The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1906-06-15
Railroad Commissioner is Charged
With Violating Compact.
HISTORY OF THE RECENT LIME WAR
HE is ACCUED OF FLOODING
GRADE OF THE ARTICLE.

In a sensational series of affidavits
filed in the federal court yesterday in
the suit of Ernest V. Cowell, of San
Francisco, against State Railroad Com
missioner John S. Mcmillan to prevent
the sale Of the Tacoma & Roche Har-
Dor Lime company and to secure a re-
Ownership to investigate the company's
affairs, Mcmillan is accused of having
entered into an agreement in the even
ing to maintain a schedule of lime
prices and then flooded the market
before midnight of the same day with
his lime, sold from fifty to sixty cents
cheaper than the agreement provided.
This is said to have precipitated the
lime war of 1901, 1902, 1903 and 1904.
| Hugh O'Neill, a lime burner, who
left the Tacoma & Roche Harbor Lime
company a short time ago, swears that
! the dynamo that ought to have been
used to provide electric lights during
the lime burning at night was busy
charging the electric motor in the
launch of young Fred H. Mcmillan,
left in charge of the Roche HarbOr
plant as superintendent when his ia
Their moved to Seattle after receiving
an appointment as state railroad COM
missioner O'Neill claims that about
one third loss resulted from inexperi-
enced handling of lime at the plant.
How Lime War Started.
Alpheus Byers, who was one of the
| incorporators and stockholders of the
Island Lime company, with a plant 10
Gated at Ocean, near Deer harbor, on
Orcas island, ten miles distant from
Roche harbor, makes the sensational
charge of a violated agreement against
Mcmillan. In a lengthy affidavit he
recites the fact that the lime COM
panies signed compact to quote lime
at $1.25 f. o. b. the boat at the plant
and to compel agents or dealers to
sell at $3.50. A copy Of the agreement
| is given in the affidavit, which shows
that in the event of any change in
dealers, each manufacturer was to be
notified; only one representative in a
county was permitted; Tacoma dealers
had jurisdiction over the territory in
southwestern Washington and in Gle
Elum and Roslyn. To the fulfillment
of the agreement the business honor"
of the principals was pledged.
made at 6 p. M, July IS, 1900. I'm
mediately after signing the agreement
he accuses Mcmillan of calling in Sc
attic dealers and notifying them
that the price of lime would be 81 in
this city and IS cents a barrel f. O. b.
the boats at Roche harbor. He is &C
cused of having attempted to flood the
market before rivals could learn of his
purpose and of precipitating the lime
war that continued until August or
September, 1904 Despite the fact that
lime war was raging, Byers claims
| his company paid dividends ranging
from 25 to 40 per cent, and though
compelled to ship barrel materials
from Portland and Aberdeen and to
pay cOopers 1 cent a barrel higher
than the running wages on the sound
because of the isolated position of the
| lime plant, secured barrels at a cost
of 20 $40 cents.
| Dividends Were Affected.
These figures on profit and cost of
barrels are important, for one of the
charges in Cowelrs suit against Nc
| MILAN is that the plant which ought to
have paid dividends regularly has paid
also accuses Mcmillan of suppressing
information regarding the cost of bar
rels to get a contract with the Tacoma
& Roche Harbor Lime company for
! barrels made by himself at cost of
80 cents. McMillan's affidavit filed
! today says these barrels cost him 1914
cents to manufacture, and the royalty
on the Waterman Chapman barrel
machine brought the cost of the barrel
up to 25 cents.
| To McMillan's affidavit, answering
the Cowell charges, is appended a let
ter written to a Toronto capitalist
whom Mcmillan says he had interested
| in a big cement enterprise at Roche
harbor, and who would have purchased
| the Mcmillan lime interests. This let
| ter severely criticizes McMillan's man.
agement and had the effect of blocking
the trade In McMillan's affidavit he
also confirms the story that he had
| practically completed sale of his in
l Of e