Puerto Rico v. Shell Co. (PR), Ltd.

302 U.S. 253, 58 S. Ct. 167, 82 L. Ed. 235, 1937 U.S. LEXIS 545
CourtSupreme Court of the United States
DecidedDecember 6, 1937
Docket18
StatusPublished
Cited by364 cases

This text of 302 U.S. 253 (Puerto Rico v. Shell Co. (PR), Ltd.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Puerto Rico v. Shell Co. (PR), Ltd., 302 U.S. 253, 58 S. Ct. 167, 82 L. Ed. 235, 1937 U.S. LEXIS 545 (1937).

Opinion

Mr. Justice Sutherland

delivered the opinion of the Court.

This is a criminal proceeding brought by petitioner against the respondents in the insular district court of San Juan, Puerto Rico. An information filed by the district attorney charged respondents with entering into a conspiracy in restraint of trade in violation of the local anti-trust act, passed by the Legislature of Puerto Rico March 14, 1907. Demurrers to the information were sustained by the district court on the ground that the Sherman Anti-trust Act of 1890, supplemented by the Clayton Act of 1914, covered the entire field embraced by the local anti-trust act, and the latter, therefore, was void. The Supreme Court of Puerto Rico accepted that view and dismissed the appeal; and its judgment was affirmed on appeal by the court below. 86 F. (2d) 577. The single question which we have to decide is whether the existence of § 3 of the Sherman Act precluded the adoption of the local act by the insular legislature.

The pertinent provisions of the Sherman Act and the local act are set forth in the margin. 1 Section 3 of the *256 Sherman Act and § 1 of the local act, so far as the question here involved is concerned, are substantially identical. Section 4 of the Sherman Act confers jurisdiction *257 in respect of violations of the act upon the several district courts of the United States. Section 3 of the local act confers jurisdiction upon the district courts of Puerto Rico in respect of violations of that act.

First. Section 3 of the Sherman Act extends to “any territory of the United States.” But it is urged that Puerto Rico cannot be brought within the intent of this phrase, and, therefore, the section does not apply to that dependency. The point is not well made. When the Sherman Act was passed (1890), we had no insular dependencies; and, necessarily, the application of § 3 did not extend beyond our continental domain; and, undoubtedly, it was this domain which was in the immediate contemplation of Congress. Certainly, Congress at that time did not have Puerto Rico in mind. But that is not enough. It is necessary to go further and to say that if the acquisition of that insular dependency had been foreseen, Congress would have so varied its comprehensive language as to exclude it from the operation of the act. Dartmouth College v. Woodward, 4 Wheat. 518, 644; Takao Ozawa v. United States, 260 U. S. 178, 195-196; United States v. Thind, 261 U. S. 204, 207-208. The only question, therefore, is whether the word “territory,” as used in § 3 of the Sherman Act, properly can be applied to a dependency now bearing the relation to the United States which is borne by Puerto Rico.

In Balzac v. Porto Rico, 258 U. S. 298, 304-305, it was held that, although the Sixth Amendment of the Constitution with respect to the right of trial by jury applied to the territories of the United States, it did not apply to territory belonging to the United States which had not been incorporated into the Union; and that neither the Philippines nor Porto Rico was territory which had been so incorporated or had become a part of the United States, as distinguished from merely belonging to it. But it is evident, from a consideration of the pertinent acts *258 of Congress and the decisions of this court with respect to these acts, that whether Puerto Rico comes within a given congressional act applicable in terms to a “territory,” depends upon the character and aim of the act. Words generally have different shades of meaning, and are to be construed if reasonably possible to effectuate the intent of the lawmakers; and this meaning in particular instances is to be arrived at not only by a consideration of the words themselves, but by considering, as well, the context, the purposes of the law, and the circumstances under which the words were employed. Atlantic Cleaners & Dyers v. United States, 286 U. S. 427, 433; Helvering v. Stockholms Enskilda Bank, 293 U. S. 84, 86, 87-88. Thus, although Puerto Rico is not a territory within the reach of the Sixth and Seventh Amendments and may not be a “territory” within the meaning of the word as used in some statutes, we held in Kopel v. Bingham, 211 U. S. 468, 474, 475, 476, that Puerto Rico was a “territory” within the meaning of § 5278 of the Revised Statutes, which provides for the demand and surrender of fugitive criminals by governors of territories as well as of states. The court said that it was impossible to hold that Puerto Rico was not intended to have power to reclaim fugitives from its justice, or that it was intended that it should be an asylum for fugitives from the United States. The word “territory” as used in that statute was defined as meaning “a portion of the country not included within the limits of any State, and not yet admitted as a State into the Union, but organized under the laws of Congress with a separate legislature under a territorial governor and other officers appointed by the President and Senate of the United States.” And the court concluded, “It may be justly asserted that Porto Rico is a completely organized Territory, although not a Territory incorporated into the United States, and that there is no reason why Porto Rico should not be held to be such a Territory *259 as is comprised in § 5278.” See Porto Rico v. Rosaly y Castillo, 227 U. S. 270, 274. Compare Talbott v. Silver Bow County, 139 U. S. 438, 444-445.

With equal force, it may be said here that there is no reason why Puerto Rico should not be held to be a “territory” within the meaning of § 3 of the Sherman Act. We pointed out in the Atlantic Cleaners cfc Dyers case, supra, p. 435, that in the light of the applicable history and circumstances, it was apparent that Congress meant to deal comprehensively with the subject of contracts, combinations, and conspiracies in restraint of trade, “and to that end to exercise all the power it possessed”; that while Congress in passing § 1 exercised only the power conferred by the commerce clause, in passing § 3 it exercised a general power, unlimited by that clause. We therefore concluded that the word “trade” as used in § 3 should be given a more extended meaning than the same word as used in § 1.

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Bluebook (online)
302 U.S. 253, 58 S. Ct. 167, 82 L. Ed. 235, 1937 U.S. LEXIS 545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/puerto-rico-v-shell-co-pr-ltd-scotus-1937.