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UNITED STATES V. AMERICAN LINSEED OIL CO., 262 U. S. 371 (1923)

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U.S. Supreme Court

United States v. American Linseed Oil Co., 262 U.S. 371 (1923)

United States v. American Linseed Oil Company

No. 307

Argued April 25, 26, 1923

Decided June 4, 1923

262 U.S. 371

Syllabus

For the avowed purpose of substituting so-called "open competition" for the normal competition theretofore prevailing between them, but really to defeat the Sherman Anti-Trust Act without subjecting themselves to its penalties, large manufacturers of linseed oil, oil cake, and linseed meal subscribed to an agreement with a central agency which required each of the subscribers: to reveal to the agency, promptly and periodically, intimate details of its business for transmission to the others; to subject itself to autocratic powers vested in the agency; to pay large fees to the agency and make it pecuniary deposits forfeitable for infractions of the agreement; to furnish schedules of prices and terms of sale and adhere to them (unless more onerous ones were obtained), until prepared to give immediate notice of departure therefrom for relay by the agency to the other subscribers; to be represented at monthly meetings and report upon matters of interest to be there discussed, and to comply with all reasonable requirements of the agency, and divulge no secrets. Held that the necessary effect of the combination, viewed in the light of what was done under it, was to suppress competition in violation of the Sherman Act. P. 262 U. S. 388. American Column & Lumber Co. v. United States, 257 U. S. 377.

275 F.9d 9 reversed.

Appeal from a decree of the district court dismissing a bill for an injunction brought under the Sherman Act. chanroblesvirtualawlibrary

Page 262 U. S. 379





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