People v. Shell Co.

56 P.R. 55
CourtSupreme Court of Puerto Rico
DecidedFebruary 6, 1940
DocketNo. 7482
StatusPublished

This text of 56 P.R. 55 (People v. Shell Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Shell Co., 56 P.R. 55 (prsupreme 1940).

Opinion

Mr. Justice Travieso

delivered the opinion of the court.

The People of Puerto Rico appeals from an order of the District Court of San Juan sustaining- demurrers and dismissing the information against respondents.

[56]*56Oil July 13, 1934, the District Attorney of San Jnan filed an amended information against the above named corporations and individuals, charging them with a violation of the provisions of the insular law entitled “An Act to protect trade and commerce against unlawful restraints and monopolies”, approved March 14, 1907. The principal allegations of said information read as follows:

“And the District Attorney alleges that the above named corporations, within the period of time stated in this information, illegally, voluntarily and maliciously and in persuanee of a common plan previously designed and agreed between themselves, entered into a combination and confabulation, each one with the others, for the sole purpose of restraining and obstructing the legal and free competition between said corporations and the legal and free competition in the traffic and commerce and in the business of distribution and sale of gasoline in the judicial district of San Juan and in the Municipality of'San Juan, within the jurisdiction of this Court; and said common [Ran and purpose so designed and agreed upon was carried out and put into practice through the agents, representatives and employees whose names are set forth in the second paragraph of this information. . .
“And the District Attorney alleges that said corporations and said agents, managers, representatives and employees, for the purpose of carrying out and putting into practice their mutually designed and agreed common plan, prior to the filing of these proceedings and within the period of time already stated, did unlawfully, wilfully and maliciously agree and decide to fix from time to time arbitrary and uniform prices for which gasoline should be sold, wholesale and retail, within the Municipality and Judicial District of San Juan, and in that manner, by virtue of said agreement, they fixed, maintained, imposed and exacted uniform prices, and have continued and still continue to illegally maintain and exact such arbitrary prices and to obtain them from consumers

Tbe information proceeds to state that as a part of tbeir alleged common plan tbe defendant companies agreed to sell gasoline only to those retail dealers wbo would bind themselves to sell it at tbe only price fixed by tbe companies; that tbe companies succeeded in securing’ tbe consent of the [57]*57defendant retailers to sell only at tire prices fixed by the companies; that to insure the success of their common plan, the defendant companies agreed among themselves and with the defendant retail dealers to impose fines and penalties upon any dealer who should sell gasoline for a price lower than the price fixed by the defendant companies, the penalties consisting sometimes in the temporary suspension of the supply of gasoline to the guilty dealer, and at other times in the absolute suspension of such supply, thereby eliminating the guilty dealer from the business.

The defendants demurred to the information upon the following grounds:

1. That the information charges more than one offense, in violation of Section 77 of the Code of Criminal Procedure of Puerto Rico.
2. That the District Court of San Juan has no jurisdiction over the subject matter in this case:
(а) Because the Act of March 14, 1907, supra, ceased to have force and effect when the National Congress passed the act entitled “An Act to encourage national industrial recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes,” approved June 16, 1933, by the President of the United States.
(б) Because said Act of March 14, 1907, supra, also ceased to have force and effect upon the approval on August 19, 1933, of the “Code of Fair Competition” in accordance with the provisions of the “National Industrial Recovery Act,” which Act was in force in Puerto Rico during the period of time covered by the second amended information, and when the Legislature of Puerto Rico enacted Act No. 2, approved by the Governor on August 15, 1933.
(c) Because if said insular anti-trust law was in force at any time after June 16, 1933, which respondents deny, the said law ceased to have effect upon the approval of the modifications for Puerto Rico of the “Code of Fair Competition for the Petroleum Industry,” under the provisions of the “National Industrial Recovery Act” of June 16, 1933.
(d) Because even assuming that the said anti-trust law was in force and that the acts charged were true, the said acts were sanctioned by the law of Congress entitled “An Act to encourage Na[58]*58tional Industrial Recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes,” approved June 16, 1933.; by the “Code of Fair Competition for the Petroleum Industry,” approved by the President on August 19, 1933, and amendments thereto approved March 27, 1934 ; and by Act No. 2 of the Legislature of Puerto Rico, approved August 15, 1933; and that the said sanction operates as a full legislative pardon, which legalizes anything that prior thereto might have been illegal.
(e) Because the facts alleged in the second amended information do not constitute a public offense.

On August 23, 1938, the district court rendered its judgment sustaining the demurrer and ordering the dismissal of the information, from which order The People of Puerto Rico has taken the present appeal.

The appellant alleges that the district court erred:

1. When it decided that the local Antitrust Act of March 14, 1907, was not in force on March 19, 1934, when the original information was filed, for the alleged reason that said law was suspended hy and ceased to have effect upon the approval of the “National Industrial Recovery Act” on June 16, 1933, and also upon the approval by the Legislative Assembly of Puerto Rico of Act No. 2 of August 15, 1933.
2. When it took judicial notice of the fact that the President of the United States, by virtue of the authority granted to him by the “National Industrial Recovery Act,” approved on August 19, 1933, a code entitled “Code''of Fair Competition for the Petroleum Industry,” and also of the fact that the Administrator of said Code of Fair Competition, approved on March 27, 1934, a Code entitled “Code of Fair Competition for the Petroleum Industry in Puerto Rico.”
3. When — assuming that the Court was authorized to take judicial notice of the existence of said Codes — it did not decide that the said Codes did not authorize the acts specified in the amended information.
4. When it sustained the demurrer and dismissed the information.

The constitutionality and validity of the insular antitrust legislation is not involved in the present appeal. That question was finally disposed of by the Supreme Court [59]*59of the United States in Puerto Rico v. Shell Co., 302 U. S. 253

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Related

Red Rock v. Henry
106 U.S. 596 (Supreme Court, 1883)
United States v. Chambers
291 U.S. 217 (Supreme Court, 1934)
Puerto Rico v. Shell Co. (PR), Ltd.
302 U.S. 253 (Supreme Court, 1937)
Missouri, Kansas & Texas Railway Co. v. Lovell
221 S.W. 928 (Texas Supreme Court, 1920)

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56 P.R. 55, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-shell-co-prsupreme-1940.