Daily press. [volume] (Newport News, Va.) 1896-current, 1908-10-27

African shipping ring" composed OF
: the Union Castle Mail Steamship Co.
Prince line. American and African
Steamship line and others.
| While the decision does not sustain
+ the claims Of the plaintiffs, the court
holds that thev are entitled to their
full day in court In other words. the
: case will now be tried on its merits.
! The principle invoked is that Of the
rebate system to loyal shippers
that is. where a shipper patronizcs the
conference lines exclusively for six
months. at the end OF that time he
receives a 10 per cent rebate on the
amount of freight charges paid.
Judge Hough in dismfssing the
Thomson suit for damage held that
as the combination was formed in
England an American court WAS with,
out jurisdiction under the Sherman
antitrust act: that plaintiffs went
into competitive business while the
combination was in existence. did SO
, with their eyes open and. therefore,
were not entitled to recover damages.
The circuit court OF appeals decides
all these points in favor of the plain
tiffs.
The decision. written by Judge
Noyes and concurred in by Judges
Lacombe and Coke. says:
THE plaintiffs brought action FOR
the recovery Of treble damages under
the seventh section OF the federal anti
trust statute. The case came to trial
and the Dlaintin's put in part OF
their testimony when. over their OBJ
lection. the trial coc.: dismissed the
complaint.
| "In determining wn-,her there was
! error in this action 1t must be as
sumed that the plaintiffs. had they
tnen permitted to proceed. would have
established that which they alleged
unless negative bv tne-r evidence OF
admission upon the trial.
The complaint alleges. in sub
stance, that the defendants We're en-
gagei as carriers in the South Afri'
can trade and entered into a combi.
nat: on in restraint Of foreign trade
and commerce in violation OF this act
bv means Ct a scheme under which
they united az Tho south African
: Ines fixed rates and shut off out
side competition by requiring ship
pers to paw a percentage tn addition
= TO q reasonable freight rate which
they should receive oacs in case-and
only in case-thev rsfra'ned from
shipping ~ other hHcs The evidence
Shows the existence Of a conference
for the purpose Of fixing ard main
tanning rates and a return commits
SON to loyal shippers.
= The manifest purpose OF the com
bination was to .prcsent competition
between members bv maintaining uni
form rates and to eliminate the pos
sihi'ity o! competition with other lines
by requiring shippers to pay tina.
which was equivalent TO forfeit mor"y
The combination being in re
straint Of competition In foreign ON
merce was IN contravention " the
federal antitrust statute. As said by
the supreme court II the United State s
In National Cotton OIL Co. vs.. Texas
In speaking Ct tie purpose a 1h''
federal and state statutes against
combinations: According 10 them
competition, rot continuation. should
b. the Law Of trade. " ;here = evil
in this u is accepted as less ihanthal
which may result from the rpifics;ion
ef interests and the power Such uni
ncstion gives
4 And " there hc any exception "a
the rulc that the purpose Of Tire stat
ute - TO preserve r~.apcti;ion u gill
not b. found in a combination Of car
riers which so; oniy eliminates com
petition among themselves. but AZ
tcmpts. In the manner shown IN this
record. TO prevent outside competition
Whatever the RESTRAINT e trade i'm
posed by the comtinatic1 was reason,
liable or unrc asu- - under repeat,
ed decisions Of the supreme court. I'm
material
= whcthsr the combination was en-
tered into before or after the plain
tifIs commenced TO do business g.
. equally ministerial The statute ap
plies 20 copiinuiEs CIVILIZATIONS u
is as unlawful 10 prevent q person
from engaging IN srus-p~ss as % Il On
drive n urrHcn ONT NJ kszsincxs