United States v. Central Supply Ass'n

6 F.R.D. 526, 1947 U.S. Dist. LEXIS 1596
CourtDistrict Court, N.D. Ohio
DecidedMarch 31, 1947
DocketNo. 16750
StatusPublished
Cited by4 cases

This text of 6 F.R.D. 526 (United States v. Central Supply Ass'n) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Central Supply Ass'n, 6 F.R.D. 526, 1947 U.S. Dist. LEXIS 1596 (N.D. Ohio 1947).

Opinion

WILKIN, District Judge.

Preliminary Statement.

The indictment in this case was returned March 29, 1940. It charged a conspiracy to violate Section 1 of the Sherman Act, Title 15 U.S.C.A. § 1. It named 102 defendants and 115 co-conspirators. Preliminary proceedings were disposed of in 1940 and 1941. Three opinions have already been published: D.C., 34 F.Supp. 241; D.C., 37 F.Supp. 890; D.C., 40 F.Supp. 964.

When the case was ready for trial the country was involved in World War II. Many of the parties and counsel were engaged in war work or military service. The defendant manufacturers converted their plants to war production and the War Department asked a continuance of the case until after termination of hostilities. After peace was restored and counsel had returned to their former professional positions the case was set down for trial early in the autumn of 1946. In the interim, however, nine defendants had died. A separation and continuance was granted as to L. U. Noland, and sixteen defendants entered pleas of nolo contendere, and fines’ were imposed and paid. Trial began on November 18, there being at that time 76 defendants represented by 35 counsel. Trial continued at the rate of five hours a day, five days a week, with adjournments for holidays, until Friday, February 28.

When the Government rested, the defendants filed motions for judgments oí acquittal under Rule 29, Federal Rules of Criminal Procedure, 18 U.S.C.A. following section 687. Arguments on such motions began on March 6 and ended on March 24. Said motions questioned the sufficiency of the evidence as a whole to sustain the indictment and also the sufficiency of the evidence as to each defendant. The defendants combined for the presentation of the motions attacking the sufficiency of the evidence generally, Mr. Day and Mr. Johnston making the principal argument, which was supplemented only .by brief comments of other counsel. Such general argument was followed by separate arguments in support of the motions which questioned the sufficiency of the evidence as to each separate defendant. Counsel for the Government replied first to the overall motion and then analyzed the evidence as to each separate defendant. Counsel were diligent and painstaking in their analysis of the evidence as a whole and its application to the separate defendants. Reference is made to the transcript of their arguments and the court will not attempt a detailed discussion of the voluminous record of testimony and exhibits.

Part I.

The court will proceed in the order adopted by counsel and consider first the motion which asserts that the evidence as a whole is insufficient to warrant submission of the case to a jury. This overall motion was based on two main assertions:

(1) The evidence is insufficient to sustain a conviction of the offense charged.
(2) There is a material and fatal variance between the charge in the indictment and the evidence offered by the Government, in that the indictment charges a single conspiracy, whereas the evidence offered by the Government—if it tends to prove any conspiracy at all—tends to prove separate, independent and isolated conspiracies completely unrelated to the conspiracy charged.

As to No. 1, the defendants insist that judgment of acquittal should be granted unless there is evidence which excludes every other hypothesis except that of guilt-They insist that the conduct of defendants [529]*529as revealed by the evidence was legal and therefore precludes any hypothesis of guilt.

As to No. 2, they rely mainly on the principles announced in the Kotteakos case (Kotteakos v. United States), 328 U.S. 750, 66 S.Ct. 1239, 1241. It is admitted that the defendants in this case, as in the Kotteakos case, were indicted for “a single general conspiracy”. It was agreed that the indictment charged a conspiracy national in effect, involving four strata of the plumbing industry: the manufacturers, the jobbers (wholesalers), the master plumbers (retailers), and the journeymen plumbers (unions). The defendants claim that the indictment charged a conspiracy both horizontal and vertical in operation, but that the evidence fails completely to show such a vertical conspiracy. They maintain that if the evidence tends to, show any conspiratorial conduct, it would tend to show merely a conspiracy among the members of each stratum of the industry or among members of only two strata of the industry. They insist that there is no evidence of agreement, combination, or concert between the manufacturers and the unions, or between the manufacturers and the master plumbers, or between the jobbers and the unions. They contend that if the evidence reveals cooperative efforts between jobbers and manufacturers, on one hand, jobbers and master plumbers, on the other hand, and contracts between master plumbers and local unions, still all such activity falls far short of the overall conspiracy described in the indictment.

Counsel for the Government, however, contend that the evidence reveals that since 1929 the defendants and the co-conspirators have been continuously engaged in a wrongful and unlawful combination and conspiracy in restraint of interstate trade by concerted efforts to channelize plumbing supplies in a “restricted system of distribution” (i. e., manufacturer to jobber, jobber to master plumber, master plumber to consumer and installed by union journeymen). While the evidence has necessarily been presented piecemeal and reveals for the most part the conduct of the separate defendants and co-conspirators, yet they contend that when it is considered altogether it reveals a course of conduct from which the only reasonable inference is that the defendants and co-conspirators arbitrarily agreed, with respect to all plumbing supplies, to sell, to purchase, to distribute, to supply and to install only under the “restricted system of distribution”, and to boycott, to blacklist, to discriminate against, to coerce, to refuse to sell plumbing supplies to, and to refuse to supply labor to “any person who would not agree to follow the artificial and uncompetitive terms and conditions of the restricted system of distribution”.

Counsel for the defendants take up the simile of the wheel which was used in the Kotteakos case and say that whereas the alleged conspiracy in that case was without a common rim, the conduct alleged to be a conspiracy in this case lacked both a common rim and a common hub. Counsel for the Government, however, borrow the simile of a chain, as portrayed in Government’s Exhibit 1285, and insist that the concerted efforts on the various levels of the industry were linked together by concerted efforts between the respective levels through conferences, joint committees, and the American Institute, and that while there may be no evidence of direct contact between the end links of the chain, such as manufacturers and unions, yet a common purpose and knowledge as to what was taking place on all levels bound all into one combination or conspiracy.

Points 1 and 2 will be.considered together —they can hardly be separated. A careful consideration of all- the evidence and the authorities brings this court to the conclusion that the principles announced in the Kotteakos case are controlling in this case.

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Bluebook (online)
6 F.R.D. 526, 1947 U.S. Dist. LEXIS 1596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-central-supply-assn-ohnd-1947.