman to
Detailed the registrar. The chairman shall also forward to the
statement of
sittings. registrar a certified and detailed statement of the sit-
tings of the boaVd and of the members present at each
of such sittings.
CANADA. 373
MISCELLANEOUS.
42. No proceedings under this act shall be deemed in- reguiuitet "
valid by reason of any defect of form or any technical
irregularity.
43. Evidence of a report of a board may be given in re ^ r i t (lence of
any court by the production of a copy of the Canada
Gazette purporting to contain a copy of such report, or
by the production of a copy of the report purporting to
be certified by the registrar to be a true copy.
44. The minister shall determine the allowance or Allowances
determined by
amounts to be paid to all persons, other than the mem- minister.
bers of a board emplo}^ed by the Government, or any
board, including the secretaries, clerks, experts, stenog-
raphers, or other persons performing any services under
the provisions of this act.
45. The governor in council mav make such regulations. , "emulations
*? liy governor in
not inconsistent with this act, as to him seem necessary Council.
for carrying out the provisions of this act and for the
efficient administration thereof.
(2) Such regulations shall be published in the Canada
Gazette, and upon being so published they shall have the
same force as if they formed part of this act.
(3) The regulations shall be laid before both Houses
of Parliament within 15 days after such publication if ment
Parliament is then sitting, and if Parliament is not then
sitting then within 15 days after the opening of the next
session thereof.
46. The minister shall lay before Parliament, within
the first 15 days of the then next session, an annual re- ment
port of the proceedings under this act.
47. Subsection 1 of section 12 of the customs tariff. anSd. ' llf
1907, is repealed.
48. This act shall not be construed to repeal, amend, K s c 125>
or in any way affect the trade-unions act, chapter 125
of the Revised Statutes, 1906.
SCHEDULE.
[Form 1.]
APPLICATION FOE ORDER DIRECTING AN INVESTIGATION.
[The combines investigation act, sec. 5.]
Dated at - , this day of - , 19.
In the matter of an alleged combine (here state shortly the
nature of the combine).
374 LAWS ON TRUSTS AND MONOPOLIES.
To the honorable (here insert the name of the judge), a judge
(or chief justice as the case may be) of the (here insert the title
of the court).
The undersigned are of opinion that a combine exists (here
state shortly the nature of the alleged combine) and that prices
have been enhanced (or competition has been restricted by such
combine, as the case may be) to the detriment of consumers (or
producers, as the case may be).
The undersigned therefore apply for an order under " the com-
bines investigation act " directing an investigation into" such
alleged combine.
(Here state (a) the nature of the alleged combine and the
persons believed to be concerned therein ; and, ( ft ) the manner in
which the alleged combine affects prices or restricts competition,
and the extent to which the alleged combine is believed to operate
to the detriment of consumers or producers, as the case may be.)
STATEMENT ACCOMPANYING APPLICATION FOR ORDER.
Dated at - - this - - day of - . 19.
The undersigned hereby authorize of (give name and place
of residence) to act as our representative for the purpose of
" the combines investigation act," and to receive communications
and conduct negotiations on our behalf.
The names and addresses of the persons applying for the afore-
said order are as follows:
Names. Addresses.
STATUTORY DECLARATION ACCOMPANYING APPLICATION FOR ORDER. 1
CANADA :
Province df - , to wit:
I, - , of the - - of - -in the - - of - - do
solemnly declare:
1. That the alleged combine operates to my detriment as a con-
sumer (or producer, as the case may be).
2. That to the best of my knowledge and belief the combine
alleged in the foregoing statement exists, and that such combine is
injurious to trade (or has operated to the detriment of consum-
ers or producers, as the case may be) in the manner and to the
extent described.
3. That it is in the public interest that an investigation should
be had into such combine.
And I make this solemn declaration conscientiously believing
it to be true, and knowing that it is of the same force and effect
as if made under oath, and by virtue of the Canada evidence act.
Declared before me at , in the county of - , this
day of , 19.
i A declaration as above must be made by each applicant.
CANADA. 375
[Form 2.]
ORDER DIRECTING INVESTIGATION.
[The combines investigation act, sec. 7.]
In the matter of the application of (here insert the names of
applicants), dated the - - day of - , 19 , for an order
directing an investigation under " the combines investigation act "
into an alleged combine (here state shortly the nature of the
combine).
I, the honorable , a judge (or chief justice, as the case
may be) of (here insert the name of court), after having read the
application of (names of applicants), dated the day of .
li-)__. the statement and statutory declarations accompanying the
same, and the evidence produced by the said applicants, am
satisfied that there is reasonable ground for believing that a com-
bine exists (here describe nature of combine), which is injurious
to trade (or which has operated to the detriment of consumers or
producers, as the case may be), and that it is in the public
interest that an investigation should be held, under the provisions
of the said act, into the following matters, that is to say: (Here
sel out the matters to be investigated.)
The names of the persons alleged to be concerned in the alleged
combine are (here insert names and addresses), and I am of
opinion that the minister of labor should communicate with (here
insert the name or names with, in each case, the address), in
order to obtain the recommendation for the appointment of a
person as a member of the board of investigation on behalf ot
those concerned in the said alleged combine.
Dated at , this day of , 19 .
CAPE OF GOOD HOPE.
ACT TO PREVENT A MONOPOLY OF THE MEAT TRADE
(No. 15 of 1907).
Whereas, it appears that within recent years certain
persons have formed combinations for regulating the
meat trade in order to secure larger profits, and whereas
the effect of such combinations is prejudicial to the pub-
lic interest^ and whereas it is desirable to provide by law
against such combinations.
Be it enacted by the Governor of the Cape of Xjood
Hope, by and with the advice and consent of the Legis-
lative Council and the House of Assembly thereof, as
follows :
1. In this Act the following words shall, unless the con-
text otherwise requires, bear the meanings set opposite
them :
" Butcher " shall mean any person who is required
to take out a butcher's licence under the pro-
visions of Section twenty of Act No. 3 of 1864,
and Section five of the amending Act No. 43 of
1898.
" Person " shall include any partnership or company.
" Superior Court " shall mean the Supreme Court.
Eastern Districts Court, High Court or any Cir-
cuit Court within their respective jurisdictions.
2. Every licence to carry on the trade of a butcher^ is-
sued after the promulgation of this Act, shall bear en-
dorsed thereon the address of the premises in which the
trade is to be carried on, and any person who shall carry
on the said trade in premises other than those in respect
of which the licence has been issued shall be subject to
the penalties to which any person is liable who carried
on such trade without a licence 7 provided, however, that
nothing in this section contained shall be deemed to affect
the provisions of sections seven, eight and nine of Act No.
13 of 1870: Provided further and notwithstanding any-
thing to the contrary in Act "No. 20 of 1884, the licence
fee payable by a butcher to sell South African grown
377
378 LAWS ON TRUSTS AND MONOPOLIES.
meat only, shall be Five Pounds per annum, and the
licence fee payable by a butcher to sell also other than
. South African grown meat, or to sell other than South
African grown meat only, shall be Ten Pounds per
annum.
3. Every act, contract, combination or conspiracy in
unreasonable restraint of the trade of a butcher is hereby
declared to be illegal, and every person who shall commit
any such act or make any such contract or engage in such
combination or conspiracy shall be guilty of a criminal
offence, and subject on conviction to a penalty not exceed-
ing 500, and in default of payment thereof to imprison-
ment with or without hard labour for a period not ex-
ceeding twelve months : Povided
(1) That it shall not be illegal for any person carry-
ing on the trade of a butcher to enter into a
bond fide partnership with any other person
carrying on the same trade; or to enter into
an}^ bond fide arrangement with any other per-
son or persons carrying on the same trade ? with
the object of effecting economies in the said
trade or carrying on business more econom-
ically.
(2) That the provisions of this section shall not ap-
ply to any contract which is the mere accom-
paniment of the sale of fixed property for the
purpose of enhancing the price at which the
vendor sells the said property.
4. All contracts and undertakings in support of any
combination the object of wdiich is to secure the control
of the sale of meat, so as to enable such combination to
arbitrarily control or regulate the price thereof, shall be
held to be illegal and void.
5. Any person who is engaged in the trade of a butcher
or acting on behalf of a butcher, who shall compel, or at-
tempt to compel, by threats, or intimidation, verbally or
in writing, any butcher to sell meat at a price or prices
other than those at which he is or was selling at the time
when such threats or intimidation were made, or would
have sold but for such threats or intimidation, shall be
guilty of a criminal offence and subject on conviction to
a penalty not exceeding 100, and in default of payment
thereof to imprisonment with or without hard, labour for
a period not exceeding six months.
CAPE OF GOOD HOPE. 379
6. The licence to carry on the trade of a butcher issued
to any person who shall be convicted under sections three
or five hereof shall be cancelled and no such licence shall
be issued to him at any time within the period of two
years from the date of such a conviction.
7. Any contravention of the provisions of sections three
and five of this Act shall be prosecuted in a superior
court.
8. The foregoing provisions of this Act or any of them,
with the exception of that part of section two which ap-
plies to the licence fees payable by butchers, shall be-
come operative only in those Divisions of this Colony in
which it may be proclaimed to be in force by the Gov-
ernor upon an application to that effect from the Divi-
sional Council of the Division, under a resolution adopted
by such Council at a meeting where at least three- fourths
of the members are present, and at least a majority of
those present voted for the resolution: provided that if
the Divisional Councils of the Cape, Port Elizabeth,
East London or Kimberley decline to make such appli-
cation, any Municipal Council within any one of these
Divisions may make application for the proclamation of
the provisions of this Act within its own Municipal area.
9. This Act may be cited for all purposes as the " Meat
Trade Act. 1907."
GREAT BRITAIN.
GREAT BRITAIN COMPANIES (CONSOLIDATION) ACT.
The interests of the trading public in England, as
represented by consumers and dealers, have not been the
subject of special legislation (except in the ancient stat-
utes covering the cases of badgering, engrossing, fore-
stalling, and regrating). Combinations in restraint of
trade are prima facie void and not illegal; no statute
in force makes them criminal, and the policy of the law.
as at present declared by the legislature, is against all
fetters on combination and competition unaccompanied
by violence or fraud or other like injurious acts.
The common law and the statutes with reference to
badgering, forestalling, regrating, and engrossing de-
clared that certain large operations in goods which inter-
fered with the ordinary course of trade were injurious to
the public, and they were held criminal accordingly, but
the penal statutes were repealed by 12 George III (c. 71),
and the common law was left unaided. By 7 and 8
Victoria (c. 24) the common law in respect to badgering,
engrossing, forestalling, and regrating was expressly re-
pealed, with a proviso to the effect that the act should
not apply to the offense of knowingly and fraudulently
spreading or conspiring to spread false rumors with in-
tent to affect the prices of goods or merchandise, nor to
the offense of preventing or endeavoring to prevent, by
force or threats, goods or merchandise being brought to
market. 1
On the other hand, the interests of the trading public,
from the standpoint of investors and creditors, have been
the subject of careful consideration and considerable
legislation, and incidentally some of the abuses often
charged to industrial combinations, such as overcapitali-
zation and its results, have in a measure been corrected
by the publicity given to corporate affairs.
The subject of company-law reform was investigated
in 1894 by a departmental committee composed of mem-
1 Mogul S. S. Co. v. McGregor, U3 Q. B. D. (1889), 629.
38L
382 LAWS ON TRUSTS AND MONOPOLIES.
bers of Parliament, judges, prominent lawyers, and mer-
chants, who, after considering the comments and sugges-
tions of commercial bodies throughout the country,
framed a bill which was introduced in 1894. This oc-
cupied the attention of the House of Lords until 1900.
when it was finally passed, considerably modified but
very much on the original lines.
The purposes of the legislation and the condition which
led to its adoption, as shown by the report of the com-
mittee in 1895, the annual reports of the board of trade,
and Parliamentary debates, are briefly indicated below.
It was generally conceded that the vast majority of
corporations were honestly formed for the purpose of
engaging in legitimate business, and that the facilities
offered by the companies act of 1862 (the first great cor-
poration act) for the formation of companies with
limited liability greatly extended British trade and at-
tracted a great amount of foreign capital, but it was
generally acknowledged that certain abuses of public con-
fidence which did not exist prior to this act, and which
would have been practically impossible in the case of
individuals or private partnerships, had developed to
such an extent as to warrant the consideration of new
legislation with a view to their correction.
The problem before Parliament was, on one hand, the
protection of the large body of the public represented in
investors and creditors, and, on the other hand, to avoid
restricting unduly the facilities for the creation and de-
velopment of corporations, which had contributed so
largely to the prosperity of the country, and needlessly
embarrassing their administration.
Instead of adopting arbitrary rules which in some cases
might effectively prevent an abuse but in others seriously
interfere with the prosecution of legitimate business, it
was deemed sufficient, for the time being at least, to pro-
vide for a certain amount of publicity in corporate affairs,
enforcing those requirements by penalties, imposed in
many cases upon the individuals who knowingly and will-
fully disregarded them.
The necessity for publicity, and its effect, can best be
shown by a few typical cases.
A frequent cause of failure and the resulting loss to
stockholders and creditors was the so-called " loading "
of the purchase price of property acquired by a new cor-
poration. Ah option to purchase a business frequently
GREAT BRITAIN. 383
passed through a number of vendors, the price being
increased with each successive sale. It was pointed out
that there was no objection to this provided that it was
done openly. If the persons invited to subscribe to the
new company were informed that they would purchase
the property at, say, twice the amount the real and
present owner was willing to sell it for, and they cared to
invest in such an undertaking, it was their own affair.
The law now provides that a prospectus, which it de-
fines as an} 7 notice, circular, advertisement, or other in-
vitation, offering to the public for subscription or pur
chase an} 7 shares or debentures of a company, must be
filed with the registrar of companies, and must show (1)
the names and addresses of the vendors, and where there
is more than one separate vendor, or the company is a
subpurchaser, the amount payable to each vendor; (2)
the particulars and the nature and extent of the interest
of every director in the promotion of, or property to be
acquired by, the company; (3) the dates of and parties
to every material contract, and a reasonable time and
place for the inspection of such contracts; and further,
that a company which does not issue a prospectus shall
not allot any shares or debentures until a statement in
lieu of a prospectus has been filed. A person is deemed
i vendor who has entered into any contract, absolute or
conditional, for the sale or purchase, or for any option of
purchase, of any property to be acquired by the company.
The purpose of the legislation is to disclose the real
vendor, the real purchase price, and who is profiting by
the promotion.
Another frequent cause of disaster in England, as
shown by the reports of the board of trade, was proceed-
ing to allotment of shares with insufficient subscriptions,
often merely for the purpose of paying the preliminary
expenses. While it was deemed impracticable to fix n
proportion of the capital to be subscribed before allot-
ment, owing to the varying circumstances of each case,
the law provides that the minimum amount upon which
a company offering shares to the public may proceed to
issue stock must be fixed by the memorandum or articles
of association and named in the prospectus, in default
of which the entire capital offered for subscription must
be taken. The subscriber is thus given an opportunity of
forming his own judgment as to the immediate prospects
of the company.
384 LAWS ON TRUSTS AND MONOPOLIES.
Another serious cause of complaint sought to be cor-
rected by publicity was in connection with debentures
;ind mortgages. A man owning a declining business
could incorporate, taking debentures or a mortgage from
i he company in payment for his property, thus becoming
his own secured creditor. In case of failure, not only the
creditors but the stockholders suffered, because he held
practically all the assets.
The inadequacy of the partial publicity required by
l he earlier acts was shown by cases of intending credit-
ors, who, from their examination of the records, were
informed that there was a large amount of uncalled cap-
ital due, often from a list of substantial stockholders.
They were unaware of a mortgage on the uncalled cap-
tal, 1 and, extending credit under such circumstances, they
ussumed a risk they possibly would not have considered
if they had been fully informed. The law now provides
that particulars of all mortgages, debentures, and charges
shall be filed with the registrar of companies and shall
be open to public inspection. While it was fully realized
that legislation could not protect the public from the re-
sults of their own recklessness, it was considered proper
that corporations should supply the inquiring investor or
creditor with information sufficient at least to enable him
to form a judgment, and that publicity as to financial
status was a just and necessary condition to attach to the
privilege of limited liability. Again, the disclosures re-
quired in many particulars are really no more than those
due from persons acting in a fiduciary capacity, and
while the underlying principles have long been recog-
nized by courts of law and equity, they have frequently
been overlooked by persons engaged in the promotion of
corporations. The application of certain of these prin-
ciples by the companies act tends not only to protect the
public, but to bring home to promoters and directors a
sense of their obligations and to shareholders the stand-
ards of commercial morality which they have a right to
expect from persons whom they have been invited to
trust.
One important feature of the act is that certain con-
ditions made possible by secrecy arc prevented, and that
an unsatisfactory financial condition of (lie company is
made apparent to the creditors and stockholders in time
1 Under the English law the uncalled capital may he mortgaged if au-
thorized by tho memorandum and articles.
GEE AT BRITAIN. 385
for them to take such action as seems necessary before the
assets are further diminished.
It was pointed out in Parliament that the existing
methods of redress by means of criminal actions were
unsatisfactory because of the great indisposition to resort
to criminal procedure and the tendency of juries to acquit
for doing wliat was only a common practice. In addition
it was necessary to be reasonably certain that there was
sufficient evidence, and in some cases it was extremely
difficult to secure it, while there might be little doubt that
gross frauds had been committed. Civil actions were at-
tended with considerable difficulty and heavy expense.
It is apparent from the foregoing that in order to give
effect to certain provisions of the companies acts an ad-
ministrative office was required. The duties were im-
posed upon the board of trade, and some of the most
important will be noted hereafter.
A digest of the provisions of the act of 1908 in respect
of (1) the classification of companies, (2) the powers
and duties of the board of trade in connection with the
administration of the act. accompanied by extracts from
the annual reports of the board, (3) information avail-
able to the public, (4) the penalties for the enforcement
of the act, and an outline of the history and organization
of the board of trade are appended hereto.
CLASSIFICATION OF COMPANIES.
The English law has classified companies (1) in re-
spect of the liability of members, (2) in respect of their
organization and relation to the public.
IN RESPECT OF LIABILITY OF MEMBERS.
(a) Companies " limited by shares," defined as com-
panies having the liability of their members limited by
the memorandum to the amount, if any, unpaid on the
shares respectively held by them.
(b) Companies "limited by guarantee," the liabilities
of the members being limited by the memorandum of
association to such amount as the members may respec-
tively undertake to contribute to the assets of the com-
pany in the event of its being wound up.
(c) " Unlimited companies," the members of which
have no limit to their liability. There are comparatively
few companies of this class.
1649113 25
386 LAWS ON TRUSTS AND MONOPOLIES.
Unless otherwise noted, the provisions of the act here-
after referred to relate generally to companies " limited
by shares."
IN RESPECT OF ORGANIZATION AND RELATION TO THE PUBLIC.
(a) "Private companies," which are defined as those
which by their articles restrict the right to transfer
shares, limit their membership to not more than 50 (ex-
clusive of persons employed by the company), and pro-
hibit any invitation to the public to subscribe for any
shares or debentures.
(b) "Public companies," which include all other than
private, and which are chiefly considered hereafter.
The most important distinctions between public and
private companies are as follows:
(a) A private company may be formed by two persons,
while a public company requires seven.
(b) The preliminary requirements are fewer in the case
of private companies. The certificate of incorporation
is granted upon the delivery to the registrar of companies
of the memorandum and articles of association, whereas
other companies can not commence business without com-
pliance with a series of preliminary conditions, including
the registration of a prospectus or a statement in lieu
thereof.
(c) An annual audited balance sheet, summarizing the
capital, liabilities, and assets of the company, is required
from a public company, but not from a private company. 1
(d) Private companies are not required to file with the
registrar a copy of a detailed report as to the position of
the company which is sent to members before its first or
" statutory " meeting. 2
(e) Private companies are exempt from the provisions
of the act permitting the inspection of balance sheets,
auditor's and other reports by holders of debentures and
preference shares. 3
POWERS AND DUTIES OF THE BOARD OF TRADE IN RESPECT TO
THE ADMINISTRATION OF THE COMPANIES (CONSOLIDA-
TION) ACT 1908.
While most of the duties imposed upon the board of
trade by this act are in connection with the dissolution of
1 Companies (consolidation) act, 1908, sec. 26.
2 Companies (consolidation) act, 1908, sec. 65.
8 Companies (consolidation) act, 1908, sec. 114.
GREAT BRITAIN. 387
companies, there are some powers which may be exercised
under certain circumstances over going concerns.
Inspection. Perhaps the most important, at least in
theory, is that of inspection of the affairs of a company
at the request of its stockholders. 1 This power of inspec-
tion, however, has been very rarely used. 2 The inspec-
tors appointed by the board have access to all the books
and documents of the company and may examine its
officers and agents under oath, rendering, finally, a report
to the board of trade. Copies of this report are, upon
request, furnished to the applicants for the examination,
and, when properly authenticated, are admissible in any
legal proceeding as evidence of the opinion of the in-
spectors in relation to any matters therein contained.
Abuse of this privilege is prevented by a provision that
the application shall be by persons holding not less than
one-tenth of the shares issued, and by a requirement of
the board of trade that the application shall be supported
by evidence of the good faith of the applicants, and that
they have good reason for demanding the investigation.
The board may, in addition, require the applicants to
secure the costs of the investigation, which must be de-
frayed by them unless, in the discretion of the board,
they should be borne by the company.
Audit. Upon the application of any stockholder the
board of trade may appoint auditors for any company
upon its failure to do so at its annual meeting. 3
The regular audit of accounts, though usually pro-
vided for in the articles of a company, was considered by
Parliament to be too important to stockholders and the
public to be left to a voluntary arrangement. The ap-
pointment of auditors by the board of trade, upon the
application of a stockholder, is provided for extending
the principle adopted in regard to banking companies in
the companies act 1879. 4 The auditors have access to all
books and are required to report to the stockholders, on
the accounts examined by them, which report shall state
whether they have obtained all information and explana-
tions required by them, and whether in their opinion the
balance sheets submitted in general meeting exhibit a
correct view of the company's affairs.
1 Companies (consolidation) act, 1908, sec. 109.
2 Palmer's Company Law (7th ed.), p. 220.
3 Companies (consolidation) act, 1908, sees. 112-113.
4 Palmer's Company Law (7th ed.), p. 221.
388 LAWS ON TRUSTS AND MONOPOLIES.
Payment of interest out of capital. Where any shares
are issued to raise money for the construction of any
works, buildings, or plant which can not be made profit-
able for a lengthened period, the company may pay inter-
est on so much of that share capital as is for the time
being paid up, provided that it is authorized by the
articles or special resolution, and, further, that it is
sanctioned by the board of trade, which may investigate
the circumstances at the expense of the company and the
payments may continue only for such portion of the time
limited by the act as the board may determine, but in no
case shall the rate of interest exceed 4 per cent per
annum or such lower rate as may be prescribed by order
in council. 1
Articles of association. The act requires the articles
of association to be registered, and provides that in the
absence of articles adopted by the company, or in so far
as filed articles do not exclude or modify model articles
appended to the act, such model articles shall constitute
the articles of the company. 2
The board of trade may alter or add to these statutory
articles, which alterations or additions will thereafter
have the force of law ; the changes, however, not affecting
companies previously registered. 3
Change of name. A company may, by special resolu-
tion, change its name, but only with the consent of the
board of trade. 4
The board has authority to establish registration offices,
make regulations as to the performance of the duties of
the registrar, and to prescribe fees for the inspection or
copies of the records of the registrar, not exceeding the
maximum prescribed by the act. 5
Other duties in connection with going concerns, but
more ministerial in character, such as issuing certificates
of incorporation, the registration of such documents as
the act requires to be published, etc., have been imposed
upon the board.
WINDING UP AND BEMOVAL FROM BEGISTEB.
A company once incorporated can not be dissolved
except by compliance with the provisions of the act, or
by removal from the register as a defunct company.
1 Companies (consolidation) act. 1908, sec. 91.
2 Companies (consolidation)' act, 1908, sees. 10 and 11.
8 Companies (consolidation) act, 1908, sec 118.
* Companies (consolidation) act, 1908, sec. 8 (3).
5 Companies (consolidation) act, 1908, sec. 243 (1), (2).
GBEAT BEITAIN. 389
The grounds on which a winding-up order may be made
by the court are:
(a) If the company has by special resolution resolved
that the company be wound up by the court ;
(b) If default is made in filing the statutory report or
in holding the statutory meeting;
(c) If the company does not commence its business for
a whole year;
(d) If the number of members is reduced, in the case of
a private company, below two. or, in the case of any
other company, below seven;
(e) If the company is unable to pay its debts;
(/) If the court is of the opinion that it is just and
equitable that the company should be wound up. 1
Just what " Just and equitable " means is, of course,
impossible to define, but winding-up orders have been
made on the ground that the substratum of the company
was gone, 2 that the company was a bubble, 3 and that the
company was conceived and brought forth in fraud. 4
The winding-up order once having been issued by the
court, however, the board of trade is charged with many
important duties.
When it became necessary to appoint a receiver, the
official receiver attached to the court for banpruptcy
purposes shall be appointed, or, if there is more than one-,
such one of them as the board of trade may select, and in
the absence of any official receiver the board may ap-
point an officer for the purpose. 5
A receiver thus appointed shall submit a preliminary
report to the court, stating the amount of capital issued,
subscribed, and paid up; the estimated amount of assets
and liabilities ; the causes of failure ; his opinion whether
further investigation in regard to the promotion, forma-
tion, or failure of the company or the conduct of the busi-
ness is desirable, and may report further whether in his
opinion any fraud has been committed and mention any
other matters desirable to be brought to the attention of
the court. 6
1 Companies (consolidation) act, 1908, sec. 129.
2 German Date Coffee Co., 20 C. D., 169 ; Red Rock Gold Mining Co., 61
L. T., 785.
3 London & County Coal Co., 3 Eq., 355.
* J. E. Brinsmead & Sons (1S97), 1 Ch. 45, 1 ch. 406 (Appeal).
6 Companies (consolidation) act, 1908, sec. 146.
Companies (consolidation) act, 1908, sec. 148.
390
LAWS ON TRUSTS AND MONOPOLIES.
If the receiver further reports that in his opinion fraud
has been committed in the promotion of the company, or
by any director or officer since its formation, the court
may publicly examine such person or persons on oath,
and the receiver and liquidator (if any) may take part
in such examination. Notes of the examination shall
be reduced to writing, signed by the person examined,
and may be used in evidence against him, and shall be
open to the inspection of any creditor or contributory. 1
The public examination provided for in this section
was introduced into the company laws as section 8 of the
director's liability act, 1890, and was at first largely re-
sorted to, but its operation was considerably curtailed by
a decision of the House of Lords in 1896, holding that no
order for public examination of a particular person can
be made unless the official receiver expresses the opinion
that such person has been guilty of fraud and shows how
he is connected with the facts. 2
The provision has, notwithstanding this limitation,
been availed of in a number of cases, as shown by the fol-
lowing table:
Public examinations.
Year.
Wind in -
up orders.
Number of
companies
in which
examina-
tion
ordered.
N' umber of
persons
examined.
1902
112
10
15
1903
83
16
50
1904
9S
25
1905
SO
11
33
1906
lie,
s
16
1907
10X
10
24
1908
126
9
28
inoq
146
9
18
1910
139
c,
i 11
1 Reports, Board of Trade, 1902-1910.
Where, in the course of winding up a company, it ap-
pears that any person taking part in the formation or
promotion of the company, or any past or present direc-
tor, manager, liquidator, or officer has misapplied any
funds, or has been guilty of breach of trust, the court
may, upon the application of the official receiver, liquida-
tor, or any creditor or contributory, examine into the
conduct of the person complained of and compel him to
1 Companies (consolidation) act, 1008. sec. 17.~i.
2 Ex parte Barnes (190G). A. C. 146. Civil, Naval, and Military Out-
fitters (1899), 1 Ch. 215.
GKEAT BRITAIN. 391
restore any such money or property to the company, and
the order shall be deemed a final judgment. 1
The receiver shall call separate meetings of creditors
and contributories to determine whether an application
shall be made to the court for appointing a liquidator
in the place of the official receiver and determining
whether application is to be made for the appointment of
a committee of inspection consisting of creditors and
contributories to act with the liquidator. 2
Where the official receiver becomes the liquidator of a
company he may, in his discretion, apply to the court
for the appointment of a special manager with such pow-
ers and for such time as the court may direct, and the
special manager so appointed shall give such security
and account in such manner as the board may direct. 3
An account called the " Companies liquidation ac-
count " shall be kept by the board of trade with the Bank
of England, and all moneys received by the board in re-
spect of proceedings under this act in connection with
the winding up of companies in England shall be paid
to that account. 4
Whenever the balance of this general account is in
excess of the immediate requirements of the board, it
may be invested in Government securities, and the divi-
dends shall be considered in fixing fees payable in wind-
ing-up proceedings. 5
When the committee of inspection deems the balance
to the credit of the company to be in excess of immediate
requirements, the board shall invest the excess in Govern-
ment securities and credit the dividends to the company. 6
When the balance to the credit of any company's ac-
count with the board of trade exceeds 2,000, and the
liquidator notifies the board that tl\e excess is not re-
quired, the company shall be entitled to 2 per cent inter-
est on the excess. 6
Every liquidator shall, at least twice a year, render to
the board of trade an account of his receipts and pay-
ments, which shall be audited by the board, summarized,
and sent to creditors and contributors, a copy being re-
1 Companies (consolidation) act, 1008, sec. 215.
2 Companies (consolidation) act, 1908, sees. 152, 160.
3 Companies (consolidation) act, 1908, soc. 161.
4 Companies (consolidation) act, 1908, sec. 229.
5 Companies (consolidation) act, 1908, sec. 2MO.
a Companies (consolidation) act, 1908, sec. 231.
392 LAWS ON TRUSTS AND MONOPOLIES.
tained by the board for the inspection of any person
interested. 1
The board may direct a local investigation into the
books and vouchers of the liquidator, and may, in its
discretion, apply to the court to examine him or any other
person on oath concerning the wind-up of any company. 2
The board shall take cognizance of the conduct of liqui-
dators of companies being wound up by the court, and,
if they do not observe the requirements imposed upon
them by the statute or rules, or a complaint is made by
any creditor or contributory, the board shall inquire into
the matter and take such action as it may think expe-
dient. 2
Upon the conclusion of his duties the liquidator shall
report to the board of trade, and after consideration of
the report and any objection urged against his release by
a creditor or contributory the board shall grant or with-
hold his release accordingly, subject to an appeal to the
high court. 3
An order of the board of trade releasing the liquidator
shall discharge him from all liability, but may be re-
voked on proof that it was obtained by fraud or by sup-
pression of any material fact. 4
In the absence of a committee of inspection appointed
to act with the liquidator, the board of trade may do any
act that the committee might do under the act. Under
the rules of the board of trade the committee of inspec-
tion, consisting of creditors and contributories, assists
the liquidator in the administration of the assets of the
company.
The board of trade may, with the approval of the treas-
ury, appoint such additional officers as may be required
for winding up companies, and may remove any person
so appointed. 5
An inspector general in companies liquidation was ap-
pointed in 1891, to whom the official receivers of the
board of trade throughout the country report in connec-
tion with matters arising under the companies act. 6
1 Companies (consolidation) act, 1908, sec. 155.
2 Companies (consolidation) act, 1908, sec. 159.
3 Companies (consolation i act, 1908, sec. 157.
4 Companies (consolidation) act, 1908, sees. 152, 160; Statutory Rules
and Orders, 1909, p. 95.
B Companies (consolidation) act, 1908, sec. 233.
Statutory Rales and Orders, 1891.
GREAT BRITAIN. 393
The officers of the courts winding up companies shall
report to the board of trade at such times and in such
manner as may be required, and from those returns the
board shall prepare books which shall be open for public
information under the regulations of the board. 1
The lord chancellor may, with the concurrence of the
president of the board of trade, make general rules for
carrying into effect the objects of this act so far as it
relates to the winding up of companies in England. 2
Such rules shall be laid before Parliament and shall
be judicially noticed and shall have the force of law. 2
(Rules made under this authority may be found in Stat-
utory Rules and Orders, 1909, pp. 61-203.)
The accounts of the board of trade in relation to the
winding up of companies in England shall be audited
ir- such manner as the treasury may direct, and the board
shall make such returns as the treasury direct 3 for the
purposes of the account to be laid before Parliament.
Defunct companies. Where the registrar of companies
has reasonable cause to believe that a company is not
carrying on business, he shall send an inquiry by mail to
its registered office, and in default of an answer in one
month shall in 14 days after the expiration of the month
send a second, after which in default of an answer for
one month a notice will be published in the Gazette that
unless cause is shown to the contrary within three months
the company shall be removed from the register and dis-
solved.
The registrar may, under similar conditions, remove a
company from the register when he has reasonable cause
to believe either that no liquidator is acting or that the
affairs of the company are fully wound up and the re-
turns required to be made by him have not been made for
six months after a demand for them has been made.
The court may restore any company to the register if.
on the application of the company, or any member or
creditor, it is satisfied that the company was carrying on
business, or otherwise that it is just that the company be
restored to the register upon such conditions as the court
may deem fit, and the company shall be deemed to have
continued in existence as if its name had not been
struck off.*
1 Companies (consolidation) act, 1908, sec. 235.
2 Companies (consolidation) act, 1908, sec. 237.
3 Companies (consolidation) act, 1908, sec. 234.
* Companies (consolidation) act, 1908, sec. 242.
394 LAWS ON TRUSTS AND MONOPOLIES.
The board of trade shall cause an annual report of the
matters within this act to be prepared and laid before
both Houses of Parliament. 1
REPORTS OF THE BOARD OF TRADE.
The publicity afforded by the law has taken two forms,
the annual reports of the board of trade, submitted to
Parliament in accordance with the act, and the informa-
tion required to be filed and open to the inspection of the
public.
With the information available at the office of the
registrar of companies, and from the reports of the offi-
cial receiver on companies wound up, the board of trade
has been able to report upon improper methods of pro-
motion or management and common causes of failure
during the previous year. While thus enabled to observe
the deficiencies of the law, it has, by means of the same
information, been possible to report upon the effect of
each amendment. The reports also contain typical cases
illustrating various causes of failure, often accompanied
with frank comment upon the methods employed by the
promoters or officers, and the board has repeatedly called
the attention of the public to the provisions of the law
intended for their protection.
In addition to the above, each report contains detailed
statistics in respect of companies registered or wound up
during the preceding year.
The following extracts taken from the first annual
report of the board of trade (1891) illustrate the char-
acter of these reports :
But perhaps the most frequent of all the abuses arising in con-
nection with the formation of companies lies in the exercise of
the power by which the directors proceed to allotment on a
purely nominal share subscription. Forgetful of this fact innu-
merable cases have occurred where persons have been induced to
subscribe for shares in a company believing that it would start
possessed of ample means with which to carry out the objects for
which it was formed, and where they subsequently found that by
the act of allotment upon a merely nominal subscription the
directors had compelled them to become partners in a company
which was doomed ^to failure by the total inadequacy of its
resources. This evil" is aggravated by the fact that the directors
are in the majority of cases the nominees of the promoters, and
that it is, as a rule, [to] the interest of the latter that an allot-
ment should be made.
i Companies (consolidation) act, 1908, sec. 283.
GREAT BRITAIN. 395
In regard to some of these matters, the evils referred to may, to
some extent, be capable to mitigation by legislation, but it will
probably be found impossible to guard against all the ever-chang-
ing and endless devices of unscrupulous promoters, and the most
effective remedy will probably be found in the exercise of greater
caution and discrimination on the part of the investing public.
*****
Again, some of the companies were formed merely for the pur-
pose of carrying out an idea, not accompanied by the acquisition
of any property or rights sometimes an idea involving great
benefit to the community, if it could be properly carried out. The
failure of such companies is not to be taken as showing that the
idea in itself was erroneous, but merely that the means adopted
were unsuitable or insufficient. In all these cases, the amount of
capital subscribed by the public was wholly inadequate for the
purposes of the company, as judged even by the estimate of its
promoters on its formation. The fact is, the directors should
never have gone to allotment; and in doing so they entirely neg-
lected and sacrificed the interests of the subscribers. In many
cases what they did was simply to seize the moneys of a mere
handful of subscribers, and to use them in paying the expenses
of promotion and the other preliminary expenses of the company.
In discussing the failures of the past year in its eight-
eenth annual report, the board of trade (1908) cited the
following case:
Brazilian Rubber Plantations & Estates (Ltd.) (High Court).
This company was formed on the 31st of January, 1906, with a
nominal capital of 180,000, for the purpose of acquiring and de-
veloping rubber estates in Brazil.
A few months prior to the formation of the company the original
vendor of these estates sold them for 15,000. The purchaser in
his turn sold them in October. 1905, to the promoters for 20,000.
In January. 1906, the promoters formed a syndicate to acquire the
property for 50,000, and through the medium of the syndicate
promoted the company and sold the property to it for 150,000 on
tho 31st of January, 1906. This was a grossly inflated figure, no
change having taken place in the property since the previous Octo-
ber, when it was sold by the original vendor for 15.000.
The company's prospectus, which was issued on the 1st of Feb-
ruary, 1906. the day after the registration of the company, con-
tained various misstatements, which are set out in the official
receiver's report, and among them the official receiver refers to
the following paragraphs:
" The area of the estates, which are freehold and unencumbered,
is approximately 12,500 acres.
"The distance from the estates to the railway is about 12 miles
on an easy gradient."
These two statements are said by the directors to be based
partly on a letter to the effect that mules carried the produce to
the railway, about 12 miles distant. The word " mules " in the
letter, the directors state, was misread " miles," and, 20 miles
being taken to mean 20 square miles, they considered that they
396 LAWS ON TKTJSTS AND MONOPOLIES.
were moderate when they set dawn the 20 square miles in the pros-
pectus as containing only 12,500 English acres.
The official receiver reported to the court that in his opinion
fraud had been committed by the promoters and by some of the
directors, and a public examination has been held by the court of
the persons reported against by the official receiver.
The nineteenth annual report (1909) contains the
following :
* * * * *
Another instance of the way in which persons disregard in-
formation which is made available by law for their protec-
tion is afforded by the case of The Bee & the Bells Refresh-
ment Contracting Syndicate (Ltd.), (Leeds). This company
was registered in October, 1909, with a nominal capital of 5,000
in fl shares, as a private company. The object of forming the
company was to enable the promoter (who was a refreshment
caterer and who had obtained the exclusive right to supply re-
freshments on the aviation grounds at Blackpool during the flying
week) to carry the business through without personal liability.
Though the nominal capital was 5,000, the capital subscribed for
cash was 2 only, and this fact was open to any inquirer at Som-
erset House. With this capital of 2 only at his back, the com-
pany managed to incur liabilities to the extent of 1,551, and the
official receiver estimates that the net loss to creditors will amount
to 19s. in the pound.
The following extract is from the annual report for the
year 1910 :
Insurance companies. There have been several important fail-
ures during the past year of companies carrying on various forms
of insurance business. Of these failures that of the Law Car &
General Insurance Corporation (Ltd.), is, so far as figures are
concerned, the most important, but the National Free Homes
Association (Ltd.) is a very bad example of the companies which
cater for poor people and induce them to part with their saving's.
This latter company received upward of 17,000 in small sums
from poor people, and practically the whole of this sum was ab-
sorbed by the directors and officials in the payment of their own
salaries.
INFORMATION AVAILABLE TO THE PUBLIC.
The following information is open to the inspection of
the public at the office of the registrar of companies, with
the exception of one or two items, where, as indicated,
the document is for the inspection of members or con-
tributories only. *.
As an indication of the actual use of this information
by the public, the registrar of companies reported in
1895 that over 100 persons searched the files daily.
1. The memorandum of association, which must state :
GEE AT BRITAIN. 397
(a) The name of the company, with " limited " as the
last word of the name.
(&) Location of registered office.
(c) Objects of company.
(d) That the liability of its members is limited.
(e) The amount of capital and number of shares.
(/) The names of each subscriber and amount of stock
subscribed for. 1
2. Any change of name by company. 2
3. Any alterations in memorandum of association. 3
4. Articles of association provided by the company
(if any), or those provided by the act of 1908. 4
5. A list of members of the company, a list of all persons
who have ceased to be members, their names, addresses,
and occupations, the number of shares held by each, and
the date of all transfers of stock. 5
NOTE. These requirements as to the publicity of lists of mem-
bers of companies and their holdings are in marked contrast with
those existing in the United States. The laws of 50 States and
Territories in respect of the accessibility of this information may
be classified as follows:
Open to the public, 6; two of these fail to provide a penalty
for noncompliance. Open to persons " interested," 2 ; one of these
fails to provide a penalty for noncompliance. Open to stockhold-
ers and creditors, 14; three of these fail to provide a penalty
for noncompliance. Open to stockholders only, 21 ; three of these
fail to provide a penalty for noncompliance. Open to creditors
only, 1. 'List required to be kept, but no provision for access, 4.
No provision relating to this subject, 2. Total, 50. (Corporation
Manual, 1910.)
6. A summary distinguishing between shares issued
for cash and shares issued as fully or partly paid up oth-
erwise than in cash, specifying
(a) The share capital, and the number of shares.
(b) The number of shares taken from the commence-
ment of the company to the date of the return.
(c) The amount called up on each share/
(d) The total amount of calls received.
(e) The total amount of calls unpaid.
(/) The total amount of the sums (if any) paid by
way of commission in respect of any shares or debentures,
or allowed by way of discount in respect of any deben-
tures, since the date of the last return.
1 Companies (consolidation) act, 1908, sec, 13.
2 Companies (consolidation) act, 1908, sec. 8.
3 Companies (consolidation) act, 1908, sec. 9.
4 Companies (consolidation) act, 1908, sec. 11.
5 Companies (consolidation) act, 1908, sec. 26.
398 LAWS ON TKUSTS AND MONOPOLIES.
(<7) The total number of shares forfeited.
(h) The total amount of shares or stock for which
share warrants are outstanding at tire date of the return.
(i) The total amount of share warrants issued And
surrendered, respectively.
(j) The number of shares or amount comprised in each
share warrant.
(k) The names and addresses of directors.
(I) The total debt due from the company in respect
of all mortgages and charges. 1
(1) For the purpose of securing any issue of deben-
tures.
(2) On uncalled capital.
(3) Created or evidenced by an instrument which, if
executed by an individual, would require registration, as
a bill of sale.
(4) On any land or interest therein.
(5) On any book debts.
(6) Or a floating charge on the undertaking or prop-
erty of the company. 2
7. A balance sheet audited by the company's auditors
(except where the company is a private company), con-
taining a summary of its share capital, its liabilities, and
its assets, giving such particulars as will disclose the gen-
eral nature of those liabilities and assets, how the values
of the fixed assets have been arrived at, and showing the
total amount (if any) paid in commissions for subscrip-
tions to shares or debentures, 3 but it need not include a
statement of profit and loss. 1
8. A statutory report, certified by two directors, a copy
of which has been sent to every member of the company
at least seven days before a general meeting, called the
statutory meeting, held not less than one month nor more
than three months from the date at which the company
is entitled to commence business.
The obvious purpose of the statutory meeting with its prelimi-
nary report is to put the shareholders of the company as early as
possible in possession of all the important facts relating to the
new company. * * * Furnished with these particulars, the
shareholders are to have an opportunity of meeting and discussing
the whole situation the management, methods, and prospects of
the company. If the shareholders fail to do so, they have only
themselves to blame."
1 Companies (consolidation) act, 1908, sec. 26.
2 Companies (consolidation) act, 1908, sec. 93.
8 Companies (consolidation) act, 1908, sec. 90.
* Palmer's Company Law (7th ed.), p. 158.
GKEAT BKITAIN. 399
This report must show
(a) The total shares allotted, distinguishing shares
allotted as fully or partly paid up or otherwise than in
cash, and stating in the case of shares partly paid up the
extent to which they are so paid up, and in either case the
consideration for which they have been allotted.
(b) The total amount of cash received by the company
in respect of all the shares allotted, distinguished as
aforesaid.
(c) An abstract of the receipts of the company on
account of its capital, whether from shares or debentures,
and of the payments made thereout, up to within seven
days of the date of the report, exhibiting under distinctive
headings the receipts of the company from shares and
debentures and other sources the payments made there-
out, and particulars concerning the balance remaining in
hand, and an account or estimate of the preliminary ex-
penses of the company.
(d) The names, addresses, and descriptions of the di-
rectors, auditors, managers, and secretary.
(e) The particulars of any contract, the modification of
which is to be submitted to the meeting for its approval,
together with the particulars of the proposed modifica-
tion. 1 (This statutory report need not be forwarded or
filed by a private company.)
9. Copies of every special and extraordinary resolu-
tion. 2
10. Copies of every " prospectus " issued by or on be-
half of a company, or any person who is or has been
engaged in the formation of the company.
The discipline exercised by the act is largely by means
of the provisions in respect of this document, which is de-
fined as any " notice, circular, advertisement, or other
invitation, offering to the public for subscription or pur-
chase any shares or debentures of a company." To com-
ply with the requirements of the act, the prospectus must
show
(a) The contents of the memorandum, with the names,
descriptions, and addresses of the signatories, and the
number of shares subscribed for by them, respectively;
and the number of founders or management or deferred
shares, if any, and the nature and extent of the interest
of the holders in the property and profits of the company ;
and
1 Companies (consolidation) act, 1908, sec. 65.
2 Companies (consolidation) act, 1908, sec. 70.
400 LAWS ON TRUSTS AND MONOPOLIES.
(6) The number of shares, if any, fixed by the articles
as the qualification of a director, and any provision in the
articles as to the remuneration of the directors ; and
(c) The names, descriptions, and addresses of the
directors or proposed directors; and
(d) The minimum subscription on which the directors
may proceed to allotment, and the amount payable on
application and allotment on each share ; and in the case
of a second or subsequent offer of shares, the amount
offered for subscription on each previous allotment made
within the two preceding years, and the amount actually
allotted, and the amount, if any, paid on the shares so
allotted; and
(e) The number and amount of shares and debentures
which within the two preceding years have been issued,
or agreed to be issued, as fully or partly paid up other-
wise than in cash, and in the latter case the extent to
which they are so paid up, and in either case the consid-
eration for which those shares or debentures have been
issued or are proposed or intended to be issued ; and
(/) The names and addresses of the vendors of any
property purchased or acquired by the company, or pro-
posed to be purchased or acquired, which is to be paid
for wholly or partly out of the proceeds of the issue
offered for subscription by the prospectus, or the pur-
chase or acquisition of which has not been completed at
the date of issue of the prospectus, and the amount pay-
able in cash, shares, or debentures, to the vendor, and
where there is more than one separate vendor, or the com-
pany is a subpurchaser, the amount so payable to each
vendor: Provided, That where the vendors, or any of
them, are a firm the members of the firm shall not be
treated as separate vendors ; and
(g) The amount (if any) paid or payable as pur-
chase money in cash, shares, or debentures, for any such
property as aforesaid, specifying the amount (if any),
payable for good will; and
(h) The amount (if any) paid within the two pre-
ceding years, or payable, as commission for subscribing
or agreeing to subscribe, or procuring or agreeing to
procure subscriptions, for any shares in, or debentures of.
the company, or the rate of any such commission: Pro-
vided, That it shall not be necessary to state the com-
mission payable to subunderwriters ; and
GKEAT BEITAIN. 401
(i) The amount or estimated amount of preliminary
expenses; and
(j) The amount paid within the two preceding years
or intended to be paid to any promoter, and the consider-
ation for any such payment; and
(k) The dates of and parties to every material con-
tract and a reasonable time and place at which any ma-
terial contract or a copy thereof may be inspected : Pro-
vided, That this requirement shall not apply to a con-
tract entered into in the ordinary course of the business
carried on or intended to be carried on by the company,
or to any contract entered into more than two years be-
fore the date of issue of the prospectus ; and
(I) The names and addresses of the auditors (if any)
of the company ; and
(m) Full particulars of the nature and extent of the
interest (if any) of every director in the promotion of,
or in the property proposed to be acquired by, the com-
pany, or, where the interest of such a director consists in
being a partner in a firm, the nature and extent of the in-
terest of the firm, with a statement of all sums paid or
agreed to be paid to him or to the firm in cash or shares
or otherwise by any person, either to induce him to be-
come, or to qualify him as, a director or otherwise for
services rendered by him or by the firm in connection
with the promotion or formation of the company ; and
(n) Where the company is a company having shares
or more than one class the right of voting at meetings
of the company conferred by the several classes of shares.
respectively. 1
11. A company which does not issue a prospectus shall
not allot any shares or debentures unless there has been
filed with the registrar of companies a statement in lieu
of a prospectus signed by every person named as a di-
rector or a proposed director and containing the partic-
ulars set out in the following form. 2 (A private com-
pany is not required to file a prospectus or a statement
in lieu of a prospectus.)
1 Companies (consolidation) act, 1908, sec. 81.
2 Companies (consolidation) act, 1908, sec. 82.
1649113 26
402
LAWS ON TRUSTS AND MONOPOLIES.
Statement in lieu of prospectus filed, ~by
section 82 of the companies (consolidation)
sentcd for filing l>y .
(Ltd.), pursuant to
act, 1908. Pre-
The nominal share capital of the company-
Divided into
Names, descriptions, and addresses of directors or
S-pposed directors
imum subscription (if any) fixed by the memo-
.randum or articles of association on which the
company may proceed to allotment
Number and amount of shares and debentures
agreed to be issued as fully or partly paid up
otherwise than in cash
The consideration for the intended issue of those
shares and debentures
Names and addresses of vendors 1 of property pur-
chased or acquired or proposed to be purchased 2
or acquired by the company
Amount (in cash, shares, or debentures) payable to
each separate vendor
Amount (if any) paid or payable (in cash or shares
or debentures) for any such property, specifying
amount (if any) paid or payable for good will. .
Amount (if any) paid or payable as commission for
subscribing or agreeing to subscribe or procuring
or agreeing to procure subscriptions for any
shares or debentures in the company, on
Rate of the commission . .
Amount paid or intended to be paid to any pro-
moter ,
Consideration for the payment
Dates of and parties to every material contract
(other than contracts entered into in the ordi-
nary course of the business intended to be car-
ried on by the company or entered into more
than two years before the filing of this statement) .
Time and place at which the contracts of copies
thereof may be inspected
Names and addresses of the auditors of the com-
pany (if any)
Full particulars of the nature and extent of the
interest of every director in the promotion of or
in the property proposed to be acquired by the
company, or, where the interest of such a director
consists in being a partner in a firm the nature
and extent of the interest of the firm, with a
statement of all sums paid or agreed to be paid
to him or to the firm in cash or shares, or other-
wise, by any person either to induce him to be-
come, or to qualify him as a director, or otherwise
for services rendered by him or by the firm in
connection with the promotion or formation of
the company .
Whether the articles contain any provisions pre-
cluding holders of shares or debentures receiving
and inspecting balance sheets or reports of the
auditors or other reports
Shares of each.
Shares of each.
Shares of . . each.
1 shares of fully paid.
2 shares upon which
per share credited as paid.
3 debenture,
4. Consideration.
Total purchase price. . .
Cash .
Shares .
Debentures .
Goodwill .
[Amount paid.
Amount payable.
Rate, percent.
(Name of promoter.
\.Amount,
Consideration.
Nature of the provisions.
1 For definition of vendor see section 81 (2) of the companies (consolidation) act, 1908.
2 See section 81 (3) of the companies (consolidation) act, 1908.
(Signatures of the persons above named as directors or proposed
directors, or of their agents authorized in writing.)
12. Notice of the consolidation or division of share
capital into shares of a larger amount, or the conversion
GREAT BRITAIN, 403
of shares into stock, or a reconversion of stock into shares-
shall be filed with the registrar of companies. 1
13. Copy of order of the court approving any reduc-
tion of capital. 2
14. Particulars of any mortgage or charge for the pur-
pose of securing any issue of debentures, or on uncalled
share capital, or created or evidenced by an instrument
which, if executed by an indivdual, would require reg-
istration as a bill of sale, or on any land or interest
therein, or on book debts, or a floating charge on the
undertaking or property of the company, together with
a cop}^ of the instrument. 3
15. Particulars as to debentures as follows: The total
amount secured by the series, the dates of the resolutions
authorizing the issue, the date of the deed (if any), a
general description of the property charged, the names
of the trustees (if any) for the debenture holders, the rate
per cent of any commission paid for subscriptions, to-
gether with the deed containing the charge, or if there
is no such deed, a copy of one of the debentures. 3
16. Notice of the appointment of a receiver. 4
17. Semiannual abstract of receipts and disbursements
of a receiver, and a notice that he has ceased to act. 5
18. Notice of any winding-up order made by the court. 8
19. A copy of the report of the official liquidator of a
company being wound up by the court, showing receipts
and disbursements and the progress of the liquidation. 7
(For the inspection of creditors and interested persons
only.)
20. A statement to the official receiver by the directors
and chief officer of a company being wound up by the
court, containing particulars of its assets and liabilities,
names, residences, and occupations of its creditors, the
securities held by them, respectively, the dates when such
securities were given, and such further information as
may be prescribed or as the receiver may require. 8 (This
is open to inspection by creditors or contributors only.)
1 Companies (consolidation) act, 1908, sec. 42.
2 Companies (consolidation) act, 1908, sec. 51.
3 Companies (consolidation) act, 1908, sec. 93.
4 Companies (consolidation) act, 1908, sec. 94.
5 Companies (consolidation) act, 1908, sec. 95.
Companies (consolidation) act, 1908, sec. 143.
7 Companies (consolidation) act, 1908, sec. 155.
8 Companies (consolidation) act, 1908, sec. 147.
404 LAWS ON TRUSTS AND MONOPOLIES.
21. Notice that a meeting of the company, called by the
liquidator in case of a voluntary winding up, for the pur-
pose of explaining his final account, has been held.
22. Three months after registration of this notice the
company shall be deemed dissolved, unless the dissolution
is deferred by the court for cause shown by an interested
party. 1
23. A copy of any order of a court declaring a dissolu-
tion void upon the application of the liquidator or other
interested party within two years of the date of the
original order of dissolution. 2
Registration office and fees. There shall be offices for
the registration of companies at such places as the board
of trade think fit, and documents kept by the registrar
may be inspected by any person, who may also obtain cer-
tified copies upon the payment of reasonable fees for such
inspection or copies. A certified copy so obtained shall
be of equal validity with the original in all legal pro-
ceedings. 3
24. A return of allotments of shares, from both private
and public companies, stating the number and nominal
amount of the shares in the allotment, the names, ad-
dresses, and descriptions of the allottees, and the amount
(if any) paid or due on each share, and in the case of
shares allotted as fully or partly paid up otherwise than
in case, a contract in writing constituting the title of the
allottee, together with any contract of sale or for services
or other consideration in respect of which the allotment
was made, and a return stating the number and nominal
amount of shares so allotted, the extent to which they are
to be treated as paid up, and the consideration for which
they have been allotted. In the absence of a written con-
tract the particulars indicated on the following form shall
be filed with the registrar. 4
1 Companies (consolidation) act, 1908, sec. 195.
2 Companies (consolidation) act, 1908, sec. 223.
8 Companies (consolidation) act, 1908, sec. 243.
4 Companies (consolidation) act, 1908, sec. 88, Form 52, order of 1909.
GKEAT BKITAIN.
405
Particulars prescribed under section 88, subsection (2). Filed
by - (Ltd.). Presented for filing by .
[In cases where a contract such as is mentioned in paragraph (6) of subsection (1) of
section 88 of the companies (consolidation) act, 1908, is not reduced to writing, the com-
pany must, within the time limited in the said section, file with the registrar of joint-
stock companies the following particulars of the contract, which particulars must be
stamped with the same stamp duty as would have been payable if the contract had
been reduced to writing.]
(1) The number of shares, in whole or in part, allotted for a consideration other
than cash
(2) If the consideration for the allotment of any shares is services, or any consid-
eration other than that mentioned below in part 3, state what such con-
sideration consists of
(3) If the consideration for the allotment of any shares is a sale of property, or
the agreement for sale of property, state fully the consideration for, and
other terms of, such sale or agreement for sale
(4) Give full particulars, in the form of the following table, of the property
which is the subject of the sale, showing in detail how the total considera-
tion is apportioned between the respective heads:
Equitable estates, or interests in freeholds and leaseholds, whether in
the United Kingdom or abroad (which includes hereditaments sub-
ject to a legal mortgage)
Patents, licenses, trade-marks, and copyrights
Good will
Fixtures and fittings
Books and other debts (including money on deposit at bank or else-
where)
Benefit of contracts
Other property, viz:
Total.
(5) If the consideration payable is partly in respect of a sale of property or agree-
ment for a sale of property and partly in respect of some other considera-
tion, state fairly how much of the amount of the consideration is attribu-
table to each of the heads of the property sold or agreed to be sold and
how much to such other consideration
(6) If the consideration payable consists in the assumption by the purchaser of
liabilities to third persons, specify the total amount of such liabilities
I-
(Signature.)
Date
(Designation of position in relation to the company.)
PENALTIES.
The provisions of the act of 1908 are enforced by a
number of penalties, the most important of which are the
following :
Default in filing a copy of the prospectus with the registrar of
companies.
Penalty : The company, and every person knowingly a party to
the issue of the prospectus, is liable to a fine not exceeding 5 for
every day from the date of issue until a copy is filed. 1
Untrue statements in a prospectus.
Penalty : Every person shall be liable to compensate all sub-
scribers for loss sustained by reason of such untrue statement,
unless he had reasonable grounds for belief that the statement
was true, or that, having consented to become a director, he with-
drew his consent, and that the prospectus was issued without his
consent ; or that, on becoming aware of its issue without his con-
sent, he gave public notice of the fact. 1
Unauthorized use of director's name in a prospectus. 2
1 Companies (consolidation) act, 1908, sec. 80.
2 Companies (consolidation) act, 1908, sec. 84.
406 LAWS ON TRUSTS AND MONOPOLIES.
Unauthorized use of name of a person as director in the lisc
of directors filed with registrar of companies, upon application
for registration of the company.
Penalty : The person applying for registration is liable to a fine
not exceeding f 50. 1
Violation of the provisions of the net in respect of allotment.
Penalty : Allotment voidable for one month after holding statu-
tory meeting, and any director who knowingly contravenes or
permits the contravention of these provisions is liable to com-
pensate the company and the allottee for any loss, damages, or
costs sustained. Period of limitation, two years from date of
allotment. 2
A company shall not commence business or exercise borrowing
powers unless
Shares held subject to the payment of the whole amount in
cash have been allotted to an amount not less in the whole than
the minimum subscription, and
Every director has paid on each of his shares the same pro-
portion that is payable on the allotment of shares offered to the
public, and
There has been filed with the registrar of companies a statutory
declaration by the secretary or a director that the above condi-
tions have been complied with ;
In the case of a company which does not issue a prospectus,
there has been filed a statement in lieu of a prospectus.
Penalty : Any contract made before a company is entitled to
commence business is provisional only, and shall not bind the
company until that date. Every person responsible for the con-
travention shall, without prejudice to any other liability, be
liable to a fine not exceeding 50 for every day during which it
continues."
NOTE. The above section does not apply to private companies.
Default of a limited company when allotting shares to file,
within a month, a return showing the number and nominal amount
of shares allotted, and amount paid or payable on each share; or,
if shares are allotted as fully or partially paid up otherwise than
in cash, to file a contract showing the title of allottee and any
contract of sale, or for services, or other consideration for allot-
ment, together with a return showing number and nominal amount
of shares allotted, extent to which treated as paid up, and con-
sideration for which allotted; or, if the contract above described
be not in writing, to file the prescribed particulars of contract.
( See form, p. . )
Penalty : Every officer knowingly a party to the default is liable
to a fine not exceeding 50 for every day during which default
continues. Provided, that the court, in its discretion, may relieve
from the penalty and extend the time for filing. 4
Default in holding the statutory meeting or filing the statutory
report.
Penalty: The company may be wound up by the court at the
instance of a shareholder, and costs may be charged to any
1 Companies (consolidation) act, 1908, sec. 72.
2 Companies (consolidation) act, 1908, sec. 86.
8 Companies (consolidation) act, 1908, sec. 87.
* Companies (consolidation) act, 1908, sec. 88.
GBEAT BRITAIN. 407
person who, in the opinion of the court, is responsible for the
default 1
Default in keeping at the company's registered office a list of
directors or managers, with their names, addresses, and occupa-
tions; and in filing a copy of said list and all changes with the
registrar of companies.
Penalty : The company, and every director and manager know-
ingly and willfully authorizing or permitting the default, is liable
to a fine not exceeding 5 for each day of the default.*
Refusal to permit inspection of the company's register of mem-
bers by any member gratis, and by any other person upon payment
of 6d. ; or
Refusal to furnish copies upon payment of fees prescribed.
Penalty: The company, and every director and manager who
knowingly authorizes or permits the refusal, is liable to a fine not
exceeding 2 for each refusal, and a further fine of not exceeding
2 for each day during which the refusal continues, and the high
court may compel an immediate compliance. 3
Default in keeping a register of mortgages and charges showing
particulars in each case.
Penalty: Every director, manager, or other officer of the com-
pany who knowingly and willfully authorizes or permits the omis-
sion of any entry is liable to a fine not exceeding 50. 4
Default in furnishing the registrar with the particulars and a
copy of any mortgage or charge on the property, capital, book
debts, etc., of the company.
Penalty: Security is void against the liquidator or creditors,
but without prejudice to the obligation to repay the money so
secured, which becomes immediately payable. 8
Default in filing with the registrar of companies the " particu-
lars " of any mortgage or charge created by the company.
Penalty: The company, and every director, manager, secretary,
or other person knowingly a party to the default, is liable to a fine
not exceeding 50 for every day during which the default con-
tinues. 6
Default in filing with the registrar of companies a copy of any
mortgage or charge created by the company.
Penalty: The company, and every director, manager, and other
officer of the company who knowingly and willfully authorized
or permitted the default, is, without prejudice to any other
liability, liable on summary conviction to a fine not exceeding
100. 7
Default in indorsing upon any debenture or certificate of deben-
ture stock, before delivery, a copy of the certificate of registration.
Penalty: Any person knowingly and willfully authorizing or
permitting such default is, without prejudice to any other liability,
liable on summary conviction to a fine not exceeding 100. 8
1 Companies (consolidation) act, 1908, sees. 129, 137 ( b ), 141 ( 2 ).
2 Companies (consolidation) act, 1908, sec. 75.
3 Companies (consolidation) act, 1908, sec. 30.
* Companies (consolidation) act, 1908, sec. 100.
s Companies (consolidation) act, 1908, sec. 93.
6 Companies (consolidation) act, 1908, sec. 99.
'Companies (consolidation) act, 1908, sec. 99 ( 2 ).
8 Companies (consolidation) act, 1908, sec. 99 ( s ).
408 LAWS ON TRUSTS AND MONOPOLIES.
Default in permitting an inspection of the company's register
of mortgages and charges by members of the company without
charge, and by other persons upon payment of Is., and
Default in permitting an inspection of copies of the instruments
by members of the company without charge.
Penalty : Any officer refusing inspection, and every director and
manager authorizing or knowingly and willfully permitting the
refusal, is liable to a fine not exceeding 5 and a further fine
not exceeding 2 for every day during which the refusal continues,
and the high court may compel an immediate inspection. 1
Default in permitting debenture holders and shareholders to
inspect the register of debenture holders, and in furnishing copies
to any debenture holder of any trust deed securing any issue of
debentures, upon payment of the prescribed fee.
Penalty : The company, and every director or other officer who
knowingly authorizes or permits the refusal, is liable to a fine
not exceeding 5 and a further fine of not exceeding 2 for each
day during which the refusal continues. 2
Default in forwarding a copy of every special or extraordinary
resolution to the registrar of companies.
Penalty: The company, and every director and manager who
knowingly and willfully authorizes or permits any such default,
is liable to a fine not exceeding 2 for every day during which
the default continues. 3
Default in annexing a copy of every special resolution in force
to copies of the registered articles subsequently issued, or, where
there are no registered articles, default in forwarding the resolu-
tion to any member upon payment of Is.
Penalty : The company, and every director and manager know-
ingly and willfully authorizing or permitting the default, is liable
to a fine not exceeding 1 for each copy in respect of which
default is made. 3
Default in indicating on copies of the memorandum of associa-
tion issued any alteration of capital or shares.
Penalty : The company, and every director and manager who
knowingly and willfully authorizes or permits the default, is liable
to a fine not exceeding 1 for each copy so issued. 4
Default in notifying the registrar of companies of any special
resolution authorizing the increase of capital beyond its registered
capital, or, in case of a company not having a share capital, of the
increase in the number of members beyond the registered number.
Penalty: The company, and every director and manager who
knowingly and willfully authorizes or permits the default, is liable
to a fine not exceeding 5 for every day during which the default
continues. 5
Default in indicating a reduction of capital upon any copies of
the memorandum of association subsequently issued.
1 Companies (consolidation) act, 1908, sec. 101.
2 Companies (consolidation) act, 1908, sec. 102.
8 Companies (consolidation) act, 1908, sec. 70.
4 Companies (consolidation) act, 1908, sec. 41.
5 Companies (consolidation) act, 1908, sec. 44.
GKEAT BRITAIN. 409
Penalty: The company, and every director and manager know-
ingly and willfully authorizing the default, is liable to a fine not
exceeding 1 for each copy so issued. 1
Default in disclosing to the court the name of any creditor enti-
tled to object to the reduction of capital or misrepresenting the
nature and amount of any claim.
Penalty : If any director, manager, or officer willfully is a party
to or is privy to such concealment or misrepresentation, he shall
be guilty of a misdemeanor. 2
Default in filing with the registrar of companies an order of the
court confirming any alteration in the memorandum of association
with regard to the objects of the company.
Penalty : The company is liable to a fine not exceeding 10 for
every day during which it is in default. 3
Default in producing documents or giving answers required by
inspectors appointed by the board of trade during an investigation
demanded by the required number of stockholders.
Penalty : A fine not exceeding 5 for each offense. 4
Default in notifying registrar of companies of the appointment
of a receiver.
Penalty : The person obtaining the order, or appointed the re-
ceiver under the powers contained in any instrument, is liable to a
fine not exceeding 5 for every day during which the default
continues. 5
Default by receiver appointed under the powers in any instru-
ment, in filing an abstract of receipts and expenditures once in
every half year, or in filing notice that he has ceased to act as
receiver.
Penalty : A fine not exceeding 50. 8
Destruction, mutilation, alteration, or falsification of any books,
papers, or securities of any company being wound up with intent
to defraud or deceive any person.
Penalty : Any director, officer, or contributory guilty of the above
shall be liable to imprisonment for a term not exceeding two
years, with or without hard labor. 7
Default by the liquidator, in the case of a voluntary winding
up, in filing a return to the registrar of companies of the holding
of a general meeting for the purpose of laying his final accounts
before it.
Default by any person applying for and securing an order of the
court deferring the dissolution of the company in filing a copy of
such order with the registrar of companies.
Penalty: A fine of 5 for every day during which the default
continues. 8
Forgery or alteration of any share warrant or coupon with in-
tent to defraud, or falsely personating the owner of any share,
thereby endeavoring to receive any money due to the true owner.
1 Companies (consolidation) act, 1908, sec. 52.
2 Companies (consolidation) act, 1908, sec. 54.
3 Companies (consolidation) act, 1908, sec. 9 (7).
4 Companies' (consolidation) act, 1908, sec. 109.
5 Companies (consolidation) act, 1908, sec. 94.
6 Companies (consolidation) act, 1908, sec. 95.
7 Companies (consolidation) act, 1908, sec. 216.
8 Companies (consolidation) act, 1908, sec. 195.
410 LAWS ON TRUSTS AND MONOPOLIES.
Penalty : Any person guilty of the above shall be liable to penal
servitude for life, or for any term not less than three years, in the
discretion of the court .*
Engraving or making without lawful authority any plate, etc.,
of any share warrant or coupon of any company, or knowingly
having such in custody.
Penalty : Penal servitude for not less than 3 nor more than 14
years, at the discretion of the court. 2
If any person, on examination on oath authorized under this act,
or in any affidavit or deposition in or about the winding up of any
company, or otherwise in or about any matter arising under this
act, willfully and corruptly gives false testimony, he shall be liable
to the penalties for willful perjury.
Any person willfully making a statement false in any material
particular, knowing it to be false, in any return, report, certifi-
cate, balance sheet, or other document relating to the conclusive-
ness of certificates of incorporation, appointments or advertise-
ments of directors, commencement of business, returns as to
allotments, statutory meetings, particulars as to directors and
mortgage debt and the statement in the form of a balance sheet in
the annual summary ; appointment, remuneration, powers, and
duties of auditors; obligations of companies where no prospectus
is issued ; registration of mortgages and charges ; filing of accounts
of receiver and manager ; notice by liquidator in voluntary wind-
ing up of his appointment ; rights of creditors in voluntary wind-
ing up; requirements as to companies established outside of the
United Kingdom ; annual report by board of trade, shall be guilty
of a misdemeanor, and liable on conviction on indictment to im-
prisonment not exceeding two years, with or without hard labor,
and on summary conviction to imprisonment for a term not ex-
ceeding four months, with or without hard labor, and in either
case to a fine in lieu of or in addition to such imprisonment:
Provided, That the fine imposed on summary conviction shall not
exceed 100. 2
If in any proceeding against a director of a company for negli-
gence or breach of trust it appears that such person is or may be
liable in respect of the negligence or breach of trust, but has
acted honestly and reasonably and ought fairly to be excused, the
court may relieve him, either wholly or partly, from his liability
on such terms as seem proper. 8
Any manager, director, or public officer of a body corporate who
shall make, or concur in making, circulating, or publishing any
written statement or account known to be false in any material
particular, with intent to deceive or defraud any member, share-
holder, or creditor of such body corporate, or to induce any person
to become a shareholder, or to intrust or advance any property to
such body corporate, or to enter into any security for its benefit,
shall be guilty of a misdemeanor, and liable to be kept in penal
servitude for not less than three nor more than seven years, or to
be imprisoned for any term not exceeding two years, with or with-
out hard labor, and with or without solitary confinement. 4
1 Companies (consolidation) act, 1908, sec. 38.
2 Companies (consolidation) act, 1908, sec. 281 and Schedule V.
8 Companies (consolidation) act, 1908, sec. 279.
* 25 and 26 Viet., chap. 96, sec. 84.
GKEAT BRITAIN. 411
Default in furnishing members with a copy of the memorandum
and articles of association upon the payment of 1 shilling.
Penalty: The company is liable to a fine not exceeding fl for
each offense. 1
Default in displaying the name of the company on its place of
business.
Penalty : The company is liable to a fine not exceeding 5 for
each day, and every director and manager knowingly and willfully
authorizing or permitting the default is liable to the like penalty. 2
Default in displaying the name of the company on advertise-
ments, official publications, negotiable instruments, etc., or the use
of a seal without such name displayed thereon.
Penalty: Every director, manager, or officer authorizing the
issue of the above is liable to a fine not exceeding 50, and is per-
sonally liable on the instrument unless duly paid by the company. 5
Name of company. The purpose of the legislature in requiring
the publication of the company's name was that a company of
liiniled liability should continually bring to the notice of those
who might deal with it the fact that it is " limited."
See also Atkin & Co. v. Wardle and others (61 L. T., 23), in
which the South Shields Salt Water Baths Co. (Ltd.) was misde-
scribed in a bill as the Salt Water Baths Co. (Ltd). The directors
were held personally liable on the bill. 3
Default in notifying the registrar of companies of the situation
of the registered office of the company and any change therein.
Penalty: A fine not exceeding 5 for every dny during which
the default continues. 4
Power of court to assess damages against delinquent
directors. Where, in the course of winding up, it ap-
pears that any person who has taken part in the promo-
tion, formation, management, or liquidation of the com-
pany has misapplied or otherwise become accountable
for any property of the company, or has been guilty of
a breach of trust, the court may examine into the con-
duct of such person and compel restoration of such
money or property, or any part thereof, without preju-
dice to criminal liability. 5
Prosecution of delinquent directors. If it appears to
the court, in the course of a winding up by or subject to
the supervision of the court, that any past or present
director, manager, officer, or member of the company has
been guilty of any offense in relation to the company for
which he is criminally responsible, the court may, on the
application of any person interested in the winding up,
or of its own motion, direct the liquidator to prosecute
1 Companies (consolidation) act, 1908, sec. 18.
2 Companies (consolidation) act, 1908, sec. 63.
3 Palmer's Company Law (7th ed.), p. 244.
4 Companies (consolidation) act, 1908, sec. 62.
8 Companies (consolidation) act, 1908, sec. 215. .
412 LAWS ON TRUSTS AND MONOPOLIES.
for the offense, and may order the costs and expenses to
be paid out of the assets of the company. 1
If it appears to the liquidator in the course of a volun-
tary winding up that any past or present director, man-
ager, officer, or member of the company, has been guilty
of any offense in relation to the company for which he
is criminally responsible, he, with the previous sanction
of the court, may prosecute the offender, and all expenses
properly incurred by him in the prosecution shall be
payable out of the assets of the company, in priority to
all other liabilities. 2
When an official receiver of a company being wound up
by the court reports that in his opinion fraud has been
committed by any person in the promotion, formation, or
management of the company, the court may subject such
person to a public examination, in which the receiver,
liquidator, creditor, and contributory may take part.
Notes of the examination shall be taken down and may
be used in evidence against the person so examined. 3
The following table indicates the extent to which the
provisions of the company law of England in respect to
publicity have been adopted throughout the Empire:
1 Companies (consolidation) act, 1908, sec. 217.
3 Companies (consolidation) act, 1908, sec. 215.
3 Companies (consolidation) act, 1908, sec. 175.
GREAT BRITAIN .
413
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" "S
414 LAWS ON TRUSTS AND MONOPOLIES.
OUTLINE OF THE HISTORY AND ORGANIZATION OF BOARD OF
TRADE OF ENGLAND.
Prior to 1782 there existed in England a body known
as the Board of Trade and Plantations, whose duties
were, when requested, to consult and advise the Govern-
ment on commercial questions. Being advisory : with no
administrative powers and only intermittently consulted,
i(. became a body of no practical importance, and was
abolished by 22 George III (c. 82, s. II, XV, 1782), and
its duties transfered to a committee of the privy council.
In 1786 a large committee was appointed for the con-
sideration of all matters relating to trade and foreign
plantations, the appointment being based on the act of
1782. 1
This new committee was, like its predecessor, purely
advisory. It was entirely discretionary with the Govern-
ment officials whether or not they should consult the com-
mittee at all, or act on its advice if obtained. During
the early years of its existence the business of the com-"
mittee was done by resolutions passed at a board consist-
ing of such members as chose to attend, the average (ac-
cording to the minute books from 1786 to 1797) being
only seven or eight. As the president was the only mem-
ber who was regularly present, and as he was competent
to act alone (the order in council by which the committee
was appointed not requiring a quorum), the business was
gradually drawn into the president's hands, more es-
pecially as the board's administrative functions began to
arise. Thus, while the board of trade presents outwardly
the appearance of a permanent staff, under a secretary,
there exists behind it a dormant committee of the privy
council, which, while seldom heard of, is nevertheless
recognized.
It was not until 1840 that it was intrusted with any
great administrative powers, when, by 3 and 4 Victoria
(c. 97), the duty of settling and approving the by-laws
of railways was imposed upon it. From that date the
regulative powers have been increased. The president
of the board is usually a member of the cabinet. The
board of trade has become an administrative and regula-
tive body, the duties imposed upon it being so numerous
1 Order in council, 23d August. 1786.
GREAT BRITAIN. 415
and varied that seven departments have been created to
perform them, namely:
I. The statistical and commercial department, which,
in addition to the preparation and publication of com-
mercial statistics, advises other offices when requested,
and these requests have in late years been more frequent.
II. The railway department, which, besides administer-
ing railway legislation, performs duties not obviously
connected with locomotion, such as the control of various
matters connected with the metropolitan gas companies,
patents, trade-marks, etc. The joint-stock companies
registration office x is under this department. Annual re-
ports and such special reports as may be ordered by
Parliament are compiled by the staff.
III. The marine department.
IV. The harbor department.
V. The finance department. The bankruptcy acts, 1883
i:nd 1890, and the companies (winding-up) act 1890, have
placed the money produced by the realization of the as-
sets of bankrupts and joint-stock companies which are in
compulsory liquidation under the control of the board of
trade, and this department has the custody of these
funds. 2
VI. The fisheries department.
VII. The bankruptcy department. The companies
(winding-up) act of 1890 applied to the winding-up of
insolvent companies some of the leading principles of
bankruptcy law, namely, that of the official custody of
the assets at the initial stage of the proceedings, with
liberty to the creditors and contributories of the com-
pany to later substitute their own liquidator. The act
also applied to winding-up of companies another prin-
ciple, that of an official investigation into the causes of
failure and the conduct of those responsible for the trad-
ing and financial transactions causing the insolvency.
The act also provided for a public examination of pro-
moters, directors, and officers, and for reports similar in
some respects to the reports upon the bankrupt's conduct
and affairs under the bankruptcy acts.
For the purpose of carrying this into effect official
receivers are attached to the courts which have winding-
1 25 and 26 Viet., c. 89, companies act, 1862 ; 63 and 64 Viet., c. 48,
companies act, 1900.
2 Companies (winding-up) act, 53 and 54 Viet., c. 63, 1890 ; companies
act, 63 and 64 Viet., c. 48, 1900.
416 LAWS ON TRUSTS AND MONOPOLIES.
up jurisdiction, and the board of trade is intrusted with
power of control over the accounts and proceedings of
liquidators of companies similar to that exercised over
trustees in bankruptcy. 1
1 Companies (winding-up) act, 53 and 54 Viet., c. 63, 1890; companies
act, 63 and 64 Viet., c. 48, 1900 ; Chitty's Digest of the Laws of England ;
Encyclopedia of Laws of England, 2d eel., vol. II ; companies act cited.
BRITISH EMPIRE.
List of company acts of the British Empire from 1862 to 1907,
showing title of act and year of passage.
Year
of
1862.
1864.
1867.
1870.
1877.
1879.
1880.
1883.
1897.
1900.
1907.
1908.
1908.
1882.
1895.
1902.
1904.
Title of act.
1897.
1900.
1901.
1902.
1897.
UNITED KINGDOM.
Companies act.
Companies seals act.
Companies act.
Joint stock companies arrange-
ment act.
Companies act.
Do.
Do.
Companies (colonial registers) act.
Companies act.
Preferential payments in bank-
ruptcy act.
Companies (memorandum of asso-
ciation) act.
Companies (winding up) act.
Directors' liability act.
Companies (winding up) act.
Companies act.
Do.
Do.
Do.
Companies (consolidation) act
(Dec. 21, 1908).
INDIA.
Indian companies act.
Indian companies (memorandum
of association) act, amending act
of 1882.
DOMINION OF CANADA.
(As distinguished from the Cana-
dian Provinces.)
Companies act.
Do.
Companies may be incorpo-
rated either under Dominion
laws or those of the Provinces,
but the insolvency of companies
is a matter within the exclusive
jurisdiction of the Dominion.
CANADA.
Ontario.
Ontario companies act.
Ontario companies act (amend-
ment).
Do.
Do.
Do.
Do.
Ontario mining companies incor-
poration act.
An act, chap. 215 of laws of 18 7.
Directors' liability act.
Year
of
1897..
1897..
1902..
1900..
1901..
1895.
1898.
1902.
1904.
1904.
1900.
1900.
1900.
1902.
1903.
1904.
1905.
1906.
1900.
1903.
1904.
1904..
1906..
1903..
1903..
1905..
1902..
1904..
1905..
1906..
Title of act.
c AN A DA continued .
Ontario Continued.
Chaps. 217, 219, 220 of laws of 1897
(3 acts).
Joint stock companies winding up
act.
Joint stock companies winding up
act (amendment).
Act respecting the' licensing of
extraprovincial corporations.
Do.
Quebec.
Revised Statutes (arts. 4694 to 4793).
Amendment.
Do.
Do.
Do.
Extraprovincial corporations.
Nova Scotia.
Nova Scotia companies act.
Companies (winding up) act.
Chap. 130, Revised Statutes.
Companies' act of 1900 (amend-
ment).
Do.
Do.
Do.
Do.
Chap. 127, relating to foreign cor-
porations.
Amendment.
Do.
New Brunswick.
New Brunswick joint stock com-
panies act.
New Brunswick joint stock com-
panies' act (amendment).
Do.
Consolidated Statutes, chap. 86.
Companies winding-up act.
Extraprovincial corporations, li-
censing of.
Extraprovincial corporations, li-
censing of (amendment).
Manitoba.
Manitoba joint stock companies
act.
Manitoba joint stock companies
act (amendment).
Do.
Manitoba joint stock companies
act (amendment) (2).
1649113-
-27
417
418
LAWS ON TRUSTS AND MONOPOLIES.
Year
Year
of
pas-
Title of act.
pal- Title of act.
sage.
sage.
CAN ADA continued .
COMMONWEALTH OF AUSTRALIA
continued.
British Columbia Continued.
Tasmania Continued.
1899..
Joint stock companies winding-up
act.
1896..
Companies act (amendment).
1902..
1903..
Chap. 29, laws of 1902.
Foreign corporation act.
1898..
1901..
Foreign companies act, No. 2.
Foreign companies amendment
act.
Province of Northwest Territories.
1902..
Do.
1905..
Do.
1901..
1903..
1903..
1903..
Companies ordinance.
Foreign companies ordinance.
Companies winding-up ordinance.
Trust companies ordinance.
1884..
1895. .
1896..
1900..
Mining companies act.
Mining companies (foreign) act.
Mining companies amendment act.
Do.
British Columbia.
Western Australia.
1897..
Companies act (a consolidation
1893..
Companies act (a consolidation
act).
1898..
Companies act (amendment).
1896..
Companies act amendment act.
1899..
Do.
1897..
Do.
1900..
Do.
1898..
Do.
1901..
Do.
1899..
Companies duty act.
1902..
1904..
Companies act (amendment) (2).
Companies act (amendment).
1899..
1902..
Companies act amendment act.
Do.
1905..
60.
1906..
Do.
New Zealand.
1898.-
1903..
1898..
Mortgage debenture act .
Companies winding-up act.
Companies act (since repealed).
1903.-
1904..
Companies act (a consolidation
act).
Mining companies act .
COMMONWEALTH OF AUSTRALIA.
SOUTH AFRICA.
New South Wales.
Cape of Good Hope.
1899..
Companies act (a consolidation
act).
1892..
Companies act.
1900..
1906..
Companies act (amendment).
Do.
1895..
1906..
Company debenture act.
Companies act amendment act.
1901..
Companies (death duties) act.
Natal.
Victoria.
1864..
Joint stock companies limited
1890..
Companies act (a consolidation
liability law.
act).
1865. .
Law No. 18.
1892..
1895..
Companies act amendment act.
Companies documents act.
1866..
1893..
Winding-up law.
Joint stock companies amendment
1896..
1896..
1897..
Companies act amendment act .
Companies act.
Companies act amendment act
1896..
1899. .
law.
Law No. 3.
Share-pledge act.
(September).
1897..
Companies act amendment act
Transvaal.
(December).
1900..
Companies act.
1874..
Law No. 5, enacted by the Volks-
1903..
Do.
raad, resolution dated Oct. 31,
1874.
South Australia.
1874..
Amendment, Nov. 18, 1874.
1890..
Amendment, May 10, 1890.
1892..
Companies act (a consolidation
1892..
Amendment, May 24, 1892.
act).
1892..
Amendment by executive
1893..
Companies amendment act.
council Dec. 11, 1892, by au-
thoritv of Volksraad.
Queensland.
1894..
Volksraad resolution, June 2, 1894.
1894..
Volksraad resolution, May 30, 1894.
1863..
Companies act.
1904..
Ordinance No. 30.
1886..
British companies act.
1886..
1889..
1890..
Mining companies act.
Companies act amendment act.
Dividend duty act.
1891..
Orange River Colony.
Statute law of Orange Free State
1891..
Companies act.
chap. 100.
1892..
Companies (winding up) act.
1892..
Law No. 2.
1893..
Companies act.
1892..
Law No. 4.
1894..
Reconstructed companies act.
1904..
Companies amendment ordinance
1895..
Foreign companies act.
No. 24.
1896..
Do.
Tasmania.
British South Africa Co.
1869. .
Companies act.
1895..
Ordinance No. 2.
1895. .
Companies act (amendment).
JAPAN.
If a company does acts contrary to the public welfare
or to good morals, the court may on the application of
a public procurator or of its own motion order its disso-
lution. (Commercial Code of Japan, Book 11, Chap. 1,
Sec. 48, Loenholm.)
419
NEW ZEALAND.
ACTS FOB THE REPRESSION OF MONOPOLIES IN TRADE
OR COMMERCE.
[New Zealand Statutes, 1, Geo. V, 1910, No. 32.]
AN ACT For the repression of monopolies in trade or commerce. Title.
, [ N o v . 2 1,
Be it enacted ~by the General Assembly of New Zealand
in Parliament assembled, and by the authority of the
same, as follows:
1. This act may be cited as the " commercial trusts act, short title
1910," and shall come into operation on the 1st day of Kent.
January, 1911.
2. (1) In this act, unless the contrary intention ap- interp re-
pears, " commercial trust " means any association or com-
bination (whether incorporated or not) of any number
of persons, established either before or after the com-
mencement of this act, and either in New Zealand or
elsewhere, and (a) having as its object, or as one of its
objects, that of (1) controlling, determining, or influenc-
ing the supply or demand or price of any goods in New
Zealand or any part thereof or elsewhere, or that of (2)
creating or maintaining in New Zealand or any part
thereof or elsewhere a monopoly, whether complete or
partial, in the supply or demand of any goods; or (5)
acting in New Zealand or elsewhere with any such object
as aforesaid ; and includes any firm or incorporated com-
pany having any such object, or acting as aforesaid.
"Association " includes the union of any number of
persons by or under any agreement or trust, whether
temporary or permanent, and whether legally valid or
not, and whether including any scheme of organization or
common management or control or not.
" Member of a commercial trust " means any of the
constituent persons of that trust, or any agent of that
trust, and, where any such constituent person or agent is
a corporation, firm, or association, includes every mem-
ber or agent of that corporation, firm, or association.
421
422 LAWS ON TRUSTS AND MONOPOLIES.
" Person " includes a corporation, and as used in the
foregoing definitions of " commercial trust," " associa-
tion," and " member of a commercial trust " includes also
a firm of partners or any other association or combina-
tion of persons.
Application (2) Nothing in this act shall apply to any goods other
than those specified in the schedule hereto,
niegai con- 3 Every person commits an offense who, either as
cessions in con- J
exclusive 11 de-'l* P r i nc ip a l or agent, in respect of dealings in any goods,
in s- gives, offers, or agrees to give to any other person any re-
bate, refund, discount, concession, allowance, reward, or
other valuable consideration for the reason or upon the
express or implied condition that the latter person
(a) Deals or has dealt or will deal, or intends or
undertakes or has undertaken or will undertake to deal,
exclusively or principally, or to such an extent as amounts
to exclusive or principal dealing, with any person or class
of persons, either in relation to any particular goods or
generally; or
(b) Does not deal or has not dealt or will not deal,
or intends or undertakes or has undertaken or will under-
take not to deal, with any person or class of persons,
either in relation to any particular goods or generally ; or
(c) Restricts or has restricted or will restrict, or
intends or undertakes or has undertaken or will under-
take to restrict, his dealing with any person or class of
persons, either in relation to any particular goods or
generally; or
(d) Is or becomes or has been, or has undertaken or
will undertake to become, a member of a commercial
trust; or
(e) Acts or has acted or will act, or intends or under-
takes or has undertaken or will undertake to act, in
obedience to or in conformity with the determinations,
directions, suggestions, or requests of any commercial
trust with respect to the sale, purchase, or supply of any
goods.
niegai re- 4. Every person commits an offense who. either as
l!> principal or agent, refuses, either absolutely or except
upon disadvantageous or relatively disadvantageous con-
ditions, to sell or supply to any other person, or to pur-
chase from any other person, any goods for the reason
that the latter person
(a) Deals or has dealt or will deal, or intends to deal,
or has not undertaken or will not undertake not to deal.
NEW ZEALAND. 423
with any person or class of persons, either in relation to
any particular goods or generally ; or
(6) Is not or has not been, or will not become or under-
take to become or has not undertaken to become, a mem-
ber of a commercial trust; or
(<?) Does not act or has not acted or will not act, or
does not intend to act, or has not undertaken or will not
undertake to act, in obedience to or in conformity with
the determinations, directions, suggestions, or requests of
any commercial trust with respect to the sale, purchase,
or supply of any goods.
5. Any person who conspires with any other person to ni 1 mo ~
monopolize wholly or partially the demand or supply in
New Zealand or any part thereof of any goods, or to con-
trol wholly or partially the demand or supply or price in
Xew Zealand or any part thereof of any goods, is guilty
cf an offense if such monopoly or control is of such a
nature as to be contrary to the public interest.
6. (1) Every person commits an offense who, either as Sales **
J J prices fixed by
principal or agent, sells or supplies, or offers for sale or;' commercial
supply, any goods at a price which is unreasonably high,
if that price has been in any manner directly or indirectly
determined, controlled, or influenced by any commercial
trust of which that person or his principal (if any) is or
has been a member.
(2) Every person commits an offense who, in obedience
to or in consequence of or in conformity with any deter-
mination, direction, suggestion, or request of any com-
mercial trust, whether he is a member of that trust or not.
sells or supplies, or offers for sale or supply, any goods,
whether as principal or agent, at a price which is unrea-
sonably high.
7. (1) If any commercial trust, whether as principal * ( a om e ra s erc Jai
or agent, sells or supplies, or offers for sale or supply. t:-ust.
any goods at a price which is unreasonably high, every
person who is then a member of that trust shall be deemed
to have committed an offense against this act.
(2) If in any such case the commercial trust is a cor-
poration, it shall itself be guilty of an offense against
this act ; but the liability of the trust shall not exclude
or affect the liability of its members under the last pre-
ceding subsection.
8. For the purposes of this act the price of any goods ' n ) W J 161 J O
shall be deemed to be unreasonably high if it produces
or is calculated to produce more than a fair and reason-
424 LAWS ON TRUSTS AND MONOPOLIES.
able rate of commercial profit to the person selling or
supplying, or offering to sell or supply, those goods, or
to his principal, or to any commercial trust of which that
person or his principal is a member, or to any member of
any such commercial trust.
abeufif a "? ^' -^ ver y P erson wno aids, abets, counsels, or procures,
fenses against or is in any way knowingly concerned in the commission
this act. J J . J i -i
of, an offense against this act, or the doing of any act
outside New Zealand which would if done in New Zea-
land be an offense against this act, shall be deemed to
have committed that offense.
Penalty. io. (1) Every person who commits an offense against
this act shall be liable to a penalty of 500.
(2) If two or more persons are responsible for the same
offense against this act, each of those persons shall be
severally liable to a penalty of 500, and the liability of
each of them shall be independent of the liability of the
others.
coverage 68 by ^ 1> Every such penalty shall consttute a debt due by
supreme in com^ tne offender to His Majesty the King, and shall be re-
coverable, together with costs of suit, by a civil action in
the supreme court, instituted by the attorney general for
and in the name of His Majesty.
s u p r e in o 12. In any such action the supreme court may remit
duce penalty, such part of the aforesaid penalty of 500 as it thinks
fit, and may give judgment for the residue of the penalty
only.
against" repetf- I**. In any such action the supreme court may, in addi-
ua^cVof^of- ti n to the said penalty, grant an injunction against the
continuance or repetition of the offense; but no such in-
junction shall be granted by way of interlocutory pro-
ceedings before final judgment in the action.
ar8es dei a nd -^' (^) ^ n an ^ suc ^ ac ti n claims may be joined for
tioi? es f ac the recovery of penalties in respect of several offenses,
whether of the same or different kinds.
(2) In any such action several persons may be joined
as defendants, whether in respect of the same or of dif-
ferent offenses, and whether those offenses are committed
by the same or by different parties; and in any such case
separate judgments may be given in respect of each de-
fendant so joined.
(3) In the case of any such joinder of causes of action
or of parties the supreme court may give such directions
as it thinks fit for the separate trial of any cause of
action against any defendant.
STEW ZEALAND.
425
15. (1) In any action for the recovery of a penalty Evidence,
or for an injunction under this act the supreme court
may, in proof of any fact in issue, admit and accept as
sufficient such evidence as it thinks fit, whether such evi-
dence is legally admissible in other proceedings or not.
(2) In any action for the recovery of a penalty or for
an injunction under this act, no person, whether a party
to the action or not, shall be excused from answering any
question put to him by interrogatory or otherwise, or
from producing or making discovery of any document,
on the ground that the answer to the question or the pro-
duction or discovery of the document would tend to crim-
inate him in respect of any offense against this act.
SCHEDULE. Schedule.
GOODS TO WHICH THIS ACT APPLIES.
Agricultural implements.
Coal.
Meat.
Fish.
Flour, oatmeal, and the other products or by-products of the
milling of wheat or oats.
Petroleum or other mineral oil (including kerosene, naphtha,
and the other products or by-products of any such oil).
Sugar.
Tobacco (including cigars and cigarettes).
PATENTS, DESIGNS, AND TRADE-MARKS.
[1908, No. 140.]
AN ACT To consolidate certain enactments of the general
assembly relating to patents for inventions and registration of
designs and of trade-marks.
COMPULSORY LICENSES.
28. If on the petition of any person interested it is ^ e ? n ^ r e t l *_
proved to the governor that by reason of the default^
of a patentee to grant licenses on reasonable terms (a) '
the patent is not being worked in New Zealand; or (&)
the reasonable requirements of the public with respect
to the invention can not be supplied; or (c) any per-
son is prevented from working or using to the best ad-
vantage an invention of which he is possessed, the
governor may order the patentee to grant licenses on
such terms as to the amount of royalties, security for
>c 33J
426 LAWS ON TRUSTS AND MONOPOLIES.
payment, or otherwise, as the governor, having regard
to the nature of the invention and the circumstances of
the case, deems just, and any such order may be enforced
by mandamus.
(Xew Zealand Consolidation Statutes, Vol. IV, Ap-
pendix D. act 140, sec. 28.)
MONOPOLY PREVENTION ACT.
[1908, No. 122.]
AX ACT To consolidate certain enactments of the general
assembly relating to the prevention of certain monopolies.
Be it enacted by the general assembly of New Zealand
in parliament assembled, and Inj the authority of the
same, as follows:
Short title. l. (l) The short title of this act is ''The monopoly
prevention act, 1908."
Enactments (2) This act is a consolidation of the enactments men-
consolidated. ....
tioned in the first schedule hereto, and with respect to
those enactments the following provisions shall apply :
Savings. (#) All appointments, regulations, orders in council^
orders, reports, recommendations, instruments, and gen-
erally all acts of authority which originated under any
of the said enactments, and are subsisting or in force on
the coming into operation of this act, shall enure for the
purposes of this act as fully and effectually as if they
had originated under the corresponding provisions of
this act, and accordingly shall Avhere necessary be deemed
to have so originated.
(b) All matters and proceedings commenced under any
such enactment, and pending or in progress on the com-
ing into operation of this act, may be continued, com-
pleted, and enforced under this act.
(3) This act is divided into parts, as folloAvs:
Part I. Agricultural implements. (Sees. 2 to 13.)
Part II. Flour and other products. (Sees. 14 to 24.)
PAKT I. Agrwultural implements.
interpreta- 2. In this part of this act, if not inconsistent with the
NO. 58, sec. )' context, " implements" means the implements, machines,
and appliances specified in the second schedule hereto;
" minister " means the minister of customs.
NEW ZEALAND. 427
3. (1) The minister shall cause to be compiled a state- ^
merit showing in the case of each implement its descrip- <n>ici., sec. 3.
tion, the nature and quality of the materials used in its
construction, and the price then current.
(2) Such statement shall be published in the Gazette.
4. On complaint to the minister by any two or more Complaint of
J " unfair compe-
manufacturers in New Zealand of any implement that the*j{tjpn. (ibid.,
price of any implement on importation into New Zealand
lias been materially reduced, and that competition on
unfair lines is being carried on by importers of imple-
ments from foreign countries, he shall summon the board
IK reinafter constituted and refer the matter of such com-
plaint to it for report.
r>. (1) There is hereby constituted a board called " The hl f e d ard ^g 1 ;
agricultural implement inquiry board," consisting of
The judge of the court of arbitration, who shall be
chairman ;
The president for the time being of the Farmers'
Union;
The president of the Industrial Association of Canter-
bury ;
Some person appointed by the governor on the recom-
mendation of the trades and labor councils; and
Some person appointed by the governor on the recom-
mendation of the agricultural and pastoral associations.
(2) The members of the board appointed by the gov-
ci-iK r shall be appointed in the same manner as members
(f the court of arbitration (other than the judge) are
appointed.
(3) The board and its members as constituted under
" The agricultural-implement manufacture, importation.
and sale act, 1905," and subsisting on the coming into
operation of this act, shall be deemed to be the board and
its members under this act,
6. (1) The board on being summoned by the minister inquiry by
4i ! Ti-ii ., , . board. (Ibid.,
shall inquire with as little delay as possible into the mat- ^. 6; 1007,
ter referred to it in such manner as it thinks fit, and for
the purposes of such inquiry shall have and may exercise
jill the powers that the court of arbitration has in respect
of industrial disputes.
(2) The board may exercise its powers and functions
at any meeting at which the judge of the court of arbitra-
tion and at least three other members of the board are
present.
428 LAWS ON TRUSTS AND MONOPOLIES.
(3) The board shall report in writing to the minister
the result of its inquiry, and shall state whether or not
in its opinion the price of any implement imported into
New Zealand has been materially reduced below that
specified in the statement mentioned in section 3 hereof,
^nd may recommend that relief be granted in the manner
hereinafter appearing.
imposedTf a New ^' (*) ^ at an ^ tmie ^ manufacturers of imple-
factu?OTs ma "e" ments in New Zealand agree to reduce the price of the
a l 905 e N P o ic S' wn l e ^ tne implements mentioned in the second
sec. 7.) schedule hereto, or not less than a moiety thereof, to at
least 20 per cent below that specified in the statement
mentioned in section 3 hereof, and notify the minister
of such agreement, he shall summon the board and refer
the matter to it for report.
(2) The board shall in like manner make inquiry into
the matter, and report in writing to the minister whether
or not in its opinion it is advisable for the protection of
the industry in New Zealand that relief be granted as
hereinafter mentioned.
Power to g. (1) In any case where the board recommends that
grant bonus. v ' *
^1905, NO. ss. relief be granted it shall be lawful for the minister to
grant to the manufacturers of implements in New Zea-
land such bonus, not exceeding 33 per cent, as he deems
necessary to enable, manufacturers to compete with im-
porters of such implements.
(2) The right to such bonus shall be subject to such
terms and conditions as the governor in council thinks
fit to impose.
implements 9. For the purposes of this act implements manufac-
manufactured . " *
in United King- tured in the United Kingdom shall be deemed to be manu-
o o in . (Ibid..
sec. 9 ; 1907. f actured in New Zealand, and the importers of such im-
plements shall be deemed to be manufacturers thereof in
New Zealand.
rend w duty In 10. (1) Whenever it is proved to the satisfaction of
Jfa/J In (ijfo the collector that duty-paid materials have been used in
NO. 58, sec. io.) fae construction of any implement, he shall refund to
the manufacturer of such implement the amount of duty
paid on the materials so used.
(2) For the purposes of this section " materials " in-
cludes such parts, of implements as can not advantag* 1 -
ously be manufactured in New Zealand.
boVr^to* be H- Ever J report of the board shall be laid before
^f r e 1 I ; t a e men t t Parliament within 10 days after its presentation to the
sec 9 5 7 ) N ' 8 ' minister of customs if Parliament is then sitting, and if
NEW ZEALAND. 429
not, then within 10 days after the commencement of the
uext ensuing session.
12. (1) This part of this act shall be deemed to be in- r ^ in ( c ?SJg;
corporated with " the customs law act, 1908." ; V l 8 ^ n }f:
(2) The governor may from time to time, by order in *J^{IA il)id '
council gazetted, make regulations necessary for the
carrying out of this part of this act.
13. This part of this act shall continue in operation till this""?? of
the 31st day of December, 1908, on which day it shall be N.!; 2iYm?;
deemed to be repealed. s)' N '
PART II. Flour and other products.
14. In this part of this act "the court" means the te T ti ^ e r ( 5 V
court of arbitration under "The industrial conciliation No - 34 ' sec - ->
isnd arbitration act, 1908."
15. Notwithstanding anything in " The customs duties
act, 1908," it shall be lawful for the governor, at any "{f
time and from time to time, on the recommendation of
the court, made in accordance with this part of this act,
to declare, by order in council gazetted, that on and after
a date to be specified in such order in council flour im-
ported into New Zealand shall be admitted free of all
duties of customs, and so long as any such order in
council remains in force flour shall be exempt from such
duties accordingly.
16. Any such order in council may be revoked by the ,. Siei?
governor at any time as from a day to be specified in the I, 1 "
order in council revoking the same, not being earlier than ( '
three months from the gazetting of the last-mentioned
order in council.
17. The court may from time to time, at the direction in ( qi S;e rt as m tJ
of the governor, make an inquiry as to whether the whole- ^^ x flo "J'
sale market price of flour in New Zealand is unreasonably Pec - 5>)
high, and if on such inquiry the court finds that such
price is, or has at any time since the receipt of such
direction from the governor been, unreasonably high, the
court shall recommend the governor to exercise the
powers conferred on him by section 15 hereof.
18. For the purposes of such inquiry the price of flour V ^ e of 01 alr
shall be deemed to be unreasonably high ('bid., sec - 6 ->
(a) If the average price of flour in New Zealand is,
relatively to the price of wheat in New Zealand, higher
than the average price of flour in Australia relatively to
the average price of wheat in Australia, unless in the
430 LAWS ON TRUSTS AND MONOPOLIES.
opinion of the court the additional price in New Zealand
is justified by additional cost of production; or
(b) If the average price of wheat in New Zealand has,
by reason of any combination among the holders of
stocks of wheat, or by reason of any complete or partial
monopoly established by any such holder, been raised
above the price which would be determined by unre-
stricted competition.
Sees, is to 19. (1) The provisions of sections 15 to 17 hereof shall
wheat ap ?ibid" also apply to wheat in the same manner as to flour.
(2) For the purpose of any inquiry by the court under
the authority of this part of this act the price of wheat
shall be deemed to be unreasonably high if the average
wholesale price in New Zealand has, by reason of any
combination among the holders of stocks, or by reason of
any complete or partial monopoly established by any such
holder, been raised above the price which would be deter-
mined by unrestricted competition.
sees. 15 i<> 20. (1) The provisions of sections 15 to 17 hereof shall
17 to apply to v ' . , a
potatoes, also applv to potatoes in the san e manner as to flour.
(Ibid.. sec. S.) ^ * L . . . . ,
(2) Por the purpose of any inquiry by the court under
the authority of this part of this act the price of potatoes
shall be deemed to be unreasonably high
(a) If the average wholesale price in New Zealand
exceeds 7 per ton ; or
(b) If the average wholesale price in New Zealand
has, by reason of any combination among the holders of
stocks of potatoes, or by reason of any complete or partial
monopoly established by any such holder, been raised
above the price which would be determined by unre-
stricted competition.
ag? pHce aV de': 21. (1) The average price in New Zealand of any of
*i e bi r d.?sec. e i?-) tne aforesaid articles shall be determined by the court
for the purposes of this part of this act, by reference
to the ordinary market price for the time being in Inver-
cargill, Dunedin, Oamaru, Timaru, Christchurch, Wel-
lington, and Auckland.
(2) The average price in Australia of any of the afore-
said articles shall be likewise determined by reference to
the ordinary market price for the time being in Adelaide,
Sydney, and Melbourne.
Court to
have powers of
^ ^ S P ai *t ^ this act, the court shall be deemed to be
a commission within " the commissions of inquiry act.
1908," and shall have all the powers conferred upon com-
Court to 22. (1) In making any inquiry under the authority
J . J
NEW ZEALAND. 431
missioners by that act, and shall be subject to all the
provisions of that act accordingly.
(2) In making any such inquiry the court may receive
and act on any evidence which it thinks fit, whether the
same is legally admissible in a court of law or not.
23. (1) For the purposes of this part of this act there t .i^e p^esenta-
shall be added to the court one additional member thereof, cultural and
' pastoral socie-
to be appointed bv the governor from time to time in the ti<*s to be a
; member of the
case of any inquiry under this part of this act, on the court. (i07,
J . < J ... No. .U. sec.ll.)
recommendation of a majority of the societies incor-
porated under " the agricultural and pastoral societies
act, 1908."
(2) The member so appointed shall be deemed to be a
member of the court for the purpose of the inquiry in
respect of which he was so appointed, but for no other
purpose whatsoever.
(3) The recommendation of the said societies shall be
made in such manner as is prescribed by regulations made
by the governor in council.
(4) If the said societies fail to make any recommenda-
tion in accordance with such regulations, the governor
may appoint as such additional member of the court any
person whom he thinks fit.
(5) The additional member (if any) appointed under
" the flour and other products monopoly prevention act,
1907," and in office on the coming into operation of this
act, shall be deemed to be the additional member under
this act.
24. (1) In the case of any inquiry under this part of , '.O 101 ' 11 '
v ' . i . I ihici.. sec. 12.)
this act the court may exercise its powers and functions
at any sitting thereof at which there are present three
members, including the judge of the court.
(2) In the case of any division of opinion, if the mem-
bers of the court who are present are equally divided in
opinion, the decision of the judge shall be deemed to be
the decision of the court.
FIRST SCHEDULE.
ENACTMENTS CONSOLIDATED.
1905, No. 58. The agricultural-implement manufacturer, importa-
tion, and sale act. 1905.
1900, No. 21. The agricultural-implement manufacture, importa-
tion, and sale act, extension act, 1906.
1907. No. 30. The agricultural-implement manufacture. imi>orta-
tion, and sale act, 1907.
1907, No. 34. The flour and other products monopoly prevention
act, 1907.
432 TRUSTS IN FOREIGN COUNTRIES.
Sees 2 T
1905, Not' 58; SECOND SCHEDULE,
schedule.
IMPLEMENTS TO WHICH PABT I OF THIS ACT RELATES.
Plows of all kinds over 1 hundredweight.
Tine harrows.
Disk harrows.
Drills, combined grain, seed, and manure, 10 coulters and over.
Drills, combined grain, seed, and manure, 10 coulters.
Drills, grain.
Rollers, land and Cambridge, over 7 hundredweight.
Cultivators and grubbers, over 2 hundredweight.
Chaff cutters, 9-inch mouth and over.
Self-bagging chaff cutters.
Seed cleaners.
(New Zealand Consolidated Statutes, Appendix D, Vol. IV, pp.
283 to 287.)
[1908, No. 236.]
Title. AN ACT To amend the monopoly prevention act, 1908.
[Oct. 10, 1908.]
Be it enacted ~by the General Assembly of New Zealand
in Parliament assembled, and ~by the authority of the
same, as follows:
Short title. i. This act may be cited as the " monopoly prevention
amendment act, 1908."
ac?SSd3i. of 2 - (*) Part I of the monopoly prevention act, 1908,
shall continue in operation until the 31st day of Decem-
ber, 1910, on which day it shall be deemed to be repealed.
Repeal. (2) Section 13 of the monoply prevention act. 1908,
is hereby repealed.
(New Zealand Statutes, 1908, No. 236, p. 110.)
[1907, No. 34.]
Title. AN ACT To prevent the establishment of monopolies in the sale
of flour and other products.
[Nov. 19, 1907.]
Be it enacted ~by the General Assembly of Neix Zealand
in Parliament assembled, and "by the authority of the
same, as follows :
Short title. L Thig a( , t may be cited ag the cc flour an( j other prod .
ucts monopoly prevention act, 1907."
NEW ZEALAND. 433
2. In this act " the court " means the court of arbitra- interpretation,
tion under the industrial conciliation and arbitration act,
1905.
3. Notwithstanding anything contained in the tariff ^^jourmay^be
act, 1907, it shall be lawful for the governor, at any time customs duty,
and from time to time, on the recommendation of the
court made in accordance with this act, to declare, by
order in council gazetted, that on and after a date to be
specified in such order in council flour imported into New
Zealand shall be admitted free of all duties of customs,
and so long as any such order in council remains in force
flour shall be exempt from such duties accordingly.
4. Any such order in council may be revoked by the co n ^f e r r em I It 1 !
governor at any time as from a day to be specified in the {? revoked may
order in council revoking the same, not being earlier than
three months from the gazetting of the last-mentioned
order in council.
5. The court may from time to time, at the direction of in^ISJ* a %o
the governor, make an inquiry as to whether the whole- price of flour *
sale market price of flour in New Zealand is unreasonably
high ; and if on such inquiry the said court finds that such
price is, or has at any time since the receipt of such direc-
tion from the governor been, unreasonably high, the said
court shall recommend the governor to exercise the powers
conferred upon him by section 3 of this act.
6. For the purposes of such inquiry the price of flour
shall be deemed to be unreasonably high
() If the average price of flour in New Zealand is,
relatively to the price of wheat in New Zealand, higher
than the average price of flour in Australia relatively to
the average price of wheat in Australia, unless in the
opinion of the court the additional price in New Zealand
is justified by additional cost of production ; or
(&) If the average price of wheat in New Zealand has,
by reason of any combination among the holders of stocks
of wheat, or by reason of any complete or partial monop-
oly established by any such holder, been raised above the
price which would be determined by unrestricted compe-
tition.
7. (1) The provisions of sections 3, 4, and 5 of this act als t c t o wheat. 1 *
shall also apply to wheat in the same manner as to flour.
(2) For the purpose of any inquiry by the court under
the authority of this act, the price of wheat shall be
deemed to be unreasonably high if the average wholesale
price in New Zealand has, by reason of any combination
1649113 28
434 LAWS ON TBUSTS AND MONOPOLIES.
among the holders of stocks or by reason of any com-
plete or partial monopoly established by any such holder,
been raised above the price which would be determined
by unrestricted competition.
aiso Ct to poK 8- (1) The provisions of sections 3, 4, and 5 of this act
toe8 ' shall also apply to potatoes in the same manner as to
flour.
(2) For the purpose of any inquiry by the court under
the authority of this act, the price of potatoes shall be
deemed to be unreasonably high
(a) If the average wholesale price in New Zealand
exceeds 7 per ton ; or
( b ) If the average wholesale price in New Zealand has,
by reason of any combination among the holders of stocks
of potatoes or by reason of any complete or partial mo-
nopoly established by any such holder, been raised above
the price which would be determined by unrestricted
competition.
9. The average price in New Zealand of any of the
aforesaid articles shall be determined by the said court
for the purposes of this act by reference to the ordinary
market price for the time being in Invercargill, Dune-
din, Timaru, Oamaru, Christchurch, Wellington, and
Auckland. The average price in Australia of any of
the aforesaid articles shall be likewise determined by ref-
erence to the ordinary market price for the time being in
Adelaide, Sydney, and Melbourne.
10- (1) I n making any inquiry under the authority of
commission. ^^ &( ^ ^ cour ^ ^^ fa Deemed to be a commission
within the commissioners act, 1903, and shall have all
the powers conferred upon commissioners by that act,
and shall be subject to all the provisions of that act
accordingly.
(2) In making any such inquiry the said court may
receive and act on any evidence which it thinks fit,
whether the same is legally admissible in a court of law
or not.
tife e o? a e g S r e i?S- 11. .(1) For the purposes of this act there shall be
torai a societ a es added to the court one additional member thereof, to be
e? the a <urt. ber appointed by the governor from time to time in the case
of any inquiry under this act, on the recommendation of
a majority of the societies incorporated under the agri-
cultural and pastoral societies act, 1877.
(2) The member so appointed shall be deemed to be
a member of the said court for the purpose of the inquiry
NEW ZEALAND.
435
in respect of which he was so appointed, but for no other
purpose whatsoever.
(3) The recommendation of the said societies shall be
made in such manner as is prescribed by regulations made
by the governor in council.
(4) If the said societies fail to make any recommenda-
tion in accordance with such regulations, the governor
may appoint as such additional member of the said court
any person whom he thinks fit.
12. (1) In the case of any inquiry under this act the
court may exercise its powers and functions at any sitting
thereof at which there are present three members, includ-
ing the judge of the said court.
(2) In the case of any division of opinion, if the mem-
bers of the said court who are present are equally divided
in opinion, the decision of the said judge shall be deemed
to be the decision of the court.
(Xew Zealand Statutes, 7 Edw. VII. 1907, pp. 137 to
139.)
[1907, No. 30.] ;
AN ACT To amend the agricultural-implement manufacture, im-
portation, and sale net. 1905, and to continue the operation
thereof.
[Nov. 13, 1907.]
Be it enacted by the General Assembly of New Zealand,
in Parliament assembled, and by the authority of the
same, as follows:
1. This act may be cited as the " agricultural-imple-
ment manufacture, importation, and sale act, 1907."
2. Section 2 of the agricultural-implement manufac-
ture, importation, and sale act extension act. 1906, is
hereby amended by omitting the word " seven " and sub-
stituting the word " eight.''
3. Section 9 of the agricultural-implement manufac-
ture, importation, and sale act, 1905, is hereby amended
by omitting the words "of British manufacture" and
substituting the words " manufactured in the United
Kingdom."
4. The board constituted by the last-mentioned act
may exercise its powers and functions at any meeting at
which the judge of the court of arbitration and at least
three other members of the board are present.
5. The report of the board shall be laid before Parlia-
ment within 10 days after its presentation to the minis-
ter of customs if Parliament is then sitting, and if not,
Quorum.
Title.
Short title.
Act of 1906
extended.
Sec. 9 of act
of 1905 amend-
Quorum of ag-
ricultural-im-
p 1 e m e n t in-
quiry board.
Report of
board to be
presented to
Parliament.
436 LAWS ON TRUSTS AND MONOPOLIES.
then within 10 days after the commencement of the next
ensuing session.
(New Zealand Statutes, 7 Edw. VII, 190T, p. 129.)
[1906, No. 21.]
Title. AN ACT T<> revive "the agricultural-implement manufacture, im-
portation, and sale act, 1905."
[Oct. 23, 1906.]
Be it enacted by the General Assembly of New Zealand,
in Parliament assembled* and by the authority of the
sawie, ax follows:
snort title. L Th e S h ort title of this act is " The agricultural-
implement manufacture, importation, and sale act exten-
sion act. 1906."
ofa?t tlnuatl n 2 - I 1 ) The agricultural-implement manufacture, im-
portation, and sale act, 1905, shall continue in operation
and be deemed to have continued in operation as if sec-
tion 13 thereof had not been passed until the 31st day of
December. 1907.
Repeal. (2) The said section 13 is hereby repealed.
(New Zealand Statutes, 1906, No. 21, p. 71.)
[1905, No. 58.]
Title. AN ACT To regulate and control the manufacture and sale of cer-
tain agricultural implements within New Zealand and the im-
portation of the same implements from foreign countries.
[Oct. 31, 1905.]
Be it enacted by the General Assembly of New Zealand
in Parliament assembled, and by the authority of the
same, as follows-'
short title. i. The short title of this act is " The agricultural im-
plement manufacture, importation, and sale act, 1905."
tation. erpre ~ 2 - * n tn i s act ? if not inconsistent with the context,
" commissioner " means the commissioner of trade and
customs ; " implements " means the implements, machines,
and appliances specified in the schedule hereto.
to IS 1 compiled 1 3 - (1) As soon as practicable after the passing of this
act the commissioner shall cause to be compiled a state-
ment showing in the case of each implement its descrip-
tion, the nature and quality of the materials used in
its construction, a*nd the price current on the passing of
this act.
(2) Such statement shall be published in the Gazette.
unfai? pl compe f 4 - ^ n complaint to the commissioner by any two or
tition. more manufacturers in New Zealand of any implement
NEW ZEALAND. 437
that the price of any implement on importation into New
Zealand has been materially reduced, and that competi-
tion on unfair lines is being carried on by importers of
implements from foreign countries, he shall summon the
board hereinafter constituted and refer the matter of such
complaint to it for report.
5 (1) There is hereby constituted a board called " the tuf^ ard constl "
agricultural implement inquiry board," consisting of
The president of the arbitration court, who shall be
chairman ;
The president for the time being of the Farmers'
Union ;
The president of the Industrial Association of Canter-
bury;
Some person appointed by the governor on the recom-
mendation of the trades and labor councils; and
Some person appointed by the governor on the recom-
mendation of the agricultural and pastoral associations.
(2) The members of the board appointed by the gov-
ernor shall be appointed in the same manner as members
of the arbitration court (other than the president) are
appointed.
6. (1) The board on being summoned by the commis- bol^ ulry by
sioner shall inquire with as little delay as possible into
the matter referred to it in such manner as it thinks fit,
and for the purposes of such inquiry shall have and
may exercise all the powers that the arbitration court has
in respect of industrial disputes.
(2) The board shall report in writing to the commis-
sioner the result of its inquiry, and shall state whether
or not in its opinion the price of any implement imported
into New Zealand has been materially reduced below that
specified in the statement mentioned in section 3 hereof,
and may recommend that relief be granted in the manner
hereinafter appearing.
7. (1) If at any time after the passing of this act the lm D J^ S a ^
manufacturers of implements in New Zealand agree to Zealand manu-
reduce the price of the whole of the implements men- auce prices,
tioned in the schedule hereto, or not less than a moiety
thereof, to at least 20 per cent below that specified in the
statement mentioned in section 3 hereof, and notify the
commissioner of such agreement, he shall summon 'the
board and refer the matter to it for report.
(2) The board shall in like manner make inquiry into
the matter, and report in writing to the commissioner
whether or not, in its opinion, it is advisable for the pro-
438 LAWS OK" TRUSTS AND MONOPOLIES.
tection of the industry in New Zealand that relief be
granted as hereinafter mentioned.
Power to i 8. (1) In anv case where the board recommends that
grant DODUB. . .
relief be granted it shall be lawful for the commissioner
to grant to the manufacturers of implements in New
Zealand such bonus, not exceeding 33 per cent, as he
cleems necessary to enable manufacturers to compete with
importers of such implements.
1 (2) The right to such bonus shall be subject to such
terms and conditions as the governor in council thinks fit
io impose.
9. For the purposes of this act implements of British
facture. manufacture shall be deemed to be manufactured in New
Zealand, and the importers of such implements shall be
deemed to be manufacturers thereof in New Zealand.
refund w duty on 10. (1) Whenever it is proved to the satisfaction of
rfa in mate the collector that duty-paid materials have been used in
the construction of any implement, he shall refund to the
manufacturer of such implement the amount of duty paid
on the materials so used.
(2) For the purposes of this section materials include
such parts of implements as can not advantageously be
manufactured in New Zealand.
raferi 81 ' 11. This act shall be deemed to be incorporated with
" the customs laws consolidation act, 1882," and its
amendments.
Regulations. 12 The governor may from time to time, by order in
council gazetted, make regulations necessary for the car-
rying out of this act.
ac Duration of < lg Thig act ^^ continue in operation till the 1st
day of August, 1906, on which day it shall be deemed to
be repealed.
Schedule. SCHEDULE.
IMPLEMENTS TO WHICH THIS ACT RELATES.
Plows of all kinds over 1* hundredweight.
Tine harrows.
Disk harrows.
Drills, combined grain, seed, and manure, 10 colters and over. .
Drills, combined grain, seed, and manure, 10 colters.
Drills, grain.
Rollers, land and Cambridge, over 7 hundredweight.
Cultivators and grubbers, over 2 hundredweight.
Chaff cutters. 9-inch mouth and over.
Self -bagging chaff cutters.
Seed cleaners.
(New Zealand Statutes, 5 Edw. VII. 1905, pp. 601-603.)
o
AN INITIAL PINE OF 25 CFNTC
WILL BE ASSESSED F ^-ENTS
THIS BOOK ON THF r^ .J rAILUR E TO RETURN
WILL INCREASE TO 5 o CEHT**' THE PEN ALTY
oC E Y RD A u N E D T $I ' ON "E^E T V H E E NT F H U D R : Y
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