42 BTILLETIlSr 1106, U. S. DEPARTMENT OF AGRICULTURE. 



CALIFORNIA ASSOCIATiED RAISIN CO. CASE. 



In September, 1920, the Government brought suit against the 

 California Associated Eaisin Co., charging it with monopolizing and 

 restraining trade in violation of the antitrust laws. In September 

 of that year a stipulation was entered into in lieu of an injunction re- 

 quiring the Eaisin Co. to release more than one-fourth of its hold- 

 ings of raisins (40,000 tons) to competitors and to abandon the 

 "firm at opening price" contract and those involving guaranties 

 against decline. It was also required to announce through ad- 

 vertisements in the newspapers of Fresno County, Calif., its willing- 

 ness to release all grape growers who claimed that they were coerced 

 into signing contracts with it. 



This case was disposed of in January, 1922, by the entry of a 

 consent decree which enjoins and restrains the Eaisin Co. from 

 eliminating or decreasing competition in interstate or foreign com- 

 merce in raisins or raisin grapes by the purchase, lease, or control 

 of the plant of any competitor or by means of any contract or con- 

 cert of action with an existing or prospective competitor. It is also 

 enjoined from securing or attempting to secure contracts with 

 growers of raisin grapes by means of coercion or duress, or which - 

 eliminate or restrict or prevent others from freely competing to 

 secure contracts with the growers of raisin grapes in California. 

 All contracts entered into with raisin growers must contain a pro- 

 vision authorizing the grower to terminate the contract at the end 

 of the first three years thereof or at the end of any two-year period 

 thereafter; making or entering iato contracts for the sale of raisins 

 under which the quantity of raisins to be delivered to any purchaser 

 or the price to be paid therefor is to be subsequently determined by 

 the Eaisin Co., in accordance with the practice known as "firm at 

 opening price " or under which the Eaisin Co. agrees to indemnify 

 any purchaser against loss on account of a future decline in the 

 market price of raisins, are forbidden ; purchasing or agreeing to pur- 

 chase raisins or raisin grapes from a competitor for the purpose of 

 enabling the Eaisin Co. to fix the price of such product or to diminish 

 competition ; agreeing or combining either among themselves or with 

 others to lessen or eliminate the supply of raisins or decrease the pro- 

 duction or supply of raisin grapes or to diminish competition 

 through the destruction or waste of raisins or otherwise; making a 

 contract with a competitor for the packing of raisins exclusively 

 for the Eaisin Co. with an agreement of " exclusive dealing " ; making 

 a competitor the agent of the Eaisin Co., with authority to sell raisins 

 or raisin grapes at fixed prices, or excluding or preventing a com- 

 petitor from marketing raisins or raisin grapes for himself or 

 another; making contract under which the purchaser is obliged to 



