Document: 332 U.S. 218 67 S.Ct. 1560 91 L.Ed. 2010 UNITED STATESv.YELLOW CAB CO. et al. No. 1035. Argued May 7, 1947. Decided June 23, A complaint, alleging a conspiracy to control principal taxicab operating companies in Chicago and exclude others from engaging the transportation of interstate train passengers between their homes railroad stations normal course independent local service, did not allege cause action under Sherman Anti-Trust Act because related 'interstate commerce'. Act, §§ 1, 2, 4, 15 U.S.C.A. 4. [Syllabus page 219 intentionally omitted] Mr.Charles H. Weston, Washington, D.C., for appellant. Mr. Samuel Kaufman, New York City, appellees. Justice MURPHY delivered opinion Court. 1 The United States filed complaint federal district court below pursuant § 4 26 Stat. 209, as amended, prevent restrain appellees violating 2 2. alleged that have been are engaged combination monopolize trade commerce (1) sale motor vehicles use taxicabs cab Chicago, Pittsburgh, City Minneapolis, (2) business furnishing services hire vicinit. appe llees moved dismiss failure state claim upon which relief might be granted. That motion was sustained. 69 F.Supp. 170. case is now here on direct appeal by States. 980. facts, set forth may summarized briefly. In January, 1929, one Morris Markin commenced negotiations merge more important other cities. then president general manager, well controlling stockholder, Checker Cab Manufacturing Corporation (CCM). company manufacturing at its factory Kalamazoo, Michigan, shipping them purchasers various states. 3 Parmelee Transportation Company (Parmelee) organized April, with 62% stock being owned CCM. It promptly took over special unlicensed cabs transport luggage contracts railroads terminal associations. acquired interest Yellow Company, Inc. (Chicago Yellow). This latter holds all capital (Yellow), owner operator 'Yellow' vicinity. presently 53% licenses outstanding Chicago. addition, or subsidiary hold 100% 58% those 15% City.1 1930, Sales Parts (Cab Sales) incorporated. At times, has active manager this company; since 1934, he sole stockholder. owns operates 'Checker' vicinity, using held name Taxi (Checker).2 no employees property than 1,000 licenses, one-third total outstanding, it leases Sales; nearly associates Markin.3 5 also obtained substantial DeLuxe Motor third largest 1929 400 licenses. He caused sold Parmelee. consolidated into new 1932, Sals bought concern suspend operations. Thus, end had gained three and, through Parmelee, footholds Pittsburgh Minneapolis. 6 consistently vast majority There were 5,289 2,335 (44%) 1,750 (33%). September, adopted an ordinance effect should issued, except renewals, unless found public convenience necessity required otherwise. substance provision repeated May, 1934. subsequently made agreements reduce number operation induce city lower $3,000, would 1,500 1,000. 7 On December 22, 1937, passed providing method voluntary surrender licensees sufficient 3,000. provided if authorized later increased above 3,000 figure, such additional first issued original proportion to, up they surrendered. agreement implement ordinance; agreed 571 (leaving 1,595) 500 1,000); both parties promised attempt secure 60% 40% any excess issue. As result, left outstanding. 8 January 16, 1946, issuance 250 war veterans. notified 234 representing operation, canceled. given similar notice 87 brought suit Illinois enjoin issuing canceling ones them; claimed economic conditions prevented procuring replace become inoperable. courts 1937 created contract could issue veterans without replacing surrendered; further monopoly existed, rights subject city. Co. v. 396 Ill. 388, 71 N.E.2d 652. 9 Such nature facts complaint. Those allegedly give rise part (Yellow, Yellow, Sales, Checker, CCM Markin) violation Act. problems thereby raised can best considered relation purported terms conspiracy. For present purposes, course, we must assume, deciding implying, allegations true. I. 10 said purchase insisting exclusively excludes manufacturers 86% market, market Minneapolis market. same time, controlled restrained purchasing manfacturers result these pay otherwise pay, expenditures unnecessarily, charged high rates rendered. 11 asserted manner character undeniably interstate. do Illinois, York, Pennsylvania Minnesota. By virtue conspiracy, Since CCM's located sales shipments inevitable effectuated. prevents manufacturers, thus precluding each individual (other CCM) Interstate trade, short, very essence aspect 12 But amount affected immaterial determining whether Section outlaws unreasonable restraints commerce, regardless affected. Socony-Vacuum Oil Co., 310 150, note 59, 225, 60 811, 846, 84 1129; Apex Hosiery Leader, 469, 485, S.Ct.982, 987, 1311, 128 A.L.R. 1044. And makes unlawful conspire 'any part' specifying how large Hence enough some appreciable monopoly, restraint deals purchases replacements 5,000 licensed four cities.4 standard. See Montague & Lowry, 193 38, 24 307, 48 608. 13 Likewise irrelevant importance entire type concerned large, nation-wide obstacles channels trade. designed sweep away obstructions so statutory policy free effectively achieved. Court stated Indiana Farmer's Guide Pub. Prairie Farmer 293 268, 279, 55 182, 185, 79 356, 'The provisions geographical distributive significance apply distinguished whole classes things forming commerce.' follows defective reference manufactured Its relative position field production necessary ability restrain, segment sales. An allegation monopolized sufficient. 14 Nor doubted combinations conspiracies fall within ban excluding represented control, limit outlets commerce. Limitations condemned time again violative Associated Press States, 326 18, 19, 65 1416, 1423, 1424, 89 L.d. 2013, nd cases cited. preventing CCM, deny opportunity free, competitive market.5 never thought sanction goods supra; Binderup Pathe Exchange, 263 291, 44 96, 68 308. fact occur setting described vertically integrated enterprise does necessarily remove test illegality presence absence readily among who affiliated common ownership independent. Similarly, affiliation integration flowing illegal cannot insulate conspirators sanctions Congress imposed. corporate interrelationships conspirators, words, determinative applicability statute aimed rather form. Appalachian Coals, Inc., 228 344, 360, 361, 376, 377, 53 471, 474, 480, 77 825. 16 case, impotent liberate impact charges only effected but primary object combination. theory borrow language Reading 253 26, 57, 40 425, 432, 64 760, 'dominating power' 'was expansion meet demands growing superior enterprising management, deliberate, calculated control.' If borne out evidence, coupled proof undue plain occurred. Cf. Crescent Amusement 323 173, 189, 254, 262, 160. II. 17 will compete associations points well-known terminus passenger traffic great persons making trips carry disembark station, travel station another two blocks miles distant, board station. often supply between-station provide carrying seven ten passengers. Parmelee's exclusive nature. 18 clearly stream When move point origin destination another, journey consists agency solely boundaries make portion trip less character. Daniel Ball , Wall. 557, 565, 19 999. viewed isolation. So viewed, integral step movement. Stafford Wallace, 258 495, 42 397, 66 735, 23 229. Any impose constituent brings operation. Here there bring eliminate competition supplying transfer midst journeys. Only procure contracts; forbidden contracts, despite conceivably service cost railroads.6 accordingly states respect. Addyston Pipe Steel 175 211, 20 136. true, question illegal. Donovan 199 91, 50 192. obtaining what runs afoul Moreover, corporations serve negative where, here, assertedly means effectuating compete. III. 21 Finally, conspired travelers stations. To end, 3,000, 2,595 (or 86%) themselves, obtain issue, operators entering having annually renew operate intention operating. 22 toward directed arise following facts. Many embark journeys homes, offices hotels themselves Conversely, many complete hotels. intermingled admittedly operations taxicabs. rests validity particular. We hold, however, too unrelated constitute thereof meaning These taxicabs, transporting stations, cross lines; ordinance, confined 'between limits City.' Non erves passengers, 'every person' They contractual arrangement railroads. fares paid collected fares. relationship transit casual incidental. sense, traveler starts when boards conveyance near his home, office hotel continued train; ends alights constitutes ultimate destination. Indeed, traced even moment leaves enters room descends ascends building elevator. 25 intensely practical concept drawn accepted business. Swift 196 375, 398, 276, 280, 49 518; North American Securities Exchange Comm., 327 686, 705, 785, 796, 90 945. measured 'the commonly sense concept.' Capital Transit 325 357, 363, 1176, 1179, 1663. fairly shipment chattels individual's journey. mark beginning particular kind own considerations. believe understanding intending rail begins movement disembarks What happens prior subsequent journey, least arrangement, freedom arrive leave taxicab, trolley, bus, subway, elevated train, private automobile, legs, conveyance. Taxicab used. contracted independently utilized whenever desires. From standpoints continuity, quite distinct separate driver, just fare. 27 R. Knight, 192 21, 202, 325, demonstrates understanding. Railroad franchise tax reason maintained benefit transported ferry residences preliminary included carriage. taxation. true ruling extent state's taxing power conclusive purposes. Bacon People State 227 504, 516, 33 299, 303, 57 615; supra, 311, 100, illustrate outer here. 28 mean establish absolute rule completely beyond reach scope 528, 406, 229, nothing Knight authority proposition 'if (local service) used unduly constantly traffic, restraint.' Likewise, understood drivers outside ken. burden where begin justify imposition laws resting Congress. 29 All merely convey transportation. more, proscribed 30 insofar based fails becomes unnecessary discuss relating service. Our conclusion respect, lead affirmance District Court's dismissal reasons I II opinion, entitling trial merits. dealt Part III defective, appropriate steps taken delete thereto. With understanding, reverse judgment remand proceedings consistent opinion. 31 Reversed. 32 BLACK RUTLEDGE agree dissent holding BURTON concurs However, believes that, therefore, dismissing affirmed. 34 DOUGLAS consideration decision case. Between October, June, Pittsburgh; wholly subsidiaries. Early 1931, formed Minneapolis; 125 214 Beginning early certain City; 2,000 13,000 originally cooperative company, stockholders owners cabs. February, settlement litigation period five years $2,350 per cab. appointed agent sell $1,906 During five-year life agreement, prices about $400 defaulted payments foreclose take 1941, operated 97% Checker. 1942. estimated 280 Pittsburgh. higher open prices, injured. equipment totally different impractical unlikely. matter determination merits sufficiency

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