FTC v. Pacific States Paper Trade Assn.
273 U.S. 52 (1927)

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U.S. Supreme Court

FTC v. Pacific States Paper Trade Assn., 273 U.S. 52 (1927)

Federal Trade Commission v.

Pacific States Paper Trade Association

No. 71

Argued December 8, 1926

Decided January 3, 1927

273 U.S. 52


1. Where the facts stipulated before the Federal Trade Commission showed that wholesale dealers dominating the trade in a certain commodity in several states were members of local and general trade associations; that uniform prices in intrastate sales were fixed and diligently enforced by the local associations, and, in the case of one of them, were, by understanding among its members, to be applied to sales made outside of the state; that each local association applied the local prices to sales made locally, but filled by direct shipment from outside mills, and that the salesmen of each, in making sales beyond its state, habitually quoted prices from the same lists which were controlling locally, the Commission was justified in inferring that such use of the lists in sales over the state line lessened competition and fixed prices in interstate commerce,

Page 273 U. S. 53

although it did not appear expressly that the fixed prices were made obligatory by rule, or were adhered to, in such interstate business. P. 273 U. S. 61.

2. An understanding, express or tacit, that agreed prices will be followed in interstate sales is enough to constitute transgression of the law. P. 273 U. S. 62.

3. Organized maintenance of uniform prices in local business may lend probative significance and weight to facts pointing in the direction of like restraint in interstate business. P. 273 U. S. 62.

4. Agreements between wholesalers by which they fix prices to be charged retailers within the state for goods to be shipped on the wholesaler's order from mills directly to the retailer or to the wholesaler for delivery to him are agreements to fix prices in interstate commerce in cases where the seller elects to procure the goods and their shipment from mills outside the state. P. 273 U. S. 63.

5. An order of the Federal Trade Commission forbidding agreements fixing prices for sales to be filled by shipments from outside the state, and the making or distributing of price lists to be used in such sales, is valid. P. 273 U. S. 66.

6. A respondent in certiorari who did not seek review for himself is not entitled to question the correctness of the decree of the court below. P. 273 U. S. 66.

4 F.2d 457 reversed in part.

Certiorari (268 U.S. 684) to judgment of the circuit court of appeals reviewing, and in part setting aside or modifying, an order of the Federal Trade Commission requiring the respondents to cease and desist from certain practices which are described in the opinions here and in the court below. The respondents, included, besides individuals, five local trade associations whose members were wholesale dealers and jobbers in paper, two associations or conferences made up of two or more of the local associations, and a general association the membership of which was drawn from all five of the local associations.

Page 273 U. S. 58

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