Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-06-01
COCA-C COLA CASE
DISMISSED FROM
STATE COURTS
Attorneys for Plaintiffs De-
clare That Litigation Will
Be Taken to Federal Court
for Quicker Decision

The injunction proceedings insti
tuted by the Coca-Cola Bottling com
panies against the Coca-Cola com
pany, of Delaware, involving the al
legged perpetuity of the contracts un
der wrich the bottlers heretofore
have enjoyed the exclusive right tt
the sale Of Coca-Cola syrup to actua
bottling plants, was dismissed by
Judge John T. Pendleton, in the Full
ton superior court, Monday morning
The case has been on trial for nearly
three weeks and the order of dis.
missal, which was signed at the in
stance of counsel for the bottlers
same with an unexpected suddenness
that took the defendant company by
| surprise.
Counsel for the bott1ers announced
! following the dismissal of the litiga-
| tion. that the proceedings would be
| Reconstructed in the federal courts
| They gave as their reason for with
drawing their suits, resulting in the
dismissal order. that federal Dues
| tons had been injected by the de-
PENDANT company, and that the ter
mination of the litigation would be
expedited by taking it Immediately
to the federal jurisdiction.
Specifically. counsel for the bot
tiers explained, the Coca Cola com
panv. of Delaware, In it's original
answer and amendments subsequent,
lv filed. raise the point that the
contracts in dispute are in violation
of the Clayton antitrust law, and
that the question is one for the fed
eral courts to decide.
Counsel for the defendant Coca
Cola company, following the unex-
pected ending of the litigation. gave
out a formal statement, IN which
they declared that the original
notice of termination of the CON
tracts given by the Coca-Cola COM
pany Ito the bottlers) has. become
effectuai."
Contract Ceases
In other words the relations be-
tween the Coca-CoIa company and
the two parent bottling companies,
which have been in existence for
many years, has ceased, and here
after the Coca-Cola company, in
stead of dealing with the so-called
parent bottlers, will deal directly
with the actual bott1ers of the syrup
The formal announcement of the
Coca-Cola company follows:
1.-THE effect of the dismissal Of
their bills by the Coca-Cola Bottling
companies is, that the notice of ter
mination of the contracts given by
the Coca-Co1a company has become
effectual.
ut is the purpose. however, of the
Coca-Cola company to take care of
the actual bottlers in some equita-
BILE, just and fair way, and just as
soon as it is possible to do so will
open negotiations with them with
that end in view. In the meantime,
the Coca-Cola company will arrange
to continue to furnish syrup to the
actual bottlers on the terms which
were provided in the modified order
which was passed in the cases be-
fore they were dismissed.
Neither the Coca-Cola company
nor it's counsel had any intimation of
the purpose of the plaintiffs to dis
miss the suits this morning, but we
understand from the statements
made by plaintiffs counsel that they
propose to renew the contest in some
other forum.
1.-The statement made by plaintiffs
counsel that defendant had raised a
federal question which would have
to be ultimately tried by the federal
courts, which was announced as the
reason why the cases were dismiss
ed, has reference, we suppose, to one
of the defenses made by the Coca-Cola
company. which was, that while the
Coca-Cola company denied that the
plaintiffs had properly construed the
contracts between the bottling COM
panies and the Coca-Cola company,
if they were construed as the plain
tiffs contended, they would, in that
event, be in restraint of trade, and,
therefore, void. The defendants did
not plead that the contracts, as the
defendants construe them, are in re-
straint of trade, and does not think
so.
"The defense with reference to the
question of restraint of trade was in
the original pleadings in the case,
and the amendment, which elaborat-
ed upon it some, was filed before
plaintiffs had completed their evil
dence, so that the plaintiffs have had
notice of this defense from the be-
ginning"
Origin of Litigation
The litigation was instituted sew
eral weeks ago by The Coca-Cola
Bottling company and Coca-Cola Bot
Ting company. following lengthy ne
gotiations between these concerns
and the Coca-Colas, company. These
negotiations resufted in the issuance
Of formal notice by the syrup manu-
facturer of it's purpose to terminate
it's contracts with the bottling COM
panies as of date of May l.. The bot
tiers contended that their contracts
with the Delaware corporation were
perpetual and not subject to termina-
ton at will.
The bottling companies secured
temporary injunctions in the state
poration from terminating the con-
tracts or selling the syrup for bot
Ting purposes to any one else or
from engaging itself in the bottling
of Coca-Cola syrup. Subsequently
the bOttlerS filed a supplemental bill