Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-12-19
SUPREME COURT UPHOLDS cos
8oN LAW FoRBlDDlNG
DISCRIMINATION.
FAlRMoNr CONCERN LOSES
ON APPEAL FROM JUDGE RAiLIE
constitutionaiity Of Law Sustained
Creamery Concern Argued That
Statute Was Observation-Disclosures Of
Great Importance to pairymen and
Farmers.
Special to Times-Republican.

it's effect on the business of the state
than the Moon law decision Of the SUI
preme court yesterday was its decision
upholding the constitutionality OF that
particular ''CoSSon law which under
takes to forbid unfair discrimination
in the handling OF milk, cream, butter
fat, poultry, eggs or grain. This par
ticular antitrust law was written and
devised for the purpose of checking
the tendency of the separator COM
panies to absorb all the creamery bust
ness and drive the independent cream
cries out Of existence.
In the case decided the Fairnont
Creamery Company, of Nebraska, op-
Grating a purchasing plant al Storm
Lake. had been indicted for violation
of the law in that it purchased cream
at rate at Aurelia which was in
tended to be destructive Of competition
and was not a fair price. Judge Bailie
held the law unconstitutional Argu-
ment to the supreme court was by
Attorney General Cosson, who wrote
the law, and United States Attorney
Faville, for the creamery company.
The court yesterday reversed Judge
Bailie and upheld the contention OF the
state.
As to constitutionality.
The sufficiency Of the indictment
was attacked but the court did not dis
cusS that question. The statute was
attacked because Of alleged error in the
title. or insufficiency, but this was
decided for the state. The main ques-
ton was whether or not the statute
was unconstitutional because Of lack
of uniformity or granting inmunities
to some persons and withholding them
from others It was contended by the
defense that the act offended, that the
classification adopted is purely arbi-
trary and unreasonable and rests upon
10 natural basis. On this question,
which was the big one of the case, the
court. opinion by Justice Evans. said:
1.-THE act under consideration applies
only to persons engaged in the bust
ness Of buying milk, cream, poultry
eggs and grain. Is this classification
arbitrary and capricious, or does it
arise fairly out of existing conditions?
Has the statute fairly aimed at a par
ticular evil, whether real or apparent.
and is the classification as comprehen-
sive as the supposed evil practice
which is sought to be restrained? Pro-
fessedly the act undertakes to pro-
mote fair competition in the purchase
Of the comm ODDITIES named therein. For
the purpose Of the considera ton of the
reasonablenesS of the classification in
question we must take note Of matters
of com mon knowledge and of common
report. One of the great legislative
problems Of the day is to protect fair
competition in the business world with
out unduly interfering with the free
dom Of contract. We may properly
presume that the problem is greater
in some lines than in others. In the
purchase of commodities the methods
of business adopted are quite as vari-
Gus as the different commodities.
Methods are adopted which are pecu-
liar and limited to dealings in a Ger
tain commodity. Evil practices, there
fore, may arise in the business methods
pertaining to one commodity which DO
not obtain at all in relation to other
commodities. Practices may obtain
which contravene no statute and which,
nevertheless, would be deemed as NOR
ally dishonest and detrinl entail to the
public interest. If it be true that large
corporations enter the creamery BUSH
ness and cover a large territory, in
Guiding many purchasing points; and
II - .tS true tiltst TIE. resort 10 meth
DDS which would be deemed morally
dishonest and unjust in order to OBJ
tain a monopoly Of the creamery bust
ness in the territory which they &C.
cupy. then a situation is presented
which fairly calls for legislative atten-
ton. The legislative problem thus pre-
sented is manifestly a difficult one. The
resulting legislation may not be best.
Rllf lpPjS13tiva OF Sc al
against a particular evil ought not for
that reason alone to be regarded as
capricious and arbitrary in its CLASH
fication. The particular methods which
are condemned by the legislative act
under consideration are set forth here
In. 1t is quite manifest that a COM
pany sufficiently large in its capital
and in the scope Of its business, could
obtain a monopoly for itself in what
ever territory it chose by adopting
the methods which are enumerated and
prohibited in the statute. The tenn
porary maintenance Of artificial prices
for the sole purpose Of destroying a
weaker competitor and creating a mon
opoly Is one of the modern evil inven-
tons. All that is required for its sure
success Is that there be great inenual-
ity Of financial resources in favor of
the offending party. A multitude of
people buy milk and cream for imme-
date consumption. Comparatively few
buy milk and cream "for the purpose
of manufacture" To the multitude
who buy for immediate consun ption
monopoly would be quite impossible
and its attempt quite absurd But
4 those who buy milk and cream "for the
purpose Of manufacture" sustain dis
tinctly different relation to the trade
and to the community in which they
operate. The magnitude of their op-
eratfons IS limited only by the magni-
tude of their resources. The motive
Of monopoly is present as we'll as the
ability to reap it's fruits when ac-
Quired. In the nature of the case the
determinations which are condemned
in the legislative act are practicable
III q practice only TO those who engage
In the business or large scale. We
4 are impressed therefore that the
classification adopted is nne which
;zarises quite naturally and that 1t rests
eSA.....::. a substantial and practical a1!.s-
tinction. Substantially the same reas-
qaing applies to those persons who
euy poultry, eggs and grain for stor.
\eo.s
othsr Court Matters.
- r Du6oins came to the end