The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-02-20

tHlcdSO, FeOruary tS.-The so-cAlfcd
beef trust" case was disposed Of to-
day by Judge Grosscup in the United
States circuit court the demurrer of the
packers being over-ruled and a tempor-
ary injunction granted. The attorneys
for the packers made no announcement
of their intentions. They have until
March 4th to discuss the matter with
their principals. If they deny the facts
upon which Judge Grosscup based his
decision, the matter will go before q
master in ehancery, who will hear the
evidence. and the case will again be-
argued before Judge Grosscup. An an
peal may be taken in order to reach the
final adjudication of the case 1t is not
believed likely that the packers will
let the matter go by default, thus MAX
ing the injunction permanent
Judge Crosscup in his opinion after
defining interstate commerce says:
For the purpose of clear exposition.
the facts set forth in the petition should
be separated into two groups: Those
that are intended 70 bring the transac-
tlnn within the body of Interstate COM
merce: and those that are intended to
fix upon such transaction, the charac-
Ter of unlawful combinatio and con-
spiracy The first group NAV be- stated
as follows:
The defendants, controlling sixty 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 a t the places where pre-
pared, to dealers and consumers in other
states. or is sold through their agents.
located in other states, to dealers and
consumers in the states where the
agents are located. The shipments In
the first class of sales are made direct
ly from the places where the meat 10
prepared, to the dealers and consumers
in other states. and in the latter class
to the agents in the other states. who,
upon sale deliver directly to the dealer
and consumer. What may be called
the body of these transactions is two
fold. 1t reaches backward to tho pur-
chase of cattle that come to the defen-
dants from States other than those In
which defendants manufacture; and it
meats after conversion to parties deal
ing with respect there to from other
states, followed by shipments into
other states. Each Of these transae-
tions constitutes, in my judgment, in
| ter-state commerce.
The question whether the avermenta
| set up in the petition constitute the
| charac cter Of unlawful cornbina ton
Judge Grosscup answers in the affirma-
| tive. saying: mo one can doubt thai
| these averments state a case Of combi-
| nation. Whether the combination be
unlawful or not, depends on whether
| ii is in restraint of trade. The general
meaning OF that term IS no longer open
| TO inquiry. 1t has been passed upon
| carefully by the supreme court in the
| freight association case and in the
| traffic case. 1t is clear from them that
! restraint Of ira de is not dependent upon
! any consideration Of reasona bleness or
| unreasona bleness in the ccmbinat tion
! averred, nor is it to be tested by the
J prices that result from the combination.
Indeed, combination that leads directly
| to lower prices to the consumer may,
within the doctrine of these cases. even
| as against the consumei, be restraint
Of trade and combination that leads
the producer, be restraint Of trade
| The statute thus Interpreted, has no
concern with prices. but looks solely 70
competition and to giving competition
! full play, by making Illegal any effort
| 1T restriction upon competition. What
! over combination has the direct anG ne
cessary effect Of restricting com mpetition,
! Sc, within the meaning OF the Sherman
Act as now Interpreted, restraint OF
trade.
Thus defined, there can be no doubt
that the agreement of the defendants
TO refrain from bidding against each
other in the purchase OF cattle, Is COM
hination in restraint OF trade; so also
their agreement to bid up prices TO
stimulate shipments, intending to cease
from bidding when the shipments have
arrived, The same result follows when
| Continued on Effth P0Xes1