The opinion
OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Honorable Bert Ford, Atilnietmtor
Atilnietrator
Texas Liquor Control Boasd
Austin 1, Texas
Dear sir:
lh quote from a p or aotlon from ttm
Tour Branerr Instituter
th8 utmost oo-
law0 aad wartime
0s OQvommont an4 of
1,approdiatlonof
to pnvm inria-
a4 publlo, we tlm
10~ serve4 the
ato, herein glvo notloe that uoh
to oontinuo or naintain a dlstrl-
lth any bear distributorrho 8011s
I!lxoom of oailln4 prices estab-
loo oi Price Abminietration. It
"(a) Dlreotly or lndiremtlp oharges mom than
the wholerralaoellln4 prioe fixed by the Offlaa of
for the bran4 of bear he ~0118;
Prloe Adrainlstratlon
292
Bon. Bert lord, Page &
*lb) I? a dlatrlbutor in making dalivaries
favora or permits the b4yar to maka any *aid+
paymenta’ or bonur paymants to himself, an agent,
amploya*, or any other parson aa an Induoemantto
obtain auoh dalivaries.
Vaoh of us will rafuae to oontlnuo or
maintain a distributing nlatlon with may dls-
tributorwho sails beer to any parson for raeah
in violation of law la the dry areas of Tarns as
dellaad by tha laws of this Stata.
vhoh o? ~8 will ratuse to ooatlnua or
maintain a dlstrlbutlngralatlon with l ay dls-
trlbutor who solis baer ?ouad by tha Texas LIquac
Control Board to ba of a quality ooadomnad by the
laws 0r this state.
"The foregoing polloy will ba adhatad to In
our r.osprrtite boslnars tnasaotions for so long
a tlmo a8 tha Oorernment of the Walt04 States amp
4eam lt neooaaary to eatabllah an4 maintain prloa
oontrolr as a prt of thr Hation*a war effort. It
1s raoognIee4 that than ara ?ar distributor8who
msIm$aIn nr anoauraga thr preiotloor against whloh
thf8 doolara$lona? pollay 18 4Ireoto4,aul wa
oon814rr tlmt it 1s our 4uty to adopt 8ny reason-
able mean8 to incurs that our nrprotlva prodUOt8
will not reach tha oonsumer through those diatrf-
butora who may be nagllgaat or lndiftorenttoward
the war afrorta of their gorarnmant and tha Paople
In gaaar81."
" In oonaeotlonwlth this pro,osal you State that You
aooapt the soprasahtatlons"aa bafsx 9mado) in 4oo4 iaith an4
motivated by a daalr$ to pravaat tbs 401olO~nt Of Praatiaaa
la violation of Btate aad Tedaral law*."
You wish to ba adYlse4r
“A. -#ould tha signing and ldharonoa to
the pmposrd daalaration by se~6ral brewerlss
oouatltuto a rlolatlon of thS 'PSXSSLiquor Co+
trol Act?
Hon. Bert Ford, ta~a 3
”6. ~Xvuldthe exlatence ana adherence to
the a@ead polloy by several breweries conatl-
tUte a ViOhtioSJ Of the Anti-Tru6t laws of tbls
State or any other State law?”
This office reoently he& ocoasim to represent the
ToiiaaLiquor Cortrul Board in a oatsawhere the aoaatltutlonelity
of the Zmergena~ Eric6 Control Aat of 1948 waa direotly In issue.
United States Dlstriot Judge,,%. A. Keeling aaid, “in this oaae
the Court 1s of the oplnlon that Con&rear he4 the luthorlty to
enaot the Rmurgenoy Prloi Control dot- of 1.0~3, in tb taoa of
the existing lmer g a of no y
the war, and that tha Act Is within
the Constibutionelpoware of the Con4resa.* Sfnca the oourt waa
lmmedlatel oonaernad with tlm Office of Price AdalnlrtMtion*s
power to f fx prloaa a,nd praotloss In mapoot to beer an4 liquor,
the court*6 opinion Is prouliarlyapplloab1e here. See Brown,
(idmlnfstrator, ~8. lores Liquor Control Board, et al, Ro. 192,
Auatin Dlvlslon, YSmateraCIatriot of Taxaa, United States Dla-
trict Court, not yet reported. Sudga Keeling ?ollomd the ml-
ing ot the Suprem Court of the palted Stat00 in Xl&land vs.
Ruaaall Car atSnow Plow Co., 879 0. E. 601: 73 L. Sd. 688,
peasing upon the LoFor Aot of World War f.
In addition to tha Pe4oral E;tatutea,t!:eso-oallea
entI-truat.lawaor Tatsa ara alraotly ~otolved. Artiolo 74Ex5
defines and srohlblts tntats, and,partloularlyprice fislng.
an4 prohIblta monopoller. krtlole 7428,
Articla 74p7 d.afi~nes
defining an4 prohibltlrg? oonspir4mIaa a¬ trade, partloular-
1~ aenounoesagr*aswnts to rsfuae to ~aellto ear particular
pnraon.
:iequote hrtlole 7428:
*zither 01:any or tha following acta *hall
conat~itute
a conapIraoyin rsatraint of trade.
“1. Shire any Wo or more persona, firma,
eoxpomtlona or associations of paraona, who axe
engaeea In buylu& or aeillng any artiola Of mer-
obandlae, produce or any oorwPodItyenter into en
agreement or understandingto refuse to buy from
or sell to any peraou, Tim, 0orPOntIon 02 assoaia-
tlon of persona, any crrtiole of morohanalae, proauoa
or comlnodlty.
Hon. Bert ford, Pees 4
*z. aware any two or more pereon8, iirma,
Oorprratiozs or asao0latlona or persons, aball
a&Tee to boycott or threaten to refuse to buy
from or Eel1 to any ~crp~on, firm, oorporatlon 0r
@seoOiatiOn of person6 for buying from or salliw,
to any other person, firm, eorporatton or aesooia-
tfon or persona.*
Thla state rtatuta praeaatr a altuatlon where a
parson ie broadlY prohibited tram agreeing not to sell a lawrul
Oomodlty to any partioular person. Opposed to thie stat@ law
16 an order of a oompetant Pador agenoy acting In pureuenoa
of 8 valid Aot of the Congress in affect owandlng the sale of
a lawful oommo4ltY Of 001~r0a in all legal an4 valid ohannals,
but pruh.lbitlng suoh sale at a prioe above that,fixedby the
appropriate Federal auanoy or to persona not authorized to pur-
ohme the 6ame.
Your ragout alllo preoenta the queetlon ðer,
under Artiolaa 74.26,74Z7 or 74i?S,an agrawnt aot'to tiolata
the law8 oi the Unit04 Btatecl,even thou&h in tarmu Oontrary to
state law, 0~14 form tha baaia of an enfor?aabIa rtste action,
altbar orlmlnal or oltili~
This department recently tilad tb,t'uhere pr$oae are
fired by the crri00 or I-z-100 A&nlnlrtrrtloa,~ Lt 3r: not a tlola-
tion or the &ate anti-trust laws for a doalar Sd bear or liquor
to adhere strlotly to arch prioas an4 to adiatifaa the 8ama, 80
low as ha holds himself free or innooant of dny agreement to fix
prl006 within the m~xlmum range iIre by the Federal. e.&enoY. Sea
Opinion 2~0.O-5811 and authoritlea there cited, anolosad hara*ith.
trink that th.a aolcnowla4ga4
?:::~a supremacy 0r Illetlonal
law with l-gferenoe to commodity
ptioss ~0~14, be .aqUallY appllcabla
fn principle t0 the o.ontraots and relatione between persona deal-
bne in *uch co~odit~ss so long as euoh mea~ure8 are 4aama4 neOef+.
gery or asaantlsl. by the Federal a%flnOy tc effeOtuat@ its aUWFW
war powers.
A* re v~sn the propoeed aa.raement , ite did 1s that
those jl.‘h~,si.ga the same:
Eon. Bert ford, Pago S
(a) WI11 not 8011 to a dlatrlbutor who n-
86118 la 6x0.0080
Of th8 mXiaum priaaa rim& by the
orrio ot Prioa Adasiniatratloa~
(b) Will not dolate tha rnulmum prioa
IWgUiatiOO8 Or t&e OfflCimOf Pm0 Adninlat~tlon~
(0) Will mt aall to a Uatributor who in-
diroofly by ~ai40-pay6entaw bonuaaa or othondaa
vlelatoa aaxi6vm prloi ragdationag
(d) WI11 not aall $0 a dl8trlbutOrwho 80118
tha HI* to persona purohaab& it ror ra-aalr in
dry area8 Oz tlm Stata of Tans in vlolathn of its
larrg
(0,) Will not aall to a distributor who rolla
bear fouM by the Tuaa Liquor Oontrol Board to be
or a qlullty pvehibitod by law.
Thla, upoa It8 raoo, la both UI agrrurnt to obey and
not to riolata tbr lawa or Toraa and oi thr Unitad 6taka. Sinoe
you rtda that JOU 8ooopttha aama “88 bolag in good faith' In
oan ihd no ruma te wmdaam tk we under the lawa ei Tam*.
It must be boraa ira tied, howOver, that #a propor ruuaf
r 0a mt k mid ww 0~ h~a l=8pt a- th 0~28 7 80 or tbr
mrgmo~ war p&war8 o? tha ?Odarrl gey*N@nt. mt;.:ttf
thoaa amrrgwmf war pewara aspita or lra remld
trust law8 of Taxas will oparata ag@aiato pmhibfi the Oono@rta4
lotion propoa04.
Your8 wry truly
imro