Tooke Reynolds v. Bastrop Ice Storage Co.

135 So. 239, 172 La. 781, 1931 La. LEXIS 1757
CourtSupreme Court of Louisiana
DecidedMay 25, 1931
DocketNo. 31106.
StatusPublished
Cited by18 cases

This text of 135 So. 239 (Tooke Reynolds v. Bastrop Ice Storage Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tooke Reynolds v. Bastrop Ice Storage Co., 135 So. 239, 172 La. 781, 1931 La. LEXIS 1757 (La. 1931).

Opinion

ODOM, J.

This suit is brought under Act 11, Extra Session of 1915, to collect $24,985.47, this being triple the amount of loss alleged to have been sustained by plaintiff as a result of the defendant’s unlawful manipulations to monopolize and restrain the retail ice trade in the town of Bastrop.

Defendant excepted to the petition on the grounds: First,' that Act 11 of 1915, Ex. Sess., under which the suit is brought, is unconstitutional ; and, second, that the petition discloses no cause of action. These exceptions were overruled by the trial judge and defendant appealed, as required by section 13 of the act.

1. The ground upon which the act under consideration is attacked is that it is broader than its title and therefore violates section 16, art. 3, of the Constitution of 1921, which provides that:

“Every law enacted by the Legislature shall embrace but one object, and shall have a title indicative of such object.”

It is contended that the act is broader than its title, in that the object or purpose of the act, as expressed in the title, is “to protect trade and commerce against unlawful restraints, combinations, conspiracies and monopolies,” while the act itself (to quote counsel’s brief) “forbids and punishes all restraints and monopolies, both lawful and unlawful.” (Italics ours.)

The identical objection was made to this act in the case of State v. American Sugar Refining Co., 138 La. 1005, 71 So. 137, 145. The court there held that the act is constitutional, saying that “the construction that only unlawful acts are referred to in the body of the act is certain.”

*786 The holding in that case is clearly correct and we adhere to it without further comment.

On Exception of No Cause of Action.

2. The alleged unlawful acts and manipulations of the defendant corporation and its directors are set out at great length in plaintiffs petition, which covers eight typewritten pages and seventeen separate articles. In substance, it is alleged that in the month of May, 1929, plaintiff built a plant and engaged in the manufacture and sale of ice in the town of Bastrop, where the defendant also had an ice plant and was engaged in the same business; that the retail price.of ice was then 50 cents per hundred pounds at the platform and sixty cents delivered, which price prevailed not only in Bastrop but at all other points in that territory; that it and defendant each sold ice at that price until July 19, when defendant cut the price 10 cents per hundred and plaintiff was forced to meet the cut or lose its trade; that on July 30 defendant cut the price to 20 cents per hundred at the platform and 40 cents delivered; that plaintiff again met the cut in price, being forced to do so or else close its factory; and that ice has been selling at that price ever since.

It is further alleged that there are ice plants at Rayville, Winnsboro, Delhi, Vidalia, and Monroe, all in close proximity to Bastrop, which plants have the same officers and are under the same management as the plant at Bastrop; that each of said plants continues to sell ice at 60 cents delivered and 50 cents at the platform. It is further alleged that the'Louisiana Ice & Coal Company of Monroe, which is under the same management and control as the defendant, sold ice delivered at Sterlington, a point near Bastrop, at 60 cents until plaintiff entered that market, when the Monroe concern cut the price to 40 cents.

It is alleged that the price of ice finally fixed by the defendant at Bastrop and Sterlington, which plaintiff was forced to meet or lose its trade, is below the cost of production; that plaintiff is operating its plant at a loss due to the unlawful price cuts made by defendant ; and that up to the date this petition was filed it had sustained a loss of $6,828.49, whereas prior to these cuts, it was operating at a legitimate profit.

The petition sets out that Paul Fudicar and Fred Fudicar of Monroe and P. M. Biewer of Jackson, Miss., manage and control the defendant corporation in Bastrop and the ice plants at Rayville, Delhi, Winnsboro, Yidalia, and at Monroe, all of which corporations are owned by practically the same stockholders; that said ice plants are subsidiaries of the Louisiana Ice & Coal Company, the parent corporation, which controls them; that the fixing of the price of ice in Bastrop below the cost of production by the defendant corporation and its owners, directors, and managers was done for the purpose of driving plaintiff out of business, thus enabling defendant to monopolize the manufacture and sale of ice in Northeast Louisiana, and for the purpose of creating an illegal combine and trust, and was the result of an illegal conspiracy to restrain trade and commerce and to monopolize the ice trade.

It is further alleged that the managers and directors of the said corporation have openly stated on various occasions that they did not expect to “make a dollar at the Bastrop plant so long as Tooke & Reynolds were in business, * * * and the managing officers of said Bastrop Ice & Storage Company, Inc., have openly boasted that said ice trust had two hundred and fifty thousand ($250,000) *788 dollars set aside to fight ice plants that come into their territory, and that they would force your petitioner to close its plant; that they did not want to or intend to make a working agreement by which both factories could be operated at a reasonable profit, because if competition was permitted in Bastrop it would spring up in other towns in which their plants were situated; that petitioners’ plant was in their territory and that they had as well go ahead and put petitioner out of business.”

They prayed for judgment against the defendant corporation and Paul Fudicar and Fred Fudicar, managing directors, in the sum of $24,989.47, “threefold the amount of damage sustained,” plus attorneys’ fees, and that their rights to sue the other corporations named be reserved.

3. The object or purpose of Act 11 of 1915, Ex. Sess., as expressed in its title, is “To protect, trade and commerce against unlawful restraints, combinations, conspiracies, and monopolies, ' and to provide remedies against same.”

Under section 1 of the act “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce in the State of Louisiana” is declared to be illegal. (Italics ours.)

Section 2 provides that, “Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons to monopolize any part of the trade or commerce within the State of Louisiana, shall be deemed guilty of a misdemeanor.”

Section 3 provides that whenever a corporation shall violate any of the penal provisions of the act, “such violation shall be deemed to be also that of the individual officers, directors or agents of such corporation.”

Section 4 reads as follows:

“Section 4. Be it further enacted, etc., That it shall be unlawful for any person engaged in commerce, in the course of such commerce, to

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Bluebook (online)
135 So. 239, 172 La. 781, 1931 La. LEXIS 1757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tooke-reynolds-v-bastrop-ice-storage-co-la-1931.