The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1906-04-26
AFTER tUANO MEN
United Stltes Government
Orders Their Prosecution.
BIG COM 3INE is ALLEGED
Southern Farmers Alleged to Have
Been MuIcted of Millions Throuah
Concern Known as the "can-
ada Company"

A Washington dispatch says:
Charging that the farmers of the south
lave been mulcted of from five t.
seven million dollars by a fertilizer
t:ust, the department of justice MOI
cay at Nashville, Tepn., started on
foot the prosecution, under the anti
trust law, of fertilizer manufacturers
alleged to be members of the trust.
Some Of the most prominent busi-
ness men of the southern states are
involved in this prosecution. The
combination which the government at
tlcks includes practically all the man
ufacturers of acid fertilizer in the
country covering especially those CO.
ing business in the cotton states east
Of the Mississippi river. The manu-
facturers involved include some in
Baltimore and Chicago, as we'll as in
Atlanta, Norfolk, Richmond, Nashville,
Charleston and other southern cities.
Hon. Edward T. Sanford of Knox.
vile has been retained as special coun-
sci for the government in this pros
ecution. The government will allege
a combination Of manufacturers
through the medium Of corporation
organized in Canada, known as the
Canada Development company, has
been formed, it is alleged, by all the
fertilizer companies whose product
has gone INTO the territory named, anl
through it the sales of the output Of
the different factories and the price
at which fertilizers have been sold
have been regulated.
The facts concerning the organize
ton Of this Canada company and it's
operations were some months ago laid
before the department of justice by
a former employee of the A/nours,
who was selected to be one of the off,
GERS OF this controlling corporation at
the time of its organization. The mat
ter has been under investigation by
the department since then.
Last week congress passed a bill
changing the time Of holding federal
court at Nashville. This bill was We
toed by President Roosevelt on the
ground that as the department Of JUS
tice had important business prepared
Tor the session Of the court, the
change should not now be made. This
announcement was regarded as only
of local significance; but it now de-
velops that the important business IN
question consists of the antitrust
cases.
The government will undertake 20
show that Immediately following this
alleged illegal combination Of manu-
facturers, the price Of fertilizer was
increased by about 81 ton, and that
this cost the farmers Of the south
ern states from FIVE to seven millio2
Of dollars.
Under The Sherman antitrust law
not only is every contract or combina-
ton in restraint of trade declared 1t
legal, but it is provided that "every
ncrson who shall make any such coz
tract or engage in any such combina'
ton or conspiracy shall be deemed
guilty of a midsdemeanor, and on con-
v.ction thereof shall be punished by
a fine not exceeding $4,000, or by I'M
prisonment not exceeding one year, or
by both said punishments in the dis
cretion of the court"
While the Canada company itself
cannot be reached, it is the theory or
the department that individuals party
tc such trust agreement and proitins
bv it can be prosecuted criminally
wherever they can be reached. OH
GERS of TIE virginia-Carolina Compa-
nv. the Armour Fertilizer company
and of other fertilizer companies who
held an interest in this Canada Devel-
opment company are involved In this
nrosecution. It is said the company
vas dissolved as soon as 1t became
known the government was investigate
ing it's operations.