Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Honorable Bert Ford, Atilnietrator Honorable Bert Ford, Atilnietmtor Texas Liquor Control Boasd Texas Liquor Control Boasd
Austin 1, Texas Austin 1, Texas
Dear sir: Dear sir: aotlon from ttm from p lh quote Tour Branerr Instituter th8 utmost oo- law0 aad wartime 0s OQvommont an4 of 1,approdiatlon of to pnvm inria- a4 publlo, we tlm 10~ serve4 the ato, herein glvo notloe that uoh to oontinuo or naintain a dlstrl- lth bear distributor rho 8011s I! l xoom of oailln4 prices estab- oi Price Abminietration. loo It "(a) Dlreotly or lndiremtlp oharges mom than the wholerrala oellln4 prioe fixed by the Offlaa of Prloe Adrainlstratlon for the bran4 of bear he ~0118; *2 Bon. Bert lord, Page &
*lb) I? a dlatrlbutor in making dalivaries favora or permits the b4yar to maka any *aid+ paymenta’ or bonur paymants to himself, an agent, amploya*, any other parson aa an Induoemant to obtain auoh dalivaries.
Vaoh of us will rafuae to oontlnuo or maintain a distributing nlatlon with may dls- tributor who sails beer parson for raeah in violation of law la the dry areas of Tarns as dellaad by tha laws of this Stata. vhoh o? ~8 will ratuse to ooatlnua or
maintain a dlstrlbutlng ralatlon with l ay dls- trlbutor who solis baer ?ouad by tha Texas LIquac Control Board to ba of a quality ooadomnad by laws 0r this state.
"The foregoing polloy will ba adhatad to In our r.osprrtite boslnars tnasaotions for so long a tlmo a8 tha Oorernment of the Walt04 States amp 4eam lt neooaaary to eatabllah an4 maintain prloa oontrolr as a prt of thr Hation*a war effort. It 1s raoognIee4 that than ara ?ar distributor8 who msIm$aIn nr anoauraga thr preiotloor against whloh thf8 doolara$lon a? pollay 18 4Ireoto4, aul wa tlmt it 1s our 4uty to adopt 8ny reason- oon814rr able mean8 to incurs that our nrprotlva prodUOt8 not reach tha oonsumer through those diatrf- will butora who may be nagllgaat or lndiftorent toward the war afrorta of their gorarnmant and tha Paople In gaaar81."
" In oonaeotlon wlth this pro,osal you State that You aooapt the soprasahtatlons "aa bafsx 9 mado) in 4oo4 iaith an4 motivated by a daalr$ to pravaat tbs 401olO~nt Of Praatiaaa la violation of Btate aad Tedaral law*."
You wish to ba adYlse4r -#ould tha signing and dharonoa to “A. pmposrd daalaration se~6ral brewerlss rlolatlon of thS 'PSXSS Liquor Co+ oouatltuto trol Act?
Hon. Bert Ford, ta~a 3
” 6. ~Xvuld the exlatence ana adherence to the a@ead polloy by several breweries conatl- tUte ViOhtioSJ Of the Anti-Tru6t laws of tbls State or any other State law?”
This office reoently he& ocoasim to represent Toiiaa Liquor Cortrul Board in a oatsa where the aoaatltutlonelity of the Zmergena~ Eric6 Control Aat of 1948 waa direotly In issue. United States Dlstriot Judge,, %. A. Keeling aaid, “in this oaae the Court 1s of the oplnlon that Con&rear he4 the uthorlty to enaot the Rmurgenoy Prloi Control dot- of 1.0~3, in tb taoa of the existing l merganoy of the war, and that tha Act Is within the Constibutionel poware of the Con4resa.* Sfnca the oourt waa lmmedlatel oonaernad with tlm Office of Price AdalnlrtMtion*s power to f f x prloaa a,nd praotloss In mapoot to beer an4 liquor, the court*6 opinion Is prouliarly applloab1e here. See Brown, (idmlnfstrator, ~8. lores Liquor Control Board, et al, Ro. 192, Auatin Dlvlslon, YSmatera CIatriot of Taxaa, United States Dla- trict Court, not yet reported. Sudga Keeling ?ollomd the ml- ing ot the Suprem Court of the palted Stat00 in Xl&land vs. Ruaaall Car at Snow Plow Co., 879 0. E. 601: 73 L. Sd. 688, peasing upon LoFor Aot of World War f.
In addition to tha Pe4oral E;tatutea, t!:e so-oallea entI-truat.lawa or Tatsa ara alraotly ~otolved. Artiolo 74Ex5 and, partloularly price fislng. defines and srohlblts tntats, Articla 74p7 d.afi~nes an4 prohIblta monopoller. krtlole 7428, defining an4 prohibltlrg? oonspir4mIaa trade, partloular- a¬ 1~ aenounoes agr*aswnts to rsfuae to ~aell to ear particular pnraon.
:ie quote hrtlole 7428: *zither 01: any or tha following acta *hall conat~itute a conapIraoy in rsatraint of trade.
“1. Shire any Wo or more persona, firma, of paraona, who axe eoxpomtlona or associations engaeea In buylu& or aeillng any artiola Of mer- obandlae, produce or oorwPodIty enter into en agreement or understanding to refuse to buy from or sell to any peraou, Tim, 0orPOntIon 02 assoaia- tlon of persona, any crrtiole of morohanalae, proauoa comlnodlty. *4 Hon. Bert ford, Pees 4
*z. aware any two or more pereon8, iirma, or persons, aball asao0latlona Oorprratiozs a&Tee to boycott from or Eel1 to any ~crp~on, firm, oorporatlon or threaten to refuse to buy
0r @seoOiatiOn of person6 for buying from or salliw, to any other person, firm, eorporatton or aesooia- tfon or persona.*
Thla state rtatuta praeaatr a altuatlon where a parson ie broadlY prohibited tram agreeing not to sell a lawrul partioular Opposed to thie stat@ law Oomodlty person. agenoy acting In pureuenoa 16 an order of a oompetant Pador of 8 valid Aot of the Congress in affect owandlng the sale of a lawful oommo4ltY Of 001~r0a in all legal an4 valid ohannals, but pruh.lbitlng suoh sale at a prioe above that,fixed by Federal auanoy or to persona not authorized appropriate to pur- the 6ame. ohme Your ragout alllo preoenta the queetlon ðer, under Artiolaa 74.26, 74Z7 or 74i?S, an agrawnt aot'to tiolata the law8 oi the Unit04 Btatecl, even thou&h in tarmu Oontrary to state law, 0~14 form tha baaia of an enfor?aabIa rtste action, altbar orlmlnal or oltili~
This department recently tilad tb,t'uhere pr$oae are fired the crri00 or I-z-100 A&nlnlrtrrtloa,~ Lt 3r: not a tlola- tion or the &ate anti-trust laws for a doalar Sd bear or liquor to adhere strlotly to arch prioas an4 to adiatifaa the 8ama, low as ha holds himself free or innooant of dny agreement to fix the m~xlmum range iIre by the Federal. e.&enoY. Sea prl006 within Opinion 2~0. O-5811 and authoritlea there cited, anolosad hara*ith.
?:::~a trink that th.a aolcnowla4ga4 supremacy 0r Illetlonal law with l-gferenoe to commodity ptioss ~0~14, be .aqUallY appllcabla the o.ontraots and relatione between persona deal- fn principle t0 so long as euoh mea~ure8 are 4aama4 neOef+. bne in *uch co~odit~ss gery or asaantlsl. by the Federal a%flnOy tc effeOtuat@ its aUWFW war powers.
A* re v~sn the propoeed aa.raement , ite did 1s that those jl.‘h~, si.ga the same:
Eon. Bert ford, Pago S
(a) WI11 not 8011 to a dlatrlbutor who n- 86118 la 6x0.0080 Of th8 mXiaum priaaa rim& by the orrio ot Prioa Adasiniatratloa~
(b) Will not dolate tha rnulmum prioa Or t&e OfflCim Of Pm0 Adninlat~tlon~ IWgUiatiOO8 (0) Will mt aall to a Uatributor who in- diroofly by ~ai40-pay6entaw bonuaaa or othondaa vlelatoa aaxi6vm prloi ragdationag
(d) WI11 not aall $0 a dl8trlbutOr who 80118 tha HI* to persona purohaab& it ror ra-aalr in dry area8 Oz tlm Stata of Tans in vlolathn of its larrg
(0,) Will not aall to a distributor who rolla bear fouM by Tuaa Liquor Oontrol Board to be qlullty pvehibitod law. Thla, upoa It8 raoo, la both UI agrrurnt obey and not to riolata tbr lawa or Toraa and oi thr Unitad 6taka. Sinoe you rtda that JOU 8ooopttha aama “88 bolag in good faith' In oan ihd no ruma te wmdaam tk we under the lawa ei Tam*. ruuaf It must be boraa ira tied, howOver, that #a propor r0a mt k mid ww 0~ h~a l =8pt tbr a- th 0~28 80 or mrgmo~ war p&war8 o? tha ?Odarrl gey*N@nt. mt;.:ttf thoaa amrrgwmf war pewara aspita or l ra remld
trust law8 of Taxas will oparata ag@aia to pmhibfi the Oono@rta4 otion propoa04.
Your8 wry truly imro