Los Angeles herald., 1907-04-10
FIND EVIDENCE OF
WHOLESALE TRUST
LOS ANGELES MEN ALLEGED
TO BE COMBINED
Federal Grand Jury Asked to Investl-
cate Charges Of Restraint Of
Trade Made by Channel
Commercial Company

Claiming that the wholesale grocers
of Los Angeles are operating in viola
ton OF the national antitrust law,
evidence has been submitted to the fed
eral grand Jury of the alleged queer
manner in which the Channel Com
mercial company of Santa Barbara was
refused admission to the Los Angeles
association. 1t Is alleged by the Chan-
mel company, which has offices In san
Francisco and Ventura as well as IN
Santa Barbara, that 1t sought auinis-
sion to the San Francisco Grocers' as
sociation. but was turned down for the
reason that tho application should have
been made to the Los Angeles whole
salers' association. 1t is alleged that
the Channel Commercial company then
tried to secure admission to the Los
Angeles association, but was courteous
ly informed that the membership was
confined to the wholesale grocers OF
Los Angeles and San Diego.
Los Angeles Loses Trade
President Barnes Of the Channel
company states that his concern an
nuaily spends about 100000 In San
Francisco for supplies. These are pur-
chased of independent dealers.
The trade really should come to Los
Angeles, 1t is said by well Informed
persons, but in order to purchase sup
plies in Los Angeles the company must
be a member of the association ana
President Barnes says he was refused
admission to the Los Angeles assocla-
tion.
1t is also claimed that the Channel
Commercial company could not Duy
direct from the manufacturers, who
were afraid of being boycotted by the
powerful grocers' association.
The trouble which resulted from the
alleged transactions between the Chan
mel company and the wholesalers as
sociation have finally been brought to
focus, 1t is said, by being called to the
attention Of the federal grand jury.
Secretaries Must Testify
It is said that testimony of Secretary
Paulding of the Retail Grocers' asso-
citation and of Secretary Rawson OF the
wholesalers association will be asked
for, as we'll as the evidence Of many re-
tail dealers.
1t is intimated that there Is strong
proof that the Los Angeles wholesale
firms are in a combine and that they
will use every method to keep other
firms from doing business in Los An
geles.
In the same connection it is stated
that the only way a newcomer can
in Los Angeles is to buy out some other
firm.
Cases are cited of several firms which
attempted to compete with the power
full wholesalers association, only to re-
tire defeated.
1t is alleged that the five local firms
are strongly intrenched, and federal
power alone can dislodge them.
Grocers Make Affidavit
An affidavit has been signed by
seventy-five retail grocers of Ventura,
Santa Barbara and other counties set
ting forth that they patronize the
Channel Commercial company as a
wholesale dealer in groceries, and the
affidavit has been placed in the hands
of the manufacturers with an appeal
to the effect that the retailers desire
that they have the privilege Of buying
from a local firm rather than to pay
tribute to a wholesalers trust.
1t was urged by friends of the north
ern Wholesale house that the entire
question be placed in the hands of the
law and that the evidence of the alleged
violation of the antitrust laws be
brought before the grand jury.
According to supposedly reliable in
formation this has been done, and the
report of the federal grand jury will be
awaited