Corporations Section 1150 provides that nothing contained in the Business Corporation Act, sections 1080 to 1154, shall be interpreted to authorize a corporation to do any act in violation of the State or Federal antitrust statutes. Foreign Corporations Sections 1254 and 1255 provide that it shall be unlawful for foreign corporations to enter into a combination to prevent their legally authorized representatives in Louisiana from accepting a higher compensation than that paid by corporations, parties to the combination. Any violation of this act shall be punished by revocation of the license of any or all participating corporations for the remainder of year in which the license was granted, and the succeeding year. Discriminations Sections 4931 to 4939 provides that local discrimination for the purpose of injuring or destroying the business of a competitor is unlawful. See Vol. State Price Control Legislation: Administration Legislation. Judicial Decisions GENERAL ANTITRUST LAWS Application of Statutes. The operation of a laundry business in the city of New Orleans held not within the words "trade and commerce" as used in sections 4906 and 4908. State v. McClellan, 155 La. 37, 98 So. 748 (1923). The manufacture and retail sale of ice comes within the terms "trade and commerce" as used in sections 4905 and 4906. Tooke & Reynolds v. Batstrop Ice & Storage Co., 172 La. 781, 135 So. 239 (1931). The producing and marketing of natural gas is not interstate commerce under the Sherman Act nor does it come within the terms "trade and commerce" under the State act, sections 4905 and 4906. Thomason v. United Gas Public Service Co., 20 Fed. Supp. 598 (1937) aff'd. Thomason v. United Gas Public Service Co., 98 Fed. 2d 526 (C. C. A. 5th, 1938) without mention of the State statute. While there may be doubt whether a corporate entity once legally formed can thereafter become an unlawful trust by reason of the conceptual impossibility of combining with itself, it has clearly been laid down that individuals controlling it may combine with it to create such a trust. Where a parent corporation controls six corporations engaged in the manufacture and sale of ice in one area, and the stock of such corporations is owned by practically the same persons, concerted action by the managers of such corporations in reducing prices to eliminate competition, constitutes an unlawful monopoly. Tooke & Reynolds v. Bastrop Ice & Storage Co., supra. Selling an article below cost in order to eliminate competition in a given territory constitutes an attempt to create a monopoly. Ibid. A lumber exchange organized by the principal lumber dealers in a given locality which requires, under heavy penalties, that prices posted on the exchange's black board be maintained and that copies of all invoices be mailed to the exchange is an illegal combination in restraint of trade. Wolf & Co. v. Orleans Lumber Co., 149 So. 322 (La. App., 1933). Coercing employees to patronize the employer exclusively constitutes no violation of sections 4905 and 4906. Deon v. Kirby Lumber Co., 162 La. 671, 111 So. 55 (1926). See Tying Clauses and Exclusive Dealing Arrangements, infra, p. 275. Preliminary investigations authorized under sections 4940 to 4945 to determine violations under sections 4910, 4911, and 4922 must be instituted in the parish where the defendant corporation is domiciled or, if it has no domicile within the State, then in the parish in which it may be found or transacts business. State v. United Gas Public Service Co., 178 La. 71, 150 So. 835 (1933). B. EXCEPTIONS TO GENERAL ANTITRUST LAWS Gen. Stat. Ann. (Dart, 1939) Resale Price Maintenance Sections 9809.1 to 9809.6 validate contracts fixing the resale price of branded commodities. The statute is expressly inapplicable to horizontal agreements between producers, between wholesalers, or between retailers. Sec. 9809.3. See vol. State Price Control Legislation: Resale Price Maintenance. Cooperatives Section 239 provides that cooperative marketing associations organized under sections 214 to 243 shall not be deemed to be in violation of the antitrust statutes of the State. See Tying Contracts and Exclusive Dealing Arrangements, infra. See also Cooperatives in projected study. Section 243.13 provides that agricultural cooperative associations organized under sections 243.1 to 243.19 shall not be deemed to be in violation of the antitrust laws of the State. See Tying Contracts and Exclusive Dealing Arrangements, infra. See also Cooperatives in projected study. Section 3120.26 provides that cooperative marketing associations for sea-food products organized under sections 3120.1 to 3120.30 shall not be deemed to be in violation of the antitrust laws of the State. See Tying Contracts and Exclusive Dealing Arrangements, infra. See also Cooperatives in projected study. Agriculture, Livestock; Laborers Section 4931 provides that the provisions of the Antitrust Act of 1892, sections 4924 to 4930, shall not apply to agricultural products or livestock while in the hands of the producer or raiser; nor to any combination of laborers formed for the purpose of procuring wage increases or redress of grievances. See General Antitrust Laws, supra. Sea Food Sections 3041.1 to 3041.3 provide that no contract designed to promote the welfare of sea-food industries shall be held illegal as a contract in restraint of trade, provided such contract has been approved in writing by the Commissioner of Conservation. Cooperatives. Judicial Decisions Cooperative associations organized under sections 214 to 243 (see Exceptions to General Antitrust Laws, supra) are not illegal under Const. art. 19, sec. 14, as such associations are for the purpose of stabilizing prices in order that they may be uniform throughout the year. To successfully attack the constitutionality of such associations it is necessary to show that an illegal monopoly has been created and that trade has been restrained thereby. Louisiana Farm Bureau Cotton Growers Co-op. Ass'n v. Clark, 160 La. 294, 107 So. 115 (1926). C. SPECIAL ANTITRUST LAWS 1. Special Industry Antitrust Acts Gen. Stat. Ann. (Dart, 1939) Railroads Sections 8028, 8037, and 8040 provide that no railroad corporation may consolidate its stock, property, or franchises with, sell or hy pothecate its bonds, stocks, earnings, revenues, income rights, and credits to, or guarantee the bonds or contracts of any other railroad corporation owning a parallel and competing line. See also General Antitrust Laws, sec. 4909, supra. Products of the Soil Sections 4957.1 to 4957.5 provide that any person who shall combine with any other person to fix a definite price for dealing in, buying, or selling products of the soil for the purpose of controlling the market, or to prevent legitimate competition, shall be deemed guilty of a conspiracy in restraint of trade. Any violation of this provision shall be punished by fine and/or imprisonment. Any person guilty of a violation of this act, who shall report the facts under oath within six months after committing such offense, shall be granted full immunity from prosecution under this act in respect of the particular offense reported. The act shall not apply to farmers and growers whose right to organize for their mutual welfare in the growing, sale, and distribution of the products of the soil is expressly recognized. See Cooperatives in projected study; Exceptions to General Antitrust Laws, supra. Commission Merchants Sections 4956 and 4957 provide that it shall be unlawful for any persons engaged in selling on commission products of any farm, forest, lake, gulf, ocean, or stream to enter into any combination to keep the market on such products below their proper limit indicated by the supply and demand thereof, or to charge excessive commission rates, or to defraud in any way the consignor of any shipment. Any person violating this provision shall be imprisoned for not less than six months nor more than twelve months. Fire Insurance Sections 4173 to 4176 provide that it shall be unlawful for fire insurance companies to combine for the purpose of controlling the rates charged for insurance. An affidavit must be filed annually to the effect that the company has not in the preceding year entered into any such combination. If the Secretary of State has good reason to believe that a company has violated this act, he shall examine the books of the company and place any officer thereof under oath as to such violations. A company violating this act shall forfeit the right to do business in the state for a period prescribed by the statute. Judicial Decisions An agreement between competing railroad lines to pool traffic between certain points of their systems is contrary to public policy since the inevitable result of such agreement is to stifle competition. Texas & P. Ry. Co. v. Southern Pac. Ry. Co., 41 La. Ann. 970, 6 So. 888 (1889). 2. Public Contract Provisions Gen. Stat. Ann. (Dart, 1939) Section 3591 provides that it shall be unlawful for contractors, material dealers, corporations, or individuals to enter into an understanding to raise prices either in construction work or in supplying materials for any State highway work. Any person violating this act shall be subject to fine or imprisonment or both, for not more than twelve months. See projected vol. Governmental Purchasing. Patented Articles-Lake Charles Section 6117 provides that the Commission Council of the City of Lake Charles upon its own motion or upon petition of the property owners may invite and receive bids and make contracts for the use of patented or proprietary articles in any case of paving or repairing of streets, provided the owners of such patented or proprietary articles, shall prior to the adoption of the ordinance directing the preparation of plans and specifications, file with the Commission Council a written agreement to sell their patent or proprietary rights to any and all persons for a fixed royalty, on equal terms and conditions satisfactory to the Commission Council. See projected vol. Governmental Purchasing. Patented Articles-City of New Orleans Section 6219 provides that the Commission Council of the City of New Orleans may by ordinance provide for the paving, repaving, |