Pittsburgh Plate Glass Company v. United States, 7585.
| Court | United States Courts of Appeals. United States Court of Appeals (4th Circuit) |
| Writing for the Court | SOBELOFF, , and SOPER, and HAYNSWORTH, Circuit |
| Citation | 260 F.2d 397 |
| Parties | PITTSBURGH PLATE GLASS COMPANY, J. A. Messer, Sr., Galax Mirror Co., Incorporated, and Mt. Airy Mirror Company, Appellants, v. UNITED STATES of America, Appellee. |
| Docket Number | No. 7585.,7585. |
| Decision Date | 06 October 1958 |
260 F.2d 397 (1958)
PITTSBURGH PLATE GLASS COMPANY, J. A. Messer, Sr., Galax Mirror Co., Incorporated, and Mt. Airy Mirror Company, Appellants,
v.
UNITED STATES of America, Appellee.
No. 7585.
United States Court of Appeals Fourth Circuit.
Argued June 2, 1958.
Decided October 6, 1958.
Certiorari Granted December 15, 1958.
H. Graham Morison, Washington, D. C., (Samuel K. Abrams, New York City, and Robert M. Lichtman, Washington, D. C., on brief), for appellants Galax Mirror Co., Inc., Mount Airy Mirror Co., and J. A. Messer, Sr.
Daniel M. Friedman, Atty., Dept. of Justice, Washington, D. C. (Victor R. Hansen, Asst. Atty. Gen., Samuel Karp, Raymond M. Carlson and Ernest L. Folk, III, Attys., Dept. of Justice, Washington, D. C., and John Strickler, U. S. Atty., Roanoke, Va., on brief), for appellee.
Before SOBELOFF, Chief Judge, and SOPER, and HAYNSWORTH, Circuit Judges.
Certiorari Granted December 15, 1958. See 79 S.Ct. 289.
SOBELOFF, Chief Judge.
The indictment in this case charged a combination and conspiracy in unreasonable restraint of trade to fix prices for the sale of plain plate glass mirrors to furniture manufacturers in violation of Section 1 of the Sherman Act, 26 Stat. 209 (1890), as amended, 15 U.S. C.A. § 1. All seven corporate and two of the three individual defendants were convicted. Appellants here are three of the convicted corporations, namely, Pittsburgh Plate Glass Company ("PPG"), Galax Mirror Company, Mount Airy Mirror Company; and one of the individuals convicted, J. A. Messer, Sr., chairman of the board of the latter two companies.
Sufficiency of the Evidence
The first question on this appeal is that raised by PPG. It contends that the evidence was insufficient to sustain the jury's verdict that PPG was a party to the conspiracy.
The proceedings in the District Court reveal the following salient facts. The corporate defendants manufacture plain plate glass mirrors in Virginia and North Carolina and sell interstate to furniture manufacturers. PPG is primarily a seller of plate glass to manufacturers, who produce mirrors by applying silver and protective coatings to one side of the glass. PPG also maintains a warehouse in High Point, North Carolina, where it manufactures and sells mirrors. List prices are uniform in the industry upon the mirrors, which are standardized as to size and shape. The actual selling price, however, is at a discount from the list price. Discounts usually range from 78% and above. Thus, the lower the discount, the higher the price.
In October, 1954, the annual meeting of the Mirror Manufacturers Association
Prior to the 1954 convention, there had been a severe price war, the impact of which upon the industry was accentuated by a decline in business. By the fall of that year, however, an up-swing in price was imminent due to a shortage of plate glass coincident with an increasing demand for mirrors by furniture manufacturers.
At Asheville, Messer, meeting with Hearn, Stroupe and Buchan, indicated an intention to raise his prices on mirrors to 78% off list. They telephoned Jonas, informing him that Messer wanted to raise his prices, and that everyone there was in agreement. Jonas expressed disbelief since Messer was well-known in the mirror industry as a price-cutter. Jonas requested that someone relay a message to PPG's Gordon to call him. Jonas testified that his purpose was to learn "if there was any truth in this matter." Gordon replied that "in some of the rooms" he had "heard the fellows saying that they would like to get their prices increased," and although he wasn't trying to tell Jonas what he should do or not do, he thought that Jonas "ought to be getting more for the product than we were getting for" it.
The next day, Jonas, Buchan, Messer and Grady V. Stroupe (president of Stroupe Mirror Company) met at an inn called "The Bluffs" and agreed finally, in Jonas' words, "that 78 per cent was a fair price and we would go along on that basis." In his testimony Jonas stated several times that it was his impression that the increase in price hinged on his assent, and if he "didn't come along, prices wouldn't be raised." Everyone agreed to send out letters around October 29 announcing the increase. Jonas said that he would report the outcome of the meeting to PPG. Accordingly, he reached Sam Prichard, Gordon's assistant, by phone on October 29, and Jonas' testimony was that he told Prichard of the agreement reached at The Bluffs and requested him to notify his superior in PPG, Gordon. Jonas further asserted that in a phone conversation with Prichard on November 1, the latter reported that the message had been conveyed to Gordon. Prichard denied emphatically any such calls from Jonas. The telephone bills of Lenoir Mirror Company, Jonas' employer, showed calls to PPG on the two dates on which Jonas claimed to have talked to Prichard. The telephone bill also showed additional calls to PPG during November.
On November 1, 1954, PPG sent a form letter to its customers announcing a price increase by reducing the discount to 78%. The other manufacturers had sent similar letters on October 29 announcing the identical increase, except Stroupe Mirror Company, whose letter went out on October 30.
The jury having found PPG guilty of participation in the conspiracy, the applicable rule in judging the sufficiency of the record to sustain the conviction is to consider it in the light most favorable to the prosecution. We may reverse only if we find that there was no substantial evidence, on the record as a whole to support the verdict. Carneal v. United States, 4 Cir., 1954, 212 F.2d 20; Garland v. United States, 4 Cir., 1950, 182 F.2d 801, 802; Jelaza v. United States, 4 Cir., 1950, 179 F.2d 202, 205. Since conscious parallel business behavior per se does not establish a violation of the Sherman Act, 15 U.S.C.A. § 1 et seq., Theatre Enterprises, Inc. v. Paramount Film Distributing Corp., 1954, 346 U.S. 537, 541, 74 S.Ct. 257, 98 L.Ed.
Alleged Variance.
The defendants are aggrieved by an alleged variance between the indictment and the proof, which they assert is fatal to the Government's...
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...matter, a trial court's refusal to inspect the grand jury transcript. Pittsburgh Plate Glass Co. v. United States, 4 Cir., 1958, 260 F.2d 397, 404, affirmed, supra, 360 U.S. 395, 79 S.Ct. 1237, 3 L.Ed.2d 1323; Berry v. United States, supra; Brilliant v. United States, supra; Hance v. United......
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United States v. Alaimo, Crim. No. 13225.
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