Loder v. Jayne

142 F. 1010, 1906 U.S. App. LEXIS 4623
CourtU.S. Circuit Court for the District of Eastern Pennsylvania
DecidedJanuary 22, 1906
DocketNo. 65
StatusPublished
Cited by4 cases

This text of 142 F. 1010 (Loder v. Jayne) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loder v. Jayne, 142 F. 1010, 1906 U.S. App. LEXIS 4623 (circtedpa 1906).

Opinion

HOLLAND, District Judge.

The plaintiff, C. G. A. Loder, brought suit against the above-named defendants, in this district, to recover damages to his retail drug business, which he claims to have suffered by reason of an agreement, contract, combination, and conspiracy into [1012]*1012which the defendants entered and carried into effect, in connection with other parties throughout the United States, in restraint of interstate trade and commerce, contrary to the provisions of Act Cong. July 2, 1890, c. 647, 26 Stat. 209 [Ú. S. Comp. St. 1901, p. 3200], entitled “An act to protect trade and commerce against unlawful restraints and monopolies.” The provisions of this act of importance in this case are the following:

“Section 1. Every contract, combination in the form of trust or otherwise,- or conspiracy in restraint of trade, or commerce among the several states or with foreign nations, is hereby declared to be illegal. Every person who shall make any such contract or engage in such combination or conspiracy shall be deemed guilty of a misdemeanor and on conviction thereof shall be punished by fine not exceeding five thousand dollars or by imprisonment not exceeding one year or by both said punishments, in the discretion of the court.
“Sec. 2. Every person who shall monopolize or attempt to monopolize or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several states or with foreign nations, shall be deemed guilty of a misdemeanor, and on conviction thereof, shall be punished by fine not exceeding five thousand dollars or by imprisonment not exceeding one year, or by both said punishments in the discretion of the court.”
“Sec. 7. Any person who shall be injured in his business or property by any other person or corporation by reason of anything forbidden or declared to be unlawful by this act may sue therefor in any Circuit Court of the United States in the district in which the defendant resides, or is found, without respect to the amount in controversy and shall recover threefold the damages by him sustained, and the costs of suit, Including a reasonable ■ attorney’s fee.”

Under sections 1 and 2 of this act every contract, combination, or conspiracy in restraint of trade or commerce among the several states, or'with foreign nations, and every combination or conspiracy to monopolize any part of the trade or commerce among the several states, or with foreign nations, is declared to be illegal, and every person who makes such a contract, or engages in such combination or conspiracy, or combines or conspires to thus monopolize, is declared to be engaged in an unlawful act; and the seventh section authorizes every person injured in- his business or property to bring suit against such other person or corporation, who may be engaged in any such unlawful act, in the Circuit Court of the United States in the district in which the defendants reside or are found.

The plaintiff, claiming that all these defendants were engaged in such a combination and conspiracy to monopolize and to restrain trade, forbidden by these sections, brought suit under the act, and filed his statement of claim. The case was put at issue, and tried at the Octo'ber term, 1905, and a verdict rendered in favor of the plaintiff against all the defendants, excepting Jayne & Son and Campion & Co., for the sum of $20,738. Motions and reasons for a new trial were filed on behalf of all the defendants, excepting the two above mentioned, and, in addition, there were filed motions for judgments non obstante veredicto upon the whole record in favor of H. K. Mulford Company, Iiance Bros. & White, and Warren H. Poley. In addition to the request for binding instructions at the trial in favor of all the defendants, H. K. Mulford Company, Hance Bros. & White, and Warren H. Poley, by their attorneys,, requested binding instructions in favor of [1013]*1013these particular defendants, which request was refused by. the court, and under the provisions of the act of the General .Assembly of the commonwealth of Pennsylvania, approved the 22d day of April, 1905 (P. L,. 286), they are authorized to make this motion for judgment non obstante veredicto upon the whole record, in their favor.

There are in all 33 reasons for a new trial, which can be considered under three different heads: First, those which raise the questions as to whether or not the plaintiff charged and proved a violation of the Sherman act, and as to the correctness of the charge and rulings of the court in this connection; second, the admissibility of certain evidence; third, the sufficiency of the proof of the different items of damage claimed.

In his statement of claim Poder alleges, and offered evidence to prove, that for more than 20 years he has been engaged in the business of dealing in drugs at wholesale and retail in the city of Philadelphia, buying and selling his merchandise in various cities of the union without any hindrance to him by any one until November 1, 1900, when the injury to his business complained of began, and this he says was brought about by the defendants and others acting together in a combination and conspiracy, which he lays in his statement of claim in language following:

“The Proprietary Association of America, the National Wholesale Druggists’ Association and the National Association of Retail Druggists, their officers, delegates and members unlawfully entered into an agreement, combination and conspiracy in restraint of trade or commerce among the several states and with foreign countries in this, to wit: that they unlawfully agreed, contracted, combined and conspired to enhance and arbitrarily to fix, regulate and determine the wholesale and retail prices at which various commodities of the drug trade consisting of patent medicines, drugs and proprietary articles manufactured in the several states should be sold to the retail druggists and by the said retail druggists to the consumers, residents of the several states of the United States.”

The Proprietary Association of America is an unincorporated association composed of over 90 per cent, of all the manufacturers and proprietors of patent medicines within the United States; the National Wholesale Druggists’ Association is an unincorporated association composed approximately of 95 per cent, of all the wholesale druggists of America who are engaged in the business of selling at wholesale drugs and proprietary articles to retailers for the manufacturers and proprietors of these drugs throughout the United States, and all the defendant wholesalers are members of this association; and the National Association of Retail Druggists is also an-unincorporated association, with headquarters at Chicago, and has a membership composed of the local association of druggists, the members of these local associations comprising about 90 per cent, of the retail druggists in the cities, towns, and counties, or districts throughout the United States in which local organizations are formed, and these local associations are represented in the National Association by delegates periodically chosen for that purpose. There is also an incorporated association, one of the defendants, the Philadelphia Association of Retain Druggists, composed of nearly all the retail druggists in the city of Philadelphia, and with which association all the defendants named [1014]*1014in this suit who are engaged in the retail drug trade' are connected either as members or officers.

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Related

United States v. Trenton Potteries Co.
273 U.S. 392 (Supreme Court, 1927)
Jayne v. Loder
149 F. 21 (Third Circuit, 1906)
Platt v. National Ass'n of Retail Druggists
1 Ill. Cir. Ct. 1 (Illinois Circuit Court, 1905)

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Bluebook (online)
142 F. 1010, 1906 U.S. App. LEXIS 4623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loder-v-jayne-circtedpa-1906.