UNITED STATES
v.
AMERICAN LIVESTOCK COMMISSION COMPANY ET AL.

U.S. | 1929-05-20
No. 513
279 U.S. 435 Supreme Court of the United States (1929) Positive Treatment
Also reported at: 73 L. Ed. 787 · 49 S. Ct. 425 · 1929 U.S. LEXIS 58 · SCDB 1928-108
Cited by 20 cases

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Synopsis

The Supreme Court upheld the Secretary of Agriculture's order prohibiting livestock dealers from boycotting the Producers Commission Association under the Packers & Stockyards Act, rejecting the defendants' argument that the cooperative was acting outside its legal authority and therefore could be lawfully excluded from commerce. The Court held that a general boycott of a market competitor constitutes an unfair practice under the Act even if some of the competitor's transactions might be ultra vires, and that the defendants could not justify their blanket refusal to deal based on speculative illegality of the competitor's operations.


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Opinion of the Court
Mr. Justice Holmes

Mr. Justice Holmes delivered the opinion of the Court.

This is a proceeding under the Packers & Stockyards Act, 1921, Act of August 15, 1921; c. 64, § 316, 42 Stat. 159, 168. U. S. Code, Title 7, § 217. The American Livestock Association and others seek an injunction ¿gainst the carrying out of an order of the Secretary of Agriculture requiring them to discontinue a boycott by which they refused dealings with the Producers Commission Association at the Oklahoma National Stock Yards. A District Court of three judges granted the injunction. 28 E. (2d) 63. The United States appealed.

The • Secretary found the existence of the boycott, the persistent refusal to buy or sell live stock from or to the Producers Commission Association, and that the American Livestock Association and its fellow conspirators thereby restrained commerce ami discriminated unfairly against the Producers Commission Association contrary to the statute. The appellees urge that there is nothing to prevent their dealing or refusing to deal with whom they choose. But we think that it does not need argument to show that a boycott of a dealer in a stockyard may be an unfair practice under the Act as it is found to have been in this case. Eastern States Retail Lumber Dealers' Association v. United States, 234 U. S. 600. We pass at once to the only real question in debate.

The Producers Commission Association is a cooperative association for mutual help under the laws of Oklahoma and is forbidden to “handle the agricultural or horticultural product of any non-member except for storage.” It is agreed that “ the record contains no evidence as to whether the live stock which the Producers Commission Association bought or sold or attempted to buy or sell upon the Oklahoma City Stockyards was or was not the live stock of its members.” It is said so far as appears all the sales were ultra vires and that the appellees should not be enjoined from refusing to cooperate in an illegal act. But apart from the presumption that the corporation whs acting only within its powers and from the burden resting on the doer of a prima facie illegal act,' the boycott, to justify it, we agree with the Government that it would be absurd to suppose that a cooperative society organized for the special purpose of aiding its members should confine its business to the illegal sale of the products of non-members. If not all, we must assume that some at least of its business was legitimate and that to some extent it might sell live stock that its members produced. But .the boycott was general, intended it would seem to drive the Producers Commission Association out of business. That association was a competitor of the appellees and the suggestion that it was acting ultra vires sounds like an afterthought and cannot be supposed to have been the motive for the act. It is said that motive does not matter, but motive may be very material when it is sought to justify what until justified is a wrong. But, whatever the motive, nothing is shown or suggested, by the evidence to justify the general boycott that the Secretary’s order forbade. The .Secretary’s order should be enforced, but without prejudice to the right of the appellees to refuse to deal with the Producers Commission Association in matters beyond its power. A suggestion was made that the last named association was not within the protection of the Act of Congress. We see nothing in the limitation of its powers to prevent it, the statute seems to recognize it, § 306 (f), and the corporation was found by the Secretary to be a market agency duly registered as such.

Decree reversed.


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Cited By

  • …deal with anyone as a means of preventing him from dealing with a third person, against whom the combined action is directed, is a boycott; and a boycott is prima facie unlawful; it must be justified. United States v. American Livestock Commission, 279 U.S. 435, 437, 49 S.Ct. 425, 73 L.Ed. 787; Restatement of Torts, § 765 (1). That it can be justified we have indeed very recently said in Millinery Creators’ Guild v. Federal Trade Commission, 2 Cir., 109 F. 2d 175, 176; and in the case at bar for example, i…
    1 / 2
  • United States v. Donahue Bros., Inc., 59 F.2d 1019 (8th Cir. 1932)
    …led, and we think could not be successfully assailed on the ground that the forbidden practices are too uncertainly stated. Farmers’ Livestock Commission Co. v. United States (D. C.) 54 F.(2d) 375; United States v. American Livestock Commission Co., 279 U. S. 435, 49 S. Ct. 425, 426, 73 L. Ed. 787; Federal Trade Commission v. Raladam Co., 283 U. S. 643, 51 S. Ct. 587, 75 L. Ed. 1324. In United States v. American Livestock Commission Co., supra, the Secretary of Agriculture entered an order requiring the Ame…
    1 / 2
  • …e ¿articular agreement is not intended to and does not have the necessary effect of eliminating beneficial competition, a boycott designed to prevent the commission of an illegal act may be unobjectionable. United States v. American Livestock Comm., 279 U.S. 435, 49 S.Ct. 425, 73 L.Ed. 787; Swift & Co. v. United States, 196 U.S. 375, 394, 25 S.Ct. 276, 49 L.Ed. 518; Butterick Publishing Co. v. Federal Trade Commission, supra; United States v. Sugar Institute, D. C. S. D. N. Y., 15 F.Supp. 817, 899, modified…

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