New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1916-05-27
GOODRICH COMPANY WINS LEGAL
FIGHT
IN REFUSING TO SELL LEAGUE IT
PROTECTS DEALERS

luteiY square zeal iof the automOoll
supply houses says an official OF Th
b. f. Goodrich Company in explanatio
OF the victory recently won in the Unite
States District Court in Cleveland owe
the Automobile Cooperative Association
Of America.
There are $4,000 of these suppl
houses throughout the country. II w
sold the various consumers leagues at gu
iohbng price. and if other tire companie
did the same. il would result in puttns
| out of business a Tremendous number o.
| our prosperous merchants who have in
vested heavily in the automobile supply
| business. This would in the end. be
misfortune, not only to the individual
dealer. but would hurt every man whc
! owns and operates a car.
IF YOU own a car yourself or If any
of your friends own car and you take
your wives and children out for an all
day outing, one of the contributing fac
tors of your pleasure is the knowledge
that lsmost anywhere along the road, if
YOU ran cut of gas, or if you have a
blow out, or if you need various little
supplies or assistance of any kind. YOU
can drop into country garage or a lit
tie supply house and get fixed up so that
you will be able to continue on your way
rejoicing.
'Thesc dealers throughout the country.
who make auto touring a pleasure are
not making enough profit out Of the sale
O. any one article to make a living. They
must make their profits in selling a little
of that. If you take away from this
and little of that. If you take away
from this dealer his earnings on tires
and accessories the chances are that o5
per cent of them would be forced out of
business. and vet the man who joins
consumers league doesn't stop to con-
slider that in SO doing he is really knock
ing the man who makes a long automo-
bile trip a pleasure and possibility for
him.
THE significance of urvictory is the
fact that We are saving the dealers for
the ultimate benefit of the consumer even
despite the desire of very large body
of these same consumers
"1n connection with this victory, the
following letter sent out by The B. F.
Goodrich Company to their dealers is in
teresting:
Suit of Importance to Dealers.
On March 81. 1916, there ended in the
United States District Court, in Cleve-
land, Ohio, trial which has lasted for
three weeks, and is of vital interest to the
dealers throughout the country
The suit was one brought by con-
league known as the Automo-
bile Co-oerative Association of America,
which was organized in New York in
loOS and went out of business in 1911.
The suit was against The B. F. Good
rich Company. The Diamond Rubber
Company. The Fi-estone Tire and Ruo-
Der Company. The Republic Rubber Com
pany, and The U. S. Tire Company
The consumers league-the plaintiff
complained that these companies had re-
fused to sell tires to it at dealers prices:
that such refusal was the result of a COM
bined action or conspiracy on the part of
these companies, and that the result of
such conspiracy had been to cause this
league to fail ia business. The
suit was brought for $450,OOOOO damages
under the Sherman Anti-Tru Law.
At the conclusion of the plaintiffs
opening proofs, The Firestone Rubber
Company and The u S. Tire Company
were, by the direction of the Court, |
dropped out Of the case.
The fight was continued by the Good
rich Diamond and Republic Companies.
1t appeared from the evidence there
after taken-consisting of testimony of
number of prominent dealers and of Off
rers and branch managers of the tire com
panies-that the Goodrich Company had
always and consistently refused to sell TO
clubs, consumers leagues and kindred
organizations at dealers prices, recogniz- |,
ng that to do so would be unfair to. and
would undermine the business of. the
dealers.
Though the Court, at the conclusion of
the evidence, decided-and subsequently
80 charged the iurv-that no damages
we're proven or could be recovered even
i the defendants were guilty under the
sherman Law, the defendants were un-
Wiling to stop, but desired to have the
of their acts passed upon. The
matter was one of principle to US.
80 the case was argued before the iurv
which has now brought in verdict com
'letely in favor of the defendants.
The Court. in its charge to the iury.
pointed out that the reason stated bv the
defendants for not selling to the plantic
It dealers prices was that
They were forced to decide between
wo alternat;ves--to deal with the CO.
operative leagues, such as the plaintiff was
assumed to be, and lose the business Of
he regular dealers. or to say we will not
leal with the cooperative leagues and
We will keep the favor and the support
# the regular dealers"
Further, the Court said:
IF the plaintiff was not entitled 70
he consideration accorded to and re-
eivedby, regular retail dealers in the
ordinary course of trade, then to refuse
o deal with them as regular retail deal
RS was not restraint of trade"
Again. the Court said that the iury
would hafe to ask itself this question.
amely:
Was there any necessity for Mr..
Raymond, representing the Goodrich Com
ANY. with its standing in the trade, to
ppeal to other tire makers to Join with ,
in such an agreement against this
orporation' Was there any benefit to
ccrue to the Goodrich Company to do
his sort of thing3"