CHAP. 54.—An ACT to prevent trusts, combinations Ba monopolies inimi-
cal to the public welfare. [H B 42]

Approved September 9, 1919.

Whereas, section one hundred and sixty-five of the Consti-
tution of Virginia provides that the general assembly shall enact
laws preventing all trusts, combinations and monopolies inim-
ical to the public welfare; therefore,

1. Be it enacted by the general assembly of Virginia, That
the word “person” or “persons,” as used in this act, includes
corporations, partnerships and associations existing under or
authorized by any State or territory of the United States or
a foreign country.

A trust or monopoly is a combination of capital, skill or acts
by two or more persons, firms, partnerships, corporations or
associations of persons, for any or all of the following pur-
poses:

(a) To create or carry out restrictions in trade or business.

(b) To limit or reduce the production or increase of mer-
chandise or commodities.

(c) To prevent competition in manufacturing, making,
transportation, sale or purchase of merchandise, produce o1
commodities.
(d) To fix at a standard or figure, whereby its price to the
public or consumer is in any manner controlled or established,
any article, thing, or commodity of merchandise, produce, busi-
ness or commerce intended for sale, barter, use, enjoyment or
consumption in this State.

(e) To make, enter into, execute or carry out contracts,
obligations or agreements of any kind or description by which
they bind or have bound themselves not to sell, dispose of or
transport any article or commodity, or an article of trade, use,
merchandise, commerce or consumption below a common stand-
ard figure or fixed value, or by which they agree in any manner
to keep the price of such article, commodity or transportation
at a fixed or graduated figure, or by which they shall in any
manner establish or settle the price of an article, commodity or
transportation between them or themselves and others, so as
directly or indirectly to preclude a free and unrestricted com-
petition among themselves, purchasers or consumers in the sale
or transportation of such article or commodity, or by which they
agree to pool, combine or directly or indirectly unite any in-
terests which they have connected with the sale or transporta-
tion cf such article or commodity, that its price might in any
manner be affected. Such trust, or monopoly, as is defined here-
in is unlawful, against public policy and void.

2. It shall be unlawful for a person, partnership, associa-
tion or corporation, or any agent, to issue or own trust certifi-
cates, or for a person, partnership, association or corporation,
or any agent, officer or employee thereof, or a director or stock-
holder of a corporation, to enter into a combination, contract
or agreement with any person or persons, corporation or cor-
porations, or a stockholder or director thereof, the purpose and
effect of which is to place the management or control of such
combination or combinations or the manufactured product
thereof, in the hands of a trustee or trustees, with the intent to
limit or fix the price or lessen the production and sale of an
article of commerce, use, enjoyment or consumption, or to pre-
vent, restrict or diminish the manufacture or output of such
article. A contract or agreement in violation of any provision
of this act is void and not enforceable either at law or in equity.

3. A foreign corporation or foreign association exercising
any of the powers, franchises or functions of a corporation
in this State violating any provision of this act shall not have
the right of and shall be prohibited from doing any business in
this State.

4. It shall be unlawful for any person engaged in business
within this State, in the course of such business, to lease or make
sale, or contract for sale, of goods, wares, merchandise, ma-
chinery, supplies, or other commodities for use, consumption
or resale within this State, or to fix the price therefor, or dis-
count from, or rebate upon such prices on the agreement or un-
derstanding that the lessee or purchaser thereof shall not use
or deal in the goods, wares or merchandise, machinery, supplies
or other commodities of a- competitor or competitors of the
lessor or seller, where the effect of such lease, sale or contract
for sale of such goods, wares or merchandise may be to sub-
stantially lessen competition, or to create a monopoly in any
line of business, but nothing contained in this act shall apply to
discrimination in prices between purchasers of commodities on
account of differences in grade, quality, or quantity (provided
such differences shall be reasonable) of the commodity sold, or
only to make allowance for differences in the cost of transporta-
tion or to discriminate in price in the sale of different com-
modities made in good faith to meet competition; nor shall it
prevent persons selling goods as merchandise from selecting
their own customers in bona fide transactions and not in re-
straint of trade.

5. Any person who shall be injured in his business or prop-
erty by reason of anything forbidden in this act may sue there-
for and recover three-fold the damages by him sustained, and
the costs of suit, including a reasonable fee to plaintiff’s counsel,
and said counsel shall in no case receive any other, further or
additional compensation except that allowed by the court, and
any contract to the contrary shall be null and void.

6. A final judgment or decree rendered in any criminal
prosecution or proceeding in equity brought in behalf of the
Commonwealth under this act to the effect that the defendant
has violated the provisions of this act shall be prima facie evi-
dence against such defendant in any suit or proceeding brought
by any other party against such defendant under this act, as to
the matters respecting which said judgment or decree would
be an estoppel as between the parties thereto; but this section
shall not apply to judgments or decrees entered before any tes-
timony has been taken or to judgments or decrees rendered by
consent in criminal proceedings. Whenever any suit or proceed-
ing in equity or criminal prosecution is instituted by the Com-
monwealth to prevent, restrain or punish any of the violations
of this act, the running of the statute of limitations in respect
of any suit or action arising under this act and based in whole
or in part on any matter complained of in said suit or proceed-
ing, shall be suspended during the pendency thereof.

7. Any person, firm, or any officer or director of any cor-
poration, violating or conspiring to violate any of the provisions
of this act shall be fined not exceeding one thousand dollars, or
confined in jail not exceeding twelve months, or both. On the
second or subsequent conviction, the offense may, in the discre-
tion of the jury, be punishable by a fine of not less than one
thousand nor more than five thousand dollars and by confine-
ment in jail not less than six months and not exceeding twelve
months, or by confinement in the penitentiary not less than one
nor more than ten years. :

8. This act shall not be construed to forbid the existence and
operation of labor, agricultural or horticultural organizations
instituted for the purpose of mutual help, and not having capital
stock or conducted for profit; nor to forbid or restrain individ-
ual members of such organizations from lawfully carrying out
the legitimate objects thereof; nor shall such organizations, or
the members thereof, be held or construed to be illegal combina-
tions, trusts, or monopolies under the provisions of this act.

9. Whenever the attorney for the Commonwealth of any
city or county in this State shall have reason to believe that
the provisions of this act have been or are being violated, he
shall cause a warrant or warrants to be issued by a justice of
the peace of his county or city, returnable to the circuit court.
of his county or corporation court of his city, after which the
offender shall be proceeded against by indictment or, in lieu
thereof, indictments may be preferred against such offender in
the first instance, with the usual right to bail.

‘ 10. Whenever ten or more citizens of any county or city
shall file a bill in chancery in the circuit court of any county
or the corporation court of any city against any person, firm
or corporation, alleging violations of the provisions of this act
and praying that said party or parties defendant may be re-
strained and enjoined from continuing the acts complained of,
such court shall have jurisdiction to hear and determine the
issues involved, to issue injunctions pendente lite and permanent
injunctions and to decree damages and costs of suit, including
reasonable counsel fees to complainants’ or defendants’ counsel.

11. Whenever affidavits of fifty or more citizens of the Com-
monwealth shall be submitted to the attorney-general alleging
a violation or violations of the provisions of this act upon the
part of citizens of two or more counties, or of a city and one or
more counties, or whenever the governor shall request such ac-
tion, it shall be the duty of the attorney-general to file a bill
for an injunction against the alleged violators thereof in the
circuit court of the city of Richmond, which shall have juris-
diction to summon the defendants and try the issues involved
as though such defendants were citizens of the city of Rich-
mond, and may issue injunctions pendente lite or permanent
injunctions for the purpose of enforcing the provisions of this
act.

12. The grand juries of the several cities and counties
shall have jurisdiction to indict violators of the provisions of
this act, who shall be tried in the circuit courts of the counties
and the corporation courts of the cities as in the case of appeals
from justices of the peace and police justices and in the case of
second, or subsequent, offenses the cases shall be tried as other
felonies are tried in said courts.

18. In any indictment, information or complaint for any
offense named in this act, it shall be sufficient to state the pur-
pose or effect of the trust, combination or monopoly and that
the accused is a member of, acted with or in pursuance of it,
or aided or assisted in carrying out its purposes, without giving
its name or description, or how, when and where it was created.

14. In prosecutions under this act, it shall be sufficient to
prove that a trust, combination or monopoly, as defined herein.
exists, and that the defendant belonged to it, and acted for or
in connection with it, without proving that all the members be-
longed to it or without proving or producing any article of
agreement, or any written instrument on which it may have been
based, or that it was evidenced by any written instrument at all.
Evidence of the general reputation of the existence and charac-
ter of the trust or combination alleged shall be admissible. In
case any court of record, or in vacation, any Judge of said court,
in which is pending any civil, criminal or other action or. pro-
ceeding brought or prosecuted by the attorney-general or any
Commonwealth’s attorney for the violation of any of the pro-
visions of this act, or in any action or proceeding for the viola-
tion of the provisions of this act, no person so ordered shall be
excused from attending, testifying or producing books, papers,
schedules, contracts, agreements or any other document in obed-
ience to the subpoena, or under the order of such court or anv
commissioner or referee appointed by said court to take tes-
timony, or any notary public or other person or officer authorized
by the laws of this State to take depositions, when the order
made by such court, or judge thereof, includes 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 incriminate him or sub-
ject him to any penalty; but no individual shall be prosecuted
or be subjected to any penalty for or on account of any trans-
action, matter or thing concerning which he may so testify or
produce evidence, documentary or otherwise, before any such
court, person or officer; but no person shall be excused from
testifying for the Commonwealth or the plaintiff or complain-
ant in any proceeding under this act as to any offense committed
by another hereunder by reason of his testimony tending to
incriminate himself, but the testimony given by such person,
on motion of either the Commonwealth, the plaintiff or com-
plainants, shall in no criminal case be used against him, nor
shall he be in anywise prosecuted criminally for any offense as
to which he has so testified.
15. In any proceeding under this act before any court of
competent jurisdiction, if it appears from competent evidence
that. violations of the provisions of this act were contemplated,
but not actually committed, the said courts in which such pro-
ceedings as aforesaid are pending, may require a bond or bonds
of the defendant or defendants in the penalty of not more than
one hundred thousand dollars, conditioned upon the abstention
from all violations of the provisions of this act for the period
of one year. In case of the forfeiture of the said penalty of said
bond or bonds, like proceedings shall be had thereon as in the
case of the forfeiture of recognizance. In the case of the dis-
obedience to any injunction or decree, like proceedings shall be
had as in the case of other contempts of court. |

16. If any section or provision of this act or any part of
any section shall be declared unconstitutional by the supreme
court of appeals of Virginia, or the supreme court of the United
States, the part so declared unconstitutional shall cease to be
operative, but the remainder of the act and every section or
‘part thereof not so declared unconstitutional shall continue to
be the law of this State.

17. The provisions of this act shall be liberally construed in
order effectually to secure the enforcement of the provisions
hereof for the protection of the people of the Commonwealth,

but the act shall apply only to those trusts, combinations and
monopolies which are unreasonable or inimical to the public
welfare, as hereinbefore defined.

18. One of the objects of this act being to provide legisla-
tion which will reduce the present excessive prices of commodi-

ties, an emergency is declared to exist, and this act shall take
effect from its passage.