The opinion of the court was delivered by: Welsh, District Judge.
The actions herein were brought by plaintiffs to enjoin certain
tomato farmers, who are under contract to sell their crops to the
plaintiffs, from breaching their contracts, or to enjoin certain
brokers from inducing or participating in the breaching of the
Temporary restraining orders were issued by this Court in each
action on September 9th, and were renewed on September 11th and
again on September 18th.
It was agreed and stipulated by counsel that the actions be
tried upon the following case stated and that they be heard on
said case stated as if on final hearing.
Both of the plaintiffs are corporations organized and existing
under the laws of the State of New Jersey, with their principal
place of business at Camden, New Jersey, and they are citizens of
the State of New Jersey.
All of the defendants are citizens of the State of
Defendants Lester C. Martin, Joseph Loch, Frank W. Loch and
Phares B. Stauffer are farmers and growers of tomatoes.
The written contracts, entered into between the four defendant
farmers and Joseph Campbell Company are attached hereto, made a
part hereof, and marked Exhibit A(1-4).
These contracts were offered to the defendant growers by agents
of the Joseph Campbell Company at their domiciles, were there
signed by defendants, were then forwarded to the Joseph Campbell
Company at its offices in Camden, New Jersey, were there signed
by that company, and a copy was then mailed to the defendant
Defendant Lester C. Martin signed for 10 acres of tomatoes for
the 1952 season but planted not less than 20.3 acres (see Exhibit
Defendants Joseph Loch and Frank W. Loch signed for 15 acres of
tomatoes for the 1952 season, but planted only 11.6 acres (see
Exhibit A-2 and 3).
Defendant Phares B. Stauffer signed for 10 acres of tomatoes
for the 1952 season but planted 12.3 acres (see Exhibit A-4).
It is estimated that the yield per acre is approximately 8 tons
per acre for the 1952 season, and the average contract price for
such tonnage will be approximately $30 per ton. The open market
price for the tomatoes in question for the 1952 season has
averaged approximately $50 per ton.
The Campbell Soup Company has for many years engaged in the
canning of soups and other food products in its plant in Camden,
New Jersey, including such tomato products as soup, juice and
catsup. For this purpose the Campbell Soup Company operates in
Camden, New Jersey, a large factory where it employs 7,000 men at
the height of the canning season, this factory being equipped
with machinery for the work of manufacturing and packing these
The Campbell Soup Company cans and packs each year during the
tomato season, which is roughly from August 1st to the end of
September, very large quantities of these tomato products, its
capacity being more than 250,000 5/8 bushel baskets of tomatoes
every day. Its sales of tomato products run into millions of
dollars each year.
The Campbell Soup Company's production of these tomato products
is in accordance with a carefully devised schedule, based upon a
steady flow of tomatoes of certain kinds and qualities. The
Campbell Soup Company, in order to secure the desired quantity of
tomatoes at fixed prices and in a steady flow of the desired
qualities, necessary to assure uniformity of quality and price in
the finished product, contracts with the Joseph Campbell Company
(see Exhibit B) for growers in Pennsylvania, Delaware and
Maryland, and with the growers themselves in New Jersey. These
contracts are entered into in March of each year immediately
prior to the planting season, and five months prior to the tomato
The Campbell Soup Company, which is the manufacturer, has
entered into a contract with the Joseph Campbell Company, a true
and correct copy of which, including the supplement thereto, is
attached hereto, made a part hereof, and marked Exhibit B.
The capital stock of the Joseph Campbell Company and of the
Campbell Soup Company, is wholly owned by the Estate of John T.
Dorrance, and the Joseph Campbell Company was created to procure
raw materials for the Campbell Soup Company.
At or about the same time that contracts are made with the
tomato growers by the Joseph Campbell Company, the Campbell Soup
Company plans for its Fall production on the basis of the
estimated contract crop. It orders the necessary tin plate for
containers, the necessary labels for the containers, cases for
the containers, and makes arrangements with the Continental
Canning Company for the rental of sufficient machinery to handle
the canning. It also makes its contract with the Labor Unions for
the necessary supply of labor, purchases the other ingredients to
be mixed with the tomato products in the quantities necessary to
meet the estimated needs. Contracts are let for advertisement,
based on a percentage of the estimated amount of tomatoes to be
canned. The Campbell Soup Company also enters into contracts at
time with dealers all over the world, at set prices for the sale
to said dealers of well over half of its estimated production of
canned tomato products.
Picked tomatoes are highly perishable and cannot be stored.
Consequently they are processed and canned immediately upon
delivery and then shipped directly to the dealers who have
contracted for them.
The Campbell Soup Company, at its experimental farm in New
Jersey, developed varieties of tomatoes most suitable for its
canning purposes, and it grows the plants for these varieties at
its farms in Georgia. These plants are available for sale to
farmers contracting to grow tomatoes. These plants are sold to
the farmers by the Joseph Campbell Company and the Campbell Soup