137 Ky. 668 | Ky. Ct. App. | 1910
Opinion op the Court by
— Reversing.
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. sec. 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charge the commission of any public offense, in that: (a) The act of 1890, under which indictment was framed, has been repealed by the subsequent act of March 21, 1906 (Acts 1906, c. 117), being section 3941a, Ky.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
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, 131 Ky., 551, 767, 155 S. ~W. 703, and the opinion there rendered disposed, so far as the 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 mer
The gist of the offense denounced by our statutes against pooling is that the purpose of the pool is to enhance the value of the article pooled above its real value. Where the design of the poolers is to so enhance the value' of their product, or where, whatever their design, such is the natural effect of their action, and such as was necessarily foreseen because of its obviousness, the offense is completed. A party is presumed to have intended a result which is the logical and usual outcome of his willful act. If the conspiracy (and such the act is denominated by the statute) is entered into beyond the jurisdiction of Kentucky, the fact alone of such conspiracy, whatever its purpose, is not punishable in this state. But if the conspirators, in furtherance of their scheme, carry it into effect in Kentucky, that moment the offense is commit
A number of witnesses were introduced who testified that prior to 1906 they, as dealers in harvesting' machinery in Logan county, bought harvesters and their parts from the Deering Company, the Osborne Company, the Milwaukee, and the Champion, from each its own product; that since 1906 they had bought these same machines all from the International Harvester Company of America; that prior to 1906 there was sharp competition among the dealers and manufacturers ; that since 1906 the sales were to the retail dealers, who were at liberty to sell the machines at any price they saw fit; that since appellant sold all the machines, the price had enhanced about 5 per cent. Appellant offered to prove that the price of iron, steel, wood, and labor had all increased more than 5 per cent, during the same time, as well as that prices of manufactured articles generally had similarly increased, but the trial court rejected the evidence. There was not evidence offered to show at what price the machines sold, either before or since the alleged combination of the manufacturers. There was hot evidence offered to show the real value of the machines, unless it be said that the market price prevailing just before the combination charged
It is not true that all combinations of producers are illegal, or even are wrong or hurtful. Co-operation is as essential in many kinds of business as is. competition. In nearly every business it is practiced, and has been in some form or other since society was organized. The legislative action was not aimed to prevent co-operation. It was aimed against monopoly. Therefore it is not enough, under a prosecution under our statute, to show that there has been a combination among producers of their products or plants. Human nature is such that we must know the combination was intended to improve the affairs of those entering into it. They expected to make more money out of it than they made before. That is the spur of all commerce, and it would be an unwise policy that took it away. Nor is it enough to show in addition, and no more, that prices of the commodity were subsequently advanced. It may have been that the prices before were not high enough to pay the producers a living profit — though that is scarcely likely, else, save in exceptional callings, they would not have been engaged in the business where there was a choice left them to engage in some other. It is necessary to show that the general conditions affecting the market of that commodity were normal, and that but for the combination complained of the competition would have been fair; that is, natural and usual. Then the burden would shift to the de
On the trial of this.case the circuit court gave this instruction to the jury:
“The court instructs the jury that if they believe from the evidence beyond a reasonable doubt that the defendant, International Harvester Company of America, before the finding of the indictment herein created, established, organized, entered into, or became a member of, or in any way interested in, a pool, trust, combine, agreement, confederation, or
The instruction should, in addition, have had inserted after the words “or repairs for same,” fourth [fifth] line from the bottom, the words “at more than their real value,” as, unless the conspiracy was
The evidence should have been admitted showing the increase in the costs of material and labor entering into this machinery; then the jury should have been instructed that, if the increase in price was due solely to the increase in cost of labor or material in producing the articles, the verdict should be for the defendant, although the jury might find that it and the other concerns named in the indictment had entered into an unlawful combination in another state for-the purpose .of affecting the prices of farm machinery.
Judgment reversed, and cause remanded for a new trial, under proceedings consistent herewith.