Opinion ID: 1547000
Heading Depth: 1
Heading Rank: 11

Heading: Finding of Fact.

Text: The respondents named as directors, officers and members of the Chamber were such and were fairly representative of the entire membership, as a class, which was so numerous that all could not be made parties without manifest inconvenience and oppressive delay. The Chamber was a non-stock or membership corporation conducting a grain exchange for the exclusive use and profit of its members, who were governed and bound by the charter, rules, regulations, usages and customs thereof. It was the largest wheat market in the United States and its members dealt, therein, in a large amount of grain, much of which was in interstate commerce. It dealt, also, in its own and other market quotations. About 90% of the grain received at Minneapolis was shipped to and dealt in by such members. The Equity was a corporation with a large number of stockholders residing in several states and practically all of whom were raisers of grain which was shipped to the Equity as sales agent or to be bought and sold on its own account. Also, it owned about seventy-five country line elevators and a large terminal elevator in St. Paul. Much of the grain so dealt in by it was in interstate commerce. Since August, 1914, its principal business office has been in St. Paul with other offices in North Dakota, Wisconsin and Montana. In August, 1914, the Exchange was organized by the Equity and others as a non-stock or membership grain exchange. Its rules did not prohibit patronage dividends, as did the rules of the Chamber. The members of the Chamber are in competition in dealing in interstate commerce grain with the Equity and its stockholders and with the members of the Exchange. The respondents Adams and Fleming were stockholders in the Publisher, the former being editor until October, 1916, and the latter thereafter. The policy of the Publication was dominated and controlled by the secretary of the Chamber, who furnished the data and material for a great number of the articles hereinafter described. The Uniform Commission Rule of the Chamber, as applied to purchases of grain in car lots on track at country points, had a tendency to depress grain prices by limiting the price to that of similar shipments to the Minneapolis market. Members were prohibited from rebating commissions or paying patronage dividends and membership was refused to co-operative associations, like the Equity, which allowed such dividends. This action of the Chamber hindered and suppressed competition from co-operative terminal marketing of grain and protected the members of the Chamber from the competition of such marketing. The Chamber permits market quotations of sales on its trading floor to be transmitted therefrom by telegraph companies in continuous (less than ten-minute) or periodical (more than ten-minute) services. This transmission is to other exchanges and nonmembers which are approved by the Chamber with the right in the Chamber to prohibit such services to any one at its pleasure. It exercises complete control over the selection of those to whom such services are sent. Knowledge of such quotations are necessary to any one dealing in car lot grain. After July, 1914, the Equity and the Exchange applied for such services but were refused such by the Chamber, although each of them was ready, able and willing to pay therefor and to abide by and agree to all of the rules and regulations required of applicants and subscribers by the Chamber and nothing in the conduct of the business of either of them prevented such compliance. The Chamber and its members conspired among themselves and with others to boycott and refuse to deal with the Equity, its stockholders or the members of the Exchange and to induce others to so refuse. For more than ten years, respondents have been engaged in a conspiracy to embarrass and destroy the business of the Equity and its stockholders and of the Exchange and its members, with the purpose of maintaining a monopoly in the grain trade. Such monopoly has been so maintained and has unduly hindered and restrained competition in interstate commerce between the members of the Chamber on the one hand and the Equity, its stockholders and members of the Exchange on the other. Acts in pursuance of the above conspiracy were as follows: (a) A resolution (No. 405) passed by the Chamber in October, 1912, falsely charging that nonmembers, in many cases, obtained members to sell grain which was shipped because of false statements and forbidding members from handling grain for nonmembers who solicited grain shipments from farmers or country shippers by false statements concerning the dealings in the Chamber or concerning the right of grain shippers with respect thereto or unless the person so soliciting such shipment can show a written statement of the shipper to the effect that he realizes that the person receiving such shipment is not a member of the Chamber and cannot get advantages out of the Chamber which he could not himself get. The purpose and effect of this resolution was to cause expense, delay and loss of business to such competitors. (b) A second resolution (No. 634), in January, 1916, which was interpreted by the Chamber as forbidding its members to act in any manner for the Equity or its stockholders and was so enforced. (c) Between May, 1912, and May, 1917, publication of false and misleading statements concerning the financial responsibility and business methods of the Equity, the Exchange, their officers and members. These publications and reprints thereof were circulated among patrons and prospective patrons of the above. Certain of these publications attacked the Equity, the Exchange, editors who commented favorably on the Equity and country elevators shipping to the Equity; advised directors of country elevators not to interfere with the managers of such in choosing persons and places to which grain should be shipped; pretended to offer expert advice on co-operative marketing while conducting a campaign against co-operative terminal marketing. (d) Subsidized the former official organ of an association of farmers (American Society of Equity), which had been affiliated with the Equity, and circulated copies thereof containing articles defamatory to the Equity and in praise of the Chamber  such publication carrying the false legend that it was still such official organ. (e) Publication of false statements concerning double commissions charged by Equity, refused to retract same and thereafter reiterated them. (f) Espionage of the Exchange and its transactions. Sent letters to banks, farmers, customers of the Equity and others designed to injure the credit and standing of the Equity with such persons. False or misleading statements concerning loss of profits and double commissions as to grain handled by the Equity. Although these false, unfair and misleading publications ceased in 1917, the matter so circulated has been and is still being used by farmers, bankers, shippers and country elevator officials to the financial injury of the Equity. (g) For the purpose of destroying the Equity, by having it declared insolvent and a receiver appointed, they instigated and financed the Schmidt suit and induced about fifty members of the Chamber to make affidavits to aid in the Linde suit, which was dismissed because the Equity was solvent. Instigated and financed the suit in the United States court in bad faith and for the purpose of hindering and obstructing the business of the Equity and of injuring its credit and reputation. (h) Inquiries and investigations at banks and other financial backers of the Equity and its stockholders for the purpose of creating suspicion concerning them and injury thereto. These actions caused substantial expense to the Equity; injured its credit and standing with grain shippers and the public and the same result followed the allegations of unfair and dishonest conduct made and published in connection therewith.