Oregon Restaurant & Beverage Association, Jack Nasholm and Fred Feller v. United States

This is an appeal from convictions and sentences for a combination and conspiracy in unreasonable restraint of interstate and foreign trade and commerce in beer, in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1 . Appellants, defendants below, are a non-profit trade organization whose members are taverns and bars and two individual tavern owners. We affirm the convictions.

The liquor law of Oregon authorizes licensed wholesalers to sell beer to licensed retail outlets and also, “in quantities of not less than five gallons to any unlicensed organization, lodge, picnic party or private gathering.” ORS 471.-240. The law carries an added provision prohibiting the resale of beer purchased by an unlicensed group. ORS 471.452. Prior to November, 1965, it was the practice in Oregon for wholesalers to sell beer in cases and kegs “off the dock”, i. e., directly from their premises to the consuming public. Certain of such sales could legally be made as sales to an unlicensed group. However, trial testimony indicated that some of these sales were illegal in that, among other things, certain wholesalers were selling to consumers in quantities less than the five gallon minimum…