Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-12-21
after ICE TRUST,
Dissolution Proceedings
Begun in New York.
Big Corporation Is Accused Of
Curtai|ing Ice Harvest
And Boosting Price Skyward With.
out Regard TO Public Good.

Albany, n. Y, Dec. 20.-AttOrney
General julius Mayer in the name OF
the people of tn. state of New York.
today began an action against the
American Ice Co. in the supreme court
CT New York county. for the disSolu-
ton of the So-callcd Ice Trust y
summons and complaint issued here
last night was forwarded to the New
York City representatives Of the attor-
ney general for service today upon the
proper officials of the company.
The complaint alleges as Il principal
feature of tho scheme ana arrange
ment,' by which the company secured
practically all of the natural and artiti-
cial ice output and distribution, espec-
tally in Greater New orl and the
companies in that vicinity. that it Sc
cured control Of the Maine ice fields
and caused a reduction there last year
of the annual harvest from 1900. 900
tons to one-third of that amount. The
other sources of supply are alleged to
be similarly controlled.
The key to the ice situation in New
York City is pointed out as lying in
the companyS control of the LEO
bridges or landing dcprts by which
means. it is alleged. the company is
enabled to fix the price of ice. result
ing last summer in an increase from
$50 Il ton at the bridges to s., and Sc
4 ton to the independent dealers. who
are alleged to be controlled by the
company. and who supply the retail
trade and the pushcart dealers though
whom the poor in the conSested dis
triCtS receive ice.
Correspondence Of the company With
its agents and others quoted in the
complaint to ShoW that the Very tim.
when the company waS urging its GUS
toners t. he careful in their conSump-
tion of ice. owing to the shortage Of
supply. it was informing its agents
that the ice situation from the COM
pany'S standpoint was satisfactory
ana that offers We're being received
from various sources. eSpcrially from
M3inp independent producers. of am
pie supplies and the company was ut
the time refusing to accept those Of
f"rS on any terms. 1t is contcndrl
that the forts of the company were
designed to create Il popular impress
sion that an ice famine was impend-
ing, in order [" fcreStall public clam
or against a contemplated enormous
increase in the price t" consumers.
which increase did in fact take place
1T is declared by the attorney general
thai the American Ice Co. had agree
merits with various independent concerns
to prevent their entering the field of
competition, in production or distrbu-
ton. of either natural or artificial ice.
THE plaintiff alleges upor information
and bcliof,' says the complaint for in
stance. that during the harvesting sea
son of 1905-19O6 there was abundant Ice
suitable for harvesting in the Kcnnebrc
and Pcnobscot rivers and in the ponds
and lakes near these rivers and the sea-
coast of Maine; that these sources of
supply Of ice for the city of New York
were almost entirely owned or controlled
by the defendant. and that the defend
ant, during said season Of 1pJ-1gGf secrIr-
ed control Of sources Of supply not pre-
v!ously controlled by it, by means of pur-
chase. lease, agreements and otherwise"
Several Of the alleged agreements Of
the American Ice c.. with competitors
are given in detail.
I'll" complaint sets forth that as a re-
suit of these various measures, design
cd to restrict the supply of ice with the
resulting alleged fictitious price to tho
consumer, the company was in a posi-
tlon TO refuse an offer of n large supply
Of ice from HObbins. Dilatush & Chal-
merS Of Bowdoinham. Ne. in Il lcttcr
quoted as saying on March 30; 1906:
we have gotten along 50 we'll with
our storage of ice that We are not bro
pared to name YOU n price for your icc
either in the house or . ~"
''This plaintiff further alleges, upon in
formation and belief" said the CON-
plant. that on the Goth day of June
1A,6. the fetal assets Of the American
1c" 90. were Si6,3125, ass. Of which So, go
COG represented no tangible asset. but was
good Will That On or about Dec. /. 1905.
this defendant paid n di, fdcnd to its
stockholders Of per cent. upon the pre-
forrcd capital stock of the defendant.'
The attorney general alleges that the
company'S ice harvested during the sea-
son of 19o5-19o6 cost only % to - cents q
ton of goo pounds: the TRANSPORTATION
cost between - cents tor on the Tud-
son river ard A. to so cents from Maine:
Will" artificial ice WAS produced in New
YORK 'ltY ut an average price of $50
q ton, and vet the company increased its
price in New York City from 81 % to So
per ton at the ice bridges during last
summer The complaint further alleges
that tho average price for sales of ice
during tn" month of July, 1905, was si7S
per ton. producing. as this plaintiff is in
formed and believes. II per cent MT
profit on total business done by tho de-
PENDANTS New York department during
the month" In some cases the not rrof.
is declared to have been as high IS 50 pcr
cent, ard that of the wagon sales as
high rs 81 per cent. THAT this ice did not
cost the company more than 81 "a Der ton
is insisted upon.