Denver Jobbers' Ass'n v. People

21 Colo. App. 326
CourtColorado Court of Appeals
DecidedJanuary 15, 1912
DocketNo. 3346
StatusPublished

This text of 21 Colo. App. 326 (Denver Jobbers' Ass'n v. People) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denver Jobbers' Ass'n v. People, 21 Colo. App. 326 (Colo. Ct. App. 1912).

Opinion

Presiding Judge Scott

delivered the opinion of the court.

This is an action by the attorney general of the state on behalf of the people to enjoin the defendants, corporations, officers, associations, partnerships and individuals, alleged to be engaged in a conspiracy in restraint of trade in the matter of food products.

The information alleges among other things, that the defendants are directly or indirectly engaged in the business of purchasing, shipping, selling, or otherwise dealing in food products — flour, sugar, coffee, breadstuffs and other articles of food in the state of Colorado, and that the business of [329]*329terested. That the articles and commodities in which the welfare of these defendants is solely concerned, but that said business is one in which all the people of the state of Colorado are vitally interested. That the articles and commodities in which they were and are dealing are not only of prime importance to the comfort and happiness of the people at large, but were and are necessary and essential to sustain life, and that every and all combinations between these defendants, among themselves or between these defendants or any of them, and other persons, by which they control and agree to advance, regulate or fix the price of said food products, and any and all contracts or agreements which by their operation have a tendency to increase the price thereof, affect injuriously the public good, and are unlawful as being in restraint of trade and as destroying competition, and thereby increasing the price of commodities of indispensable necessity to all the people of the state of Colorado.

That the ostensible objects of the defendants, corporations as set out in their articles of incorporations are legitimate yet in truth and in fact one of the principal, if not the principal object of said corporations is by combinations, contracts and agreements between themselves and the members thereof, and between themselves and other defendants herein mentioned, and others at this time to plaintiff unknown, to abolish competition, and to regulate and fix the price of the before mentioned commodities; that these defendant corporations prior to the first day of July, 1907, entered into a conspiracy and agreement among themselves and with the members thereof, and with the retail deal[330]*330ers of said food products, with the intent and purpose to have said retail dealers abdicate their functions so far as the price of said commodities to the consumers was concerned, and that by reason of said contracts, conspiracies and agreements they have abdicated their functions, so that the price of said commodities to the consumer is regulated and fixed, not by the retailers themselves, but by these corporations, secretaries, members and standing committees thereof, and by said Denver Local No. 1, and that they and all of them have contracted, conspired, and agreed, between themselves, their members and officers and with others to refuse to sell said necessaries of life to any retail dealers except those who will agree to abide by the price so fixed; that said contracts, combinations and agreements destroy competition, enhance the price of food products, are in restraint of trade, and are unlawful and void.

Further, that the said corporations and the other defendants herein named, by unlawfully conspiring, as aforesaid, have controlled and still control practically all the supply of food products available for the sustenance of the people of Colorado, and have controlled and fixed, and still control and fix, and will continue, unless a court of equity interferes, to control and fix the price of said commodities to the consumers, the people of Colorado, at a figure largely in excess of the prices which would prevail could the public purchase in a fair, open and competitive market. It is further alleged that in accordance with the by-laws of the defendant, herein, The Denver Retail Grocers Association, each member, on joining said association, is required [331]*331to pay into the treasury of said association the sum of ten dollars ($10.) and one dollar ($1.) per month thereafter.

That by an amendment to said by-laws, ten per cent of all money received shall be set aside as a reserve fund to be used only for defense of the-association against litigation, and for the erection of a permanent home for the association.

That, according to the provisions of said bylaws, each member upon being accepted as such is required to take the following

“OBLIGATION.
I, ............................. in the presr ence of the members of Denver Retail Grocers Association, do, by my own free will and accord, promise not to divulge any of the by-laws or rules of said association. * * * I further promise that I will not discuss the business or transactions of this association with any person whomsoever, not a member. * * * That I will abide by and support any and all actions taken by a majority vote of the members present at any meeting upon any measure for the interest of its members.
I make this promise upon my sacred honor, so help me God.”

Further, that the defendants herein, to-wit: The Denver Jobbers 'Association and The Retail Merchants Association of Colorado, have similar provisions in their by-laws, or silent and secret agreements between themselves of the same import, and that, by reason thereof, they, the said corporations, have been able to accumulate, and have accumulated a large reserve fund, and that by means thereof they are able to boycott and intimidate a [332]*332minority of their own members, and a large number of independent dealers, and render it impossible for them to buy the necessities of life in a competitive market, or at all, in Colorado, without agreeing and binding themselves to abide by and sell at the prices so unlawfully fixed as aforesaid by said defendant corporations and others. And that by reason of the obligation herein set out and similar obligations or secret understandings which the members of The Denver Jobbers Association and The Retail Merchants Association of Colorado have been required to take, the said defendant corporations have shut the mouths of their members, and made it impossible for the attorney general to ascertain, excepting in rare- cases from retired members, or to state specifically just what actions have been taken by a majority vote of the members present at any meeting of said association, or wha't contracts and agreements have been made in pursuance thereof. That at divers and sundry meetings of said association and each of them, measures have been adopted by a majority of the members present which have resulted in contracts, conspiracies, and agreements, having the effect to enhance prices of the necessities of life,'to destroy competition, and to render it impossible for retail dealers in food products to buy goods with which to supply their customers, except on the condition that they sell the same at the prices fixed by said unlawful combination and conspiracy between these associations and the other defendants mentioned herein.

And that said defendant, Denver Local No. 1, has a .large membership, and a great majority of the retail dealers of the city and county of Denver [333]

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Bluebook (online)
21 Colo. App. 326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denver-jobbers-assn-v-people-coloctapp-1912.