Commonwealth v. Hatfield Coal Co.

217 S.W. 125, 186 Ky. 411, 1919 Ky. LEXIS 205
CourtCourt of Appeals of Kentucky
DecidedDecember 19, 1919
StatusPublished
Cited by12 cases

This text of 217 S.W. 125 (Commonwealth v. Hatfield Coal Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth v. Hatfield Coal Co., 217 S.W. 125, 186 Ky. 411, 1919 Ky. LEXIS 205 (Ky. Ct. App. 1919).

Opinion

Opinion of the Court by

Chief Justice Carroll —

Affirming.

The lower court sustained a general demurrer to the following petition in a penal action and the Commonwealth appeals:

"The plaintiff states that the defendant, the Hatfield Coal Company, is a corporation organized under the laws of the Commonwealth of Kentucky,' and authorized by its charter, among other things, to produce, buy and sell coal and that it does, under its said charter, buy and sell coal in the Commonwealth of Kentucky, and in Kenton county and elsewhere. Plaintiff states that hitherto at a time unknown to this plaintiff or its officers and in a manner unknown to the Commonwealth of Kentucky or its officers, the defendant did enter into, become a member of, and participate in a pool, trust, agreement, combination, confederation or understanding with divers and sundry persons and corporations in restraint of trade or competition in the importation, transportation, purchase and sale of a certain article of merchandise, to-wit.: [413]*413coal, and that said combination, agreement, confederation, or understanding was had and made for the purpose of regulating, controlling and fixing the price of coal in Kenton county, Kentucky, and elsewhere in Kentucky, and to maintain such price when so regulated and fixed, and therefore said unlawful conspiracy, understanding, combination, confederation and agreement was had and entered into with a view of increasing or attempting to increase the market price of coal.
“Plaintiff further alleges that in furtherance of the unlawful conspiracy, the defendant, the Hatfield Coal Company or its officers or agents, has acquired interest in other corporations engaged in a similar line of business, for the purpose of placing the management and control of said corporations under its influence, and with the intention to limit and fix the price of said article, and to prevent, restrict or diminish the production of said article.
“Plaintiff further states that by reason of the wrongful acts of the defendant in entering into such conspiracy and combination the price of coal in Kenton county has been fixed and maintained by all of the dealers in said county at a uniform rate. That at divers and sundry times, the defendant, the Hatfield Coal Company, cooperating with its other confederates, in violation of the law, have without cause or reason, simultaneously increased the price of coal in Kenton county. That said defendant and its confederates by reason of their unlawful acts, have stifled and destroyed competition in said county, and have prevented the inhabitants of said county from purchasing coal, except at the unreasonable rates unlawfully fixed by the defendant, the Hatfield Coal Company, and its associates or confederates.
“Wherefore, the Commonwealth of Kentucky prays that the defendant, the Hatfield Coal Company, be declared by this court to have forfeited its corporate rights and franchises, and that the same shall be by this court declared forfeited, void and of non-effect, and that the right of the defendant company to transact business in this Commonwealth shall cease and determine, and that all of its property including its real estate, vessels, mines, machinery, money, evidences of indebtedness, choses in action, and all personal property of every other kind andi description and wherever situated, be forfeited unto the [414]*414state¿ or in lien thereof that the court assess a fine against the defendant company of ten thousand ($10,000.00) dollars. ’ ’

The penal action was instituted under an act passed by the Legislature in March, 1916, and the demurrer was sustained upon the ground that the act was unconstitutional.

The title reads: “An Act for the prevention of pools, trusts, conspiracies and combinations in restraint of trade, and to define same, and to prescribe penalties, and provide methods for the infliction thereof.”

The first section of the act reads:

“A trust or monoply as used in this act, unless a contrary intention appears, is an association or combination of any number of persons established or organized prior, or subsequent, to the passage of this act, and either in the state of Kentucky or elsewhere, and whether incorporated or unincorporated, having as its object, or as one of its objects, that of fixing, influencing or regulating the supply, demand or price of any goods, product or commodity in the state of Kentucky, or elsewhere; or that of creating or maintaining, a monopoly in Kentucky, or elsewhere, whether complete or partial, in the supply or demand of .any goods, pr oduct or commodity.

The second section reads:

“The word ‘person’ or ‘persons,’ as used in this act, shall include natural persons, partnerships, 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.”

The third section reads:

“Any person who shall create, enter into, become a member of, or participate in, any pool, trust, agreement, 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 goods, product or commodity in this state, shall be deemed guilty of a conspiracy in restraint of trade.”

The fourth section reads:

“Any person who shall create, enter into, become a member of, or participate in, any pool, trust, agreement, combination, confederation or understanding with any other person or persons to regulate, control or fix the [415]*415price of any article of manufacture, mechanism, or part thereof, merchandise or commodity, or to maintain such price when so regulated or fixed, or shall enter into, become a member of, or participate in, any pool, trust, agreement, contract, combination, confederation or understanding to fix or limit the amount of any article of manufacture, mechanism, or part thereof, merchandise, commodity, shall be deemed guilty of a conspiracy in restraint of trade.”

The fifth section reads:

“Any two or more persons engaged in buying or selling any article of commerce, manufacture, mechanism, or part thereof, or other commodity, or who shall create, enter into, become a member of, or participate in, any pool, trust, agreement, combination, confederacy, 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 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, combination, confederacy, association or understanding, or who shall boycott, or threaten, any person for buying or selling any such article or thing to any other person who is not a member of, or a party to, sucia pool, trust, agreement, combination, confederacy, associatioia or understanding, shall be deemed guilty of a conspiracy in restraint of trade.”

The sixth section reads:

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Cite This Page — Counsel Stack

Bluebook (online)
217 S.W. 125, 186 Ky. 411, 1919 Ky. LEXIS 205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-v-hatfield-coal-co-kyctapp-1919.