History for ready reference, Volume 7 : $b Recent history (1901 to 1910)Larned, J. N. (Josephus Nelson)
History
History for ready reference, Volume 7 : $b Recent history (1901 to 1910)
Larned, J. N. (Josephus Nelson)
History -- Dictionaries
In the case known as that of the United States v. Swift &
Company et al., the defendants were seven corporations, one
copartnership, and twenty-three other persons (commonly styled
"the Beef Trust"), charged with violations of the anti-trust
law, by combination in restraint of the trade which they
conducted, namely, the buying of live stock, slaughtering the
same in different states and selling the meats thus produced.
It was affirmed by the Government that they, together,
controlled about sixty per cent. of the total Volume of that
trade in the country, and that if the alleged combination
among them did not exist they "would be and remain in
competition with each other"; but that by such "unlawful
combination and conspiracy" they were directing and requiring
their agents
(1) not to bid against one another in the live-stock markets
of the different States;
(2) to bid up prices for a few days so as to induce cattlemen
to send their stock to the stock-yards;
(3) to fix prices at which they would sell, and hence, when
necessary, to restrict shipments of meat;
(4) to establish a uniform rule of credit to dealers and to
keep a blacklist;
(5) to make uniform and improper charges for cartage; and
(6) to obtain less than lawful rates from the railways to the
exclusion of all competitors.
The case, on motion for injunction, was tried first in the
Circuit Court of the Northern District of Illinois, Judge
Peter S. Grosscup. The Opinion of the Court, given April 18,
1903, held that, under the definition of the term by the
Supreme Court in the Trans-Missouri Freight Association Case
(see, in this Volume, Railways: United States: A. D.
1890-1902), "there can be no doubt that the agreement of the
defendants to refrain from bidding against each other in the
purchase of cattle is combination in restraint of trade: so
also their agreement to bid up prices to stimulate shipments,
intending to cease from bidding when the shipments have
arrived.
{120}
The same result," continued the judge, "follows when we turn
to the combination of defendants to fix prices upon and
restrict the quantities of meat shipped to their agents or
their customers. Such agreements can be nothing less than
restriction upon competition, and, therefore, combination in
restraint of trade; and thus viewed, the petition, as an
entirety, makes out a case under the Sherman Act. … The
demurrer is overruled, and the motion for preliminary
injunction granted."
Public-domain text, read in full here on John Shaqi.
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