1. While the United States is a juristic person in the sense
that it can sue upon its contracts or in vindication of its
property rights, the term "person" does not include the sovereign
in common usage nor, ordinarily, when employed in statutes. P.
312 U. S.
604.
2. The Sherman Antitrust Act, in creating new rights and
remedies, allowed two classes of actions -- those made available
only to the Government and a right of action for treble damages
granted to redress private injury. P.
312 U. S.
608.
3. Section 7 of the Act, granting the right of action for treble
damages, to "any person" injured in his business or property by
"any other person or corporation" by reason of anything forbidden
by the Act, does not give the United States a civil action for
damages. P.
312 U. S. 606
et seq.
The text of the Act, taken in its natural and ordinary sense,
makes against the extension of the term "person" to include the
United States, and the usual aids to construction support this
conclusion.
114 F.2d 413 affirmed.
Certiorari, 311 U.S. 639, to review the affirmance of a judgment
of the District Court, 31 F. Supp. 848, dismissing the complaint in
an action by the United States to recover treble damages under
§ 7 of the Sherman Act.
Page 312 U. S. 603
MR. JUSTICE ROBERTS delivered the opinion of the Court.
We took this case because it presents the important question
whether the United States may maintain an action for treble damages
under § 7 of the Sherman Act. [
Footnote 1]
The complaint charged the respondents had illegally
Page 312 U. S. 604
combined and conspired to fix collusive prices of articles
purchased by the United States, alleged the money damage inflicted
upon the United States thereby, and sought judgment for three times
that amount. The District Court granted a motion to dismiss the
complaint on the ground that the United States is not a person as
the term is used in § 7 of the Sherman Act. [
Footnote 2] The Circuit Court of Appeals
affirmed the judgment. [
Footnote
3]
Section 7 provides:
"Any person who shall be injured in his business or property by
any other person or corporation by reason of anything forbidden or
declared to be unlawful by this act may sue therefor in any circuit
court of the United States in the district in which the defendant
resides or is found, without respect to the amount in controversy,
and shall recover threefold the damages by him sustained, and the
costs of suit, including a reasonable attorney's fee."
The United States is a juristic person in the sense that it has
capacity to sue upon contracts made with it or in vindication of
its property rights. The Sherman Act, however, created new rights
and remedies which are available only to those on whom they are
conferred by the Act. [
Footnote
4] The precise question for decision, therefore, is whether, by
the use of the phrase "any person," Congress intended to confer
upon the United States the right to maintain an action for treble
damages against a violator of the Act.
Since, in common usage, the term "person" does not include the
sovereign, statutes employing the phrase are ordinarily construed
to exclude it. [
Footnote 5] But
there is no hard
Page 312 U. S. 605
and fast rule of exclusion. The purpose, the subject matter, the
context, the legislative history, and the executive interpretation
of the statute are aids to construction which may indicate an
intent, by the use of the term, to bring state or nation within the
scope of the law. [
Footnote
6]
The Government admits that often the word "person" is used in
such a sense as not to include the sovereign, but urges that,
where, as in the present instance, its wider application is
consistent with, and tends to effectuate, the public policy
evidenced by the statute, the term should be held to embrace the
Government. And it strongly urges that all the considerations which
moved Congress to confer the right to recover damages upon
individuals and corporations injured by violations of the Act apply
with equal force to the United States, which, as a large procurer
of goods and services, is as likely to be injured by the denounced
combinations and monopolies as is a natural or corporate person. We
are asked, in this view, so to construe the Act as not to deny to
the Government what public policy is thought to require.
Decision is not to be reached by a strict construction of the
words of the Act, nor by the application of artificial canons of
construction. On the contrary, we are to read the statutory
language in its ordinary and natural sense, and, if doubts remain,
resolve them in the light not only of the policy intended to be
served by the enactment, but, as well, by all other available aids
to construction. But it is not our function to engraft on a statute
additions which we think the legislature logically might or should
have made. [
Footnote 7]
Page 312 U. S. 606
The recent expressions of this court in
Tigner v.
Texas, 310 U. S. 141,
310 U. S.
148-149, warn that it is not for the courts to indulge
in the business of policymaking in the field of antitrust
legislation. Congress has not left us at large to devise every
feasible means for protecting the Government as a purchaser. It is
the function of Congress to fashion means to that end, and Congress
has discharged this duty from time to time according to its own
wisdom. Our function ends with the endeavor to ascertain from the
words used, construed in the light of the relevant material, what
was in fact the intent of Congress.
1. Without going beyond the words of the section, the use of the
phrase "any person" is insufficient to authorize an action by the
Government. This conclusion is supported by the fact that, if the
purpose was to include the United States, "the ordinary dignities
of speech would have led" to its mention by name. [
Footnote 8] It is supported also by the
collocation of the phrase in the section. The provision is that
"any person" injured by violation of the Act "by any other person
or corporation" may maintain an action for treble damages against
the latter. It is hardly credible that Congress used the term
"person" in different senses in the same sentence. Yet, unless it
did, the United States would not only be entitled to sue, but would
be liable to suit for treble damages. The more natural inference,
we think, is that the meaning of the word was, in both uses,
limited to what are usually known as natural and artificial persons
-- that is, individuals and corporations. In addition, the
concluding words of the section give the injured party, as part of
his costs, a reasonable attorney's fee -- a provision more
appropriate for a private litigant than for the United States.
2. The connotation of a term in one portion of an Act may often
be clarified by reference to its use in others.
Page 312 U. S. 607
The word "person" is used in several sections other than §
7. In §§ 1, 2, and 3, the phrase designating those liable
criminally is "every person who shall" etc. In each instance, it is
obvious that, while the term "person" may well include a
corporation, it cannot embrace the United States. In § 8,
Congress attempted to make clear that the term "person" is to
include a corporation. The provision is
"that the word 'person,' or 'persons,' wherever used in this
act, shall be deemed to include corporations and associations
existing under or authorized by the laws of either the United
States, the laws of any of the Territories, the laws of any State,
or the laws of any foreign country."
The very fact, however, that this sweeping inclusion of various
entities was thought important to preclude any narrow
interpretation emphasizes the fact that, if the United States was
intended to be included, Congress would have so provided. We may
say in passing that the argument that the United States may be
treated as a corporation organized under its own laws -- that is,
under the Constitution as the fundamental law -- seems so strained
as not to merit serious consideration. It is fair to assume that
the term "person," in the absence of an indication to the contrary,
was employed by the Congress throughout the Act in the same, and
not in different, senses.
3. The scheme and structure of the legislation is likewise
important to a proper ascertainment of its purpose and intent.
Sections 1, 2, and 3 impose criminal sanctions for violations of
the acts denounced in those sections, respectively. Section 4 gives
jurisdiction to the federal courts of proceedings by the Government
to restrain violations of the Act, and imposes upon United States
Attorneys the duty to institute equity proceedings to that end.
Section 5 regulates service in such suits. Section 6 authorizes
seizure, in the course of interstate transportation, of goods owned
under any contract or pursuant to any conspiracy made illegal by
the statute.
Page 312 U. S. 608
Thus, far the Act deals in detail with the criminal and civil
remedies of the Government in vindication of the policy of the
legislation. There follows § 7, the only other substantive
section giving a civil action for an injury to property rights.
It seems evident that the Act envisaged two classes of actions
-- those made available only to the Government, which are first
provided in detail, and, in addition, a right of action for treble
damages granted to redress private injury. If this be the fair
construction of the Act, the Court's task is finished when it gives
effect to the purposes of the law, evidenced by the various
remedies it affords for different situations. Though the law gave a
remedy by way of injunction at the suit of the United States, we
were pressed to say that a private person should have the same
remedy. We were compelled to answer that Congress had not seen fit
so to provide. [
Footnote 9] For
the like reasons, we cannot hold that, since a private purchaser is
given a remedy for his losses in treble damages, the United States
should be awarded the same remedy.
4. Supplemental legislation lends support to the view that
Congress had in mind the distinction between public and private
remedies, and did not intend to confer a right of action on the
United States by the use of the phrase "any person" in § 7.
The antitrust provisions of the Wilson Tariff Act [
Footnote 10] follow the same pattern as the
Sherman Act. Section 73 [
Footnote 11] denounces combinations and agreements
between parties importing articles from a foreign country, and
declares that every person guilty of
Page 312 U. S. 609
violation of its terms shall be punished. Section 74 confers
jurisdiction upon the federal courts, and authorizes proceedings in
equity by the United States to restrain such acts. Section 76
provides for seizure and forfeiture of property imported into the
United States contrary to law, and § 77 gives an action for
treble damages to any person against any other person or
corporation in the exact words of § 7 of the Sherman Act.
The anti-dumping provisions of the Revenue Act of 1916 [
Footnote 12] make it a criminal
offense for "any person" importing articles from a foreign country
to sell, or cause to be imported or sold, such articles within the
United States at substantially less than the market value of such
articles at the time of exportation in the principal markets of the
country of production, etc. They further declare that any person
injured in his business or property by any violation may sue
therefor in the United States courts and recover threefold damages
and costs, including a reasonable attorney's fee. It must be
obvious that the United States cannot be embraced by the phrase
"any person" there used.
When Congress came to supplement the Sherman Act by the Clayton
Act, [
Footnote 13] it
included in the latter a significant section bearing upon the
question under consideration. Doubts had arisen as to whether
issues adjudicated in a criminal proceeding or a suit in equity
brought by the United States should be taken as concluded in an
action for treble damages subsequently brought by an injured party.
By § 5 of the Clayton Act, it was sought to give such
adjudication that effect. The section provides:
"A final judgment or decree hereafter rendered in any criminal
prosecution or in any suit or proceeding in
Page 312 U. S. 610
equity brought by or on behalf of the United States under the
antitrust laws to the effect that a defendant has violated said
laws shall be
prima facie evidence against such defendant
in any suit or proceeding brought by any other party against such
defendant under said laws as to all matters respecting which said
judgment or decree would be an estoppel as between the parties
thereto:
Provided, This section shall not apply to consent
judgments or decrees entered before any testimony has been
taken."
Immediately following this provision the section continues:
"Whenever any suit or proceeding in equity or criminal
prosecution is instituted by the United States to prevent, restrain
or punish violations of any of the antitrust laws, the running of
the statute of limitations in respect of each and every private
right of action arising under said laws and based in whole or in
part on any matter complained of in said suit or proceeding shall
be suspended during the pendency thereof."
Here again, it seems clear that Congress recognized the
distinction between proceedings initiated by the Government to
vindicate public rights and actions by private litigants for
damages.
It should be noted that § 1 of the Clayton Act again
defined the term "person" exactly as it was defined by § 8 of
the Sherman Act, and § 4 again enacted that any person injured
by a violation might recover treble damages together with a
reasonable attorney's fee.
5. There has been a considerable body of judicial expression to
the effect that § 7 authorizes an action for damages only by
private suitors, and not by the Government. [
Footnote 14] While none of the cases presented
the exact question
Page 312 U. S. 611
here involved, the statements bearing on the subject exhibit a
uniform opinion contrary to the Government's present
contention.
6. The legislative history is persuasive that the Sherman Act
was not intended to give the United States a civil action for
damages. Senator Sherman, on March 18, 1890, introduced a bill
which, in § 1, provided that the United States might bring
various civil actions and, in § 2, that "any person" should be
entitled to sue any "person" or "corporation" for double damages.
[
Footnote 15]
In the discussion of the bill, it was pointed out that § 1
authorized the United States to bring civil actions including those
for simple damages, and that, under § 2, private parties were
entitled to sue for double damages. Senator Sherman stated that
§ 2 gave a right to sue for double damages only to private
parties, and not to the United
Page 312 U. S. 612
States. He stated that the civil suit by the United States
authorized by § 1 might be for an ouster of the power of the
corporation, for damages, or in
quo warranto, and added:
"But the second section provides purely a personal remedy, a civil
suit also by citizens of the United States." [
Footnote 16]
As is well known, after Senator Sherman's bill had been amended,
Senator Hoar rewrote most of the bill. In so doing, he eliminated
§ 1, with its provision for civil suits by the United States,
and substituted §§ 1, 2, 3, 4, and 6, specifying the
remedies, civil, criminal, and by way of forfeiture, available to
the United States. In that revision, he retained, with slight
change, § 2 of the bill, increasing the recoverable damages to
treble instead of double, and renumbered the section as § 7.
In this form, the bill was adopted.
As already stated, the language of § 7 of the Sherman Act
was repeated in later statutes extending the antitrust laws,
although, in the meantime this and other courts had expressed the
view that the section accorded the Government no right of suit for
treble damages. When the Clayton Act was before the Senate, Senator
Culberson, Chairman of the Committee which reported the bill,
enumerated the usual types of action prosecuted under the Sherman
Act -- criminal prosecutions, suits in equity, and actions for
damages, and stated with respect to Government suits under the
Sherman Act and the Clayton Act:
"There is no suit authorized by any of these statutes except a
criminal prosecution or a suit in equity. The United States does
not bring a suit at law for damages. [
Footnote 17] "
Page 312 U. S. 613
In 1926, the Attorney General, in response to a Senate
Resolution asking for information with respect to cases instituted
under the first seven sections of the Sherman Act, wrote:
"Under Section 7, which gives to private persons the right to
sue for injuries arising under the act, a number of actions have
been instituted. The United States, however, under the statute, is
not a party to suits under that section. [
Footnote 18]"
Senator O'Mahoney has introduced a bill, which is pending as S.
2719, prepared jointly by him and by the Assistant Attorney General
in charge of antitrust matters. On June 28, 1939, the Senator
stated that the purpose of the bill was to provide more effective
civil remedies. In the course of his statement he said:
"There is only one other remedy worth mentioning available under
existing law to the Department of Justice -- the civil action for
an injunction. In addition, there is the action in damages by a
private person who has been injured. Neither of these remedies is
effective."
He further stated:
"The bill permits the United States, in effect, to bring a suit
for damages against an offending corporation and against its
individual directors and officers. [
Footnote 19]"
7. It is significant that, in the light of the expressions by
the courts, the supplemental legislation, and the legislative
history, no action has ever been brought by the United States under
§ 7 in the fifty years during which
Page 312 U. S. 614
the statute has been in force until the present action was
instituted. Down to the close of the year 1937, 428 criminal
prosecutions and suits in equity had been instituted by the
Government. [
Footnote 20]
Down to December, 1939, 103 civil suits had been instituted by
private persons, including corporations. [
Footnote 21] In the meantime, the World War
intervened, with the Government a purchaser of enormous quantities
of material and supplies. Then, as now, the complaint was prevalent
that agreements and conspiracies existed to fix and maintain prices
of materials needed by the Government. And, throughout the life of
the legislation, able and vigilant officials devoted to enforcement
of the policy of the Sherman Act have not been wanting.
In these circumstances, the conviction that no right to sue had
been given the Government, rather than a supine neglect to resort
to an available remedy, seems to us the true explanation of the
fact that no such actions have been instituted by the United
States.
In summary, we are of opinion that the text of the Act, taken in
its natural and ordinary sense, makes against the extension of the
term "person" to include the United States, and that the usual aids
to construction, taken together, instead of inducing the contrary
conclusion, go to support the view that Congress did not use the
word in the sense for which the Government contends.
The judgment is
Affirmed.
Page 312 U. S. 615
MR. JUSTICE MURPHY took no part in the consideration or decision
of this case.
[
Footnote 1]
Act of July 2, 1890, c. 647, 26 Stat. 209, 210.
[
Footnote 2]
31 F. Supp. 848.
[
Footnote 3]
114 F.2d 413.
[
Footnote 4]
Wilder Mfg. Co. v. Corn Products Refining Co.,
236 U. S. 165,
236 U. S. 174;
Fleitmann v. Welsbach Street Lighting Co., 240 U. S.
27,
240 U. S. 29;
Geddes v. Anaconda Copper Mining Co., 254 U.
S. 590,
254 U. S.
593.
[
Footnote 5]
In re Fox, 52 N.Y. 530;
United States v. Fox,
94 U. S. 315,
94 U. S.
321.
[
Footnote 6]
See Levy v.
M'Cartee, 6 Pet. 102,
31 U. S. 110;
United States v.
Freeman, 3 How. 556,
44 U. S. 565;
Ohio v. Helvering, 292 U. S. 360,
292 U. S. 370;
Nardone v. United States, 302 U.
S. 379.
[
Footnote 7]
The Pedro, 175 U. S. 354,
175 U. S. 364;
Dewey v. United States, 178 U. S. 510,
178 U. S.
519-520;
Pirie v. Chicago Title & T. Co.,
182 U. S. 438,
182 U. S. 451;
White v. United States, 191 U. S. 545,
191 U. S.
551-552;
Ebert v. Poston, 266 U.
S. 548,
266 U. S. 554;
Helvering v. Oregon Life Insurance Co., 311 U.
S. 267,
311 U. S. 272.
[
Footnote 8]
Davis v. Pringle, 268 U. S. 315,
268 U. S.
318.
[
Footnote 9]
Minnesota v. Northern Securities Co., 194 U. S.
48,
194 U. S. 71;
Paine Lumber Co. v. Neal, 244 U.
S. 459. The Act was amended to authorize suits for
injunctions by private litigants.
See the Clayton Act of
October 15, 1914, c. 323, § 16, 38 Stat. 730, 737, 15 U.S.C.
§ 26.
[
Footnote 10]
Act of August 27, 1894, c. 349, 28 Stat. 509, as amended by Act
of Feb. 12, 1913, c. 40, 37 Stat. 667, 15 U.S.C. § 8.
[
Footnote 11]
28 Stat. 570, 37 Stat. 667.
[
Footnote 12]
Act of September 8, 1916, c. 463, 39 Stat. 756, 798, 15 U.S.C.
§ 72.
[
Footnote 13]
Act of October 15, 1914, c. 323, 38 Stat. 730.
[
Footnote 14]
Pidcock v. Harrington, 64 F. 821, 822;
Lowenstein
v. Evans, 69 F. 908, 911;
Greer, Mills & Co. v.
Stoller, 77 F. 1, 3;
City of Atlanta v. Chattanooga
Foundry, 101 F. 900, 904;
Standard Sanitary Mfg. Co. v.
United States, 226 U. S. 20,
226 U. S. 52;
United States v. Patterson, 201 F. 697, 714;
General
Investment Co. v. Lake Shore & Michigan So. Ry. Co.,
260 U. S. 261,
260 U. S. 286;
Glenn Coal Co. v. Dickinson Fuel Co., 72 F.2d 885, 889;
Quemos Theater Co. v. Warner Bros.
Pictures, 35 F. Supp.
949, 950;
Tigner v. Texas, 310 U.
S. 141,
310 U. S.
148.
[
Footnote 15]
Section 1:
". . . And the circuit court of the United States shall have
original jurisdiction of all suits of a civil nature at common law
or in equity arising under this section, and to issue all remedial
process, orders, or writs proper and necessary to enforce its
provisions. And the Attorney General and the several district
attorneys are hereby directed, in the name of the United States, to
commence and prosecute all such cases to final judgment and
execution."
Section 2:
"That any person or corporation injured or damnified by such
arrangement, contract, agreement, trust, or combination defined in
the first section of this Act may sue for and recover, in any court
of the United States of competent jurisdiction, without respect to
the amount involved, of any person or corporation a party to a
combination described in the first section of this Act, twice the
amount of damages sustained and the costs of the suit, together
with a reasonable attorney's fee."
[
Footnote 16]
21 Cong.Rec. 2563, 2564.
[
Footnote 17]
51 Cong.Rec. 13898. Statements by members of the House Judiciary
Committee indicate a similar view: 51 Cong.Rec. 9079, 9490.
Representative Webb the chairman of that Committee mentioned the
civil remedies available under the bill as treble damage actions by
persons, suits by the Federal Trade Commission, suits by the United
States for injunctions, and similar suits by persons. He then said
"Certainly the remedies are cumulative. The remedies pile up, and
all of the remedies are open to the individual and to the
government in a suit." 51 Cong.Rec. 16276. But obviously he meant
that the remedies given the public and the individual respectively
were cumulative, as they clearly are; for it is plain the remedy
given the Federal Trade Commission is not afforded to the
individual.
[
Footnote 18]
Sen.Doc. No. 79, 69th Cong., 1st Sess., p. 1.
[
Footnote 19]
84 Cong.Rec. 8192.
[
Footnote 20]
"Federal Antitrust Laws," published by the Department of Justice
January 1938.
[
Footnote 21]
49 Yale Law Journal 296.
MR. JUSTICE BLACK, dissenting.
In order to give purchasers of goods an opportunity to buy them
at prices fixed by competitive trade, the Sherman Act made it
illegal to fix prices by combination or conspiracy. It is difficult
for me to believe that Congress did not intend to give equal
protection to all purchasers similarly injured. In my judgment, no
language of that Act, nothing in its history, and no argument now
presented for our consideration makes necessary the conclusion that
Congress intended to discriminate in favor of some purchasers and
against others. It would require clear and unequivocal statutory
language to persuade me that Congress intended to grant a remedy to
all except one of those who were injured by trust prices -- the
"all" including every natural and artificial person, every
corporation and association, [
Footnote
2/1] foreign and domestic, and the single exception
Page 312 U. S. 616
being the United States, which buys more goods and services than
any other single purchaser. [
Footnote
2/2] No such clear and unequivocal statutory language exists.
And no plausible reason has been hazarded to prove that the
government, as a purchaser of goods, needs less protection from
unlawful combinations than do other buyers. [
Footnote 2/3] Many deplorable instances in our history,
in fact, indicate the contrary. Congress, no doubt stimulated to
action by these historical occurrences, has by numerous enactments
recognized the urgent necessity for safeguarding governmental
purchases of goods and services against unfair and collusive
price-fixing. To that end, competitive bidding as a prerequisite to
government contracts has been the general statutory rule over a
long period of years, and combinations to deprive the government of
the advantages of such competition have been made criminal. It is
therefore strange indeed that the Sherman Act, the greatest of all
legislative efforts to make competition, not combination, the law
of trade should now be found to afford a greater protection against
collusive price-fixing to every other buyer in the United States
than is afforded to the United States itself.
So much for what seems to me to be the logical approach to the
problem, and the one that should cause us to say that the
government can sue for damages. If, however, we apply familiar
canons of construction, I think we are led to the same result. For
it is a primary principle that a law should be construed so as to
carry
Page 312 U. S. 617
out its purpose, in the light of the evil aimed at and the
protection intended to be afforded. Here, among the evils
legislated against was price-fixing by combination, and among the
remedies afforded was the giving of a right of action to purchasers
injured by prices so fixed. The result of this case -- denying to
the largest single purchaser of all goods manufactured and sold in
the nation the protection afforded by this legislation -- is to
restrict the remedy in such way that the evil aimed at is less
likely to be suppressed. For the construction given the Sherman
Act, insofar as sales to the government and civil damages are
concerned, enables those guilty of violating it to elude its
provisions, escape its consequences, and defeat its objects.
Nor do I believe that the previous failure of the Attorneys
General of the United States to bring actions similar to this
should be deemed a persuasive reason to read the government out of
the Act's benefits. The 1926 statement of the Attorney General to
the effect that "the United States . . . is not a party to suits
under" section 7 does not supply such a reason. For, in the quoted
statement, the Attorney General did not take the position that the
government lacked the power to sue for civil damages; apparently
what he had reference to was the fact that the Sherman Act did not
make the United States a party to actions for civil damages by
private persons against private persons. We do not know and cannot
possibly determine why no prior suits were instituted for the
benefit of the government. To assign reasons for such inaction is
but to guess. And the guesses would doubtless vary almost in
accordance with the preconceived notions of the guessers. But,
whatever might have been the reasons behind the government's
failure to sue, sure it is that the Attorney General is not the
purchasing agent of the government. He cannot be assumed to have
constant knowledge of the manifold problems
Page 312 U. S. 618
that face those who buy the government's supplies. In the final
analysis, it is probably true that even an Attorney General who
might zealously desire to enforce the criminal provisions of the
Sherman Act would not likely be stimulated to institute civil
proceedings for damages unless his attention was directed to the
point by keenly alert and diligent purchasing agencies. To attempt
to construe the Sherman Act by a vain effort to appraise the
reasons responsible for the nonaction of Attorneys General is a
journey into the realm of imponderables I find it unnecessary to
take. I would simply read the Act from its language and manifest
purpose as giving all purchasers of goods a right to sue if they
have been injured as the result of prices held up by those types of
unlawful combination condemned by the Act. [
Footnote 2/4]
The principle of strict construction now adopted in this case,
resulting as it does in denying to the government the benefit of
section 7 of the Sherman Act, is a radical departure from a long
established policy under which the courts have construed laws most
liberally in order to declare
Page 312 U. S. 619
the government entitled to their benefits. [
Footnote 2/5] And certainly it can hardly be denied
that the language of the Act, giving all persons a right of action,
should if liberally construed be held to justify suit by the United
States. For, in
Cotton v. United
States, 11 How. 229,
52 U. S. 231,
decided forty years before the Sherman Act was adopted, this Court
said, in speaking of the United States:
"Every sovereign State is of necessity a body politic, or
artificial person, and as such capable of making contracts and
holding property. . . . It would present a strange anomaly indeed
if, having the power to make contracts and hold property as other
persons, natural or artificial, they were not entitled to the same
remedies for their protection."
And, speaking in similar vein in
Helvering v. Stockholms
Enskilda Bank, 293 U. S. 84,
293 U. S. 92,
after having cited Blackstone for the proposition that the
sovereign is a "corporation" and after having gone even beyond this
to hold that the statutory word "resident" included the United
States, the Court said:
"This may be in the nature of a legal fiction, but legal
fictions have an appropriate place in the administration
Page 312 U. S. 620
of the law when they are required by the demands of convenience
and justice. [
Footnote 2/6]"
These particular cases are but facets of a general rule that has
long been accepted -- the United States can exercise all of the
legal remedies which other persons, bodies or associations can
exercise, both at common law and under statutes, [
Footnote 2/7] unless there is something in a
statute or in its history to indicate an intent to deprive the
United States of that right. [
Footnote
2/8] In this case, nothing in the Sherman Act itself and
nothing in its legislative history makes necessary the conclusion
that Congress intended to withhold from the United States a remedy
given to all other purchasers. [
Footnote 2/9] Under these circumstances, it is my
opinion that the judgment below should be reversed.
MR. JUSTICE REED and MR. JUSTICE DOUGLAS join in this
dissent.
[
Footnote 2/1]
A 1940 report to the Senate, made by the Secretary of the
Treasury pursuant to a Senate Resolution, revealed that the federal
government was transacting part of its business through the medium
of at least 1,469 government corporations. Senate Document No. 172,
76th Cong., 3rd Sess., Part 1, p. 4. The judgment here does not
foreclose such corporations from suing for damages under section 7,
or so I assume. If I am correct in my assumption, the result is
that as to those purchases made by its corporate agencies, the
Government is protected by the Sherman Act, while, as to those
purchases made by its noncorporate agencies, it is not so
protected. A process of statutory construction which results in
giving to government corporations a right denied to
constitutionally authorized government departments seems to me to
conflict with the frequently declared rule that a statute should
not be interpreted in such way as to produce an unreasonable or
unjust result.
See United States v. American Trucking
Associations, 310 U. S. 534,
310 U. S.
542-543;
Sorrells v. United States,
287 U. S. 435,
287 U. S.
446.
[
Footnote 2/2]
For a recent study,
see "Government Purchasing -- An
Economic Commentary," Monograph No.19 of the Temporary National
Economic Committee (1940).
[
Footnote 2/3]
An argument is offered to the effect that the government has no
need of a right to damages, because it has the power to bring
criminal and injunctive proceedings. But the right to bring those
proceedings is given to the government for the protection of the
public, rather than for its self-protection as a purchaser.
Further, criminal and injunctive proceedings, whatever their
efficacy, do not achieve the object of section 7, which is to
indemnify all injured purchasers.
[
Footnote 2/4]
Though the Act is all-inclusive in naming those who may sue for
damages, it is not equally all-inclusive in describing those acts
which may be regarded as unlawful combinations. This is true both
because of the original language and objects of the Sherman Act
itself and because of subsequent legislation. The most notable
example of such subsequent legislation is that portion of the
Clayton Act which provides:
"The labor of a human being is not a commodity or article of
commerce. Nothing contained in the antitrust laws shall be
construed to forbid the existence and operation of labor,
agricultural, or horticultural organizations . . . or to forbid or
restrain individual members of such organizations from lawfully
carrying out the legitimate objects thereof; nor shall such
organizations, or the members thereof, be held or construed to be
illegal combinations or conspiracies in restraint of trade, under
the antitrust laws."
38 Stat. 731, 15 U.S.C. § 17.
See Apex Hosiery Co. v.
Leader, 310 U. S. 469.
[
Footnote 2/5]
It is argued that, if the government can sue for damages, it may
also be sued for damages. That question is not before us, and need
not be decided. Other principles will be material if such a
question ever should be presented.
See United States v.
Sherwood, ante, p.
312 U. S. 584;
Nardone v. United States, 302 U.
S. 379,
302 U. S.
383-384;
United States v.
Knight, 14 Pet. 301,
39 U. S. 315.
Among these principles, the most important is that of sovereign
immunity.
"The sovereignty of the United States raises a presumption
against its suability unless it is clearly shown; nor should a
court enlarge its liability to suit conferred beyond what the
language [of the statute in question] requires."
Eastern Transportation Co. v. United States,
272 U. S. 675,
272 U. S. 686;
Price v. United States, 174 U. S. 373,
174 U. S.
375-376;
United States v. Sherwood, supra.
[
Footnote 2/6]
To this statement the Court added:
"If, to carry out the purposes of a statute, it be admissible to
construe the word 'person' as including the United States [cases to
that effect having previously been cited], it is hard to see why,
in like circumstances, it is inadmissible to construe the word
'resident' as likewise including the United States."
Cf. Ohio v. Helvering, 292 U.
S. 360,
292 U. S. 370,
371;
Stanley v. Schwalby, 147 U.
S. 508,
147 U. S.
517.
[
Footnote 2/7]
See Dugan v. United
States, 3 Wheat. 172;
United
States v. Gear, 3 How. 120;
Cotton v. United
States, supra. Cf. 86 U. S. United
States, 19 Wall. 227;
United States v. Chamberlin,
219 U. S. 250.
[
Footnote 2/8]
Cf. Davis v. Pringle, 268 U. S. 315.
[
Footnote 2/9]
The legislative history of the Sherman Act is not enlightening
on the question now before us. At best, all that can be said of the
very few and scattered statements that were made on the subject
during the debates on the Clayton Act is that they look both
ways.