Source: https://supreme.justia.com/cases/federal/us/272/359/
Timestamp: 2019-04-20 20:25:42+00:00

Document:
Justia › US Law › US Case Law › US Supreme Court › Volume 272 › Anderson v. Shipowners Assn.
1. A suit by an individual, claiming injury, on behalf of himself and all others in like case, to enjoin the maintenance of a combination in restraint of commerce violating § 1 of the Anti-Trust Act, is authorized by §§ 4 and 16 of the Clayton Act. P. 272 U. S. 360.
2. Ships and those who operate them are instrumentalities of commerce, and within the Commerce Clause no less than cargoes. P. 272 U. S. 363.
3. A combination whereby the owners and operators of ships engaged in interstate and foreign commerce surrender completely their freedom of action in respect of the employment of seamen to associations formed to regulate and control the subject violates the Anti-Trust Act. P. 272 U. S. 362.
4. Where the bill alleged such a combination, the direct and necessary consequence of which was to restrain interstate and foreign commerce, it was unnecessary to add an allegation that such was the specific intent of those in the combination. P. 272 U. S. 363.
5. Therefore it is unimportant in this case to inquire whether the object of the combination was merely to regulate the employment of men, and not to restrain commerce. P. 272 U. S. 363.
Certiorari (271 U.S. 652), to a decree of the circuit court of appeals which affirmed a decree of the district court dismissing a bill to restrain an unlawful combination, and.for damages.
This is a suit to enjoin the respondents from maintaining a combination in restraint of interstate and foreign commerce in violation of § 1 of the Anti-Trust Act, c. 647, 26 Stat. 209, and to recover damages. Such a suit is authorized by §§ 4 and 16 of the Clayton Act, c. 323, 38 Stat. 730, 731, 737. Duplex Co. v. Deering, 254 U. S. 443, 254 U. S. 464-465. Upon respondents' motion, the district court dismissed the bill of complaint apparently upon the merits, and the circuit court of appeals affirmed the decree. 10 F.2d 96. The only question necessary to be considered here is whether the bill states a case within the Anti-Trust Act.
an assignment card, grey in color, issued by us and addressed to your vessel, designating the position to which we have assigned him."
The associations fix the wages which shall be paid the seamen. Under the regulations, when a seaman's turn comes, he must take the employment then offered or none, whether it is suited to his qualifications or whether he wishes to engage on the particular vessel or for the particular voyage, and the officers of the vessels are deprived of the right to select their own men or those deemed most suitable. Without a compliance with the foregoing requirements, no seaman can be employed on any of the vessels owned or operated by members of the associations.
It is further alleged that the petitioner sought employment through the San Francisco office of the associations and was refused registration because he failed to produce a discharge book. At a later time, he was employed by the mate of a vessel engaged in coastwise interstate traffic, but was required by the mate to apply at the office of the associations for assignment as a sailor; that, upon application being thus made, such assignment was refused; that, nevertheless, he was directed by the mate to report on board for duty; that he did report, but was informed by the mate that he had been ordered to take no seamen, except through the office of the associations, and in consequence petitioner lost the employment, to his damage in a sum stated.
"The purpose of the Sherman Act is to prohibit monopolies, contracts, and combinations which probably would unduly interfere with the free exercise of their rights by those engaged, or who wish to engage, in trade and commerce -- in a word to preserve the right of freedom to trade."
That the effect of the combination now under consideration, both as to the seamen and the owners, is precisely what this language condemns is made plain by the allegations of the bill which we have just summarized. The absence of an allegation that such was the specific intent is not important, since that is the necessary and direct consequence of the combination and the acts of the associations under it, and they cannot be heard to say the contrary. United States v. Patten, 226 U. S. 525, 226 U. S. 543. It is not important, therefore, to inquire whether, as contended by respondents, the object of the combination was merely to regulate of employment of men, and not to restrain commerce. A restraint of interstate commerce cannot be justified by the fact that the object of the participants in the combination was to benefit themselves in a way which might have been unobjectionable, in the absence of such restraint. Duplex Co. v. Deering, supra, p. 254 U. S. 468; Ellis v. Inman, Poulsen & Co., 131 F. 182, 186.
"The alleged conspiracy and the acts here complained of spent their intended and direct force upon a local situation, for building is as essentially local as mining, manufacturing, or growing crops, and if, by a resulting diminution of the commercial demand, interstate trade was curtailed, either generally or in specific instances, that was a fortuitous consequence so remote and indirect as plainly to cause it to fall outside the reach of the Sherman Act."
Here, however, the combination and the acts complained of did not spend their intended and direct force upon a local situation. On the contrary, they related to the employment of seamen for service on ships, both of them instrumentalities of, and intended to be used in, interstate and foreign commerce, and the immediate force of the combination, both in purpose and execution, was directed toward affecting such commerce. The interference with commerce therefore was direct and primary, and not, as in the cases cited, incidental, indirect, and secondary.
agreed to abide by the will of the associations. Such is the fair interpretation of the combination and of the various requirements under it, and this is borne out by the actual experience of the petitioner in his efforts to secure employment. These shipowners and operators having thus put themselves into a situation of restraint upon their freedom to carry on interstate and foreign commerce according to their own choice and discretion, it follows, as the case now stands, that the combination is in violation of the Anti-Trust Act.
Decree reversed, and cause remanded to the district court for further proceedings in conformity with this opinion.

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