The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-09-30
A CASE FOR THE DISTRICT AT"FoR-
NEY.

IF is announced that Attorney Cen
oral McKenna has directed district at
tornevs to follow the decision of Judge
Foster in the case of the Kansas City
Live Stock exchange with prosecutions
of similar organizations elsewhere 1or
violation of the antitrust act OF 1851.
The Kansas City exchange provided
that no member of it should do busI-
ness with any person violating any OF
the rules of the exchange and, as Judge
Foster says in his opinion, IN prac-
tice, as amply appears from the testl-
nony of many witnesses, this rule
shuts out all dealings with and bust
ness intercourse between members and
non-members of the association.
Again he says: "It is shown beyond all
cavil that the entire membership or
the association regards a commission
merchant attempting to do business at
the Kansas City stockyards without
Joining the exchange as one violating
this rule, and treat him accordingly.
If any one begins business, he is in
refuse his name is written on a black
board kept for public use in the ex-
change building, and all members are
warned against dealing with him. This
admonition is strictly obeyed, and such
person is boycotted." Members pay
membership fee and sign the rules and
bylaws which fix the. fees and COM
missions fo- handling live stock. This
organization, with these methods and
practices the judge holds illegal and
violative of the antitrust act.
The decision covers the case of the
Northwestern Lumbermen's assoc1a-
ton, whose headquarters are, in this
state, but whose membership and oper-
ations cover several Northwestern
states. The G l o b e has had occasion
to comment on this association and its
practices, especially in connection with
the suit brought by the Bohn Manufac-
turing company of this city, to re-
strain the association from ordering d
boycott against it. It will be recalled
that our supreme court in that case
held that the INJUNCTION would not lie
because the association was not a mo-
nopoly of dealers, and because it was
doing as body what any individual
could legally do. If the association is
immune from attack under our state
antitrust law or the common law, 1t
seems to be clear that it is, within the
r. eoo,1a Of Ind decision
able to the federal antitrust act, and
as such should receive the attention Of
the federal authorities.
That this is the case seems clear from
a comparison of the TWO organizations,
their rules and methods. From the
published account of the proceedings
of the annual meeting of this associa-
ton last year it appears that it is inter
state in it's scope, its directors being
residents of Illinois, Iowa, Kansas, Mis-
souri, and Minnesota. 1t is an asSocia-
ton primarily of the retail dealers in
lumber in these states, although manu-
facturers are eligible to membership.
Section of the bylaws was amended
at this meeting and provides that
whenever any manufacturer of lumber
or any of the articles usually dealt
in by retail lumber dealers, shall sell
to any person not a regular dealer, any
member doing business in the town to
which such shipments are made must
notify the secretary of the association
of the fact The secretary thereupon
notifies the manufacturer that he is
fined 10 per cent of the value of the
shipment. If he does not pay, the
secretary refers the case to the board
of directors. who hear the case and de-
eide it. If the manufacturer refuses to
obey the decision, the secretary notifies
all members of the fact, giving them
the name and location of the manu-
facturer. eff any member continues to
deal with such manufacturer, he Shall
be expelled from the association. Ii
the member evidently the manufactur-
ing member) refuse to abide by the de-
eision of the directors. his name shall