State v. International Harvester Co.

• Decision Date: 02 July 1906
• Parties: STATE v. INTERNATIONAL HARVESTER COMPANY
• Court: Arkansas Supreme Court

96 S.W. 119

79 Ark. 517

STATE v. INTERNATIONAL HARVESTER COMPANY

Supreme Court of Arkansas

July 2, 1906

Appeal from Pulaski Circuit Court; Edward W. Winfield, Judge affirmed.

Robert L. Rogers, Attorney General, and Lewis Rhoton, for appellant DeE. Bradshaw and T. E. Helm, of counsel.

Anti-trust acts are enacted in the exercise of the police power of the State, and are not unconstitutional. 152 Mo. 46; 61 O. St 547; 104 Tenn. 715; 19 Tex. 1; 44 S.W. 940. The State may permit foreign corporations to do business in the State on such terms as it sees proper, or it may deny them the right altogether. 66 Ark. 466; 8 Wall. 168; 57 Ark. 33; Murfree on Foreign Corporations, 2; Noyes on Intercorporate Relations § 414. The proceedings under the Anti-Trust Act should be by complaint and civil action to recover a penalty. 69 Ark. 363; Ib. 134; 55 Id. 200; 56 Id. 166; 58 Id. 39; 59 Id. 165. The overcharge cases were prosecuted by civil suits, and not by indictment. 60 Ark. 221; 49 Ib. 455.

Affirmed.

Rose, Hemingway, Cantrell & Loughborough, and Baldy Vinson and June P. Wooten, for appellees.

Penal statutes are to be construed strictly. Sutherland on Stat. Int., § 208; Endlich on Int. of Stat., § 329, p. 452; 6 Ark. 131; 40 Ark. 99; 59 Ark. 344. No case within penal statute unless completely within its words. 56 Ark. 47; 64 Ark. 284; 66 Ark. 472. The statute does not in express terms require corporations to answer inquiries made by the Secretary of State, and a failure to do so is not made an offense, either on the part of the officer or on the part of the corporation. In construing penal statutes all doubts will be resolved in favor of defendant. 70 Ark. 331. Statutes imposing burdens unknown to the common law are construed strictly in favor of those upon whom such burdens are imposed. 59 Ark. 344.

OPINION

MCCULLOCH, J.

This action is against appellee, a foreign corporation doing business in this state, to recover the penalty for an alleged violation of the act of January 23, 1905, providing for the punishment of pools, trusts and conspiracies to control prices, in failing to file an answer under oath to the written inquiry required by section 7 of that statute to be propounded to all corporations doing business in the State. The section in question is as follows:

"Section 7. It shall be the duty of the Secretary of State, on or about the first day of July each year, to address to the president, secretary or treasurer of each incorporated company doing business in this State a letter of inquiry as to whether the said corporation has all or any part of its interest or business in or with any trust, combination or association of persons or stockholders as named in the preceding provisions of this act, and to require an answer, under oath, of the president, secretary or treasurer, or any director of said company. A form of affidavit shall be inclosed in said letter of inquiry as follows:

"AFFIDAVIT.

STATE OF ARKANSAS,

County of ,

"I, , do solemnly swear that I am the (president, secretary, treasurer or director) of the corporation known and styled , duly incorporated under the laws of on the day of , and now transacting or conducting business in the State of Arkansas, and that I am duly authorized to represent said corporation in making this affidavit; and I do further solemnly swear that said , known and styled as aforesaid, has not since the day (naming the day upon which this act is to take effect) created, entered into or become a member of or a party to, and was not on the day of nor at any day since that date, and is not now, a member of or a party to any pool, trust, agreement, combination, confederation, or understanding with any other corporation, partnership, individual, or any other person or association of persons, either in this State or elsewhere, to regulate or fix in this State, or elsewhere, the price of any article of manufacture, mechanism, merchandise, commodity, convenience, repair, any product of mining, or any article or thing whatsoever, or the price or premium to be paid for insuring property against loss or damage by fire, lightning, storm, cyclone, tornado or any other kind of policy issued by the parties aforesaid; and that it has not entered into or become a member of or a party to any pool, trust, agreement, contract, combination or confederation, to fix or limit in this State or elsewhere the amount or quantity of any article of manufacture, mechanism, merchandise, commodity, convenience, repair, any product of mining, or any article or thing whatsoever, or the price or premium to be paid for insuring property against loss or damage by fire, lightning, storm, cyclone, tornado, or any other kind of policy issued by the parties aforesaid; and that it has not issued and does not own, any trust certificates, and, for any corporation, agent, officer or employee or for the directors or stockholders of any corporation, has not entered into and is not now in any combination, contract or agreement with any person or persons, corporation or corporations, or with any stockholder or director thereof, the purpose and effect of which said combination, contract or agreement would be to place the management or control of such combination or combinations, or the manufactured products thereof, in the hands of any trustee or trustees, with intent to fix or limit the price or lessen the production and sale of any article of commerce, use or consumption, or to prevent, restrict or diminish the manufacture or output of any such article.

"(President, Secretary, Treasurer or Director.)

"Subscribed and sworn to before me, a within and for the County of , this day of , 1

[SEAL]

"And on refusal to make oath in answer to said inquiry, or on failure to do so, within thirty days from the mailing thereof, the Secretary of State shall certify said fact to the prosecuting attorney of the county wherein said corporation is located or has its agent or principal place of business, and it shall be the duty of such prosecuting attorney, at his earliest practicable moment, in the name of the State and at the relation of said prosecuting attorney, to proceed against said corporation, if a domestic corporation, for the recovery of the money forfeit provided for in this act, and also for the forfeiture of its charter certificates of incorporation. If a foreign corporation, to proceed against such corporation for the recovery of the money forfeit provided for in this act, and to forfeit its right to do business in this State. Provided, that within sixty days after the passage of this act all foreign corporations desiring to do business in this State shall file a new bond, as the statute directs; and such sureties and bondsmen shall be liable for the penalties and forfeitures, including costs, provided for in this act." Acts 1905, § 7, p. 6.

It is contended...