State v. Armour Packing Co.

• Decision Date: 20 March 1903
• Citation: 173 Mo. 356,73 S.W. 645
• Parties: STATE ex Inf. CROW, Atty. Gen., v. ARMOUR PACKING CO. et al.
• Court: Missouri Supreme Court

73 S.W. 645

173 Mo. 356.

STATE ex Inf. CROW, Atty. Gen., v. ARMOUR PACKING CO. et al.

Supreme Court of Missouri.

March 20, 1903.

COMBINATION BY PACKING HOUSES—REGULATING PRICE—EVIDENCE—STATEMENTS OF AGENTS—PUNISHMENT.

1. To show a combination of packing houses to regulate or fix prices of meats to retail dealers, in violation of Rev. St. 1899, §§ 8965, 8966, all the selling by the packers in the state being done from "coolers," and the managers thereof and the solicitors therefor being the persons who were employed by the packers to transact and who did transact all their business of selling in the state, their statements made while so engaged, and relating to the business transacted, are admissible.

2. Evidence on quo warranto proceeding against packing house corporations held sufficient to show a combination to regulate or fix prices of meats, in violation of Rev. St. 1899, §§ 8965, 8966.

3. To constitute the offense of entering into a combination to regulate or fix prices in violation of Rev. St. 1899, §§ 8965, 8966, it is not necessary that there be a complete monopoly, or that injury to the public be shown.

4. Under Rev. St. 1899, § 8971, punishing corporations for the offense of entering into a combination to fix or regulate prices by forfeiture of corporate rights and right to do business in the state, punishment need not be by a general judgment of ouster, but, if the combination be abandoned, it may be by a simple fine.

In Banc. Quo warranto on the relation of Edward C. Crow, attorney general, against the Armour Packing Company and others. Fine imposed.

This is a proceeding by quo warranto, instituted by the Attorney General ex officio, to oust the defendant corporations from their franchise to do business in this state because of alleged violations by them of their powers and privileges. The information charges that between August 22, 1899, and May 9, 1902, they "entered into an agreement, confederation, combination, pool, and understanding among themselves and with each other and Nelson, Morris & Co. and Schwartzschild & Sulzberger, and other corporations and persons, to regulate, fix, and control the price to be paid by retail butchers and others for all dressed pork, beef, and cured meats and lard slaughtered, manufactured, and prepared and offered for sale or to be sold in the state of Missouri; and to maintain and control said prices for said products in this state when so regulated and fixed; and to prevent competition in said business in preparing, marketing, and selling said products in this state between themselves and others engaged in like business; and that respondents and those others above named have maintained the said prices of dressed beef and pork, and fresh meat, cured meat, and lard so prepared, sold, and offered for sale by them in this state by and through their officers, managers, agents, salesmen, servants, and employés acting for and in behalf of said corporations, and that by the acts and conduct of said corporations through their officers, salesmen, managers, agents servants, and employés competition in the sale of dressed beef, dressed pork, fresh beef, and cured meats of all kinds and lard in the markets of Missouri, has been unlawfully prevented and destroyed, to the great detriment of the public. The information charges that respondents and those who have combined with them own, control, and supply to the general public 90 per cent. of the dressed pork, beef, and meats, and all smoked and cured pork, beef, and meats and lard, and all fresh beef and pork and meats slaughtered, manufactured, and cured and prepared and offered for sale or sold for general consumption in the state of Missouri, and that the object and purpose of said combination and agreement is to fix, regulate, and maintain the price to be paid by the consuming public for said products above mentioned, and to control said price when so fixed, maintained, and regulated, and to destroy competition among themselves and others engaged in like business. It is charged that the officers, managers, agents, servants, and employés of the respondents, legally and fully authorized by each of said several respondents to act for them and in their behalf in matters relating to the sale and price to be charged for the products above mentioned, have since the 21st day of August, 1899, met, and continuously from time to time since said day continued to meet, when they have deemed it necessary, and unlawfully agreed and combined to fix and maintain from week to week and day to day an agreed price on the different grades, classes, and kinds of dressed beef, fresh beef, dressed pork, hams, bacon, cured meats, and lard, which should be sold or offered for sale to the retail butchers and others and the consuming public in Missouri; that at said meetings the officers, managers, employés, and agents of respondents would and did agree upon and fix the price at which the respondent corporations, through their officers, agents, and employés, would sell in Missouri from week to week and day to day the products above mentioned to the consuming public; that said meetings were held by the said officers, agents, and representatives of the respondents for the purpose of fixing and maintaining the agreed price to be charged in St. Louis, Kansas City, St. Joseph, and elsewhere in Missouri for the products manufactured, prepared, and sold by the respondents; that at said meeting so held from time to time as aforesaid, and for the purpose of controlling and monopolizing the market and preventing competition in the sale of dressed meat, cured meat, pork, and lard, and in order that a common uniform price should be charged the retail butchers and the consuming public and all others in the state of Missouri by the agents of all the respondents for the same or similar grades of dressed beef, pork, cured meats, and lard, said officers, managers, and agents would at said meetings agree upon the prices at which all the different classes and kinds of the products above mentioned should be sold in the state of Missouri.

The information then charges that the said prices which should be so charged in Missouri for the said different commodities, which had been agreed upon as aforesaid at the said meetings, all the officers, managers, agents, and servants of respondents charged and intrusted with the sale to butchers and others of said products throughout Missouri were notified of, and the prices agreed upon for the period of time during which it had been agreed said prices should be charged, and that the officers, managers, agents, and employés of respondents intrusted and charged with the sale to retail butchers, meat dealers, and all others of said products in Missouri were directed and required to sell said products for said period theretofore agreed upon at the prices fixed, and not below the said prices agreed upon at said meeting so held as aforesaid. The information then alleges that, after the prices to be charged had been fixed and agreed upon as aforesaid, the said officers, managers, agents, and employés of respondents did not sell and have not sold any of the kinds, classes, and grades of the products above mentioned in this state to retail butchers, meat dealers, and the consuming public except at the prices fixed and agreed upon. It is then charged that the agreement and combination so made in the manner as aforesaid has prevented and does prevent competition in Missouri among respondents and others engaged in the same line or lines of business in this state, and that said acts of respondents have deprived and do deprive the public of free, full, and wholesome competition in the sale of the commodities above mentioned, to the great damage and detriment of the public.

Informant then charges that the general nature and object of the said combination, pool, agreement, and confederation so made as aforesaid by the said respondent corporations by the means and in the manner aforesaid is: First, to fix, regulate, maintain, and control by the respondents the price and prices to be paid for all classes, kinds, brands, and grades of dressed beef, dressed pork, hams, bacon, and all kinds of cured meats and lard, sold to the retail butchers and dealers in all kinds of fresh and cured meat and the consuming public in the cities of St. Joseph, Kansas City, St. Louis, and throughout the state of Missouri; second, to maintain the said price or prices, when so fixed as aforesaid, to be paid for all classes, kinds, and brands of dressed beef, dressed pork, hams, bacon, and all other cured meats and lard by the retail butchers, dealers in meat, and the consuming public in the cities of St. Joseph, Kansas City, St. Louis, and throughout the state of Missouri; and, third, that it is one of the objects of said combination, agreement, pool, and confederation so made as aforesaid by the respondent corporations by the means and in the manner aforesaid to prevent, prohibit, and avoid competition among themselves and others in the sale in Missouri of the said commodities dealt in and handled by the said respondents. The information then charges that the respondents, by the means and manner aforesaid, have obtained control of, and monopolized to the exclusion of all others, the business of selling all classes and kinds and grades and brands of dressed beef, dressed pork, hams and bacon, and cured meats and lard, to the retail butchers, dealers in meat, and the consuming public in the state of Missouri, to the great detriment of the public. It is then charged that by reason of the monopoly and control and exclusion of competition in the sale of said commodities aforesaid in the manner and means aforesaid the respondents and their agents, officers, and managers, have been enabled and now are selling to the butchers and dealers in meat and the consuming public in Missouri certain grades of dressed beef, pork, hams, bacon, cured meats, and lard of an...