United States v. Container Corporation of America, C-180-G-63.
| Citation | 273 F. Supp. 18 |
| Decision Date | 31 August 1967 |
| Docket Number | No. C-180-G-63.,C-180-G-63. |
| Parties | UNITED STATES of America, Plaintiff, v. CONTAINER CORPORATION OF AMERICA et al., Defendants. |
| Court | U.S. District Court — Middle District of North Carolina |
William H. Murdock, U. S. Atty., Greensboro, N. C., Lewis Bernstein, Wharey M. Freeze, Gregory B. Hovendon and Peter J. Adang, Attys., Dept. of Justice, Washington, D. C., for plaintiff.
Whitney North Seymour, William J. Manning, and James W. Harbison, Jr., of Simpson Thacher & Bartlett, New York City, and Ralph M. Stockton, Jr., of Hudson, Ferrell, Petree, Stockton, Stockton & Robinson, Winston-Salem, N. C., for defendant, Container Corp. of America.
Robert P. Buford, Jr., and Joseph C. Carter, Jr., of Hunton, Williams, Gay, Powell & Gibson, Richmond, Va., and Charles F. Blanchard, Raleigh, N. C., for defendant, Albemarle Paper Mfg. Co.
W. P. Sandridge and W. F. Womble, of Womble, Carlyle, Sandridge & Rice, Winston-Salem, N. C., for defendant, Carolina Container Co.
Helmer R. Johnson and Charles E. Lewis, of Willkie, Farr, Gallagher, Walton
& Fitzgibbon, New York City, and W. C. Harris, Jr., of Holding, Harris, Poe & Cheshire, Raleigh, N. C., for defendant, Continental Can Co., Inc.
Howard T. Milman and Robert D. Krumme, of Sullivan & Cromwell, New York City, and Charles T. Hagan, Jr., of Adams, Kleemeier, Hagan & Hannah, Greensboro, N. C., for defendant, Crown Zellerbach Corp.
David J. Mays and John W. Edmonds, III, of Tucker, Mays, Moore & Reed, Richmond, Va., and John W. Hardy, of Douglas, Ravenel, Josey & Hardy, Greensboro, N. C., for defendants, Dixie Container Corp. and Dixie Container Corp. of N. C.
Louis A. Highmark, of Barnes, Hickam, Pantzer & Boyd, Indianapolis, Ind., and McNeill Smith, of Smith, Moore, Smith, Schell & Hunter, Greensboro, N. C., for defendant, Inland Container Corp.
Lawrence E. Walsh and Henry L. King, of Davis, Polk, Wardwell, Sunderland & Kiendl, New York City, and Arthur O. Cooke, of Cooke & Cooke, Greensboro, N. C., for defendant, International Paper Co.
Ford W. Ekey and Jon M. Sebaly, of Smith & Schnacke, Dayton, Ohio, and Richard L. Wharton of Wharton, Ivey & Wharton, Greensboro, N. C., for defendant, The Mead Corp.
B. Warwick Davenport and Robert P. Buford of Hunton, Williams, Gay, Powell & Gibson, Richmond, Va., and Charles F. Blanchard, Raleigh, N. C., for defendant, Miller Container Corp.
Fred E. Fuller and James A. Sprunk, of Fuller, Seney, Henry & Hodge, Toledo, Ohio, and Welch Jordan, of Jordan, Wright, Henson & Nichols, Greensboro, N. C., for defendant, Owens-Illinois Glass Co.
Richard A. Whiting and Robert M. Goolrick, of Steptoe & Johnson, Washington, D. C., and Thomas W. Blackwell, Jr., of Blackwell, Blackwell, Canady & Eller, Winston-Salem, N. C., for defendant, St. Joe Paper Co.
Horace R. Lamb and H. Richard Wachtel, of LeBoeuf, Lamb & Leiby, New York City, and Norman Block, of Block, Meyland & Lloyd, Greensboro, N. C., for defendant, St. Regis Paper Co.
James A. Weller, of Epps, Powell, Weller, Taylor & Miller, Johnson City, Tenn., and D. Newton Farnell, Jr., Greensboro, N. C., for defendant, Tri-State Container Corp.
James R. Withrow, Jr., Edward R. Kenney, and Alfred H. Hoddinott, Jr., of Donovan, Leisure, Newton & Irvine, New York City, and L. P. McLendon and Thornton H. Brooks, of McLendon, Brim, Holderness & Brooks, Greensboro, N. C., for defendant, Union Bag-Camp Paper Co.
E. Nobles Lowe and James Dale Thom, New York City, and Armistead W. Sapp, Jr., of Sapp & Sapp, Greensboro, N. C., for defendant, West Virginia Pulp & Paper Co.
Daniel C. Smith, Tacoma, Wash., and Fred B. Helms, of Helms, Mulliss, McMillan & Johnston, Charlotte, N. C., for defendant, Weyerhaeuser Co.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
The plaintiff, United States of America, seeks by this civil action to prevent and restrain an alleged violation of Section 1 of the Sherman Act (15 U.S.C. § 1). Briefly summarized, the complaint charges that "the defendants have engaged in a combination and conspiracy in unreasonable restraint of * * * interstate trade and commerce in corrugated containers, in the Southeastern United States, in violation of Section 1 of the Sherman Act"; that the "combination and conspiracy has consisted of a continuing agreement, understanding, and concert of action among the defendants to exchange among themselves information respecting prices that they have charged, contracted to charge, or quoted, specific customers, for the purpose and with the effect of restricting price competition among themselves in the sale of corrugated containers"; that for "the purpose of effectuating the * * * combination and conspiracy the defendants have done those things which * * * they combined and conspired to do"; and that the "combination and conspiracy has had the effect, among others, of unreasonably restricting price competition in the sale of corrugated containers to purchasers located in the Southeastern United States."
Each defendant timely filed answer denying, in all material respects, the allegations of the complaint. Additionally, defenses are raised based on the provisions of a consent decree approved and entered on April 23, 1940, by the United States District Court for the Southern District of New York, in the action entitled "United States of America, Plaintiff, against National Container Association, et al., Defendants" (Civil Action No. 8-318).
The case was tried by the Court without a jury. The commendable cooperation of counsel for the plaintiff and for all of the defendants in streamlining both discovery procedures and the presentation of evidence at the trial, resulted in many of the facts, including documents and other exhibits, being stipulated. Appreciation is again expressed to all counsel for their efforts and accomplishments in this regard.
The Court, after giving due consideration to the pleadings and the evidence, including exhibits and stipulations, the requests and briefs submitted by the parties, and the oral arguments of counsel, now makes and files herein its Findings of Fact and Conclusions of Law, separately stated:
FINDINGS OF FACT
1. Jurisdiction of the subject matter duly appears, and proper venue of the defendants is not contested.
2. For purposes of brevity, the defendants are referred to herein by the following abbreviated names:
Container Corporation of America ................ Container Corporation
Albemarle Paper Manufacturing Company ........... Albemarle
Carolina Container Company ...................... Carolina
Continental Can Company, Inc. ................... Continental
Crown Zellerbach Corporation .................... Crown Zellerbach
Dixie Container Corporation ..................... Dixie
Dixie Container Corporation of North Carolina ... Dixie of North Carolina
Inland Container Corporation .................... Inland
International Paper Company ..................... International
The Mead Corporation ............................ Mead
Miller Container Corporation .................... Miller
Owens-Illinois Glass Company .................... Owens-Illinois
St. Joe Paper Company ........................... St. Joe
St. Regis Paper Company ......................... St. Regis
Tri-State Container Corporation ................. Tri-State
Union Bag-Camp Paper Corporation ................ Union-Camp
West Virginia Pulp and Paper Company ............ West Virginia
Weyerhaeuser Company ............................ Weyerhaeuser
3. Except as otherwise stated or required by context, the facts herein found occurred or existed within the period from January 1, 1955, to October 14, 1963 (hereinafter referred to as the "period covered by the Complaint"), and within, and are limited to the Southeastern United States (herein defined as the States of Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Tennessee and Kentucky).
4. Each defendant engaged in the manufacturing and selling of corrugated containers in the regular course of its business, except that the following defendants were not engaged in the corrugated container business in the Southeastern United States prior to the date set forth opposite their respective names:
Albemarle ....................................... September 9, 1959
Continental ..................................... October 26, 1956
Crown Zellerbach ................................ November 30, 1955
Dixie of North Carolina ......................... March 1, 1959
Mead ............................................ December 27, 1956
Owens-Illinois .................................. October 4, 1956
St. Regis ....................................... October 2, 1958
West Virginia ................................... September 30, 1957
(except through its
subsidiary Hinde &
Dauch)
Weyerhaeuser .................................... May 1, 1957
Most of the corrugated containers sold by each of the defendants in the regular course of its business were manufactured by it upon customer order, and in accordance with the specifications prepared by or for the particular customer so ordering, as to the style, dimensions, weight, strength, color, printing, type of joint, and other physical characteristics, and, unless otherwise expressly designated, whenever corrugated containers are referred to herein they are of the character described in this Finding.
6. The basic material used in the manufacture of corrugated containers is corrugated containerboard consisting of one or more sheets of a corrugated material sandwiched between two or more sheets of linerboard.
7. Each defendant, in the regular course of its business, has sold and shipped substantial quantities of corrugated containers to customers located in states other than the states in which said corrugated containers were...
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