COLORADO I. TRUSTS, COMBINATIONS, AND MONOPOLIES A. GENERAL ANTITRUST LAWS CONSTITUTIONAL PROVISIONS No provisions. STATUTORY PROVISIONS Sec. 1. Trust defined-Prohibited. A trust is a combination of capital, skill, or acts, by two or more persons, firms, corporations, or associations of persons, or by any two or more of them, for either, any, or all of the following purposes: First. To create or carry out restrictions in trade or commerce, or aids to commerce, or to carry out restrictions in the full and free pursuit of any business authorized or permitted by the laws of this state. Second. To increase or reduce the price of merchandise, produce, or commodities. Third. To prevent competition in the manufacturing, making, transportation, sale, or purchase of merchandise, produce, ores, or commodities, or to prevent competition in aids of commerce. Fourth. To fix any standard of figures, whereby the price to the public of any article or commodity of merchandise, produce, or commerce intended for sale, use, or consumption in this state shall, in any manner, be controlled or established. Fifth. To make or enter into, or execute or carry out, any contract, obligation, or agreement of any kind or description by which they shall bind or have to bind themselves not to sell, manufacture, dispose of, or transport any article or commodity, or article of trade, use, merchandise, commerce, or consumption below a common standard figure; or by which they shall agree in any manner to keep the price of such article, commodity, or transportation at a fixed or graded figure; or by which they shall in any manner establish or settle the price of any article or commodity or transportation between them or themselves and others so as to preclude a free and unrestricted competition among themselves or others in transportation, sale, or manufacture of any such article or commodity; or by which they shall agree so to pool, combine, or unite any interest they may have in connection with the manufacture, sale, or transportation of any such article or commodity, that its price may in any manner be affected. And all such combinations are hereby declared to be against public policy, unlawful and void; provided, that no agreement or association shall be deemed to be unlawful or within the provisions of this chapter, the object and purposes of which are to conduct operations at a reasonable profit or to market at a reasonable profit those products which cannot otherwise be so marketed; provided, further, that it shall not be deemed to be unlawful, or within the provisions of this chapter, for persons, firms, or corporations engaged in the business of selling or manufacturing commodities of a similar or like character to employ, form, organize, or own any interest in any association, firm, or corporation having as its object or purpose the transportation, marketing, or delivering of such commodities; and, provided further, that labor, whether skilled or unskilled, is not a commodity within the meaning of this chapter. [L. '13, p. 613, sec. 1; C. L., sec. 4036.] Sec. 2. Lawful agreements.-It shall be lawful to enter into agreements or form associations or combinations, the purpose and effect of which shall be to promote, encourage, or increase competition in any trade or industry, or which are in furtherance of trade. [L. '13, p. 614, sec. 2; C. L., sec. 4037.] Sec. 3. Actions to forfeit charter. For a violation of any of the provisions of this chapter by any corporation, or by any of its officers or agents mentioned herein, it shall be the duty of the attorney general of this state, or district attorney of any district in which said violation may occur, or either of them, upon his own motion to institute an action in any court in this state having jurisdiction thereof for the forfeiture of the charter, rights, and franchise of such corporation, and the dissolution of its existence. [L. '13, p. 614, sec. 3; C. L., sec. 4038.] Sec. 4. Foreign corporations violating chapter. Every foreign corporation, as well as every foreign association, exercising any of the powers, franchises, or functions of a corporation in this state, violating any of the provisions of this chapter, is hereby denied the right and prohibited from doing any business in this state, and it shall be the duty of the attorney general to enforce this provision by bringing proper proceedings by injunction or otherwise. [L. '13, p. 615, sec. 4; C. L., sec. 4039.] Sec. 5. Violations of chapter-Penalty.-Each and every person, company, or corporation, the officers, agents, or representatives thereof, violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor, and on conviction thereof shall be subject to a fine of not more than one thousand dollars, or to imprisonment for not more than six months; and it shall be the duty of the attorney general of the state, or the district attorney of any district in the state, in which said violation shall occur, or either of them, to prosecute and enforce the provisions of this chapter. [L. '13, p. 615, sec. 5; C. L., sec. 4040.] Sec. 6. Contracts in violation of chapter void.—Any contract or agreement in violation of any of the provisions of this chapter shall be absolutely void and not enforceable in any of the courts of this state; and when any civil action shall be commenced in any court of this state it shall be lawful to plead in defense thereof that the cause of action sued upon grew out of a contract or agreement in violation of the provisions of this chapter. [L. '13, p. 615, sec. 6; C. L., sec. 4041.] Sec. 7. Action for damages.-Any person, firm, company, or corporation that may be damaged by any such agreement, trust or combination described in section 1 of this chapter, may sue for and recover in any court of competent jurisdiction in this state, of any person, company or corporation operating such trust or combination, such damages as may have been thereby sustained. [L. '13, p. 615, sec. 7; C. L., sec. 4042.] Sec. 8. Incriminating testimony. In any proceeding pending in any court of record brought or prosecuted by the attorney general, or any district attorney, for the violation of any of the provisions of this chapter, no person shall be excused from attending, testifying or producing books, papers, schedules, contracts, agreements, or any other document, in obedience to the subpoena or under the order of such court, or any commissioner or referee appointed by said court to take testimony, or any notary public, or other person or officer authorized by the laws of this state to take depositions, when the orders made by such court, or judge thereof, included a witness whose deposition is being taken before such notary public or other officer, on the ground or for the reason that the testimony or evidence required of him may tend to criminate him or subject him to any penalty; but no individual shall be prosecuted or subjected to any penalty for or on account of any transaction, matter, or thing concerning which he may so testify or produce evidence, documentary 210235°-40-vol. 1-10 or otherwise, before any such court, person, or officer. [L. '13, p. 615, sec. 8; C. L., sec. 4043.] Stat. Ann. (Michie, 1935) c. 48 Sec. 177. If any two or more persons shall conspire or agree to charge or indict or be informed against or cause to procure to be charged or indicted or informed against any person for any criminal offense, or conspire to do, or to aid in doing any unlawful act, each of the persons so offending shall upon conviction be punished. L. 1937, c. 261 Section 1 provides that it shall be unlawful for any person engaged in the production, manufacture, distribution, or sale of any commodity or service to discriminate as to price between different localities with the intent to destroy the competition of any dealer in such commodity. Motion picture film is not a commodity under this act. The act does not apply to services regulated by the Colorado Public Utilities Commission. See Vol. State Price Control Legislation: Antidiscrimination Legislation. Judicial Decisions GENERAL ANTITRUST LAWS Application of Common Law. A combination tending unreasonably to stifle competition is illegal at common law. Neither actual stifling of nor intent to stifle need be shown. The finding of a tendency as above described is sufficient. Burns v. Wray Farmers' Grain Co., 65 Colo. 425, 176 Pac. 487 (1918). The Grain Company, a co-operative, adopted a bylaw providing for the payment of 1 cent per bushel to the company for each bushel sold by any of its members to any person competing with its company. It was held that this provision tended to stifle competition, and therefore was invalid. See also Atkinson v. Colorado Wheat Growers' Association, 77 Colo. 559, 238 Pac. 1117 (1925). NOTE. The methods indicated in the above cases were legalized by the 1923 Cooperative Marketing Act (Stat. Ann. [Michie, 1935], c. 106). In the Atkinson case, supra, the contracts were entered into prior to the passage of the act. |