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In that case Grinstead and Tinsley were in- | was also held that the act of 1906, although dicted for a violation of the act of 1890, and by its terms limited to farmers and growers in this court the chief contention of the de- of crops, operated, when read in connection fendants was that the act of 1890 was re- with the act of 1890, to confer upon all perpealed by the new Constitution of 1891, be- sons the same benefits and privileges extendcause inconsistent with it, and was further-ed to farmers. So, reading the act of 1890 more no longer the law because in conflict with section 198 of the Constitution. But the court in a very full opinion rejected these arguments, and held that the act of 1890 remained in full force, unaffected by the new Constitution or section 198 thereof. And in Com. v. Bavarian Brewing Co., 112 Ky. 925, 66 S. W. 1016, 23 Ky. Law Rep. 2334, the question was again before the court, and the ruling in the Grinstead & Tinsley Case was adhered to. So that it has been definitely and correctly determined by this court that the present Constitution does not affect in any manner the validity of the act of 1890.

and the act of 1906 as one act, in connection with section 198 of the Constitution, it was further held to be essential to a prosecution against any corporation, partnership, association, or person for entering into a pool, trust, or combination for the purpose of regulating, controlling, or fixing the price of any article, to charge in the indictment and show by evidence that the purpose or effect of the trust, pool, or combination was to depreciate the cost of the article below its real value or to enhance the cost of the article above its real value, as this was the test of illegality fixed by the Constitution and by the act of 1906 when properly read and construed. In short, the ruling of the court in this case was that no pool, trust, or combination created or entered into for the purpose of fixing the price of any article was unlawful, unless the purpose or effect of the pool, trust, or combination was to increase the price of the article above, or decrease it below, its real value.

Coming now to the effect on the act of 1890 of the legislation subsequent to the adoption of the present Constitution, we find that in 1906 the first act under the new Constitution on the subject of pools and combinations was enacted. This section is now section 3941a of the Kentucky Statutes, and it provides, in substance, that it should be lawful for any number of persons to combine, unite, or pool crops of wheat, tobacco and other farm prod-ter Co. v. Commonwealth, 137 Ky. 668, 126 S. ucts raised by them for the purpose of clas- W. 352, the indictment was for a violation of sifying, growing, holding, or disposing of the the act of 1890, and following the ruling in same in order to obtain a higher price than the previous International Harvester Case, it they could obtain by selling these crops sep-was held to be necessary to a conviction to arately; and that contracts entered into for the purpose of carrying out the objects of

In the later case of International Harves

show that the purpose of the pool or combi

nation was to increase or depreciate the price of an article above or below its real value, although the indictment might have been found under the act of 1890. In International Harvester Co. v. Commonwealth, 144 Ky. 403, 138 S. W. 248; International Harvester Co. v. Commonwealth, 147 Ky. 564, 144 S. W. 1064; International Harvester Co. v. Commonwealth, 147 Ky. 795, 146 S. W. 12; In

149 Ky. 41, 147 S. W. 760, and perhaps other cases the law as laid down in the first case in 131 Ky. and 115 S. W. was followed.

the act should be lawful, and that suits might be maintained for any breach of these contracts. In 1908 and 1910 other acts were passed, the purpose of which was to strengthen and make more effective the act of 1906, and these acts made it an offense, by fine and imprisonment, for any person to sell or solicit or buy any pooled property which had been listed of record as provided in the acts. After the act of 1906 was passed, and international Harvester Co. v. Commonwealth, 1909, there came to this court the case of Commonwealth v. International Harvester Co., 131 Ky. 551, 115 S. W. 703, 133 Am. St. Rep. 256, and the question presented was the sufficiency of an indictment against the Harvester Company charging it with a violation of the act of 1890. The contention of the Harvester Company was that as the act of 1906 allowed farmers to do as legal the things that were charged as illegal against it, the act of 1890 must fall because in conflict with the fourteenth amendment to the Constitution of the United States forbidding legislation that denied the equal protection of the law to all persons, and therefore it could not be indicted for a violation of the act of 1890. The lower court sustained this contention and dismissed the indictment, but in reviewing the judgment this court said that the act of 1890 and the act of 1906 should be construed together as one act and made to con

Collins v. Commonwealth, 141 Ky. 564, 133 S. W. 233, was an indictment against Collins for selling a crop of pooled tobacco in violation of the acts of 1908 and 1910, now section 3941c of the Kentucky Statutes. In that case on the authority of the rule announced in the International Harvester Cases, the validity of the statute imposing a penalty for selling pooled tobacco was recognized, and the judgment against Collins imposing the penalty provided by the statute was affirmed.

On an appeal by the International Harvester Company to the Supreme Court of the United States from the judgments of this court affirming judgments against it in the cases mentioned, the Supreme Court, in 234 U. S. 216, 34 Sup. Ct. 853, 58 L. Ed. 1284, in an opinion reversing the opinion of this court,

"When the Court of Appeals came to deal for the purpose of regulating or controlling with the act of 1890, the Constitution of 1891, or fixing the price of any merchandise, manand the act of 1906, it reached the conclusion, which now may be regarded as the established ufactured articles, or property of any kind." construction of the three taken together, that Nor is there any intimation in the opinions by interaction and to avoid questions of consti- of the Supreme Court that this act is obtutionality, they were to be taken to make any noxious to any provision of the federal Concombination for the purpose of controlling prices lawful unless for the purpose or with the ef- stitution. fect of fixing a price that was greater or less than the real value of the article."

-came to the conclusion that these acts and the section of the Constitution so construed were opposed to the fourteenth amendment of the Constitution of the United States, because it was not possible under these statutory and constitutional provisions so construed for any person to determine with reasonable certainty when the price of an article had been enhanced above, or depreciated below, its real value.

In the case of Collins v. Commonwealth, also appealed from this court, the Supreme Court of the United States, in an opinion that may be found in 234 U. S. 634, 34 Sup. Ct. 924, 58 L. Ed. 1510, reversed the judgment of this court, and held that the prosecution against Collins for selling pooled tobacco could not be sustained because the acts of 1908 and 1910, as construed by this court in the 131 Ky. (115 S. W.) case, were by reason of their uncertainty in making the guilt of Collins depend on whether the purpose of the pool, of which he was a party, was to enhance or decrease the price of the pooled property above its real value fundamentally defective.

As the law announced by the Supreme Court of the United States in these opinions is of course conclusive and binding upon this court, as much so as the law announced by this court is conclusive and binding upon the circuit courts and inferior courts of this state, the question arises: What is the effect to be given to the Supreme Court decisions in their operation upon the act of 1890, section 198 of the Constitution, the acts of 1906, 1908 and 1910, and the opinions of this court in the International Harvester Cases construing these statutory and constitutional provisions?

[1] Taking up first the act of 1890, we think it may be confidently asserted that this act is not open to any constitutional objection on the ground that it is violative of either the state or federal Constitution. This act does not discriminate against any person or set of persons. Its provisions are broad enough to embrace all who are guilty of the offense described in the statute. It was intended to and does apply equally and alike to all corporations, partnerships, companies, individuals, or associations who "shall create, establish, organize, or enter into or become a member of or a party to or in any way interested in any pool, trust, combine, agreement, confederation, or understanding with any other corporation, partnership, individual, or person, or association of persons

[2] We may also with equal confidence, assert that section 198 of the Constitution standing alone does not contravene any provision of the federal Constitution for the simple reason that this section of the Constitution is not self-executing. It does not undertake to punish, prohibit, or make unlawful any pools, combinations, or other organizations formed for the purpose of depreciating below its real value or enhancing above its real value the cost of any article or created for any other purpose. Standing alone, it is merely a direction to the legislative department of the state to enact such laws as may be necessary to prevent the condition described in the section. Commonwealth v. Grinstead, 108 Ky. 59, 55 S. W. 720, 57 S. W. 471, 21 Ky. Law Rep. 1444, 22 Ky. Law Rep. 377.

So that putting aside for the moment the common-law doctrine of restraint of trade and the act of 1890, no person or set of persons could be prosecuted or punished for entering into a trust, pool, combination, or other arrangement to depreciate below its real value or enhance above its real value the price of any article, if this section of the Constitution were the only authority for such prosecution. Nor under this section alone would the validity of any contract entered into for the purpose of enhancing the cost of any article above its real value or depreciating it below its real value be effected.

It is therefore obvious that the vice in the laws of this state pointed out in the Supreme Court decisions is not to be found in the act of 1890, or in section 198 of the Constitution, but in the acts of 1906, 1908, and 1910 as construed by this court in the International Harvester Cases and the other cases mentioned. If the acts of 1906, 1908, and 1910 had never been enacted, or if the construction placed on these acts by this court had never been adopted, there could be no objection to the common law or statutory anti-trust law in force in this state. Coming now to the acts of 1906, 1908, and 1910 we find that these acts do not on their face amend or purport to amend the act of 1890. They were, as shown by their title and subjectmatter, independent enactments.. Nor, indeed, do they on their face purport to have been enacted for the purpose of giving effect to section 198 of the Constitution. The title to the act of 1906, c. 117, declares that it is "An act permitting persons to combine or pool their crops of wheat, tobacco and other products and sell the same as a whole, and making contracts in pursuance thereof val

id"; and the body of the act provides that it shall be lawful for any number of persons to pool, combine, or unite these crops for the purpose of classifying, holding, and disposing of the same "in order or for the purpose of obtaining a greater or higher price therefor than they might or could obtain or receive by selling said crops separately or individually." The act of 1908 (Acts 1908, c. 8) merely amended the act of 1906.

The act of 1910 (Acts 1910, c. 7) in its title declares that it is "an act to authorize and regulate the recordation of agreements for pooling farm products," and in its body provides that:

"Any person buying or soliciting pooled or pledged property, the lists of which have been recorded as herein provided shall upon conviction be fined not less than ten nor more than one thousand dollars or imprisoned not less than fifteen nor more than ninety days or both so fined and imprisoned."

In 1910 acts other than the one mentioned, intended to strengthen and make more effective the act of 1906, were enacted by the Legislature, but it is not important that we should set out either the title or the purpose of these acts.

In the International Harvester Case, 131 Ky. 551, 115 S. W. 703, 133 Am. St. Rep. 256, this court, on the binding authority of Connolly v. Union Sewer Pipe Co., 184 U. S. 540, 22 Sup. Ct. 431, 46 L. Ed. 679, was confronted by the situation that the act of 1906, standing alone, and limited in its application to farmers, would be obnoxious to the state as well as the federal Constitution, and if not so limited would license and authorize all corporations or persons, in whatever business engaged, to combine and unite with other persons or corporations for the purpose of obtaining greater prices for their property or products than could be obtained if they were sold in competition. In writing this opinion it fully understood that if this act were construed to confer on farmers the exclusive privilege of combining and pooling their crops, to the end that a greater price might be obtained therefor, and to deny to other classes the right to combine or pool their products for the same purpose, it would be in direct violation not only of section 3 of the Bill of Rights, but of the fourteenth amendment to the Constitution of the United States.

It further understood that if this act were so construed as to confer upon all corporations and persons the right to combine for the purpose of getting greater prices for their products than could be obtained if they acted independently and in competition with each other, the inevitable result would be that combinations and monopolies would be formed by corporations engaged in the manufacture and sale of necessary articles to farmers and others for the sole purpose of increasing the price of these articles.

To escape these conditions it was thought

by a majority of the court that the constitutional objections could be overcome and the alternative objection to removing all restraint on trusts and combinations could be avoided by reading together the act of 1890, section 198 of the Constitution and the act of 1906, and this solution of what was then recognized as a very troublesome question, was decided upon. It 'should also be said that, in reaching the conclusion expressed in the 131 Ky. 551, case (115 S. W. 703, 133 Am. St. Rep. 256), the court was endeavoring to carry out, in a way that would stand the test of judicial scrutiny when measured by constitutional limitations, the legislative will. If there was any way of escape it was not to be assumed that the Legislature intended that we should have no anti-trust laws in this state, or that it intended to declare that all corporations and persons might combine to get, as expressed in the act of 1906, a better or higher price for their property than they could or might obtain by selling it separately or as individuals, although the price so obtained might be much more than the real value of the article. It is perfectly manifest from a reading of these acts that the Legislature did not intend to do either of these things, and yet it is certain that one or the other of these alternatives would have resulted if the court had sustained this legislation and adopted any other conclusion than the one reached.

The Supreme Court of the United States, however, found that this construction did not avail to remove the constitutional objection to the legislation when so construed. The effect of the opinions of the Supreme Court in the International Harvester Case and in the Collins Case is that legislation that makes criminal liability depend upon the question whether the purpose of the pool or combination is to increase or decrease the price of property above or below its real value, cannot be sustained. It is true that the Supreme Court did not rule that this legislation of itself was violative of the federal Constitution. That question was not before the court. But it did rule that the acts of 1906, 1908, and 1910 as construed by this court were opposed to the federal Constitution. A further necessary effect of these opinions is that no valid legislation can be enacted to carry out the provisions of section 198 of the Constitution if the legislation follows the wording of the Constitution and makes either civil rights or criminal liability depend on whether the price of an article is enhanced or decreased above or below its real value. It is true that the question of the validity of legislation of this character in its effect upon contract rights and liabilities was not before the Supreme Court in the cases mentioned. But from the reasoning of the court, especially in the Collins Case, there seems no escape from the conclusion that if the question came before the

Supreme Court it would hold that contract rights or liabilities depending on the question whether the price of an article had been increased or decreased above or below its real value, could not be enforced, because of the uncertainty of determining whether the value of the article in question had been increased above or decreased below its real value. For example, if under the act of 1906, or 1910, as construed by this court in the Harvester Case, a party was sued for selling a pooled crop in violation of his agreement, or for refusing to deliver a crop he had agreed to pool, it would be indispensable to a recovery that the plaintiff should show that the purpose of the pool was not to increase the price of the article above its real value or decrease it below its real value, because if the purpose of the pool was to do either of these things, the contract would be invalid. Owen County Burley Society v. Brumback, 128 Ky. 137, 107 S. W. 710, 32 Ky. Law. Rep. 916. It is therefore at once apparent that in the attempted enforcement of civil rights and liabilities under and by virtue of these statutes the same element of uncertainty would arise to prevent the enforcement of the right or liability that would arise in a criminal prosecution for a violation of the provisions of these pooling acts. And if this uncertainty would defeat a criminal prosecution, it would likewise defeat a civil action.

It should, however, be here pointed out that the conclusion we have reached in respect to the effect of these acts on contract rights and liabilities does not go to the extent of holding that mere uncertainty or indefiniteness in a legislative act would prevent the enforcement of civil rights or liabilities arising thereunder if the enforcement of these rights and liabilities may be rested on common-law rules. This distinction was made in L. & N. R. R. Co. v. Commonwealth, 99 Ky. 132, 35 S. W. 129, 18 Ky. Law Rep. 42, 33 L. R. A. 209, 59 Am. St. Rep. 457, where the court said that although sections 816 and 819 of the Kentucky Statutes could not, on account of their uncertainty, be made the basis of a criminal prosecution, this did not prevent the shipper from recovering back from the carrier under common-law principles the excess of charges over reasonable rates.

[3] In view, therefore, of these Supreme Court decisions, the validity of the acts of 1906, 1908, and 1910 can only be sustained upon the ground that all corporations and persons doing business of any kind in this state shall be permitted to enjoy the same privileges as farmers; namely, to combine, unite, and pool their property or products for the purpose of selling them at a higher price than they could obtain if acting separately or in competition with each other, without regard to whether the price at which

than their real value or not, and this of course would be to say that we had no antitrust laws in this state.

To put the validity of this legislation upon this ground, which is the only ground on which it can stand, would not only be obnoxious to the whole spirit and purpose of our laws, common and statutory, and the public policy of the state from its very beginning, but would license and authorize all corporations engaged in any kind of business in this state, or selling any kind of articles or products to the people of the state, to combine or unite for the purpose of selling these articles or property to the people of the state at any price they could obtain. A ruling like this would not only be an intolerable departure from the legislative intent in the enactment of the acts of 1906, 1908, and 1910, as expressed in their title and body, but would place the people of the state who must buy articles of necessity from corporations engaged in their manufacture, absolutely under the control of these corporations, who could and certainly would combine and fix the price of these articles at any sum they desired. And to say that the Legislature of the state intended to do this would be setting down a wanton reproach if not an insult to the intelligence and public spirit of the members, and this we were not willing to do when the 131 Ky. 551, case (115 S. W. 703, 133 Am. St. Rep. 256) was written, and are not willing to do

We are therefore constrained to hold that the acts of 1906, 1908, and 1910, now sections 3941a, 3941d of the Kentucky Statutes, are void. We are also constrained to overrule the case of Commonwealth v. International Harvester Co., 131 Ky. 551, 115 S. W. 703, 133 Am. St. Rep. 256, and the subsequent cases resting on this opinion. Thus putting out of the way these acts and the decisions of this court holding that these acts and the act of 1890 and section 198 of the Constitution should be read together as one harmonious whole, we are now back to the safe place from which we ventured in 1906, and again stand ground.

solid constitutional

[4] This conclusion leaves to be decided the question of the effect of the act of 1890 of the opinions of this court holding that it was amended by the act of 1906. This question is, we think, easy of solution. The validity of a constitutional enactment such as the act of 1890 cannot be impaired or affected by an unconstitutional amendment. The amendment may be held invalid, but the act it amends, if free from constitutional objections, will stand as it did before the unconstitutional amendment. It cannot for a moment be entertained that an unconstitutional amendment to a valid act can destroy the validity of the act. The amenda

be entirely discarded as unaffecting the orig- | corporation, partnership, or association of inal act. People v. Butler Foundry & Iron persons for the purpose of suppressing comCo., 201 Ill. 236, 66 N. E. 349; Ex parte Da- petition, controlling the market, or regulatvis (C. C.) 21 Fed. 396; City of Lexington ing or fixing the price of any species of propv. County Bank, 165 Mo. 671, 65 S. W. 943; erty. Whitlock v. Hawkins, 105 Va. 242, 53 S. E. 401, 5 L. R. A. (N. S.) 1194, 115 Am. St. Rep. 880; Waters-Pierce Oil Co. v. State of Texas, 177 U. S. 28, 20 Sup. Ct. 518, 44 L. Ed. 657.

[5] Holding that the act of 1890 is now in full force and effect, another question arising is whether the common-law doctrine of restraint of trade is also in force in this state, or has it been abrogated or modified by the act of 1890?

In support of the argument that the common-law doctrine of restraint of trade is not in force in this state, some reliance is placed by counsel for appellants on the case of Gathright v. Byllesby, 154 Ky. 106, 157 S. W. 45. In that case it was held on the authority of the International Harvester Company Cases that no pool, trust, combination, or monopoly was obnoxious to the laws of the state or the public policy of the state, unless its purpose was to increase the price of an article above its real value or decrease its price below its real value. And it may be conceded that, under the law as declared in the International Harvester Cases, the common-law doctrine of restraint of trade, as set forth in the cases of Gay v. Brent and Merchants' Ice & Cold Storage Co. v. Rohrman, was modified, at least in so far as the doctrine was extended in these cases to include all contracts or agreements entered into for the essential purpose of suppressing competition and trade in an article, although it was not the object of the combination to increase or depreciate the price of the article above or below its real value. But as the rule announced in the International Harvester Company Cases is no longer controlling, the state of the law in respect to trusts, combinations, and monopolies is the same as it was when the case of Gay v. Brent originated, and when the opinions in that case and in the case of Merchants' Ice & Cold Storage Co. v. Rohrman were written. State v. Rollins, 8 N. H. 550; Moseley v. Brown, 76 Va. 419; Mathewson v. Phoenix Iron Co. (C. C.) 20 Fed. 281.

It follows from the views expressed that the judgment appealed from should be affirmed; and it is so ordered.

GERMANIA FIRE INS. CO. v. TURLEY.

(Court of Appeals of Kentucky. Nov. 24, 1915.) INSURANCE 328 TRANSFER OF POLICY

FORFEITURE.

Since a clause in a fire insurance policy, forfeiting the policy if any change takes place in the title, possession, or interest of the insured must be construed to contemplate only transfers in the property, or if the policy be assigned, which permanently divest the insured of all interest in the property, where, upon a sale of the land by insured, the policy was transferred with the consent of the company, subsequently again transferred without the consent of the company, and finally transferred to the original policy was not thereby rendered void, in the abowner without the consent of the company, the sence of a declaration of forfeiture; the property having been restored to the party with whom the company originally contracted, before pany having merely been suspended during the the loss occurred and the liability of the cominterim.

[Ed. Note.-For other cases, see Insurance, Cent. Dig. §§ 794-822, 825; Dec. Dig. 328.j Appeal from Circuit Court, Daviess County.

Action by T. J. Turley against the Germania, Fire Insurance Company. Judgment for plaintiff, and defendant appeals. Affirmed.

C. M. Finn, of Owensboro, for appellant. Miller & Sandidge, of Owensboro, for appel

lee.

SETTLE, J. The appellee, T. J. Turley, by this action sought to recover of the appellant, Germania Fire Insurance Company, $200, alleged to be the fair cash value of a barn owned by him, upon which, by its policy issued January 28, 1910, appellant granted him that amount of insurance against its loss by fire; it being alleged in the petition that in May, 1914, the barn was destroyed by fire. It appears from further allegations of the petition that the policy in question also granted to the appellee insurance of $3,500 on his dwelling house, located on the lot upon which the barn was situated, and that for the insurance upon the two buildings he paid appellant restraint of paid appellant the premium demanded, amounting to $73.20; that the policy insured the two buildings for a period of five years from its date, and contains a provision making the insurance, in case of loss on either building, payable to the Fidelity & Columbia Trust Company, of Louisville, Ky., as its interest may appear; this provision being made because the trust company then had a mortgage upon the two buildings and the lot upon which they are situated.

There is now no public policy or statute law of the state opposed to the recognition of the common-law doctrine of restraint of trade. This doctrine as set forth in Gay v. Brent and Merchants' Ice & Cold Storage Co. v. Rohrman, and the statute of 1890 on the subject of pools, trusts, and monopolies are not in conflict. They are living, companion pieces of the law, and either may be invok ed, whichever is the most available, for the purpose of staying the unlawful activities of any agreement, pool, trust, combination, or monopoly created or entered into by any

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