A complaint, alleging a conspiracy to control principal taxicab operating companies in Chicago and to exclude others from engaging in the transportation of interstate train passengers between their homes and railroad stations in normal course of their independent local service, did not allege a cause of action under the Sherman Anti-Trust Act because not related to transportation in 'interstate commerce'. Sherman Anti-Trust Act , 1, 2, 4, 15 U.S.C.A. 1, 2, 4.
[332 U.S. 218 , 220] Mr.Charles H. Weston, of Washington, D.C., for appellant.
Mr. Samuel H. Kaufman, of New York City, for appellees.
Mr. Justice MURPHY delivered the opinion of the Court.
The United States filed a complaint in the federal district court below pursuant to 4 of the Sherman Anti-Trust Act, 26 Stat. 209, as amended, 15 U.S.C.A. 4, to prevent and restrain the appellees from violating 1 and 2 of the Act, 15 U.S.C.A. 1, 2. The complaint alleged that the appellees have been and are engaged in a combination and conspiracy to restrain and to monopolize interstate trade and commerce (1) in the sale of motor vehicles for use as taxicabs to the principal cab operating companies in Chicago, Pittsburgh, New York City and Minneapolis, and (2) in the business of furnishing cab services for hire in Chicago and vicinit. The appe llees moved to dismiss the complaint for failure to state a claim upon which relief might be granted. That motion was sustained. D.C., 69 F.Supp. 170. The case is now here on direct appeal by the United States. .
The alleged facts, as set forth in the complaint, may be summarized briefly. In January, 1929, one Morris Markin and others commenced negotiations to merge the [332 U.S. 218 , 221] more important cab operating companies in Chicago, New York and other cities. Markin was then president and general manager, as well as the controlling stockholder, of the Checker Cab Manufacturing Corporation (CCM ). That company was engaged in the business of manufacturing taxicabs at its factory in Kalamazoo, Michigan, and shipping them to purchasers in various states.
Parmelee Transportation Company (Parmelee) was organized in April, 1929, with 62% of its stock being owned by CCM. It promptly took over the business of operating special unlicensed cabs to transport passengers and their luggage between railroad stations in Chicago, pursuant to contracts with railroads and railroad terminal associations. It then acquired a controlling interest in the Chicago Yellow Cab Company, Inc. (Chicago Yellow). This latter company holds all the capital stock of Yellow Cab Company (Yellow), the owner and operator of 'Yellow' cabs in Chicago and vicinity. Yellow presently holds 53% of the taxicab licenses outstanding in Chicago. In addition, Parmelee acquired or organized subsidiary companies which now hold 100% of the taxicab licenses outstanding in Pittsburgh, 58% of those in Minneapolis, and 15% of those in New York City.