State v. Bovee

6 Ohio N.P. (n.s.) 337, 17 Ohio Dec. 663, 1907 Ohio Misc. LEXIS 157
CourtLorain County Court of Common Pleas
DecidedJune 8, 1907
StatusPublished
Cited by3 cases

This text of 6 Ohio N.P. (n.s.) 337 (State v. Bovee) is published on Counsel Stack Legal Research, covering Lorain County Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Bovee, 6 Ohio N.P. (n.s.) 337, 17 Ohio Dec. 663, 1907 Ohio Misc. LEXIS 157 (Ohio Super. Ct. 1907).

Opinion

Washburn, J.

Demurrers to indictment.

At the April term, 1907, of the Court of Common Pleas of Lorain County, Ohio, twenty-three individuals and one corporation were jointly indicted under Section 4427-1 et seq., known as the Valentine anti-trust law, for combination in restraint of trade. The indictment contains four - counts, each charging the offense in identical language, but on different dates, the-charge being that the defendants— • '•

[338]*338“Unlawfuly did conspire, combine, confederate, agree and associate themselves together to create and carry out restrictions in the trade, business and commerce of insuring property against loss and damage by fire, lightning and tornado, and to increase the price, premium and rate of such insurance, and to prevent competition in the making, sale and purchase of such insurance and to fix the price, premium and rate of such insurance at a standard and figure, whereby its price to the public and to the consumer, shall be established and controlled, in that the price, premium and rate of such insurance shall be maintained as fixed, and to make, enter into, execute and carry out contracts, obligations and agreements to keep and maintain the price of such insurance at a graduated figure, to not sell or dispose of such insurance below a common standard and fixed value, to establish and settle the price of such insurance between themselves and between themselves and others, so as to preclude a free and unrestricted competition. among themselves in the sale thereof, and to pool, combine and unite their interests in the sale of such insurance so as to affect the price thereof; and that they [naming the defendants] then and there unlawfully acted with, were members of, aided and assisted in carrying out the purposes of, said unlawful trust and combination, the exact name of which is to the grand jurors unknown, then and there being and existing for each and all of the aforesaid unlawful purposes and which said trust and combination did then and there unlawfully bring about, effect and accomplish each and all of the aforesaid purposes, contrary to the form of the statute in such case made and provided and against the peace and dignity of the state of Ohio.”

To this indictment the defendants have each, with one exception, interposed a demurrer, upon several grounds, the principal ground being that the facts stated do not constitute an offense punishable by the laws of the state of Ohio..

The principal question presented by the demurrers is, whether or not the business of fire insurance is included in the terms “trade,” “commerce”- or “commodity” as the same are used in the Valentine law. The object of that law, as stated in its title, is “to promote free competition in commerce and all classes of business -in the state. ’ ’ Section 1 -declares tfiat—

' “A trust is a combination of capital, skill or acts by two or more persons, fix-ms, partnerships, corporations or associations-of persons, or any two or more of thexn, f'or either, any or all' of the following pux-poses:
[339]*339“1. To create or carry out restrictions in trade or commerce.
“2. To limit or reduce the production, or increase, or reduce the price of merchandise or any commodity. ■
“3. To prevent competition in manufacturing, making, transportation, sale or purchase of merchandise, produce or any commodity.
“4. To fix at any standard or figure, whereby its price to the public or consumer shall be in any'manner controlled or established, any article or commodity of merchandise, produce or commerce intended for-sale, barter, use or consumption-in this state. .
“5. To make or enter into or execute or carry out any contracts, obligations or agreements of any kind or description, by' which they shall bind or have bound themselves not to sell, dispose of or transport any article or any commodity or any article of trade, use, merchandise, commerce or consumption below a common standard figtire or fixed value,' or by which they shall agree in any manner to keep the price of such article, commodity or transportation at a fixed of graduated figure, or by which they shall in any manner establish or settle the price of any article, commodity or transportation between them or themselves and others, so as to directly or indirectly preclude a free and unrestricted competition among themselves, or any purchasers or consumers in the sale or transportation of any article or commodity, or by which they shall ágree to pool, combine or directly or indirectly unite any interests that they may have connected with the sale or transportation of any article or commodity, that its price might in any manner be affected. Every such trust as is defined herein is declared to be unlawful, against public policy and void.”

Without stopping to quote the definitions of the word “commodity” as given by lexicographers, it is sufficient to say that the word as commonly used and understood means something movable and tangible. It is true that the word “commodity” in its broad sense is said to mean “convenience, accommodation, profit, benefit, advantage,’ interest, commodiousness,” but its use in that sense has become obsolete. In that sense it can not be said to be a thing that can be produced, used ..or transported, and the acts in question, as shown by reference to the terms used-in Subdivisions 2, 3, 4 and 5 of Section 1, refers to things that can be “produced,” “manufactured,” “made,” “transported,” “sold,” “used” or “consumed”; hence I think that the word “commodity” was used in this act in its ordinary and well-under[340]*340stood commercial sense of something that is produced or used, and is the subject of barter or sale, something movable and tangible. In the opinion of the case cited hereafter, Paul v. Virginia, 75 U. S. (8 Wall.), 168, it is said that contracts of insurance are not commodities. I will later refer to an Iowa case which decides that insurance is a commodity.

The word “commerce,” as ordinarily used, has to do with the sale or transportation of commodities or tangible and movable things, but it is a term of wide import, and it includes communications and intercourse for the purpose of trade in any and all its forms, and yet the Supreme Court of the United States, by repeated decisions, has held that—

“The issuing of a policy of insurance is not a transaction of commerce — -but is a simple contract of indemnity against loss.” Paul v. Virginia, supra.

Mr. Justice Field, in deciding this case, uses this language:

“These contracts are not articles of commerce in any proper meaning of the word. They are not subjects of trade and barter offered in the market as something having an existence and value independent of the parties to them. They are not commodities to be shipped or forwarded from one state to another, and then put up for sale. They are like other personal contracts between parties which are completed by their signature and the transfer of the consideration. ”

In 1895 the Supreme Court of the United States reiterated this doctrine in the following language:

“The business of insurance is not commerce. The contract of insurance is not an instrumentality of commerce.

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Cite This Page — Counsel Stack

Bluebook (online)
6 Ohio N.P. (n.s.) 337, 17 Ohio Dec. 663, 1907 Ohio Misc. LEXIS 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-bovee-ohctcompllorain-1907.