The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-30
SUIT AGAINST A TRUST
l.. G. BRAMI<AMP, OF CINCINNATI,
MAKES DEMAND FOR 100000.
Wire Nail Manufacturers Association
Prevents Him from Entering Busi-
ness, He Says-FcderaI Court.

In the On1teO states oircult court tWO
important suits were brought yesterday
against the members of the Wire Nail Man.
ufacturers' Association. One is suit in
equity for an injunction and other equita-
BILE relief. and the other is action at law
for the recovery of 100000 damages. The
plaintiff in both suits is Lewis c. Bran
kamp, of Cincinnati. He alleges that he
entered into q contract with the Woolley
foundry and machine works of Anderson.
Ind, for the delivery of forty wire nail
machines, but that on account OF the
threats made and money inducements paid
and promised by the officers of the Ameri-
can Wire and Nail Company of Anderson,
Ind, the Woolley concern repudiated its
contract and has refused altogether to fur
nish said nail machines; that the plaintiff
has tried to obtain nail machines from
numerous other manufacturers in the
United States, but was met by refusal and
that he is still unable to obtain any wire
nail machines in this country.
The plaintiff alleges that the reason for
his inability to obtain nail machines in this
country is on account of one of the most
gigantic trusts which exists in the United
States. He shows that in the months of
May and June. 1895, under the supervision
of one John H. Parks of Boston, the
American Wire Nail Company, the Indiana
Wire Fence Company. the Washburn &
Moen Manufacturing Company, the Con-
solidated Steel and Wire Company, the Illi-
nois Nail Company. the Superior Barb Wire
Company, the Judson Manufacturing Com
pany, the Brooklyn Wire Nail Company.
the Consolidated Barb Wire Company, the
New Castle Wire Nail Company. the Oliver
Wire Company and others, being substan-
TALLY all the manufacturers of wire nails IL,
the United States. entered into \ rofnbina-
ton among themselves TO control the man.
ufacture and sale of wire nails in the
United States. to regulate the price thereof,
TO suppress and prevent competition among
themselves and to prevent and exclude
from the business of selling wire nails ev
cry corporation or firm that not
member of the association. They organized
facturers' Associations With Pr Presi ni,su
vice president, secretary and treasurer and
an executive committee. 1t is set forth in
ment which provided that every member
should furnish a copy of each invoice of
goods and daily sales to the secretary. Civ
vided that the price at which nails could be
sold should be fixed by the executive COM
mittee and be infiexibly adhered to by the
members, and prohibited all discounts. re-
bates and other gratuities and authorized
the executive committee to change prices
without notice to customers; provided fer
statement of accounts on the 10th of each
month of the amount of profits due from
cash to the secretary and for apportion-
ment or such profits among the members;
that the supply for the market of each
month should be fixed by the executive
committee and allotted to the members
ana member receiving orders for mere
tran his allotment the excess should be re-
ported and supplied by other members
whose quota was deficient.
PRICES UNDER MONOPOLY.
1t is shown that John II. Parks, who de-
vised the scheme, was secretary and treas
urer, and by contract was to receive / cent
a key for all nails sold by any member of
the association long as the pool lasted.
1t Is shown that the agreement also pro-
vided that per cent. of the gross contribu-
tons should be set aside as a contingent
1und FOR such purposes of self-protection
as may appear" The association went into
operation June 1, 1895, and it is asserted,
has established and maintained a compIete
monopoly in the sale of wire nails i'm the
United States; has suppressed substantially
all competition. and has advanced the mr..
of wire nails from base price of 80 Cents
a keg, which yielded fair and reasonable
compensation to the manufacturer and
ADDER 81 cents a key and the cost OF trans
Portation from Pittsburg as the price to the
buyer. 1t is averred that within eleven
months they made advance of over 300
per cent. in prices, and by said advances
nave Melted, over and above expenses be-
tween S6,00000O and $7,000,000.
Ihe complaint sets forth that to make
more completely effectual their mononolv
Iney entered into contracts with the manu-
Iacturers OF nail machines whereby they
agreed, for large considerations not TO sell
nall machines to any persons not members
OF the association and thereby to prevent
lne establishment of new factories outside
OF the membership of the association: thai
large sums, amounting, it is elleged 10
nundreds OF thousands of dollars, were en-
pioyeu IN substituting these manufacturers
ana IN inducing other manufacturers To
preak their contracts with persons not
members OF the association by payments in
gross sums or In periodic payments. that
II was In pursuance of this scheme that the
w 0oiley foundry and machine works was
1,iauGtT TO 6reak its contract with the
10 10 :, obtain wire nail machines from anv
otner manufacturers. Many details ar
gwen concerning methods and doings Of
ai ne associatlon Among other things, it is
monthly sum of sl7O0, or over ps SS az a !,
year. to the Bates Machine CompanV of
Joliet, ILL.,. in consideration of their aereel
n ntsnr ii 10. TO sell wire nail machines to
1 ne court Is asked to declare said COW,
lLacts OF combination among the several
ueIendants and each of their contracfs
WI others outside of said association and
the plans and methods of the nssociat in u
TO be illegal. Preliminary and nernat,,sI III, ,n
functions are asked TO RESTRAIN inc 49,
ants from continuing such .'conspiracv anl
cI Im tha and for all other relief.
II tne complaint the actual damapas
which have accrued to the pIaintiff re 81
Issea 10 be 100000, and in pursuance Of tbn
PROVISIONS OF the Sherman pnti-trust Iax.
pf passed by congress in 1880 the plaintiff
, ularis hin tnree times the damages inflicted
nary Inl injunction Will be heard before Judgo
BAKER the latter part of next week Pata
ma n o. Harper of Cincinnati represent tbr
plaintiff in both suits tue