TRUCK DRIVERS'LOCAL NO. 421, ETC. v. United States

128 F.2d 227, 10 L.R.R.M. (BNA) 646, 1942 U.S. App. LEXIS 3548
CourtCourt of Appeals for the Eighth Circuit
DecidedMay 22, 1942
Docket12022-12024
StatusPublished
Cited by18 cases

This text of 128 F.2d 227 (TRUCK DRIVERS'LOCAL NO. 421, ETC. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TRUCK DRIVERS'LOCAL NO. 421, ETC. v. United States, 128 F.2d 227, 10 L.R.R.M. (BNA) 646, 1942 U.S. App. LEXIS 3548 (8th Cir. 1942).

Opinion

*230 JOHNSEN, Circuit Judge.

A local labor union, its president, its financial secretary, and its business agent were indicted jointly with the operators of six dairy companies, for violating the Sherman Act as amended, 26 Stat: 209, SO Stat. 693, 15 U.S.C.A. § 1, in conspiring to fix. and maintain the retail selling price of milk, produced in the States of Iowa, Illinois and Wisconsin, and distributed, after, being standardized, pasteurized and bottled by the dairy companies, in the “Du-buque area”, consisting of the city of Du-buque, Iowa, its' suburban territory, and the city of East Dubuque, Illinois. The president of the union died while the indictment was pending. All of the other defendants were tried jointly to a jury and were convicted. The conviction and sentence have become final as to the dairy operators. The union, its financial. secretary, and its business agent have appealed.

The union had a membership of approximately 350 persons, consisting of milk drivers, inside dairy workers, “over-the-road” truck drivers, taxicab drivers, drivers of local coal, ice, laundry and bread trucks, warehousemen and others. It was an affiliate of the American Federation of Labor and had made union contracts with all of the dairy companies involved. It had a special “milkmen’s division” of about 100 members, consisting of the milk drivers and other dairy workers, which held separate meetings from the general union, and whose actions and minutes were required to be approved by the union as a whole. The milk drivers were of two classes, though the distinction is not important here — those who made deliveries in dairy company trucks, on a regular salary basis, and those who paid the dairy companies for the bottled milk and made deliveries in their own trucks, on a fixed differential.

There was evidence that the dairy companies in 1939 had held meetings among themselves and fixed the price at which the bottled milk would be sold at retail throughout the Dubuque area. The plants of five of the dairy companies involved were located in Dubuque, Iowa, and the plant of the sixth was located in Wisconsin. The minimum prices which the dairy companies as “handlers” were required to pay the farmers or producers of milk had been established for the Dubuque area by the Secretary of Agriculture, under the Agricultural Marketing Agreement Act of 1937, 50 Stat. 246, 247, 7 U.S.C.A. § 608c, but these orders did not control the retail selling prices of the handlers. At a meeting of the dairy companies held on September 15, 1939, it had been agreed to fix the retail selling price at 11 cents a quart, and this price was continued in effect by all of them until the latter part of July, 1940. On July 28, 1940, Sanitary Milk Company, which had joined with the six defendant dairy companies in the price-fixing meeting of September 15, 1939, broke away from the combination and announced, by newspaper advertisements and other public notices, that on the following day it would inaugurate a new “thrift plan” of selling, under which the consumer would pay 11 cents for the first quart of milk and 8 cents for each additional quart purchased on the same delivery. The efforts made to combat the placing and keeping of this thrift plan in operation prompted this indictment.

On the evening of the day that Sanitary announced its thrift plan to the public, the milkmen’s division of the union held a special meeting at its headquarters and defendant dairy operators held a meeting at a local hotel. Both meetings were purportedly called “to discuss the thrift plan”. The president of the union, who also apparently served as chairman of the milkmen’s division, appointed a committee to attend the meeting of the dairy operators, for the purpose of ascertaining what they intended to do about the situation. There was evidence that the dairy operators told the milk drivers’ committee that they “would go along 100% with any plan the union adopted to try and stop the thrift plan”. The committee reported back to the milkmen’s division that the dairy operators had agreed not to change the price of their milk and “had said that they would cooperate with the union if the union could try and stop the thrift plan”.

The meeting then discussed various proposals for dealing with the thrift plan, including a general strike and a strike confined to the Sanitary Milk Company. In connection with the last proposal, the minutes show the adoption of a motion that any member taking a customer from the Sanitary drivers “until the trouble is brought to a satisfactory conclusion” and “for two weeks after a settlement is made” should be fined $100 and should not be allowed to return to work until the fine was paid. It was suggested that the Sanitary drivers should go to the plant and *231 advise the president of the company that they would not work unless the manager, who was responsible for the inauguration of the thrift plan, was fired and the plan was discontinued. Some of the drivers accordingly went to the Sanitary plant that same evening and declared that they had voted to strike, or would be obliged to do so, unless the thrift plan was abandoned and the previous price of milk was restored. The president and the manager of the plant protested against any attempt of the union to interfere with prices and assured the drivers that there would be no lay-offs or changes in the condition of their employment by reason of the adoption of the thrift plan. The thrift plan was placed in operation the following morning, and the drivers made no attempt to strike. As a matter of fact, no strike could properly have been called without the approval of the union as a whole.

The second evening following, the milkmen’s division held another meeting, as did also the dairy operators. The milkmen’s division adopted a resolution, which was regularly entered in its minutes, providing that any driver "taking a customer from the driver of another company” or taking “customers who have been buying from stores” should be fined $100. A committee was selected to handle any disputes that might arise in connection with the resolution. The chairman, who was the union president, again appointed a committee to attend the meeting of the dairy operators, for the purpose of advising them of the action which had been taken. The committee did so and reported back that “the handlers would cooperate 100 per cent”. The following morning, when one of the drivers or distributors, who owned his own truck, inquired of one of the dairy operators “whether any permanent price policy had been determined”, he was told: “The fine has been voted on the drivers, and I don’t think there will be any disturbances or losing of customers. We had figured to bring the prise down to 7 cents, but after that fine was voted, we changed our plan, and we will leave it at 11 cents. The Committee from the Union came down last night and told us the fine was voted, and that took care of everything.”

The president of the union, who, as has been indicated, also acted as chairman of the milkmen’s division, undertook to police the situation in order to prevent any of the Sanitary drivers from accepting customers of the other dairies. On August 7, 1940, he accused a driver named Rittenhouse of having violated the $100-fine resolution and instructed him to appear before the disputes committee which had been selected at the July 30th meeting. Rittenhouse appeared before the committee that same afternoon and explained that the dairy company had informed him at the time that the customer was a newcomer to the city.

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Bluebook (online)
128 F.2d 227, 10 L.R.R.M. (BNA) 646, 1942 U.S. App. LEXIS 3548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/truck-driverslocal-no-421-etc-v-united-states-ca8-1942.