State v. Black

138 A. 513, 5 N.J. Misc. 639, 1927 N.J. Misc. LEXIS 7
CourtCourt Of Oyer And Terminer New York
DecidedJune 6, 1927
StatusPublished
Cited by1 cases

This text of 138 A. 513 (State v. Black) is published on Counsel Stack Legal Research, covering Court Of Oyer And Terminer New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Black, 138 A. 513, 5 N.J. Misc. 639, 1927 N.J. Misc. LEXIS 7 (N.Y. Ct. App. 1927).

Opinion

Flannagan, J.

The indictment alleges a combination to monopolize, for the members of a certain association, the sale at retail of kosher meat and to control the retail price thereof.

The methods which the defendants are alleged to have undertaken to employ were two — first, by preventing competitors from obtaining certain certificates or signs, customarily used and signifying that meats offered are prepared kosher, and, second, by preventing competitors from obtaining kosher meats from wholesalers.

Such certificates or signs, it is alleged, may be furnished by a rabbi or by the organization known as Yaad Hakashruth.

It is alleged that the conspiracy contemplates the impoverishment and ruin of competitors but this adds nothing to the allegation of intent to monopolize, for every attempt to monopolize must necessarily be taken to contemplate and involve, in order to maintain the monopoly, the destruction of the business of competitors, if not in presentí then in futuro; for the moment, an outsider establishes a like busi[640]*640ness monopoly ceases to exist, so that competitors, as they appear from time to time, must be disposed of.

It is further alleged that a purpose of the monopoly was to enhance the retail price of kosher meat, but it is not alleged that it was intended to do so to the extent of unreasonableness. The allegation that prices were merely to be enhanced also adds nothing. The characteristic of uncontrolled monopoly is its ability to control and' vary prices at will from those which the natural course of supply and demand would establish. This control, unless in the meanwhile human nature be revolutionized, must sooner or later, when favorable opportunity presents, normally result in the enhancement of prices.

Three overt acts are alleged to have occurred in execution of the conspiracy and to effect the objects thereof — first, one of the conspirators, on June 8th, 1926, solicited an employe of a wholesale dealer (who was not a member of the association) not to sell to any retailers except members of the association; second, two of the conspirators, on September 2d, 1926, made the same solicitation of another wholesale dealer (not a member of the association) ; and, third, still another conspirator, on September 6th, 1926, refused to sell to a retailer who was not a member of the association.

It is not alleged that these requests to wholesalers, outside the association, not to sell except to retailers in the association, were accompanied by any violence, threats, fraud or compulsion, or that they amounted to anything more than persuasion. Nor is it alleged that the refusal of the member of the association to sell to a non-member covered anything more than a single sale> or that such refusal was because the proposed purchaser was not a member, or that it was based on anything more than persuasion.

It is not pretended or alleged that the conspirators controlled the rabbis or Vaad Hakashruth or were to prevent the obtaining of certificates from them, or obstruct the obtaining of kosher meats from wholesalers by any particular means. It is not alleged that violence, intimidation, fraud, deceit, or any other illegitimate means, was contemplated to be used, [641]*641nor is it indicated that any means except persuasion was proposed.

There would be nothing illegal in the members of the association endeavoring to persuade the rabbis .and the Yaad Hakashruth that their facilities were ample and that additional retail stores would, by over-competition, result in a deteriorated and less healthful service; and there would be nothing illegal in the members of the association trying to persuade wholesalers to sell their supply to them on the ground that their financial responsibility and terms of payment were better than what their competitors were in a position to offer.

There is therefore no charge in the indictment of any criminal, illegal or illegitimate methods to be employed by the conspirators to accomplish their purpose, and the question which remains is the broad one, whether or not it is per se criminal in this state to combine to establish a monopoly.

Since the repeal by chapter 143 of the laws of 1920, of chapter 13 of the laws of 1913 (one of the famous “Seven Sisters” so-called), there is no statute in New Jersey making it criminal to create a monopoly.

This is not questioned by counsel for the state in the brief which he has prepared with much ability and learning, but he contends that a conspiracy to monopolize was criminal at common law and hence is indictable in New Jersey. The question presented is whether or not this claim is well founded. The scope of criminal conspiracy at common law has been widely discussed and the difficulty of defining is well recognized. Wright Cr. Consp. & Agr. (London, 1873), 66, 67; 2 Steph. Hist. Cr. L. (England) 227, 229; State v. Bienstock, 78 N. J. L. 256 (at p. 269).

Whether a conspiracy to monopolize is criminal at common law has never been directly passed upon by the courts of New Jersey, but it has been touched upon here and widely discussed elsewhere.

In the eighteenth and nineteenth centuries under the common law and statutes as then existing, it would seem that in [642]*642England the defendants might have been indictable for such a conspiracy, but largely because of statutes. 3 Steph. Hist. Cr. L. (England) 226, 227.

Under the modern British law, however, it has been held that a combination of persons in a trade to keep outsiders from pursuing that trade is not unlawful. Mogul S. S. Co. v. McGregor (1892), L. R. App. Cas. 25, 35, 40, 41, 60.

The most conspicuous ease discussing the question as to whether a conspiracy to monopolize was criminal at common law is one in which the opinion was 'written by Chief Justice Taft (then Circuit Judge). His remarks were by way of dicta, but they form the basis of many of the decisions since that time. He says:

“Contracts that were in unreasonable restraint of trade at common law were not unlawful in the sense of being criminal or giving rise to a civil cause for damages in favor of one prejudicially affected thereby, but were simply void and were not enforced by the courts. Mogul S. S. Co. v. McGregor (1892), L. R. App. Cas. 25; Hornby v. Close, 2 L. R. Q. B. 153; Chief Justice Lord Campbell in Hilton v. Eckersly, 6 El. & B. 47; Justice Hannen in Farrer v. Close, 4 L. R. Q. B. 602, 612;" United States v. Addyston Pipe and Steel Co., 85 Fed. Rep. 271, 278, 279; affirmed, 175 U. S. 211.

I am quite satisfied that the weight of authority outside the State of New Jersey supports the chief justice's view. State v. Van Pelt, 136 N. C. 633, 652, 656; Macauley v. Tierney, 19 R. I. 255, 264; State v. Scollard, 126 Wash, 335, 339, 340; Transportation Co. v. Oil Co., 50 W. Va. 612, 617, 627; Bowen v. Matheson, 96 Mass. 499, 502, 504; Cote v. Murphy, 159 Pa. 420, 425, 432; Buchanan v. Kerr, 159 Pa. 433, 435; Bohn Manufacturing Co. v. Hollis 54 Minn.

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Bluebook (online)
138 A. 513, 5 N.J. Misc. 639, 1927 N.J. Misc. LEXIS 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-black-nyoytermct-1927.