The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1905-12-01
Starts an Action Against Two
Big Corporations.
Claimed That They Tried to
Suppress an Independent.
Suit Is in Name of State OF
Minnesota. h.Ers-,

pairing to invoke the aid of the Mime
sofa antitrust law in suppressing
commercial coercion.
The Atlantic Elevator company and
the Osborne Mcmillan Elevator COM
pany, both of Minneapolis, are the de-
PENDANTS, and if success attends Attor
ney General Young's efforts, others are
to be proceeded against.
The suit, the first under the anti
trust law of 1899, was instituted in the
Pope county district court today and
papers served upon the two defendant
companies in Minneapolis
The companies are charged with ex-
ercising unlawful restraint of trade in
that they resorted to coercive methods
to destroy the Farmers Elevator as
ISOLATION of Lowry, a small town in
Pope county, and the merchants of the
town who had given the rival concern
support '-a
The trouble and the nature of the suit
is told in the language of Attorney Gen
eral Young, who authorized the filing of
the papers. He says:
This suit has been commenced in the
name of the State of Minnesota, at the
complaint of the citizens of Lowry, a
village situated on the line of the $500"
road, in Pope county. The complaining
citizens have represented that during
the season of 1904 their grain market
was controlled by the defendant COM
panies and prices maintained at so low
a figure that a large volume of business
from the Lowry territory was diverted
to other towns.
"To remedy this condition the mer-
chants of Lowry and some of the farm
ers of the vicinity, in the summer of
1905, organized the Lowry Farmers
Elevator association, and about Sept.
l of this year opened an elevator and
commenced the handling of grain, with
the result that the Lowry market was
much improved.
"When the farmers house commenced
business representatives of the Atlantic
and Osborne Mcmillan Elevator COM
panies called on the Lowry merchants,
who were responsible for the opening of
the farmers elevator, and threatened
them with the establishment of a
store in Lowry, where merchandise
would be sold at cost if the farmers ele-
vator did not cease doing business.
These threats were UNDECIDED and the
farmers elevator continued to do bust
ness.
about Oct. l the two elevator COM
panies accordingly opened in Lowry a
well stocked general store, under the
name of the Elevator store, and placed
it in charge of Ralph Pennar, who is
made defendant in the suit. The ee-
yator store has been selling goods at
cost, which means ruin to the mer-
chants of Lowry. They therefore made
complaint to the attorney general, who
thereupon instituted this suit.
THE state asks that the defendants
be enjoined from continuing the store,
because it is not authorized by the ar
ticles of incorporation IF the elevator
companies, and because it is propaga-
gated by combination, agreement and
arrangement between the defendants in
tended to interfere with or destroy open
and free competition in the wheat mar
ket at Lowry, and therefore a viola
ton of chapter $50, Laws of 1899
known as the antitrust law.
at is the obvious intention of the
elevator companies to abandon the store
as soon as the farmers warehouse is
crushed
''On account of this alleged violation
of the anti trust law, the state fur.
Their asks that the charter of the At
lantic Elevator company, which is &
Minnesota corporation, be forfeited; ant
company, a Wisconsin corporation, b.
prohibited from transacting business
within this state.
''This is not the first time that ele
vator companies have threatened to in
stall or have actually installed "ele
vator stores" for the purpose of intimi
dating local merchants VINO encourag
the establishment of independent farm
ers' elevators. The custom savors o
Standard Oil practices and must b
stopped.
"Ne believe the law of this state i
sufficient to protect the people agains
such unjust and coerciye methods, an
to see that it is enforced"
The feature of the litigation is tn
states demand that the elevator com
pany's charter be revoked. The concern
is one of the largest in {. the state, an