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United States v. Bitz

United States v. Bitz

United States District Court for the Southern District of New York

November 12, 1959

Cr. 159-162

Opinion

 [*82]  The allegations of Count One of the indictment will first be summarized. Since these motions deal only with the face of the indictment, this opinion will deal only with the facts therein alleged without regard to actuality.

Newspaper and Mail Deliverers' Union of New York and Vicinity, hereinafter 'the Union', has labor contracts with the publishers of all of the principal New York City newspapers and [**2]  all of the principal magazines published throughout the United States covering such of their employees as are engaged in the handling of newspapers and magazines. It is a provision of these contracts that such publishers can use as wholesalers only such distributors as are themselves under labor contractual relations with the Union. Suburban Wholesalers Assocation, Inc., hereinafter Suburban Wholesalers, is a New York membership corporation consisting of twelve members who are such distributors and in labor contractual relations with the Union. The necessity of keeping in labor contractual relations with the Union in order to retain the position of wholesaler to the publishers gives strikes and threats of strikes a coercive effect.

The twelve members of Suburban Wholesalers are alleged to distribute the newspapers and magazines in specified sub-areas of the so-called Suburban Area outside of New York City which do not overlap but there is no allegation that they are the sole distributors of the newspapers and magazines in those sub-areas.

Prominent in the list of defendants are officers and representatives of the Union. The rest of it is made up of defendant Bi-County News Corp.,  [**3]  hereinafter 'Bi-County', and officers, employees and stockholders of various other corporations of undescribed purposes.

Defendants Irving Bitz, Charles Gordon and Bi-County are engaged in the wholesale distribution of newspapers and magazines. Bi-County is alleged to have its principal place of business in Westbury, Long Island. The place of business of the two individuals is not stated.

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179 F. Supp. 80 *; 1959 U.S. Dist. LEXIS 2333 **; 45 L.R.R.M. 2192; 38 Lab. Cas. (CCH) P65,944; 1959 Trade Cas. (CCH) P69,549

UNITED STATES of America v. Irving BITZ, also known as Morris Grossman, Sam Feldman, Stanley J. Lehman, Harry Waltzer, William Walsh, John Lawrence, Jr., Angelo Lospinuso, William Fello, Rocco Fello, also known as Barney Fello, Charles Gordon, formerly known as Abraham Goldberg, Michael Spozate and Bi-County News Corp., Defendants

CORE TERMS

Wholesalers, conspiracy, newspapers and magazines, indictment, Counts, motion to dismiss, monopoly, publishers, magazines, commerce, charges, labor contract, alleges, strikes, conspiracy to monopolize, injury to the public, effectuated, effective, interstate commerce, distributorship, distributors, conspired, boycotts, hindered

Antitrust & Trade Law, Price Fixing & Restraints of Trade, Exclusive & Reciprocal Dealing, General Overview, Sherman Act, Tying Arrangements, Per Se Rule & Rule of Reason, Practices Governed by Per Se Rule, Boycotts, Horizontal Refusals to Deal, Sherman Act, Sherman Act Violations, Per Se Violations, Criminal Law & Procedure, Inchoate Crimes, Conspiracy, Elements, Criminal Offenses