Appendix C3. Paper Container Manufacturing Company

The Paper Container Manufacturing Co.(Chicago, IL) was owned largely by Leo J. Hulseman, a former employee of the Dixie Company. In the case of Dixie-Vortex Company vs. Paper Container Manufacturing Co., Dixie filed the initial suit and won a case over patent infringements in 1942. Dixie retained the patent firm of Charles W. Hills, Chicago, Illinois. An appeals court, however, reduced the judgement against the Paper Container Manufacturing Corporation obtained by the Dixie Cup Co. from $2,186,000 to $154,000. In its opinion the court questioned whether Dixie had brought the suit in “good faith.” In November 1948, the Paper Container Manufacturing Corporation filed a $5,400,000 damage suit in U.S. District court for the Northern District of Illinois against the Dixie Cup Company charging that Dixie had violated the Sherman and Clayton Anti-trust Act by monopolizing the sale and distribution of cups and machinery, buying out competitors and their patents, and starting expensive and protracted patent litigation in an effort to force out competitors. It asked for damages to compensate alleged loss of profits from the sale of cups it said it was forced to sell at low prices. The case was assigned to District Judge Hon. John P Barnes. Dixie Cup Co. retained Thomas L. Marshall. Esq., of the Chicago firm of Bell, Boyd & Marshall to serve as trial counsel. The resolution of this case is not documented in the collection.