U.S. Supreme Court PEOPLE OF PUERTO RICO v. SHELL CO., 302 U.S. 253 (1937)

[Page 302 U.S. 253, 255]

Messrs. Wm. D. Whitney, of New York City, James R. Beverley, of San Juan, P.R., and Gabriel I. Lewis, of New York City, for respondents.

Mr. Justice SUTHERLAND delivered the opinion of the Court.

This is a criminal proceeding brought by petitioner against the respondents in the insular district court of San Juan, Puerto Rico. An information filed by the district attorney charged respondents with entering into a conspiracy in restraint of trade in violation of the local anti-trust act, passed by the Legislature of Puerto Rico March 14, 1907. Demurrers to the information were sustained by the district court on the ground that the Sherman Anti-Trust Act of 1890 (15 U.S.C.A. 1-7, 15 note), supplemented by the Clayton Act of 1914 (15 U.S.C.A. 12-27), covered the entire field embraced by the local anti-trust act, and the latter, therefore, was void. The Supreme Court of Puerto Rico accepted that view and dismissed the appeal; and its judgment was affirmed on appeal by the court below. (C.C.A.) 86 F.2d 577. The single question which we have to decide is whether the existence of section 3 of the Sherman Act ( 15 U.S.C.A. 3) precluded the adoption of the local act by the insular legislature.

The pertinent provisions of the Sherman Act and the local act are set forth in the margin. [Footnote 1] Section 3 of the

[Page 302 U.S. 253, 271]

laws of the United States. We held that section 5219 of the Revised Statutes, as amended (12 U.S.C.A. 548) was in force in Puerto Rico and that that section forbade the tax. The grant to the territory of the general power to tax did not constitute consent on the part of Congress that a tax not authorized by section 5219 could be laid; and it is upon that ground that our decision rests. The conflict between the tax and the federal law we regarded as plain.

6. Finally, it is contended that, if the local anti-trust act and the Sherman Act both stand, a conflict of jurisdiction between the federal courts and the local courts may result. But clearly there is slight, if any, ground for the apprehension. The local act simply confers jurisdiction upon the local courts to enforce that act. No attempt, of course, is made to confer jurisdiction upon those courts to enforce the Sherman Act, or upon the federal courts to enforce the local act. It is hard to see why a conflict as to which law shall be enforced and which jurisdiction shall be invoked should ever arise, since the officers charged with the administration and enforcement of both acts are, in the last analysis, under the control of the same sovereignty and, it well may be assumed, will work in harmony.

We conclude that the anti-trust act of Puerto Rico is valid and enforceable; and accordingly the judgment below is reversed. Footnotes

Footnote 1 Sherman Act (July 2, 1890, c. 647, 26 Stat. 209 (15 U.S.C.A. 3, 4)):'s 3. Every contract, combination in form of trust or otherwise, or conspiracy, in restraint of trade or commerce in any Territory of the United States or of the District of Columbia, or in restraint of trade or commerce between any such Territory and another, or between any such Territory or Territories and any State or States or the District of Columbia, or with foreign nations, or between the District of Columbia and any State or States or foreign nations, is declared illegal. Every person who shall make any such contract or engage in any such combination or conspiracy, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding $5,000, or by imprisonment not exceeding one year, or by both said punishments, in the discretion of the court.'s 4. The several district courts of the United States are hereby invested with jurisdiction to prevent and restrain violations of this Act ( sections 1 to 7, inclusive); and it shall be the duty of the several district attorneys of the United States, in their respective districts, under the direction of the Attorney General, to institute proceedings in equity to prevent and restrain such violations.'

By section 24(2) of the Judicial Code, 28 U.S.C. 41(2), 28 U.S.C.A . 41(2), the district courts of the United States are given jurisdiction 'Of all crimes and offenses cognizable under the authority of the United States.'

The Puerto Rico Act of March 14, 1907 (Laws 1907, p. 328):'Section 1. Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade, commerce, business transactions, and lawful and free competition in a town, or among the several towns of Puerto Rico is hereby declared to be illegal. Every person who shall make any such contract or engage in any such conspiracy, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars, or by imprisonment not exceeding one year, or by both such punishments in the discretion of the court. ...'Section 3. The district courts of the island are hereby vested with jurisdiction to prevent, prohibit, enjoin and punish violations of this law; and it shall be the duty of the attorneys of the district courts of the island to institute proceedings of injunction or any other civil proceeding to prevent, prohibit, enjoin, and restrain such violations. ... '

Footnote 2 The Fifth Amendment to the Constitution provides, 'nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb.' Section 2 (the Bill of Rights) of the Puerto Rico Organic Act of 1917, 39 Stat. 951 (48 U.S.C.A. 737), provides that 'no person for the same offense shall be twice put in jeopardy of punishment.'

Footnote 3 'All crimes not capital ... which officers and soldiers may be guilty of ... are to be taken cognizance of by a general ... court-( martial), ... and punished at the discretion of such court.'