The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-02-19

CHICAGO, Feb. 1S.-The so-called
''beef trust case was disposed of to-
- day by Judge Grosscup in the United
States circuit court, the demurrer of
the packers being overruled and
temporary injunction granted. The
attorneys for the packers made no an
nouncement of their future intentions.
They have until March 4 to confer
with their principals. If they deny the
facts upon which Judge Grosscup
based his decision, the matter will go
before a master in chancery, who will
hear the evidence, and the case will
again be argued before Judge Gross
cup. An appeal may be taken in Or
der to hasten the final adjudication of
the case. 1t is not believed that the
packers will let the matter go by de-
fault, thus making the injunction per-
manent.
The Decision Outlined.
Commerce" said Judge Grosscup,
in his decision, lis the sale or exchange
of commodities, but that which the law
looks upon as the body of commerce
is not restricted to specific acts of
sale or exchange. 1t includes the inter-
cOurse-all the initiatory and interVen-
ing acts, instrumentalities and deal.
Ings-that directly bring about the sale
or exchange Thus, though the sale or
SACId1lSS Is ii COIIlLlSECldl ACT, So also,
is the solicitation of the drummer
whose occupation it is to bring about
the sale or exchange. The whole
transaction, from the initiation to cul-
mination, is commerce.
When commerce, thus broadly de-
fined, is between parties dealing from
different states-to be effected SO fa1
as the immediate act of exchange
goes by transportation from state to
state-it is commerce between states
within the meaning of the constitution,
and the statute known as the Sher-
man act But 1t is not the transpor-
tation that makes that transaction in
terstate commerce. That is an adjunct
only, essential to commerce, but not
the test. The underlying test Is that
the transaction, as an entirety, in
Guiding each part calculated to bring
about the result, reaches into two or
more states; and that the parties deal
ing with reference thereto deal from
different states.
Each Essential Part Commerce.
"An interstate commerce transac-
tiOn is, in this sense an affair arising
from different states and centering in
the act Of exchange, each essential
part Of the affair being as much COM
merce as is the center. With this def
inition in mind, let us see what the
transaction made out in the petition u.s.
is.
For the purpose of clear exposition,
the facts set forth in the petition
should be separated into two groups;
those that are intended to bring the
transaction within the body of inter-
state commerce and those that are in
tended to fix upon such transaction the
character of unlawful combination and
conspiracy. The first group may be
stated as follows: The defendants,
controlling so per cent Of the trade
and commerce in fresh meats in the
United States, buy, in the course of
their business, live stock shipped from
points throughout the United States,
which, having been converted into fresh
meats, is sold again by them at the
places where prepared to dealers and
consumers in other states, or is sold
through their agents. located in other
states, to dealers and consumsSs in
the state where the agents are located.
The shipments in the first class of sales
are made directly from the places
where the meat is prepared to the
dealers and consumers in other states,
and in the latter class to the agents in
the other states, who, upon sale, de-
liver directly to the dealer and con-
sumer.
Reaches Backward and Forward.
What may be called the body of
these transactions is two-fold.
1t reaches backward to the pur-
chase of cattle that come to defendants
from states other than those in which
defendants manufacture, and it reaches
forward to the sale of the meats after
conversion, to parties dealing with re-
spect thereto from other states; fol-
lowed by shipments into other states.
Each of these transactions constitutes
in my judgment, interstate commerce.
Coming to the other branch of the
transaction-the sales by defendants
TnGTIlf fsn1a u 1ry
it is Interstate commerce when pur-
chasers from other states buy directly
from the defendants and have the
meats shipped to them by the vendors.
The situe of such transaction, both
as to initatory intercourse, and as to
transportation in furtherance of the
exchange, includes a state other than
the one from which defendants deal
Il think the same is true of meat
sent to agents and sold from their
stores. The transaction in such cases
in reality is between the purchaser
and the agents principal. The agents
represent the principal at the place
where the exchange takes place. but
the transaction, as a commercial entity
includes the principal and includes him
as dealing from his place of business
Indeed, such privity exists between
the principal and the transaction that
he could at the instant, as a citizen of
another state, sue upon the transaction
In the federal courts; nor have / any
question that If the conditions of this
case We're reversed, so that the defend
ants were invoking the shelter, instead
of seeking to escape the obligations Of
the commerce clause, federal law would
be found equal to the protection ask ed.
Subject to Taxing Power of State.
Because a thing can be taxed bv
the state 1t does not follow that it lies
outside the body of interstate COM
merce; for commerce, interstate as well
as domestic, is subject to the policies
and taxing power of the state, so lone,
as the exercise Of such power does not
interfere with the national govern
ments exclusive right of regulation.
Do the facts set forth in the second
grouping fix upon the transaction, even
though the transactions be within the
body of interstate commerce, the char
acter of unlawful combinations
THE averments are as follows: That
the defendants are enga ged in an un-
lawful combination and conspiracy un-
der the Sherman act in (a) directing
and requiring their purchasing agents
at the markets where the live stock
was customarily purchased, to refrain
from bidding against each other when
making such purchases; (b) in bidding
UP through their agents the price of
live stock for a few days at a time. to
induce large shipments and then ceas-