Greater New York Live Poultry Chamber of Commerce v. United States

47 F.2d 156, 1931 U.S. App. LEXIS 3415
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 12, 1931
Docket190
StatusPublished
Cited by41 cases

This text of 47 F.2d 156 (Greater New York Live Poultry Chamber of Commerce v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greater New York Live Poultry Chamber of Commerce v. United States, 47 F.2d 156, 1931 U.S. App. LEXIS 3415 (2d Cir. 1931).

Opinion

SWAN, Circuit Judge.

The main contention of the appellants is that the conspiracy proved restrained only intrastate commerce, of which the District Court had no jurisdiction. For an understanding of this argument, some statement is necessary of how the poultry business was conducted and how the appellants interfered with it. To summarize is necessarily to omit, and almost inevitably results in a statement which to one party or the other seems vitally defective. The summary now to be given attempts to draw the picture only in broadest outline.

At least 98 per cent, of the live poultry coming into the city of New York comes from “shippers” outside the state. They send it by carload freight to commission men who are called “receivers.” About half comes in at the New York Central terminal in Manhattan, and half at’ railroad terminals in New Jersey. The receivers sell to “marketmen,” who in general are wholesalers; they in turn sell the poultry to retail poultry dealers and butchers, who pass it on to the ultimate consumer. As soon as the poultry is inspected at the terminals, it is unloaded from the ears ánd put into coops; coopage being paid for by the shippers. At the terminals much of the poultry is delivered by the receivers to their purchasers, the marketmen; the rest is trucked to West Washington Street Market, at the expense of the shippers, and there sold to marketmen. The poultry is usually shipped on straight bills of lading, and the price paid by the receiver is usually the highest market price in New York for the day on which the poultry is unloaded, less charges for freight, coops, feed en route, unloading, cartage to West Washington Market, fer-riage from New Jersey, if that occurs, and a commission of from 3 to 5 per cent. The marketmen cause the poultry which they have purchased from receivers either at the railroad terminals or at West Washington Market to be loaded on trucks and driven to their places of business. The work of loading and trucking at and from the railroad terminals is done by members of a Truckmen’s Union, one local of which operates in New York and another in New Jersey. The poultry is slaughtered in accordance with Jewish dietary customs by members of a Butchers’ Union, who are known as shoehtim, and work in the places of business of the marketmen.

The appellant Greater New York Live Poultry Chamber of Commerce is a trade association whose entire membership comprised about 65 per cent, of the marketmen in greater New York. The appellant Simon held the office of supervisor in the Chamber of Commerce; and the other individual appellants are members of it. Other defendants below were the Butchers’ Union, the New York local of the Truckmen’s Union, and certain representatives of each. The conspiracy complained of originated in plans of the Chamber of Commerce after Simon became *158 its supervisor in the summer of 1927. Simon' and the defendant members of the Chamber of Commerce are charged with conspiring to control the sales of poultry between the mar-' ketmen and the retailers; the city was divided into geographical areas, and to the mar-ketmen in each area were allocated the particular retailers to whom only they should sell; against each marketman was made a levy of 1 cent a pound on poultry sold by him; if recalcitrant, he was to he prevented from obtaining poultry by purchase from receivers, this'being accomplished through the: aid of the unions, whose members would re-; fuse to load or drive his trucks or to slaugh- ■ ter his poultry; retailers who sought to buy from others than the marketmen to whom their trade was allocated were also interfered with. Neither the shippers nor the receivers were charged with being parties to the conspiracy, but'there was abundant evidence to justify the jury in finding that marketmen who did not pay the levy or did not conform to the association’s allocation of trade, were prevented from obtaining poultry at the railroad terminals or the West Washington Market.

Granting all this, say the appellants, the commerce restrained was local; interstate commerce ended with delivery of the poultry to the receivers; there was no restraint of commerce between shippers and receivers; whatever restraint was shown was of commerce between receivers and marketmen or. between marketmen and retailers. The government challenges the premise that interstate commerce ended with delivery to the receivers ; and this issue presents the first and main question pf the appeal. The appellants’ chief reliance is Industrial Ass’n v. United States, 268 U. S. 64, 45 S. Ct. 403, 406, 69 L. Ed. 849; the government’s, Swift & Co. v. United States, 196 U. S. 375, 25 S. Ct. 276, 49 L. Ed. 518; Stafford v. Wallace, 258 U. S. 495, 42 S. Ct. 397, 66 L. Ed. 735, 23 A. L. R. 229; Binderup v. Pathe Exchange, 263 U. S. 291, 44 S. Ct. 96, 68 L. Ed. 308; People’s Gas Co. v. Public Service Commission, 270 U. S. 550, 46 S. Ct. 371, 70 L. Ed. 726.

In the Industrial Association Case it was held no violation of the Sherman Act to require permits for the use by building contractors of plaster which, after being imported from outside the state, had been brought to rest in salesrooms and warehouses and commingled with local goods. In differentiating the Swift and Stafford Cases, it was noted that in those eases the court had held that the stockyards to which the live stock ■¡was consigned and delivered was not a final destination, but “a throat through which the ’¡current flows,” and the sale there made was -.only “an incident which does' not stop the ¡flow but merely changes the private interest ;in the subject of the current without interfering with its continuity.” Similarly, in the ¡Binderup Case, “the intermediate delivery 'did not end, and was not intended to end, the /movement of the commodity, but merely halt'-ed it ‘as a convenient step in the process of getting it to its final destination.’ ” It is true -that in the live stock eases it was emphasized .’that the cattle were butchered at the stock- ; yards and sent as meat to other states. If this was the controlling circumstance, it was absent here, as the appellants insist. But this feature was not mentioned in the discussion of those eases by Mr. Justice Sutherland in the opinion in Industrial Association v. United States, supra. We do not believe that the result would have been different had the steers shipped from the West to Chicago been bought for butchering and sale in the Chicago market. In People’s Gas Co. v. Public Service Commission, supra, the gas company was a Pennsylvania corporation which produced natural gas from its own wells within the state and also purchased at the state line through a meter gas produced by another in West Virginia. The local and the foreign gas was mingled in the corporation’s pipe lines and distributed thereby to its customers. It was held that the West Virginia gas continued to be in interstate commerce until delivery to the gas company’s customers, unaffected by the passing of title and custody at the state line.

In the case at bar, the receivers did not warehouse the poultry or commingle it with local goods before disposing of it.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

George v. Celotex Corp.
914 F.2d 26 (Second Circuit, 1990)
Morris K. Oberman v. Dun & Bradstreet, Inc.
507 F.2d 349 (Seventh Circuit, 1975)
Standard Industries, Inc. v. Mobil Oil Corporation
475 F.2d 220 (Tenth Circuit, 1973)
Standard Industries, Inc. v. Mobil Oil Corp.
475 F.2d 220 (Tenth Circuit, 1973)
Richman Chemical Co. v. Lowenthal
149 N.E.2d 351 (Appellate Court of Illinois, 1958)
United States v. Shackelford
180 F. Supp. 857 (S.D. New York, 1957)
United States v. Poppa. United States v. Skirvin
190 F.2d 112 (Seventh Circuit, 1951)
United States v. General Electric Co.
82 F. Supp. 753 (D. New Jersey, 1949)
United States v. St. Louis Dairy Co.
77 F. Supp. 853 (E.D. Missouri, 1948)
American Cooperative Serum Ass'n v. Anchor Serum Co.
153 F.2d 907 (Seventh Circuit, 1946)
United States v. Pugliese
153 F.2d 497 (Second Circuit, 1945)
Yates v. United States
151 F.2d 580 (Ninth Circuit, 1945)
United States v. National Lead Co.
63 F. Supp. 513 (S.D. New York, 1945)
Nostrand Poultry Market, Inc. v. United States
59 F. Supp. 245 (E.D. New York, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
47 F.2d 156, 1931 U.S. App. LEXIS 3415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greater-new-york-live-poultry-chamber-of-commerce-v-united-states-ca2-1931.