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LAW OF 1899, CHAP. 148.

AN ACT to prohibit contracts or combinations of persons, firms cr associations intended to prevent free competition in business, to provide for civil damages, penalties and punishments for violation, repealing all laws in conflict therewith.

§ 1. Be it enacted by the General Assembly of the State of Indiana, That any person, firm or association of persons who shall make any contract or enter into any agreement or make any combination or enter into any arrangement, directly or indirectly, to induce, procure or prevent any wholesale or retail dealer in or manufacturer of merchandise or of supplies or of material or article intended for trade or used by any mechanic, artisan or dealer in the prosecution of his business from selling such supplies to any dealer or to any mechanic or artisan; and that any dealer in or manufacturer of such supplies or material or article of trade or supplies or material to be used by any mechanic, artisan or dealer who shall be a party, directly or indirectly, to any such contract, combination or arrangement, or who shall upon the request of any party to any such contract, combination or arrangement refuse to sell such articles of trade, supplies or materials, or articles sold by any dealer or used by any mechanic, or artisan, to any such person or persons who may require them in the prosecution of their said business, for the reason that said dealer, mechanic or artisan is not a member of a combination or association of persons, shall be guilty of conspiracy against trade. And all such contracts, agreements, combinations or arrangements shall be void and of no effect whatever in law.

§ 2. Any person or persons, firm or association of individuals, or any individual connected therewith, who shall be responsible for the making of any such contract, agreement or combination or arrangement, or shall be a party to any such contract, combination or arrangement, or that shall take any part therein, as set out in section 1 of this act, shall, upon conviction thereof in any court of competent jurisdiction, be punished by a fine of not less than fifty dollars nor more than two thousand dollars, to which may be added imprisonment in the county jail for any period not exceeding one year.

§ 3. Each and every person, firm or association of persons who shall in any manner violate the provisions of this

act shall, for each and every day that such violation shall be committed and continued after due notice given by the party interested, [to the]' Attorney-General or prosecuting attorney, forfeit and pay the sum of fifty dollars, which may be recovered in the name of the State on the relation of the party injured or on the relation of the prosecuting attorney in any county where the offense is committed or where the offender or offenders reside. And it shall be the duty of the prosecuting attorney of any county to prosecute any such action, and he shall be entitled to a fee of twenty-five dollars to be taxed against the defendant, in the event of recovery, as a part of the costs of said action. Any such action may be taken in any circuit or superior court of the county in which the defendant resides or in which he is engaged in business.

§ 4. Any person who shall by any such contract or combination as set out in section 1 of this act, be injured or damaged in his business thereby, or by reason of anything forbidden or declared by this act to be unlawful, may maintain a suit therefor in any court having jurisdiction thereof in the county where the defendant resides or in which he is engaged in business, or in any county where service may be obtained, without respect to the amount in controversy, and the plaintiff in any such action shall be entitled to recover all his costs and a reasonable attorney's fee therein.

§ 5. Whenever it shall appear to the court before which any proceedings under this act may be pending, that the ends of justice require that other parties shall be brought before the court, said court may cause them to be made parties defendant and cause them to be served by the process of court as now required by law in such cases provided, whether they reside in the county where said action is pending or not. § 6. All laws and parts of laws in conflict with any of the provisions of this act are hereby repealed.

Approved March 3, 1899.

1 This statute is taken verbatim from the official copies of the Indiana Laws of 1899; appended to which is the following: "Words included in the brackets [thus], do not appear in the Enrolled Acts * * *, but were by me inserted in the printed copies thereof, to aid in interpreting the meaning, * *. Union B. Hunt, Secretary of State." The inserted words, "to the" may alter materially the meaning of the statute.

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IOWA.

STATUTE.

CODE OF 1897.

CHEATING.

§ 5060. Pools and trusts.-Any corporation organized under the laws of this or any other state or country for transacting or conducting any kind of business in this state, or any partnership, association or individual, creating, entering into or becoming a member of, or a party to any pool, trust, agreement, contract, combination, confederation or understanding with any other corporation, partnership, association or individual, to regulate or fix the price of any article of merchandise or commodity, or to fix or limit the amount or quantity of any article, commodity or merchandise to be manufactured, mined, produced or sold in this state, shall be guilty of a conspiracy.

§ 5061. Corporation not to enter.-No corporation shall issue or own trust certificates, and no corporation, nor any agent, officer, or employe, director or stockholder of any corporation, shall enter into any combination, contract or agreement with any person or corporation, or with any stockholder or director thereof, for the purpose of placing the management or control of such combination or combinations, or the manufactured product thereof, in the hands of any trustee or trustees, with intent to limit or fix the price or lessen the production or sale of any article of commerce, use or consumption, or to prevent, restrict or diminish the manufacture or output of any such article.

§ 5062. Penalty.-Any corporation, company, firm or association violating any of the provisions of the two preceding sections shall be fined not less than one per cent. of its capital or amount invested in such corporation, company, firm or association, nor more than twenty per cent. of the same and any president, manager, director, officer, agent or receiver of any corporation, company, firm or association, or any member of corporation, company, firm or association, or any individual, found guilty of a violation thereof shall be fined not

less than five hundred nor more than five thousand dollars, or be imprisoned in the county jail not to exceed one year, or both.

§ 5063. Contracts void.-All contracts or agreements in violation of any provisions of the three preceding sections of this act shall be void.

§ 5064. Defense.-Any purchaser of any article or commodity from any individual, company or corporation transacting business contrary to any provisions of the four preceding sections shall not be liable for the price or payment thereof, and may plead such provisions as a defense to any action for such price or payment.

§ 5065. Forfeiture of charter.-Any corporation created or organized by or under the laws of this state, which shall violate any provision of the five preceding sections, shall thereby forfeit its corporate right and franchise.

§ 5066. Notice by secretary of state. The secretary of state, upon satisfactory evidence that any company or association of persons incorporated under the laws of this state have entered into any trust, combination or association in violation of the provisions of the six preceding sections, shall give notice to such corporation that, unless it withdraws from and severs all business connection with said trust, combination or association, its articles of incorporation will be revoked at the expiration of thirty days from date of such notice.

§ 5067. Proceedings-Inquiry by grand jury.-County attorneys, in their counties, and the attorney-general shall enforce the provisions of a public nature in the seven preceding sections, and any county attorney or the attorneygeneral securing a conviction under the provisions thereof shall be entitled, in addition to such fee or salary as by law he is allowed for such prosecution, to one-fifth of the fine recovered. When the attorney-general and county attorney act in conjunction in the prosecution of any action under such provisions, they shall be entitled to one-fourth of the fine recovered, which they shall divide equally between them, where there is no agreement to the contrary. It shall be the duty of the grand jury to inquire into and ascertain if there exist any pool, trust or combination within their respective counties.

Approved May 6, 1890.
Published May 14, 1890.

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McClain's "Code of Iowa," section 5454, declares that members of a combination "to regulate or fix the price of oil, lumber, coal, grain, flour, provisions or any other commodity or article whatever shall be deemed to be guilty of

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a conspiracy to defraud."

Statement.

Several insurance companies and many agents agreed with each other to fix the price on risks in X. Plaintiff broke the agreement and was discharged by the companies he represented. The combination having caused his discharge, he sues it for damages.

Opinion.

By way of dictum it was held that insurance is a commodity and therefore a combination to fix prices of insurance comes within the statute.

The companies had a right to discharge plaintiff, as their contracts with him were at will, and expressly stated that they could at any time end the agency without giving cause. Damages refused.

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