Howard v. LOCAL 74, ETC., 53 C 125
| Decision Date | 08 March 1954 |
| Docket Number | 52 Cr 331,52 C 1640.,No. 53 C 125,52 Cr 332,52 C 1639,53 C 125 |
| Citation | 118 F. Supp. 387 |
| Parties | HOWARD et al. v. LOCAL 74 OF THE WOOD, WIRE & METAL LATHERS, INTERNATIONAL UNION OF CHICAGO, ILL. AND VICINITY et al. UNITED STATES v. EMPLOYING LATHERS ASS'N OF CHICAGO AND VICINITY et al. (two cases). UNITED STATES v. EMPLOYING PLASTERERS ASS'N OF CHICAGO et al. (two cases). |
| Court | U.S. District Court — Northern District of Illinois |
Otto Kerner, Jr., U. S. Atty., Chicago, Ill., Willis Hotchkiss, E. Houston Harsha and Charles W. Houchins, of the Anti-Trust Division, Dept. of Justice, Moore, Wimbish & Leighton, Chicago, Ill., for plaintiffs.
Daniel D. Carmel, Nathan M. Cohen, Kirkland, Green, Fleming, Martin & Ellis, Mayer, Meyer, Austrian & Platt, Asher, Gubbins & Segal, Holland F. FlaHavan, Chicago, Ill., for defendants.
Reversed March 8, 1954. See 74 S.Ct. 452.
All five causes under consideration present similar operations in the building trades of the Chicago area, which operations are alleged to violate the Sherman Act, 15 U.S.C.A. §§ 1-7, 15 note. A summary analysis of the operations and business practice of the lathing industry can serve to present the operations of the plastering industry because they are similar. Since the legal question in both trades is identical, this discussion relative to the lathing industry is equally applicable to the plastering trade and one opinion will serve for all of the cases at bar.
The defendants, the Employing Lathers Association of Chicago and the labor union known as Local No. 74 of the Wood, Wire and Metal Lathers and its officers, Harry D. Follett and Edward D. Chouinard, were indicted in the case at bar for violation of Sections One and Two of the Sherman Act. All of the defendants were residents of the State of Illinois and conducted and carried on their business in the State of Illinois and the acts of conspiracies charged against them were all performed in the State of Illinois.
The indictment charges that there are thirty-six lathing contractors in the Chicago area, an area consisting of the counties of Cook, Du Page and Lake, all three of which are Illinois counties. All thirty-six of these contractors did about $8,000,000 worth of business in 1951. Sixteen of these lathing contractors, who were members of the defendant Employing Lathers Association of Chicago, did about $5,000,000 worth of work in 1951 in the said three Illinois counties, which amounted to about sixty per cent of all of the lathing business in those counties.
The indictment charged that generally contracts for lathing are executed by building contractors with plastering contractors who agree, under the terms of such contracts, to deliver lathing material and furnish labor for the lathing work required by the building contractor. The plastering contractor then enters into a sub-contract with the lathing contractor for the installation of lathing material in the building being constructed and said lathing material is furnished to said sub-contractors by the plastering contractor.
A major part of all lathing material used in lathing contracts in the said three Illinois counties is sold by manufacturers and dealers from other states to local material dealers in Illinois for resale in Illinois. They, in turn, sell said lathing materials to plastering contractors in Illinois, who then use such materials, or cause lathing contractors to use them, in constructing the work on buildings in Illinois, which buildings remain in Illinois and do not again enter into the stream of inter-state commerce.
There are three methods of delivery used by the building material suppliers who live and conduct their business in Illinois. Those methods are as follows:
First: A substantial amount of lathing materials is purchased from out-of-State sources by building material dealers in response and pursuant to prior orders placed with said dealers by plastering contractors, which is subsequently delivered to the plastering contractors and redelivered to the lathing contractors for installation.
Second: A substantial amount of lathing materials is purchased by plastering contractors from building material dealers in Illinois, who have, in turn, secured said material from out-of-State sources in order to...
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