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United States v. Consolidated Laundries Corp.

United States v. Consolidated Laundries Corp.

United States Court of Appeals for the Second Circuit

December 14, 1960, Argued ; May 31, 1961, Decided

Nos. 168, 169, Dockets 25533, 26330

Opinion

 [*567]  The appellants were convicted on both counts of a two count indictment returned on January 31, 1957, charging violations of sections 1 and 2 of the Sherman Act, as amended, 15 U.S.C.A. §§ 1, 2. After pleading not guilty, the sixteen defendants waived trial by jury. Trial began before Judge Palmieri on January 20, 1958 and the Government rested on March 12. The defendants then moved for acquittal. Their motions being denied, they rested without introducing [**3]  any evidence. On June 16, 1958 the trial judge filed findings of fact and conclusions of law which denied the motions for acquittal and found all the defendants guilty. Fines aggregating $ 451,000 were imposed, and four individual defendants were given short prison sentences and were ordered to pay the costs of the prosecution. Each defendant duly appealed from the judgment against him. Thereafter, on November 20, 1959, all defendants moved for a new trial pursuant to Rule 33 of the Federal Rules of Criminal Procedure, 18 U.S.C.A. Their motions, submitted on affidavits, were argued in January 1960 and were denied on April 25, 1960. From this order the defendants have also appealed.

The record covering both appeals presents many questions. Various legal points are common to several appellants, and the court wishes to express to counsel its appreciation of their skill in having so organized their briefs and arguments as to avoid unnecessary repetition.

The defendants-appellants are eight corporations engaged in the linen supply business in New York and/or New Jersey (herein referred to as 'linen supplier defendants'), two incorporated trade associations referred to respectively [**4]  as 'New York Institute' and 'New Jersey Council' and six individuals, of whom four are officers of one or more of the linen supplier defendants and the other two are respectively the secretary of the New York Institute and the secretary of the New Jersey Council.

The linen supply business consists of periodically delivering to customers, such as hotels, restaurants, barbershops and doctors' offices, supplies of clean linen and picking up soiled linen to be laundered and returned to the customer clean. Frequently the linen supplied to a customer is owned by the linen supplier and when this is the case it may involve a substantial investment by the linen supplier.

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291 F.2d 563 *; 1961 U.S. App. LEXIS 4347 **; 1961 Trade Cas. (CCH) P70,039

UNITED STATES of America, Plaintiff-Appellee, v. CONSOLIDATED LAUNDRIES CORPORATION; Cascade Linen Supply Corp. of N.J.; Central Coat, Apron & Linen Service, Inc.; General Linen Supply & Laundry Co., Inc.; Modern Silver Linen Supply Co., Inc. (a New York corporation); Modern Silver Linen Supply Co., Inc. (a New Jersey corporation); Standard Coat, Apron & Linen Service, Inc. (a New York Corporation); Standard Coat, Apron & Linen Service, Inc. (a New Jersey corporation); Linen Supply Institute of Greater New York, Inc.; Linen Service Council of New Jersey; Louis Gordon; Harry Kessler; Charles Maslow; Jack Orlinsky; Fred S. Radnitz; and Sam Spatt, Defendants-Appellants

CORE TERMS

linen, new trial, conspiracy, customers, documents, indictment, monopolize, trial court, trial judge, defense counsel, supplier, papers, sentence, interstate commerce, certiorari denied, conversation, suppression, Sherman Act, allocated, files, antitrust, conspiratorial, defendants', interstate, inspect, minutes, big

Evidence, Inferences & Presumptions, General Overview, Criminal Law & Procedure, Discovery & Inspection, Discovery by Government, Discovery by Defendant, Postconviction Proceedings, Motions for New Trial, Preliminary Proceedings, Pretrial Motions & Procedures, Suppression of Evidence, Accusatory Instruments, Indictments, Inchoate Crimes, Conspiracy, Elements, Governments, Legislation, Statute of Limitations, Time Limitations, Civil Procedure, Judicial Officers, Judges, Trials, Examination of Witnesses, Cross-Examination, Grand Juries, Evidence Before Grand Jury, Discretionary Powers, Secrecy, Disclosure, Judicial Discretion, Testimony, Refreshing Recollection, Antitrust & Trade Law, Price Fixing & Restraints of Trade, Cartels & Horizontal Restraints, Regulated Practices, Horizontal Market Allocation, Per Se Rule & Rule of Reason, Sherman Act, Business & Corporate Law, Agency Relationships