The Edison phonograph monthly (Jan-Dec 1911)

10 Edison Phonograph Monthly, April, 1911 Price Cutter Fined for Contempt In January, 1908, an Injunction was obtained against Edward H. Martin, of Webster City, Iowa, enjoining him from selling Edison Records at cut prices. Martin paid no attention whatever to the Injunction, and continued his price cutting in defiance of the mandates of the Federal Court. Contempt proceedings were instituted, but by reason of the law's many delays the decision in the contempt proceedings has just been pronounced. The outcome of the case is that the defendant, Martin, has been fined $350.00, $150.00 of which is payable to complainants, the remaining $200.00 going as a fine to the United States. The defendant is also ordered to pay the costs of the contempt proceeding, which have been taxed by the Clerk of the Court at about $700.00. The Order of the Court provided that if the fine and costs were not paid in five days, Martin should be committed to the County Jail of Webster County, Iowa, until the fine and costs were paid. Martin paid his fine promptly, thereby avoiding the somewhat unpleasant alternative suggested by the Court. The following are short extracts from the Opinion handed down by the Court, which is of considerable length. The Court's Order follows the extracts from the Opinion: — "The defendant is a man of intelligence, and the evidence convinces beyond any doubt that he intentionally violated the preliminary injunction. His efforts to show that the sales of phonograph records subsequent to the issuance of the injunction were by the Martin Telephone Company, or its General Manager, and the Martin Music Company without his knowledge, is a mere ruse to shift the responsibility for such sales. The Martin Telephone Company is a corporation organized under the laws of Iowa, in the name of which the defendant conducts most of his business. He was its President and principal stockholder, and controlled the management of all of its affairs. The defendant M. M. Martin is his wife, and is or was a stockholdeL of the Telephone Company and its Secretary but took no active part in the management of its business. There was but one other stockholder and he owned only a nominal amount of its stock, and the defendant Sterling was an employee under the title of Manager or General Manager, but acted under the general directions of the defendant Edward M. Martin. The Martin Music Company was another name under which the defendant conducted a business of dealing in musical instruments, sheet music, and other goods usually carried by such dealers; and while there is some evidence that this business was turned over to his son, Fred N. Martin, prior to the commencement of the suit, the evidence leaves no room to doubt that the defendant himself sold a number of these phonograph records and received the pay therefor after the preliminary injunction was served upon him. The violation of the writ was deliberate and intentional and cannot be overlooked. Parties must know that writs of injunction are not issued by the courts as a mere pastime and for their own pleasure, to be observed or not as those against whom they are issued may elect, but are issued to protect and preserve the property rights of parties pending litigation between them; and those against whom they are issued and upon whom they are served must be given to understand that any intentional violation of them will not be tolerated but will be punished, and by imprisonment if necessary, to uphold the authority of the court and protect the rights of parties involved in the controversy in which they are issued." * * * * "The defendant's plea or defense of prior jeopardy is therefore overruled, and he will be fined in the sum of $350.00 because of his violation of the preliminary injunction, and the costs of taking testimony before the examiner which was begun February 5th, 1<M0, including the statutory fees and mileage of witnesses examined at such hearing and the legal fees of the examiner and stenographer for taking such testimony, and the other taxable costs that pertain alone to the contempt proceedings. If such fine and costs are not paid within five days after the filing of this opinion and order, the defendant will stand committed to the county jail of Webster County, Iowa, until they are paid, and the Clerk will issue the proper warrant so committing him. Of the $350.00 when paid the Clerk will pay the petitioners $150.00 to apply upon the services of their counsel that pertain alone to , this contempt proceeding. It is ordered accordingly." "UNITED STATES CIRCUIT COURT, Northern District of Iowa — Central Division. New Jersey Patent Company, and National Phonograph Company, Petitioners, I No. 171 Equity vs. f ORDER Edward H. Martin, Defendant. In the matter of the citation of the defendant, Edward H. Martin, for contempt of court in violating the temporary writ of injunction issued in the above entitled cause on January 14, 1908, it is now on this 22nd day of February, 1911, ordered and adjudged, that the defendant, Edward H. Martin, is guilty of violating the said writ of injunction as charged by the complainants in the petition wherein they charge the defendant with such violation. It is further ordered and adjudged that the defendant be and hereby is fined in the sum of $350.00 for violating said writ, and that he pay the costs of this contempt proceeding to be taxed by the Clerk, and that he stand committed to the county jail of Webster County, Iowa, until such fine and costs are paid. Of such $350.00 when so paid the clerk will pay to the complainants $150.00 upon the fees of its counsel for services which pertain alone to this contempt proceeding. The Clerk will forthwith notify by mail the defendant and his counsel of this order at their respective post office address; and if said fine and costs are not paid within five days after the mailing of such notices the Clerk will issue the proper warrant committing the defendant to said jail until the same ar« paid. To this order the defendant excepts. HENRY T. REED, Judg: The above is a true copy of Order entered Feb. 22, 1911. A. J. VAN DUZEE. Clerk."