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United States v. And so, in this case, the common ownership and control of the various corporate appellees are impotent to liberate the alleged combination and conspiracy from the impact of the Act. Only Parmelee is free to attempt to procure such contracts; Yellow and Cab Sales are forbidden to compete for such contracts, despite the fact that they conceivably might provide the same transportation service at lower cost to the railroads.{/INSERTKEYS}{/PARAGRAPH} When persons or goods move from a point of origin in one state to a point of destination in another, the fact that a part of that journey consists of transportation by an independent agency solely within the boundaries of one state does not make that portion of the trip any less interstate in character. As a result, 3, licenses were left outstanding. But the amount of interstate trade thus affected by the conspiracy is immaterial in determining whether a violation of the Sherman Act has been charged in the complaint. The test of illegality under the Act is the presence or absence of an unreasonable restraint on interstate commerce. Lowry, U. Markin also obtained a substantial interest in the Deluxe Motor Cab Company, which was the third largest cab operating company in Chicago in with its licenses. Reading Co. If that theory is borne out in this case by the evidence, coupled with proof of an undue restraint of interstate trade, a plain violation of the Act has occurred. Lowry, supra; Binderup v. The Illinois courts held that the ordinance created a contract between the city and the licensees, and that the city could not issue licenses to the war veterans without first replacing the licenses which Yellow and Checker had surrendered; it was further held that no monopoly existed, since the number of licenses and the rights of the licensees were subject to the control of the city. Parmelee's contracts are exclusive in nature. In January, , one Morris Markin and others commenced negotiations to merge the. It is said that the appellees have agreed to control the operation and purchase of taxicabs by the principal operating companies in Chicago, New York City, Pittsburgh, and Minneapolis, insisting that they purchase their cabs exclusively from CCM. The Daniel. Likewise irrelevant is the importance of the interstate commerce affected in relation to the entire amount of that type of commerce in the United States. For present purposes, of course, we must assume, without deciding or implying, that the various facts and allegations in the complaint are true. Associated Press v. An allegation that such a segment has been or may be monopolized or restrained is sufficient. Such a restraint may result as readily from a conspiracy among those who are affiliated or integrated under common ownership as from a conspiracy among those who are otherwise independent. Hence, it is enough if some appreciable part of interstate commerce is the subject of a monopoly, a restraint, or a conspiracy. Checker was given a similar notice as to 87 licenses. Interstate trade, in short, is of the very essence of this aspect of the conspiracy. The United States appealed directly to this Court. It is designed to sweep away all appreciable obstructions so that the statutory policy of free trade might be effectively achieved. That statute is aimed at substance, rather than form. The complaint points out the well known fact that Chicago is the terminus of a large number of railroads engaged in interstate passenger traffic, and that a great majority of the persons making interstate railroad trips which carry them through Chicago must disembark from a train at one railroad station, travel from that station to another some two blocks to two miles distant, and board another train at the latter station. Wallace, U. Ball, 10 Wall. The complaint alleged that the appellees have been and are engaged in a combination and conspiracy to restrain and to monopolize interstate trade and commerce 1 in the sale of motor vehicles for use as taxicabs to the principal cab operating companies in Chicago, Pittsburgh, New York City, and Minneapolis, and 2 in the business of furnishing cab services for hire in Chicago and vicinity. Yellow Cab Co. Prairie Farmer Pub. It was then consolidated into a new company; in , Cab Sales bought a controlling interest in this consolidated concern and caused it to suspend operations. It is said that the appellees have agreed that Yellow and Cab Sales will not compete with Parmelee for contracts with railroads or railroad terminal associations to transport passengers and their luggage between railroad stations in Chicago. Leader, U. Yellow and Checker then brought suit in an Illinois court to enjoin the city from issuing the new licenses and from canceling. The fact that these restraints occur in a setting described by the appellees as a vertically integrated enterprise does not necessarily remove the ban of the Sherman Act. The alleged facts, as set forth in the complaint, may be summarized briefly. Limitations of that nature have been condemned time and again as violative of the Act. That company was engaged in the business of manufacturing taxicabs at its factory in Kalamazoo, Michigan, and shipping them to purchasers in various states. At the same time, the trade of the controlled cab companies is restrained, since they are prevented from purchasing cabs from manufacturers other than CCM. By excluding all cab manufacturers other than CCM from that part of the market represented by the cab operating companies under their control, the appellees effectively limit the outlets through which cabs may be sold in interstate commerce. Yellow and Checker have consistently held a vast majority of the Chicago taxicab licenses. The appellees moved to dismiss the complaint for failure to state a claim upon which relief might be granted. The complaint in this case deals with interstate purchases of replacements of some 5, licensed taxicabs in four cities. City of Chicago, Ill. Similarly, any affiliation or integration flowing from an illegal conspiracy cannot insulate the conspirators from the sanctions which Congress has imposed. By virtue of the conspiracy, they must purchase all of their cabs from CCM. It promptly took over the business of operating special unlicensed cabs to transport passengers and their luggage between railroad stations in Chicago, pursuant to contracts with railroads and railroad terminal associations. {PARAGRAPH}{INSERTKEYS}Allegations of a conspiracy whereby two of the defendants will not compete with a third defendant for contracts with railroads or railroad terminal associations to transport passengers and their luggage between railroad stations in Chicago held sufficient to charge a violation of the Sherman Act. In addition, by preventing the cab operating companies under their control from purchasing. This latter company holds all the capital stock of Yellow Cab Company Yellow , the owner and operator of "Yellow" cabs in Chicago and vicinity. Socony-Vacuum Oil Co. Here, there is an alleged conspiracy to bring nearly all the Chicago taxicab companies under common control and to eliminate competition among them relative to contracts for supplying transportation for this transfer in the midst of interstate journeys. See Appalachian Coals, Inc. Reversed and remanded, p. There were 5, In September, , the City of Chicago adopted an ordinance to the effect that no more licenses should be issued, except for renewals, unless it should be found that the public convenience and necessity required otherwise. Crescent Amusement Co. Any attempt to monopolize or to impose an undue restraint on such a constituent part of interstate commerce brings the Sherman Act into operation. The service rendered by local taxicabs in conveying interstate passengers between their homes and railroad stations, in the normal course of their independent local service, is not an integral part of interstate transportation, and a restraint on or monopoly of that general local service, without more, is not proscribed by the Sherman Act. The railroads often contract with the passengers to supply between-station transportation in Chicago. Section 1 of the Act outlaws unreasonable restraints on interstate commerce, regardless of the amount of the commerce affected. Such is the nature of the facts set forth in the complaint. See Stafford v. That motion was sustained. The complaint charges that the restraint of interstate trade was not only effected by the combination of the appellees, but was the primary object of the combination. Nor can it be doubted that combinations and conspiracies of the type alleged in this case fall within the ban of the Sherman Act. Antitrust Act was dismissed by the district court for failure to state a claim upon which relief might be granted. The corporate interrelationships of the conspirators, in other words, are not determinative of the applicability of the Sherman Act. Parmelee then contracts with the railroads and the railroad terminal associations to provide this transportation by special cabs carrying seven to ten passengers. The transportation of such passengers and their luggage between stations in Chicago is clearly a part of the stream of interstate commerce. Chicago Yellow. That portion must be viewed in its relation to the entire journey, rather than in isolation. At all times, Markin has been the active manager of this company; since , he. Pathe Exchange, U. The substance of this provision was repeated in an ordinance adopted in May, On December 22, , the City of Chicago passed an ordinance providing for a method of voluntary surrender by licensees of a sufficient number of their licenses to reduce the number outstanding to 3, It was also provided that, if the number of authorized licenses should later be increased above the 3, figure, such additional licenses should first be issued to the original licensees in proportion to, and up to, the number which they had surrendered. So viewed, it is an integral step in the interstate movement. He caused all of its stock to be sold to Parmelee. The commerce which is asserted to be restrained in this manner has a character that is undeniably interstate. United States, U. On January 16, , the city authorized the issuance of licenses to war veterans. It follows that the complaint in this case is not defective for failure to allege that CCM has a monopoly with reference to the total number of taxicabs manufactured and sold in the United States. Thus, by the end of , Markin had gained control of the three largest taxicab companies operating in Chicago, and, through Parmelee, had substantial footholds in the taxicab business in New York City, Pittsburgh, and Minneapolis. The theory of the complaint, to borrow language from United States v. The result allegedly is that these companies must pay more for cabs. The case is now here on direct appeal by the United States. Markin was then president and general manager, as well as the controlling stockholder, of the Checker Cab Manufacturing Corporation CCM. Since CCM's factory is located in Michigan, interstate sales and shipments are inevitable if the conspiracy is to be effectuated. Yellow was notified that of its licenses, representing that number of cabs which had not been in operation, would be canceled. It now owns and operates the "Checker" cabs in Chicago and vicinity, using licenses held in the name of Checker Taxi Company Checker. The Sherman Act is concerned with more than the large, nationwide obstacles in the channels of interstate trade. The problems thereby raised can best be considered in relation to the purported terms of this combination and conspiracy. The conspiracy also prevents those operating companies from purchasing cabs from other manufacturers, thus precluding all interstate sales and shipments between each individual cab operating company and manufacturers other than CCM located in other states. Its relative position in the field of cab production has no necessary relation to the ability of the appellees to conspire to monopolize or restrain, in violation of the Act, an appreciable segment of interstate cab sales.