Legal Document

336 U.S. 460 69 Supreme Court Reporter 714 93 L.Ed. 805 UNITED STATESv.WOMEN'S SPORTSWEAR MFG. ASS'N et al. Number 37. Argued Feb. 28 and March 1, 1949. Decided 28, Appeal from the United States District for of Massachusetts. Mr. Robert L. Stern, Washington, D.C., States. Harry Bergson, Boston, Mass., appellees. Justice JACKSON delivered opinion Court. 1 The Court, after trial, has denied Government's plea an injunction, other relief, against appellees under Sherman Act.1 75 F.Supp. 112. cause is brought here by direct appeal, as Congress authorized.2 Defendants below are unincorporated trade association, its officers members. There no serious controversy to facts. Our review must determine whether or not they establish right relief which been denied. 2 We first should be satisfied that activities on restraints alleged have exerted constitute commerce among states. industry involved women's sportswear. It carried jobbers who maintain sales offices in New York engage nationwide competition orders, chiefly means traveling salesmen solicit throughout country. Upon receiving order, jobber buys fabrics cuts them customer's fancy. In most cases he then sends cut material a contractor does stitching, puts such accessories buttons bows, returns completed garments promptly ships customer. 3 That c rrent commerce, substantial volume interstate character, seems clear. Boston area ranks fifth this country's production Its obtain about 80% cloth used sources outside At least finished sportswear sold shipped customers State. Thus Massachusetts subsists constant influx outgo pass through hands stitching contractors essential operation. 4 next inquiry accused combination, made up contractors, imposed upon character magnitude violate Act. Association members handle at 50% all produced Boston. cost contractor's operation 25% jobber's sale price, variations reflected wholesale retail prices. Association's executive director took steps induce enter into written agreement, things, employ only Association, refrain dealing with nonmembers, accept secret price rebates. When hesitated, stoppage was threatened when refused because were advised it would antitrust laws, ordered stop work three jobbers, done, resumed until obtained state court injunction. proposed agreement revised ultimately signed twenty-one gross annual $8,800,000, being portion output. 5 final form, together circumstances making, illegal restraint trade. Terms relevant issue require give their available good standing International Ladies' Garment Workers Union, provided 'comparable' quality nonmember having contracts same Union. furnish order specifying forbidden receive A can continuance existing relationship. will new contract any stitcher ceases member Association. agrees assist getting sufficient amount his 'may equitably require,' divide 'as equally possible engaged him.' found one purposes standard Government also recites evidence suggesting policed membership prevent excluded 'newcomers trade.' 6 light origin industry, clear intent effect substantially restrict control prices markets. prohibits awarding others (with minor exceptions) unless those association effects virtual monopoly Work given allocated 'equitably,' reference work. And apparently contemplates boycott do subscribe these terms. restrains violation Act obvious, even if actual practice go beyond express terms, indicates likely. 7 argued inclusion labor provisions makes immune attack laws. stitc ing contractor, although furnishes labor, utilizes machines rentals, capital costs, overhead profits. He entrepreneur, laborer. Cf Columbia River Packers versus Hinton, 315 143, 62 520, 86 750. incorporated second proposal rejected violating laws seem nothing already itself well manufacturers. went limiting Union shops; limited shops trial participated making agreement. did, benefits organized cannot utilized cat's-paw pull employers' chestnuts out fires. Allen-Bradley company Local 3, Brotherhood Electrical Workers, 325 797, 65 1533, 89 1939. 8 appears dismissed case ground themselves commerce. This may nature considered alone, but matter. Restraints, effective, applied along line movement source intrastate, combination usually is; application often neither matters necessary stifle restrain If feels pinch, matter how local applies squeeze. 9 manifest purpose question free choice equal business affected substantial. While more moderate than attempted dollar-and-cents might difficult appraise, warrant judgment canceling enjoining carrying plan embodies. 10 reversed. 11 Reversed. Section July 2, 1890, chapter 647, 26 Statutes-at-Large 209, amended, 15 Code KF62 § Annotated KF65 U5 1. 29, 29; 2101, 2101.

Classification Label: 7