In re the Application of the Attorney-General

21 Misc. 101, 47 N.Y.S. 20
CourtNew York Supreme Court
DecidedJuly 15, 1897
StatusPublished
Cited by9 cases

This text of 21 Misc. 101 (In re the Application of the Attorney-General) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Application of the Attorney-General, 21 Misc. 101, 47 N.Y.S. 20 (N.Y. Super. Ct. 1897).

Opinion

Chester, J.

This is a motion to vacate an order granted by me "on the 12th day of May, 189 7, on the ex parte application of the attorney-general, requiring Samuel .Sloan and five other persons named in the order to appear before a referee therein named to answer such relevant or material questions as may be put to them concerning any alleged illegal contract, arrangement, or combination in violation of chapter 383 of the Laws of 1897, or of chapter 384 of the Laws of 1897.

The petition of the attorney-general under which he procured the order sought to be vacated was presented under the provisions of chapter 383 of the Laws of 1897, which is entitled “ An act to ■ prevent monopolies' in articles or commodities of common use, and to prohibit restraints of trade and commerce, providing penalties for violations of the provisions of this act, and procedure, to enable the attorney-general to secure testimony in relation thereto,” which-act became a law May 7, 1897, and took effect immediately.

The substantive provisions of the act are contained in the first-two sections, which are as. follows:

Section 1. Every contract, agreement, arrangement, or combination whereby a monopoly in the manufacture, production or. sale in this state of any article or commodity of common use is or may be created, established or maintained, or whereby competition:iii this state in the supply or price of any such article or commodity-is or may be restrained or prevented, or whereby for the purpose-[104]*104•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 businéss, trade or occupation is or may be restricted or prevented, is hereby declared to be against public policy, illegal and void.

“ § 2. 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. combination, or who within, this state shall do any act pursuant 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 $5,000, 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 $5,000..”

The balance' of the act, except the repealing clause and the statement of the time when it is to take effect, relates wholly to procedure. - • - '

. The following-is a brief summary of these provisions of the actr

Section 3 authorizes the attorney-general to bring an action in the name of the People to restrain the doing in this state of any act herein declared to be illegal or any act for the making or consummation of the prohibited combinations, wherever the same may have been made. . ■

Section 4 clothes the attorney-general with power to examine and procure the testimony of witnesses in the fnanner provided, in. the act for the purpose of determining whether he should commence an action or proceeding,, and makes the provisions of the Code of Civil Procedure relative to the examination of' witnesses ' before the" commencement of an action,, and the conduct of such examination, applicable, so far as practicable, to an action or proceeding instituted by the attorney-general pursuant to the act.

■ Section 5 provides that whenever the attorney-general deems it necessary or proper to procure testimony before beginning an action or proceeding, he may present to a justice of the Supreme-Court an application, in writing, for, an‘order directing such persons as the attorney-general may require ti> appear before the justice, or a referee designated in the order, for examination, and provides that if it appears to the satisfaction of the "justice to whom the application is made that such an order is necessary, then such order shall be granted. The section further provides that the order [105]*105shall be granted without notice, unless notice is required to be given by the justice to whom the application is made.

Section 6 authorizes the attorney-general to indorse upon the copy of the order served upon the person required to appear and be examined a notice stating the time and place of the examination, and 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. And the section further contains provisions with reference to the service of the order and the payment or tendering to the witness his fees allowed by law.

Section 7 provides that the testimony of each witness must be subscribed by him, and that all testimony tahen by such justice or referee must be certified and delivered to the attorney-general at the close of the examination. ■ It also provides that the testimony given by a witness in a proceeding or examination under the act shall not be given in evidence against him in any criminal action or proceeding, nor shall any criminal action or proceeding be brought against such witness on account of the testimony so given ■ by him; nor shall any person be excused from answering any questions that may be put to him on the ground that it may tend to convict him of a violation of the provisions of the act.

Section 8 confers upon the referee appointed, as provided in the act, all the powers and makes him subject to all the duties of a referee appointed under section 1018 of the Code of Civil Procedure, so far as practicable, and authorizes him to punish for contempt a witness duly served, for nonattendance, or refusal to be' sworn or to testify, or to produce books, papers and docupients according to the direction of the attorney-general in his indorse-" ment aforesaid in the same manner and to the same extent as a referee appointed to heap, try and determine an issue of fact or of law.

Section 9 repeals chapter 716, Laws of 1893, entitled “ An act to prevent monopolies in articles of general necessity,” and also chapter 267, Laws of 1896, the latter act being amendatory of the former. By this repeal, the legislation of 1897 is substituted for that heretofore existing upon the subject.

'Upon the argument and in the extended briefs submitted by counsel in support of this motion very able and learned attacks have been made upon the constitutionality of the substantive provisions contained in the first and second sections of the act.

[106]*106Some of the more prominent of the recent cases, where ácts to ' prevent monopolies in commodities of common use or to' prohibit restraints of trade and commerce, have béen called in question, are Arnot v. Pittston & Elmira Coal Co., 68 N. Y. 558; Judd v. Harrington, 139 id. 105; People v. Sheldon, id. 251; People v. Milk Exchange, 145 id. 267 in the Court of Appeals, and the still later case of United States v. Freight Association, 166 U. S. 290, in the United States Supreme Court.

In each of these cases the legislation brought in' question was. sustained by the courts, and the contract condemned.

Rapallo, J., in writing the opinion of the Court of Appeals in Arnot v.

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