Maple Flooring Manufacturers Ass’n v. United States

268 U.S. 563 (1925)

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Nature of the Case

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Facts

D is an unincorporated 'trade association'; twenty-two corporate defendants, members of the Association, engaged in the business of selling and shipping maple, beech and birch flooring in interstate commerce, all but two of them having their principal places of business in Michigan, Minnesota or Wisconsin. The association members produced 70 percent of the hardwood flooring in the United States. Members of D engaged in information sharing with respect to products and market conditions. D compiled this information and distributed it to members. Information included inventory, orders, and pricing along with freight rates. Members also met to discuss the trade and market conditions on a regular basis. D also published trade journals and sent this information directly to different government agencies. P claimed that this activity, even without an agreement to violate the Sherman Act, constituted a violation of the Act. P claimed that such information stabilized and regulated prices and limited free competition. There was undisputed evidence that the prices of members were fair and reasonable and that they were usually lower than the prices of non-members and there is no claim that Ds were guilty of unfair or arbitrary trade practices. P got the verdict and D appealed the injunction that was issued.