Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-11-05
ANTITRUST WAR.
KANSAS -DRAGNET- INvE>TIGA ALTON
BEGUN YEsTERDAY.
GROCERS THE FIRST VICTIMS.
CLEAR PROOF THAT Az ILLEGAL
COMBINATION EXISTS.
NO COMPETITION ON PRICES.
COMBINE DI cTATES RATES. WHICH
ARE STRICTLY OBSERVED.
state Claims II Has Sufficient Evi-
dence on which To Base PrOse-
catfOns-PrOccedinEs tn Dis-
solve Alleged Trust
VIII BE JnstItuted
mt Once.
! CLEAR PROOF THAT Az ILLEGAL
/ COMBINATION EXISTS.
NO COMPETITION ON PRICES.
COMBINE DI CTAT'Es RATES. wHICf
ARE ST richly OBSERVED.

mt unee.
Chanute. Rag. Nov. 4-(Special) After
an investigation lasting all day. Assistant
Attorney General Smelling. County Attor-
rey Cline and State Senator Hugh Far
| reilly succeeded In smoking out the Kansas
Wholesale Grocers' Association. 1t has
| been very stoutly contcnded by the Kansas
/ jobbers that they have had no state asso-
| citation for the purpose of controlling prices
| on goods since the antitrust law went into
effect. but developments tonight show that
such an association still exists. The attor-
roy general will probably proceed against il
at once for violating the new antitrust
| law.
The state officials have supected that
there was "A trust somewhere, and they de-
| ciGed to have n 'dragnet" hearing to-day
| at Chanute to smoke 1t out II possible.
More than a dozen witnesses were exam
| ired without cIiciting anything definite
| about a Kansas trust. Finally. when the
| officers OF the Chanuta Mercantile Grocery
Company were commanded to bring In some
of their correspondence. the whole deal was
laid bare.
To-day's developments show that trusts
formed to control the prices of the neces-
| stiles Of life are to he attacked first. The
only evidence adduced was In relation to
| combinations handling sugar and other
staples. The state Is represented by As
sistant Attorney General George Smelling,
State Senator Hugh Farrely, of Chanute.
author of the law, and County Attorney w.
II. Cline. Of Neosho county. Attorney
Hook. of Leavenworth. appeared for the
wholesale jobbers. but he was soon ruled
out.
simply an Investixation.
Judge Stilwell. of this district. is pre-
siding over the hearing. and in its early
stages he told Mr.. Hook that the case had
not reached that point where the combines
needed to be defended: this was simply an
investigation for the purpose of finding out
what evidence could be procured on which
TO base an action, and that the jobbers did
not have to he defended until case was
commenced against them.
The law provides two ways to pro-
coed against trusts. First, to enjoin their
agents from selling goods at prices fixed
by the trust: second, to arrest agents or
all persons engaged in either selling or
purchasing goods manufactured by trusts
The states attorneys are inclined to adopt
the injunction method first. If 1t does not
work. then they will resort to criminal
proceedings. After proceedings against
the alleged grocers' trust are fairly under
way. n move will he made against the Al
legged coal trust. the oil trust and every
thing else that has ever been accused Of be-
ing trust.
Senator Farrelly somewhat startled the
parties directly interested at the very out
set to-day by asking the first witness,
wholesale grocery travelling salesman. to
produce his book containing instructions
concerning the manner of selling sugar.
They did not know that the states attor-
neys knew that any such book was in ex-
istence. The book was produced. The
most damaging thing in 1t was Il provision
compelling one travelling man to advance
or lower the price on sugar whenever an
other travelling man notified him of any
change In the market. without even wait
ing for advices from his house. The book
was placed in evidence and made n part
of the record.
The state also introduced contracts which
the Liggett e. Myers Tobacco Company,
the Drummond Tobacco Company. the Dia-
mond Match Company, the Northwestern
Yeast Company and several other concerns
compel 1obbers to agree to. In each ono
there is n provision which forbids the sale
mentioned In the price cards issued by
these companies. and the penalty for the
violation is the surrenderins OF tho right
OF the wholesalers to handle tho goods at
ALL
start Of the InvcAtisatiOn.
The application for the investigation was
filed IN tho Ncosho county district court
on October 1s. In 1t County Attorney W. n.
Cline Informed the court that FOR the past
several months. In Ncosho county, In tho
sinic OF Kansas. sundry pcrsons. co-pnrt-
ncrshipr. and corporations have been. and
now aro engaged IN violation OF tho Far
reilly antitrust law: that among tha said
persons and firms are: The pochIcr Mer-
camille Company, Of Lawrence. the Fort
Scott Grocery Company. the Symns Gro
rcry Company. Of Atchiron: tho Henry
fndcn Wholesale Grocery Company. OF In
dependence. Kns: Rylny. WiiHon a. CO., Of
Kansas CITY. Ridcnomr- Baker Grocery
Company. Of Kansas city: tho T.. Green
Grocery Company. Of knnsns CITY; tho
Nhve- Mccord Mercantile Company, Of ~.
Joseph: tho rarkhursi. Davis Mercantile
Company. OF Topeka. the chan,fte Whole
sale Grocery Company. Reid. Murdoch &
Co. of Chicago: the Pierson Mercantile
Company. OF Parsons: the Beckhnm e Me-
Knight Grocery Company. Of kansas Ciiy:
Bitman. Todd n Co. of Icnvnnwurth
II WAS charged that all these firms ,npu-
toned have combined their capital. htiIj
and are parties TO n combination with other
cGLccrns of like character to fix the price
to the public on sugar. tobacco. soaps. lyr.
yeast and other staple articles, and that
such combination tends to increase the
trce TO the people on these articles The
following witnesses were subpoenaed: Dn,,
Davidson. Charles Stith. John Fitzsimmons.
Frank Grams. Edward Clark George Webb.
Frank Koutz, C. p. Grebe, c. NJ Alex
ander. Charles Shaffer. Joseph Rowley, ,Frafk
Williams. c. u. kelso. Al Brownsdorn, A.
Il. Burton and owen McNulty All are
travelling statesmen except Grebe and Nc
Nulty. They are wholesale jobbers at
ChaEute.
The First Witness.
c. N. Alex Under. of Chanute. travelling
salesman for the Fort Scott Wholesale
Grocery Company. was the first witness
examined to-dfy. State Senator Hugh Far
rely, OF ChaHute, author Of the antitrust
law conducted the examination. upon re.
guest OF the county attorney. Witness said
he sold groceries of all kinds and all arti-
cles usually kept by wholesaler. including
ah goods alleged to be handled by trusts.
ne said that when prices on all "combina-
ton goods chhpred b;s hove.