State Ex Rel. Lesh v. Indiana Manufacturers of Dairy Products

153 N.E. 499, 198 Ind. 288, 1926 Ind. LEXIS 127
Indiana Supreme Court·Decided October 12, 1926·No. No. 25,303.·Published·Cited by 10 cases

Opinion

Per Curiam.

The relator brought this action in the name of the state on his relation against the first named appellee, a corporation organized under the Voluntary Association Act (§4857 et seq. Burns 1926, Acts 1901 p. 289), and the persons, partnerships and corporations who were members of the association, to enjoin them *291 from carrying on an alleged conspiracy and from doing certain alleged unlawful acts, and to forfeit the charters of the first named corporation and of its several members that were corporations. The trial court made a special finding on which it stated a conclusion that the law was with the defendants and that the plaintiff was not entitled to recover anything, and rendered judgment accordingly. Appellant has assigned as error that the court erred in its conclusion of law upon the facts found, and in overruling the motion for a new trial.

The only issue submitted for trial was formed upon an answer of general denial to an amended complaint which, in substance, alleged that in December, 1917; the Indiana Manufacturers of Dairy Products had been incorporated as a voluntary association, not for pecuniary profits, but for the declared purpose of associating together all persons, firms and corporations interested in the manufacture of dairy products, to aid in the development of all branches of the dairy industry, to uphold and aid in enforcing the laws of Indiana relating to the dairy products industry in said state, and to protect its members in the transaction of their business and the farmers of the state from anything that would disrupt, discourage or burden the dairy industry, and to devise methods, and provide means, of developing the dairy industry and to encourage an increased production of milk and the raising of more profitable cows. That certain of the defendants were domestic corporations for the purpose of buying and selling milk and cream, and making butter, ice cream and other milk products, and certain individual defendants constituted partnerships as stated, engaged in the same business, and all of them were engaged in business at places within the State of Indiana, as set out, and all of them were members of the Indiana *292 Manufacturers of Dairy Products. That at an unnamed time prior to January 1, 1921, the defendants entered into a combination and conspiracy in restraint of trade and commerce for the purpose of creating and carrying out restrictions in the production, distribution and sale of milk and milk products (as enumerated), and to limit and reduce the production of said articles, and to increase or reduce the price thereof, as their selfish interests might be thereby served, and to suppress and prevent competition as between themselves and others doing. business within the territory wherein they operated, which was alleged to cover practically the entire state. That, in furtherance of said combination and conspiracy, the defendants made a plan which they executed by organizing the members of the Indiana Manufacturers of Dairy Products into three divisions, as the “Butter Manufacturers,” the “Ice Cream Manufacturers” and the “Milk Dealers,” each with its separate officers and committees, and “all tied together with general officers and committees, with main offices for the general organization in the city of Indianapolis.” And that they had, in addition to such officers and an “Executive Committee” of the main organization and of each division organization, various departmental committees of “Ways and Means,” “Adjustment and Arbitration,” “Publicity,” “Legislative,” and “Rates and Transportation,” each of which had powers and duties not specified in the complaint. Also that, “by the combined power and concerted action of the several defendants, they are able to and in fact do arbitrarily control in á substantial and hurtful way the milk, butter, ice cream and allied milk products in this state. That they are able to and in fact do arbitrarily control and dictate the price to be paid to the producers of milk and cream, and are and have been maintaining an unreasonable and unconscionable low *293 level of prices to the producer * * *. They are able to and in fact do arbitrarily control and dictate the price to be paid by the consumer of milk and cream * * * butter and other milk products * * * (and) ice cream, and are and have been maintaining an unreasonable and unconscionable high level of prices to consumers. That they are able to and in fact do arbitrarily control and regulate the quality of milk and milk products as delivered to the consumers thereof, and they tolerate and foster inferior and adulterated qualities thereof.” That, “in order to finance its variant and devious pernicious activities,” the association collects from its members dues in proportion to the business done, “by which method they are able to collect not only a large ‘slush fund,’ but also obtain useful data properly to gage the business activities of the several members and keep them in proper line as amongst themselves, as well as to control their relation to others.” That the articles in which defendants are dealing are necessaries of life and are essential articles of trade and commerce, and said acts have “a blighting effect” upon producers deprived of fair profits for milk and cream, and upon consumers unable to pay the high prices exacted for defendants’ said products. And that enforcement of the penal sections of the statute is inadequate to give relief without resort to equity.

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State Ex Rel. Lesh v. Indiana Manufacturers of Dairy Products, 153 N.E. 499, 198 Ind. 288, 1926 Ind. LEXIS 127 (Ind. 1926).

153 N.E. 499 (State Ex Rel. Lesh v. Indiana Manufacturers of Dairy Products) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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