An indictment was returned charging two counts under the Sherman Act of July 2, 1890. The first count alleged a conspiracy in restraint of trade and the second a conspiracy to monopolize trade. A third count for monopolizing was held bad on demurrer and struck out. The American Naval Stores Company, a West Virginia corporation with its principal office in Savannah and branch offices in New York, Philadelphia, Chicago and elsewhere, was engaged in buying, selling, shipping and exporting spirits of turpentine and rosin. The National Transportation and Terminal Company, a New Jersey corporation, maintained warehouses and terminals in Fernandina and other locations in Florida, Alabama and Mississippi and issued warehouse receipts for naval stores.
The individual defendants held corporate offices in one or both companies. Nash served as president of the American Naval Stores Company, Shotter as chairman of its board of directors, Myers as vice-president, Boardman as treasurer, DeLoach as secretary and Moller as manager of its Jacksonville, Florida branch. Myers, DeLoach and Moller held corresponding positions with the National Transportation and Terminal Company. The indictment alleged that on May 1, 1907 these corporations and individuals conspired to restrain commerce in turpentine and rosin among the states and with foreign nations through twelve specified means, including bidding down prices, diverting receipts to closed ports, coercing factors into storage contracts, circulating false statements about production and stocks, issuing fraudulent warehouse receipts, fraudulently grading and gauging products, attempting to bribe competitors' employees, inducing consumers to postpone deliveries, making tentative large offers to depress the market, selling below cost and fixing prices below the cost of production.
The two counts were demurred to on the grounds that the statute was too vague for criminal enforcement, that no overt act was alleged, that the contemplated acts would not have been offenses if performed and that the charges were too vague. The demurrer was overruled. The defendants then pleaded not guilty and proceeded to trial. The jury returned a verdict finding Nash, Shotter, Myers, Moller and Boardman guilty, finding DeLoach not guilty and remaining silent as to the two corporations.
Numerous exceptions were taken at trial. The defendants sought review in the Supreme Court, which granted certiorari to consider the questions raised by the demurrer and by the conduct of the trial.
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