New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-01
HE ESCAPED THE PENALTY.
AN AGREEMENT IN RESTRAINT OF TRADE
THE NEw-YORK AND NEwJERsEY s'tEEP AND
LAMB BROKERS' ASSOCIATION DEFEATED.

THE NETWORK AND NEw-JERsEY s'tEEP AND
LAMB BROKERS' ASSOCIATION DEFEATED.
The sut of sylvanus Judd, treasurer Of the New
York and Ncw-Jerscy Sheep and Lamb Brokers AsSo
cIation. against Dennis Harrington for penalty Oh
$40 600 for having broken contract entered into oy
Harrington as a member Of the association, was decded
IN favor Of the defendant by a jury before Judgc
Tookstaver I'm the Court Of Common Pleas. yescruaS'
This decision holds that the Brokers' Association was
an illegal one because II tended to restrain trade Inc
association was formed in 1882 when the business Oh
sheen brokers, or sheep commission merchants, was
completely domoraiized by competition. The pool
was formed. the chief provisions OF the contract by
which it was brought into existence being that uni
form commission of Is cents head should be chrscu
by all It's members all sheep handled by them anu
this amount was TO be turned to the treasurer OF
the pool, Mr.. Judd
An arrangement was also made with the butchers
that the latter should form association to cooperate
with the brokers' pool Brokers were often heavy
losers by the failure of butchers to pay for sheep de
cred TO them and these losses OF the chiei
reasons Of the Generalization Of the business %
under an agreement with the brokers the butchers
formed the New-York Live Stock Association. lh'
stimulation that the Brokers' Association shouio
nav the Live stock Association "a cents head on
all sheep sold, and in return for this payment .hc
Live Stock Association guaranteed the members OF the
Rrocrs' Association against loss by the failure OF any
butcher TO make the combination moro solid, the
Brokers' Association agreed to pay 81 cents head
IN the Butchers Association Just the same on all inc
sheen sold by any Of the members OF the Brokers'
Association to outside Of the Live Stock Aso
ciation and the latter association agreed to pay 10
cents head TO the Brokers' Association for all sheep
bought by one Of the members OF the butchers organz
ton from any but members OF the Brokers Associa
ton. The mutual contract Of the brokers supula.c"
that any member Withdrawing before the expiration
Of five years should forfeit 10000 to their associa
tion The money paid into this common fund was
after the butchers percentage had been withdfs"H
divided I'D among the in ratio based upon inc
business each one did at the time of the forming OF the
pool
The agreement worked well for the first five years
and butchers and brokers alike were happy IL was
re moved fer three years in 1857, but during hiS h'Oci
period murmurs began to arise. Mr. Harrington one
~ tho members of the Brokers' Association protested
that ext Congressman Pdcock, also member was
soIipc sheen and lambs to his own butchers in the
market and not paying the stpula'eu sum Va ID '.
a head into the common fund. Things went from bad
to worse and in July, 1889, Harrington Withdrew"
In January 1890 the second period OF the
! ooreomeot eIapsed and it was not renewed But in
se,tl,nc nm the affairs Of the Brokers' Association
il was found that Mr. Pdcock owed The pool - ,uou
commissons he had failed 10 pay into the treasury
Mr. Pidcocll expressed a willingness, however 10 pay
hi If the so 600 forfeit collected from Mr. liar
rinrton rs a penalty for his withdrawal: LTD,
Harrington was sued, and this was me case Wh, nv,
was decided yesterday Harrington uoe a , " and
tw1 associations restraint upon tfaue anu
consequently unlawful Judge B0ohstaVer III cid a.
tho iirv told them that the contract upon us lacu
was not unlawful, but II from me cniueo1 y
I'D then il vas unlawful. The jury found thas
the existence Of the association restrained trade