International Harvester Co. of America v. Commonwealth

• Decision Date: 15 March 1910
• Parties: INTERNATIONAL HARVESTER CO. OF AMERICA v. COMMONWEALTH.
• Court: Kentucky Court of Appeals

126 S.W. 352

137 Ky. 668

INTERNATIONAL HARVESTER CO. OF AMERICA v. COMMONWEALTH.

Court of Appeals of Kentucky.

March 15, 1910

Appeal from Circuit Court, Logan County.

"To be officially reported."

The International Harvester Company of America was convicted of violating the antitrust law, and appeals. Reversed.

Arthur M. Rutledge and Browder & Browder, for appellant.

James Breathitt, Atty. Gen., and T. B. McGregor, Asst. Atty. Gen for the Commonwealth.

O'REAR J.

Appellant a foreign corporation, was indicted at the May term, 1909, of the Logan circuit court, charged with a violation of section 3915, Ky. St. (Russell's St. § 3717), which is the act of May 20, 1890 (Acts 1889-90, c. 1621), commonly known as the "anti-trust statute." At the September term following a trial was had, resulting in a verdict of guilty the penalty being fixed at a fine of $2,200. From the judgment entered upon that verdict this appeal is prosecuted. Appellant urges as error: (1) That the indictment fails to charge the commission of any public offense, in that: (a) The act of 1890, under which indictment was framed, has been repealed by the subsequent act of March 21, 1906 (Acts 1906, c. 117), being section 3941a, Ky. St. (Carroll's), and generally known as the "pooling act." Appellant contends that by the latter act all pools, combinations, and trusts in Kentucky are legalized. (b) If that position be not sound, then it is urged that the indictment fails to charge any violation of its provisions. (2) If the two positions stated above are decided adversely to appellant, it then contends that there was not any evidence of its guilt, and that the trial court should have so instructed the jury. Appellant assigns also that the court erred in rejecting material and competent evidence offered on its behalf.

On the first proposition advanced by appellant we content ourselves by saying that the question was fully considered in the case of Commonwealth v. International Harvester Company, 115 S.W. 703, and the opinion there rendered disposed, so far as this court is concerned, of the objections now urged against the constitutionality of the act of May, 1890, as it is affected by the act of March, 1906. We adhere to the construction there placed upon the statutes, and the Constitutions of Kentucky and of the United States, so far as involved therein.

The indictment in this case is in these words: "The grand jury of the county of Logan, in the name and by the authority of the commonwealth of Kentucky, accuse the International Harvester Company of America of the offense of unlawfully and willfully creating, establishing, organizing, entering into and becoming a member of and party to a pool, trust, combine, agreement, confederation, and understanding with other corporations, partnerships, individuals, persons, and associations of persons, for the purpose of regulating, controlling, and fixing the price of merchandise, manufactured articles and property of another kind, and for the purpose of enhancing the value of the articles named in the indictment above their real value, and entering into an agreement, contract, understanding, combination, and confederation to fix and limit the amount and quality of articles of property, commodities, and merchandise to be produced, manufactured, and sold, committed as follows, to wit: The said International Harvester Company of America heretofore, within one year before the finding of this indictment, did in the county of Logan and state of Kentucky unlawfully and willfully enter into a combination, confederation, pool, trust, combine, agreement, contract, and understanding with the McCormick Harvester Company, the Deering Harvester Company, the Milwaukee Harvester Machine Company, D. M. Osborne Company, and the Plano Machine Company, some which are corporations and some joint-stock companies, but the jury cannot say which are stock companies and which are corporations, nor who constitute members of any joint-stock company, nor in what state those being corporations are incorporated, and other companies and corporations and individuals to the grand jury unknown, for the purpose of regulating and controlling and fixing the price of harvesting and farm machinery, reapers, mowers, rakes, binders, and repairs of same manufactured by said parties, and to be produced and manufactured by them, whereby it was agreed between said International Harvester Company of America and said other companies and corporations hereinbefore mentioned, and other corporations, companies, and individuals to the grand jury unknown, that they would regulate, control, and fix the price of machinery, commodities, and merchandise, to wit, said farm machinery, reapers, rakes, mowers, and binders, and other machinery to be produced and manufactured by said International Harvester Company of America, and other companies and individuals and corporations herein mentioned, and unknown to this jury, and bought and sold by them; that they also entered into a confederation, agreement, pool, trust, combine, and understanding to limit the amount and quality of said machinery and merchandise to be produced and manufactured and bought and sold by said International Harvester Company of America, and said other companies, corporations, and individuals to the grand jury unknown, herein mentioned, and for the purpose of enhancing the articles named in the indictment above their real value; that in pursuance of said agreement, confederation, pool, trust, combine, and understanding said International Harvester Company of America, and said other companies and corporations and individuals unknown to the grand jury, herein mentioned, did before the finding of the indictment in said county of Logan regulate, control, and fix the price of farm machinery, reapers, mowers, and binders, produced, manufactured, bought, and sold by said International Harvester Company of America, and other companies, corporations, individuals, and parties to the grand jury unknown aforesaid, and did limit the amount and quantity of said property to be produced and manufactured to be bought and sold by said International Harvester Company of America, and the other parties hereinbefore named, and did limit the quantity of said merchandise and machinery produced, and did fix the price of same sold in said county above their actual value, and did advance the price above the real and actual value; that the said International Harvester Company of America took over all machinery manufactured and to be produced and manufactured, by said other companies, corporations, and individuals hereinbefore named and unknown to the grand jury, and did fix and limit the amount and quantity of said articles to be produced and manufactured, and did fix and limit the amount of same to be bought and sold, and did fix and limit the prices at which said property hereinbefore mentioned should be bought and sold. The said International Harvester Company, the Deering Harvester Company, the Milwaukee Harvester Company, D. M. Osborne Company, and other companies herein unknown to the grand...