CS SMITH MET. MARKET CO. v. FOOD & GROCERY B., ETC.

Decision Date24 July 1939
Citation33 F. Supp. 539
CourtU.S. District Court — Southern District of California
PartiesC. S. SMITH METROPOLITAN MARKET CO. v. FOOD & GROCERY BUREAU OF SOUTHERN CALIFORNIA, Inc., et al.

Pierson & Block and Willard R. Pool, all of Compton, Cal., for plaintiff.

J. Wesley Cupp, of Los Angeles, Cal., for defendants.

YANKWICH, District Judge (after stating facts as above).

The Court is of the view that, leaving aside the question whether the practices of the defendants with regard to maintenance of prices, would be legal or illegal, reasonable or unreasonable, if interstate commerce were involved, the acts complained of do not affect directly interstate commerce and do not constitute a restraint of it.

The plaintiff is a California corporation, engaged solely in the business of selling and distributing food, groceries and allied articles of merchandise at retail in various retail stores owned and maintained by it in the cities of Los Angeles, Long Beach, Lynwood, and Compton, all in the County of Los Angeles, California.

Assuming that some of the products on its shelves are imported from other states, the moment they reach its shelves, they come to rest and cease to be "in the flow" of interstate commerce. Schechter Poultry Corp. v. United States, 1935, 295 U.S. 495, 55 S.Ct. 837, 79 L.Ed. 1570, 97 A.L.R. 947; Southern Pac. Co. v. Gallagher, 1938, 306 U.S. 167, 59 S.Ct. 389, 83 L.Ed. 586.

As they are not subject to regulation by the Congress in that condition, they are not within the contemplation of the Sherman Anti-Trust law, 15 U.S.C.A. §§ 1-7, 15 note, or any other anti-trust statute aiming to prohibit certain practices in interstate commerce.

The activities of the defendants, complained of by the plaintiff, are limited to merchandise of the plaintiff after it comes to rest. They are not even statewide, but are limited to six southern counties of California.

So that, whether we look at the facts from the angle of the plaintiff and the nature of the business it is engaged in or from the angle of the defendants, and the nature and extent of the practices charged against them, we are dealing strictly with intrastate activities, which are outside the purview of the Anti-Trust laws and of their penal provisions which allow persons to recover damages for violation thereof. 15 U.S.C.A. § 15. As the plaintiff's bill of complaint has set forth fully the practices of the parties, we have the right to assume that no other facts exist, which would change the...

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8 cases
  • Evans v. SS Kresge Company, Civ. A. No. 71-85.
    • United States
    • U.S. District Court — Eastern District of Pennsylvania
    • May 13, 1975
    ...conduct complained of here occurred in the flow of interstate commerce. Defendant, citing C. S. Smith Metropolitan Market v. Food & Grocery Bureau of Southern California, 33 F.Supp. 539 (S.D.Cal.1939); Cliff Food Stores v. Kroger, 417 F.2d 203 (5th Cir. 1969); Brosious v. Pepsi-Cola Co., 15......
  • United States v. Heating, Piping & Air C. Contr. Ass'n
    • United States
    • U.S. District Court — Southern District of California
    • July 20, 1940
    ...Apex Hosiery Co. v. William Leader et al., 1940, 60 S.Ct. 982, 84 L.Ed. ___; and see my opinion in C. S. Smith Metropolitan Market Co. v. Food & Grocery Bureau, D. C. 1939, 33 F.Supp. 539. And so, when the object of the combination is to control the price or conditions of sale of articles w......
  • Cliff Food Stores, Inc. v. Kroger, Inc.
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • October 1, 1969
    ...his shelves "they come to rest and cease to be `in the flow' of interstate commerce." Smith Metropolitan Market Co. v. Food and Grocery Bureau of Southern California, S.D.Cal.1939, 33 F.Supp. 539, 540. See A.L.A. Schechter Poultry Corp. v. United States, 1935, 295 U.S. 495, 55 S.Ct. 837, 79......
  • Brosious v. Pepsi-Cola Co.
    • United States
    • U.S. Court of Appeals — Third Circuit
    • April 19, 1946
    ...Co. v. Standard Oil Co. of New Jersey, 4 Cir., 1926, 12 F.2d 541, 60 A.L.R. 1456; C. S. Smith Metropolitan Market Co. v. Food & Grocery Bureau of Southern California, Inc., D.C.Cal., 1939, 33 F. Supp. 539. 2 Atlantic C. L. R. R. v. Standard Oil Co., 1927, 275 U.S. 257, 48 S.Ct. 107, 72 L.Ed......
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