Hugo Black

“ The adequacy of the evidence to support the Commission's findings of reasonably possible injury to competition from respondent's price differentials between competing carload and less-than-carload purchasers is singled out for special attacks here. It is suggested that in considering the adequacy of the evidence to show injury to competition respondent's carload discounts and its other quantity discounts should not be treated alike. The argument is that there is an obvious saving to a seller who delivers goods in carload lots. ”

“ That qualification permits such differentials only if they do 'not tend to lessen, injure, or destroy competition.' Respondent points out that where a differential tends in no way to injure competition, the Act permits it. ”

“ They read: 'Provided, however, that this shall not prevent price differences of less than five cents per case which do not tend to lessen, injure or destroy competition among such wholesalers (retailers) .' The first clause of the provisos, but for the second qualifying clause, would unequivocally permit respondent to maintain price differentials of less than five cents as between competing wholesalers and as between competing retailers. ”

“ Respondent sells its finest brand of table salt, known as Blue Label, on what it terms a standard quantity discount system available to all customers. Under this system the purchasers pay a delivered price and the cost to both wholesale and retail purchasers of this brand differs according to the quantities bought. These prices are as follows, after making allowance for rebates and discounts:
Only five coma nies have ever bought sufficient quantities of respondent's salt to obtain the $1.35 per case price. ”

“ Congress intended to protect a merchant from competitive injury attributable to discrimn atory prices on any or all goods sold in interstate commerce, whether the particular goods constituted a major or minor portion of his stock. ”

“ Sales of these other brands in less-than-carload lots are made at list price plus freight from plant to destination. Carload purchasers are granted approximately a 5 per cent discount; approximately a 10 per cent discount is granted to purchasers who buy as much as $50,000 worth of all brands of salt in any consecutive twelve-month period. Respondent's quantity discounts on Blue Label and on other table salts were enjoyed by certain wholesalers and retailers who competed with other wholesalers and retailers to whom these discounts were refused. ”

“ Otherwise,' the report continued, 'such differentials would become instruments of favor and privilege and weapons of competitive oppression.' [7] The Senate Committee reporting the bill emphasized the same purpose, [8] as did the Congressman in charge of the Conference Report when explaining it to the House just before final passage. ”

“ Furthermore, they are limited to sales in respondent's Chicago area, whereas respondent carried on a nation-wide business.↑ In explaining this clause of the proposed Robinson-Patman Act, the Senate Judiciary Committee said:↑ The prohibiting paragraphs of the order were:↑ The only finding of the Commission specifically relating to five-cent differentials was: 'Salt is a staple commodity with a medium turnover and is generally sold by wholesalers to their retail customers on a lower margin of profit than that received on other commodities. ”