fashion originators guild federal trade argued february decided march amended mar charles rugg boston milton weisman new york city petitioners francis biddle sol respondent justice black delivered opinion circuit appeals modifications challenged affirmed federal trade commission decree ordering petitioners cease desist certain practices found done combination constitute methods competition tending monopoly determination correctness decision requires consideration sherman clayton federal trade commission acts members combination design manufacture sell distribute women dresses others manufacturers converters dyers textiles garments made fashion originators guild america foga organization controlled groups instrument petitioners work accomplish purposes condemned commission garment manufacturers claim creators original distinctive designs fashionable clothes women textile manufacturers claim creators similar original fabric designs designs enter channels trade manufacturers systematically make sell copies copies usually selling prices lower garments copied petitioners call practice copying unethical immoral give name piracy although admit creations neither copyrighted patented indeed assert existing legislation affords protection copyists nevertheless urge sale copied designs constitutes unfair trade practice tortious invasion rights alleged wrongs petitioners continuing compete one another many respects combined among combat possible destroy competition sale garments copies creations admit destroy competition combination purposely boycotted declined sell products retailers follow policy selling garments copied manufacturers designs put guild members result efforts approximately retailers throughout country signed agreements guild boycott program half signed agreements constrained threats guild members sell retailers failed yield carried guild practice placing red cards names noncooperators sales made placing white cards names cooperators sales made distributing sets cards manufacturers one hundred manufacturers women garments members guild occupy commanding position line business sold women garments wholesaling power combination great competition demand consuming public make necessary retail dealers stock products manufacturers power combination made even greater reason affiliation members national federation textiles organization composed one hundred textile manufacturers converters dyers printers silk rayon used making women garments members federation affiliated guild agreed sell products garment manufacturers turn agreed sell cooperating retailers guild maintains design registration bureau garments textile federation maintains similar bureau textiles guild employs visit stores cooperating cooperating retailers purpose examining stocks determine report whether contain copies registered designs elaborate system trial appellate tribunals exists determination whether given garment fact copy guild member design order assure success plan registration restraint ascertain whether guild regulations violated guild audits members books violations guild requirements discovered example sales retailers violators subject heavy fines addition elements agreement set relate less closely competition style copyists guild undertaken many things apparently independent distinct fight copying among following combination prohibits members participating retail advertising regulates discount may allow prohibits selling retail cooperates local guilds regulating days upon special sales shall held prohibits members selling women garments persons conduct businesses residences residential quarters hotels apartment houses denies benefits membership retailers participate dress manufacturers promoting fashion shows unless merchandise used actually purchased delivered purpose practice combination garment manufacturers affiliates runs counter public policy declared sherman clayton acts federal trade commission power suppress unfair method competition findings commission concluded petitioners understandings arrangements agreements combinations conspiracies entered jointly severally prevented sales interstate commerce lessened hindered suppressed competition tended create monopoly paragraph clayton act declares shall unlawful person engaged commerce make sale contract sale goods condition agreement understanding purchaser thereof shall use deal goods competitor competitors seller effect sale contract sale may substantially lessen competition tend create monopoly line commerce relevance section clayton act petitioners scheme shown fact scheme bottomed upon system sale textiles shall sold garment manufacturers upon condition understanding buyers use deal textiles copied designs textile manufacturing guild members garment manufacturers shall sell retailers upon condition understanding retailers shall use deal copied designs federal trade commission concluded language clayton act understandings substantially lessened competition tended create monopoly hold commission upon adequate unchallenged findings correctly concluded practice constituted unfair method competition plan respects discussed thus conflict principles clayton act findings commission bring petitioners combination entirety well within inhibition policies declared sherman act section act makes illegal every contract combination conspiracy restraint trade commerce among several section makes illegal every combination conspiracy monopolizes attempts monopolize part trade commerce sherman act combination law trade national cotton oil texas among many respects guild plan runs contrary policy sherman act narrows outlets garment textile manufacturers sell sources retailers buy montague lowry standard sanitary manufacturing subjects retailers manufacturers decline comply guild program organized boycott eastern retail lumber dealers association takes away freedom action members requiring reveal guild intimate details individual affairs american linseed oil necessary tendency purpose effect direct suppression competition sale unregistered textiles copied designs american linseed oil supra addition combination reality agency prescribes rules regulation restraint interstate commerce provides judicial tribunals determination punishment violations thus upon power national legislature violates statute addyston pipe steel determinative considering policy sherman act petitioners may yet achieved complete monopoly sufficient really tends end deprive public advantages flow free competition knight addyston pipe steel fact one hopes sponsored federal trade commission act effect might prophylactic attempts bring complete monopolization industry might stopped incipiency petitioners however argue combination contrary policy sherman clayton acts since federal trade commission find combination fixed regulated prices parcelled limited production brought deterioration quality action falling three categories exhaust types conduct banned sherman clayton acts previously pointed object federal trade commission act reach merely fruition also incipiency combinations lead trade restraints practices deemed undesirable case commission found combination exercised sufficient control power women garments textile businesses exclude industry manufacturers distributors conform rules regulations said respondents thus tend create monopoly said industries conspiracy fix prices illegal intent increase prices essential conduct amounting violation policy sherman clayton acts monopoly contrary policies exist even though combination may temporarily even permanently reduce price articles manufactured sold said commerce circumstances may nevertheless badly unfortunately restrained driving business small dealers worthy men whose lives spent therein might unable readjust altered surroundings mere reduction price commodity dealt might dearly paid ruin class absorption control one commodity allpowerful combination capital petitioners argue boycott restraint interstate trade within ban policies sherman clayton acts practices foga reasonable necessary protect manufacturer laborer retailer consumer devastating evils growing pirating original designs fact benefited four commission declined hear much evidence petitioners desired offer subject pointed however aim petitioners combination intentional destruction one type manufacture sale competed guild members purpose object combination potential power tendency monopoly coercion practice upon rival method competition brought within policy prohibition declared sherman clayton acts reason principles announced appalachian coals sugar institute application circumstances error refuse hear evidence offered reasonableness methods pursued combination accomplish unlawful object material reasonableness prices fixed unlawful combination cf thomsen cayser trenton potteries oil unlawful combination justified upon argument systematic copying dress designs tortious declared us first place whether given conduct tortious question state law decision erie railroad tompkins second place even copying acknowledged tort law every state situation justify petitioners combining together regulate restrain interstate commerce violation federal law reasons principles declared international news service associated press serve legalize petitioners unlawful combination decision accordingly affirmed footnotes inconsistency holding first circuit appeals wm filene sons fashion originators guild america granted certiorari stat et et seq stat et et seq stat et et seq one instance fine imposed guild notified membership fine assessed case future violation federal trade commission packing see stat et et seq stat et et seq stat et et seq stat federal trade commission expressly given authority enforce clayton act cf federal trade commission keppel standard fashion houston federal trade commission raladam see remarks senator cummins chairman committee reported bill quoted brandeis federal trade commission gratz freight association