Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1906-02-10
SAYS IT IS AN
ILLEGAL TRUST
ACTION TO END EXISTENCE OF
DULUTH BOARD OF TRACE
Claimed That Organization Is In Re-
straint of Trade and is in Con=
fiict With State Laws.

st. Paul. Feb. 3.-The state legal
department, through Attorney Gener-
al Young and Assistant Attorney
General Stone, yesterday began suit
to end the corporate career Of the
Duluth board of trade.
The papers were filed in the Duluth
courts and the complaint is that the
board is in restraint of trade and
consequently is in conflict with the
trust law of 1899.
The state, acting for the Minnesota
Farmers exchange, which says it has
been Disseminated against in the
absolute refusal of the members of
the exchange to have any dealings
with it, is the plaintiff. The defend
ants are John Miller, George Spencer,
J. H. Barnes, A. w. Frick, S. Ii.
Jones, E. H. Smith, J. F. Mccarthy,
D. T. Helm, J. NJ. McKindley, w.
Dalrymple, J. FL. Cook, NJ. L. jerks,
III. B. Moore and Fl. F. Salyards, all
officers and directors of the Duluth
board of trade.
The state legal department makes
the following statement on the suit:
"Upon information furnished by
officers of the Minnesota Farmers
exchange and others, the attorney
general has commenced an action to
forfeit the corporate privileges and
franchises of the Duluth board of
trade and to enjoin it and its officers
from continuing what is claimed to be
an unlawful restraint and monopoly
of the Duluth grain market. The
state is the plaintiff in the case and.
and the board of trade and it's directors
are the defendants. The action is
based upon the state anti trust law,
which was enacted in 1899.
EtThe Minnesota Farmers exchange
is corporation composed of numer-
Gus farmers in Minnesota and North
Dakota, and was organized to facilit-
ate the marketing of their grain and
produce. In the summer of 1905 it
applied for membership in the Duluth
board, but was refused. In the early
fall of 1905 the exchange marketed
some grain through the Duluth con
mission houses, but, after a short
time, under the coercion of the board
and it's directors, these commission
men refused to handle any grain for
the exchange.
"Upon application to other members
of the board, the exchange met with
nothing but refusals to handle it's
grain, and found itself effectually shut
oat of the Duluth market.
ssCertain of the rules of the board
fix complete scale of commission,
heavy fines and severe purishments
are provided for any lnfraction there
of. These rules not only constrain
members of the board to abide by
them, but obligate members to boy
colt any non member who does not
abide by them to the letter. In fact
under the circumstances existing at
Duluth, it is hard to imagine a more
perfect, complete and effectual
mechanism for controlling the grain
market at that city than that which
has been devised and put in operation
by the Duluth board and it's members.
"The complaint sets forth the facts
as they are alleged to be by the
Farmers exchange, relative to it's ex-
clusion from the Duluth market. 1t
also sets forth the bylaws which are
claimed to be in unlawful restraint of
trade. 1t is then alleged that the
board constitutes an arrangement,
agreed and conspiracy intended to
and actually tending to limit, interfere
with and destroy open and free COM
petition in the purchase and sale of
grain and produce on the Duluth mar
ket. For these reasons, the complaint
asks that the board and it's officers be
restrained from continuing their un-
lawful restraint o: and interference
with competition on the Duluth mar
ket and that the board of trade, which
is corporation, be dissolved, its COR
porate privileges. and franchises be
declared forfeited and it's business
Wound up and disposed of as provided
bv law.
"This is the second suit instituted
under the state antitrust law by
Attorney General Young and Assis-
tant Attorney General Stone, the first
action being the Lowry Elevator store
case, commenced in November last.''
The demand for the forfeiture of
the boards charter is based princi-
pally on its by laws, which prescribe