Document: 370 U.S. 405 82 S.Ct. 1354 8 L.Ed.2d 590 UNITED STATES of America, Appellant,v.Raymond J. WISE. No. 488. Argued April 16, 1962. Decided June 25, Robert L. Wright, Fort Worth, Tex., for appellant. John T. Chadwell, Chicago, Ill., appellee. Mr. Chief Justice WARREN delivered the opinion Court. 1 A grand jury returned an indictment charging National Dairy Products Corporation with engaging 'in a combination and conspiracy to eliminate price competition in sale milk Greater Kansas City market unreasonable restraint * trade commerce, violation Section 1' Sherman Act, 15 U.S.C. § 1, U.S.C.A. 1. Two counts incorporated by reference alleged illegal acts corporation named appellee as codefendant. In bill particulars Government charged that had 'been acting solely his capacity officer, director, or agent who authorized, ordered, did some acts' constituting violation. The moved dismissal on ground indictment, particularized bill, failed charge crime. According appellee, Act does not apply corporate officers representative capacity; he contends statute exclusively applicable these is 14 Clayton 24, 24. Over Government's opposition was ordered district judge. 196 F.Supp. 155. An appeal perfected pursuant 18 3731, we noted probable jurisdiction. 368 945, 387, 7 342. 2 Although has been existence over 70 years although have indicted under almost long, see, e.g., United States v. Greenhut, 50 F. 469 (D.C.D. Mass.1892); Patterson, 55 605 Mass.1893),1 this question one first impression impetus raising issue at such late date comes from fact 1955 Congress raised penalty provision $5,000 $50,000 without making corresponding increase found Act. 3 imposes criminal sanctions upon 'every person' violates provision, 1.2 officer obviously 'person' within however, distinguishes between represents own account. latter case agrees applies. But, when corporation, no longer rationale distinction activities however culpable, are chargeable principal but individual perpetrates them. 4 No substantial support artificial interpretation seemingly clear provided legislative history. most can be said appellee's position Reagan Bill, unsuccessful competitor specifically included its penal section while Bill time. offered amendment Senate Committee Judiciary then redrafted resubmitted form which became 21 Cong.Rec. 2731, 3152. That outlawed certain 'persons,' there nothing indicate intended restrict meaning applied officers. See Trailmobile Co. Whirls, 331 40, 61, 67 982, 992, 91 L.Ed. 1328. 5 points 7, defines 'to include corporations associations.' He argues that, since term, thereby excluded. This non sequitur. mere term given broad construction alter basic meaning, inference drawn express inclusion 'persons.' reason readily understandable. doctrine responsibility well established 1890. New York Central & H.R.R. States, 212 481, 29 304, 53 613. When proscribed conduct defendants contended only natural persons were included. Amedy, 11 Wheat. 392, 6 Ed. 502. same other cases always resolved unanimous Beaston Farmers' Bank Delaware, 12 Pet. 102, 9 1017. Cf. Shirey, 359 255, 79 746, 789. dissent Story would sufficient careful draftsman avoid whole problem 8. Further caution lay language recent. Sinking-Fund Cases, 99 700, 718—719, 25 496, Canada Southern R. Gebhard, 109 527, 542, 363, 373, 27 1020 (dissenting opinion), distinguished considering application Fourteenth Amendment's protection Philadelphia Fire Assn. York, 119 110, 120, 108, 113, 30 342 opinion). Therefore, attribute significance specific definition 'persons' determining whether term. Court faced Dotterweich, 320 277, 64 134, 88 48, involving Federal Food, Drug, Cosmetic §§ 301—392, 301—392. earlier version stated both him corporation. 1938 revision made any responsible 52 Stat. 1040. Appeals reversed conviction Appeals, rejecting substantially argument advanced case. rejection equally bar. intent exculpate law imputed compulsion; else fines deter crime become license fees illegitimate business operations. Following construe common-sense all share transaction. Carolene 323 18, 21, 65 3, 89 15. supported decisions lower federal courts considered interim before passage significant MacAndrews Forbes Co., 149 823 (C.C.S.D.N.Y.1906), Court, joint violations demurred joinder, pleading human agents could held misdemeanor pleaded responsible. refused hold matter either proposition correct because was, each case, fact. may convicted, depending they personally crime.3 Winslow, 195 578 (D.C.D.Mass.1912), contention short disposition: 'The expressly charges them (the officers) actors, two fundamental principles thoroughly settled. One neither civil nor protect himself behind where actual, present, efficient actor; second parties active promoting misdemeanor, not, principals.' F., 581. 10 We 1890 1914 successfully secured reversal acted Unless subsequent statutes repealed amended aspect our inquiry end. seeks succor history accompanying attempts amend 1914. particularly relies H.R. 10539, 56th Cong., 1st Sess. (1900). report existing subject agents, officers, attorneys penalties. Rep. 1506, However, construed circumstances time passage. placed group Congressmen legislation persuasive here. Price, 361 313, 80 326, 331, 334; Turley, 352 407, 415, n. 14, 77 397, 401, 430; Fogarty 340 8, 13—14, 71 5, 95 10; Wong Yang Sung McGrath, 339 33, 47, 445, 452, 94 616; Mine Workers, 330 258, 281—282, 677, 690, 884; Gemsco, Inc., Walling, 324 244, 265, 605, 617, 921. Logically, several tenable inferences failure adopt light members, including already change. 13 passed 'An To supplement laws against unlawful restraints monopolies, purposes,' commonly called provided: 'That whenever shall violate provisions antitrust laws, deemed also directors, done part violation, therefor punished fine exceeding imprisonment year, both, discretion court.' 38 736. entirely new added provide act capacity. merely supplemental results implied repeal Act.4 16 Appellee asserts literally account misconduct attributed From premise applies capacity, 17 do agree. reasons sufficiently revealed originated House, and, after conferences Senate, survived intact. reports assistance, debates do. Whether supplementary necessary essence debates. As Shields, opponent, said, '(§ 14) reenactment law, sections 2, 3. words, it violating punishable *.' 51 14214. 9079, 9080, 9169, 9201, 9202, 9595, 9610, 14225, 15820, 16143. proponents agreed cover whose constituted offense (without acting), disappointed sympathy shown judges, juries, prosecutors. Second, feared present authorized commission offense. These ideas clearly expressed Representative Floyd, House manager: purpose make guilty, those directors thing prohibited should guilty. Under statute, person things undoubtedly guilty; enforcement experience demonstrated juries slow convict men simply concern higher up, words 'authorized' 'ordered' introduced reach real offenders, caused 9609. 9074, 9185, 9676, 9677, 9678, 9679, 16317. 19 Third, fearful might single 'link' 'chain' events Hence, fixing part' violations. 16275, 20 examine order ascertain ultimate E. I. du Pont de Nemours 353 586, 591—592, 872, 876, 1057; Schwegmann Bros. Calvert Distillers Corp., 341 384, 390—395, 745, 748, 1035; Trade Comm'n Morton Salt 334 37, 43—46, 49, 68 822, 826, 92 1196; Corn Refining Comm'n, 726, 734 737, 961, 965, 1320. How members interpreted weight construing Housing Administration Darlington, 358 84, 141, 132; Rainwater 356 590, 78 946, 996; Koshkonong Burton, 104 668, 26 886; Ogden Blackledge, Cranch 272, 276. Stafoff, 260 477, 43 197, 358; Penn Mutual Life Ins. Lederer, 252 523, 40 698; Levindale Lead Zinc Mining Coleman, 241 432, 36 644, 60 1080; Talbot Seeman, 35, But see Sioux Tribe 316 317, 62 1095, 86 1501; Stockdale Insurance Wall. 323, 22 348 (separate opinion); Freeman, How. 556, 724. 1057. reaffirmation Act's mandate prosecutors bring justice. congressional face history, cannot restriction Thus, insofar relates participants change effected. reveal understanding accord own. continued seek indictments many convictions obtained. See, Socony-Vacuum Oil 310 150, 811, 84 1129; Trenton Potteries 273 47 377, 700; American Tobacco 147 F.2d 93 (C.A.6th Cir.), affirmed, 328 781, 66 1125, 90 1575. 23 call attention during now makes urged. suggests dearth point reflects belief identical penalties successful challenge academic victory. even attempt evaluate motives defenses, if regarded being significant, not. 24 Government, hand, Atlantic 45 187 (D.C.E.D.N.C.); General Motors (D.C.N.D.Ind.), 121 376 (C.A.7th Cir.); Malleable Steel Castings (D.C.N.D.Ohio), holding altered liability prosecution participate With this, agree applicability increased corporations. 69 282; S.Rep.No.618, 84th Sess.; H.R.Rep.No.70, Sess., Code Cong. Admin.News 1955, p. 2322. Based foregoing, knowingly participates effecting contract, combination, conspiracy—be authorizes, orders, helps perpetrate crime—regardless It follows District erred dismissed remanded proceedings consistent opinion. Reversed remanded. 28 FRANKFURTER took consideration decision HARLAN, concurring. I join THE CHIEF JUSTICE additional observations, believed warranted circumstance below followed five Courts, others contrary.1 31 providing engages contract trade, course presents serious obstacle prosecuted thereunder. defining associations, imply exclusion persons. Moreover, fiction entity, operative liability, never shield prosecutions passed. think doubt early crimes committed their Until into nineteenth century itself convicted; individuals name be. anonymous note Holt, C.J., Mod. 559, Case 935, Eng.Rep. 1518 (K.B. 1701); Rex Medley, Car. P. 292, 297, 299, 172 1246, 1249—1250 1834); State Great Works Milling Mfg. Me. 41, 44 (1841); Ballantine, Corporations (rev. ed. 1946), 113. recognized convicted 'representative' corporation's immunity worn away, Regina North England (1846) Q.B. 315, 325—327, 115 1294, 1298; Morris E.R. N.J.L. 360, 369 (1852); Patton, N.C. (1843), line rule Bishop, Criminal Law (7th 1882), 892, principal. Mills, 138, 142, 636. volume accumulated 1890.2 legislated background; used fell ordinary meaning; normal punish declared unlawful. 32 discloses intention exempt offenses S. 50th reported extending Senator soon omitted altogether. 1765, 2455. substitute which, among things, reinstated provisions, again naming slightly different language. Id., 2456. statements debate: 33 'Whether extend clerks, proposed third (as Committee), grave doubt. restrain prevent tendency proper duty court equity. much more difficult process left future. care about your aimed servants. *' 2456, 2457, 2569. 34 omit entirely. objections addition result strict favor legality inflict punishment vague uncertain provisions—applied account, admittedly passed, promptly overruled vote 34—12, adopting bill. 2611. number amendments rendered quite unwieldy, id., 2655 (Senator Sherman), submitted tailoring, 2731. committee approximate 52—1 vote, 2901, 3145, 3153. 35 am persuaded, argued greater margin final than indicates narrowed. Opposition based specification purposes render trust, 2469 Reagan), 2561 Teller), Committee, all, feature common bills accepted end spirit compromise, himself, 2604, 2655. ever suggested, so far found, self-employed 'ultra vires' alone. Thirty-four Senators—a majority body—voted include, via Committee's reduction explicit, cumbersome, simple all-encompassing appears general streamlining place changing substance. further considerations dealt JUSTICE3 lead conclusion must sustained. brief Solicitor cites Brief Appellant, pp. 69—72. 'Every trust otherwise, conspiracy, commerce foreign nations, *. Every engage guilty thereof, fifty thousand dollars, punishments, 'It serious, opinion, created misdemeanors. declares notoriously accomplished modern conditions through instrumentality misdemanors (sic), word therein corporations, seems me contemplation elementary principle respect aid abet indictable principals. compelled fault personal participation, direction, activity therein, indictment.' 832. argues, '(t)he relied aider abettor theory, sought tacit theory.' Appellee, 62—68. view take unnecessary consider 2. 155 (W.D.Mo.1961). A. Woodson 198 582 (D.D.C.1961), pending, 1019, O.T.1961; Milk Distributors Assn., 200 792 (D.Md.1961); Optical 1961 par. 70,156 (E.D.Wis.1961), sub nom. Kniss, U.S., 719, 1572; 1962 70,203 (S.D.Cal.1962), Staley, Engelhard-Hanovia, 204 407 (S.D.N.Y.1962), pending Brown, 983, O.T.1961. Van Lines, 202 639 (D.D.C.1962), dismiss went say event acts. informed here Packard-Bell Electronics Cr.No.30158, S.D.Cal., motion denied CCH Reg.Rep. (1961), 45,061, 1632, Moore 48 Miss. (1873); Elsberry State, Ala. (1875); Ex parte Schmidt, Tex.App. (1877); Cowley People, 83 N.Y. 464, (1881); Parsons, Mo.App. 205 (1882); Wyandotte Corrigan, Kan. 26, 99, 102 (1886). contrary Commonwealth Demuth, 389, 392 (Pa.1825), particular read impose state Pennsylvania Supreme Use Lawson Ohio P.R. Grant Cas. 329, 350 (1856) (dictum). find little support, (D.Mass.1912), despite opinions. Neither squarely upholds Among possible infer 'doing another time, utterly conceivable evidence show free species coercion, responsible; impossible arrive demurrer.' controlling industry 'by device means names of' 591. Thus Forbes, needed shielded use sham furthering ends. Nor upholding officers; incentive argue contrary. suggested

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