United States v. Borax Consolidated, Ltd.

This Court has heretofore retained jurisdiction of this anti-trust proceeding for the purpose of enforcing compliance with the final decree entered herein against defendants. The United States has now applied for an order restraining defendants as well as the Pacific Coast European Conference of steamship lines from engaging in practices allegedly in violation of the decree. The practices sought to be enjoined consist of efforts by defendants and the Conference to cause certain customers of defendants to ship borax products purchased from defendants exclusively on Conference vessels. The Conference contends that the use of its vessels by these customers of defendants is required by a Shippers Rate Agreement between the Conference and defendants. Defendants disagree with this interpretation of the rate agreement, but, at the insistence of the Conference, have endeavored to secure compliance by their customers.

The rate agreement has been approved by the Federal Maritime Board. Thus the rate agreement and acts done pursuant to it are, by the Shipping Act of 1916, exempt from the provisions of the Anti-Trust statutes. 39 Stat. 733 , 46 U.S.C.A. § 814 . The United States has…