The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1907-05-29
CAPITAL CULLINGS
Attorney General Sustains Secretary
Schmahfs RuIing--A Costly
Hippodrome.
IA BLOODY CHASM" NO LONGER

Special Gazette Correspondence.
Quite a sensation was sprung last
Friday when it was announced that
the department of state had refused
to receive for filing and .recording
the articles of association of what is
known as the Minnesota Retail
Lumber Dealers association" and
the announcement that the legal
department of the state had upheld
the action of the department of
state.
From the records it appears that
Mr.. Schmahl, who is at the head of
the State department, had refused
the articles of association for filing
on March 18th last. He states that
at the time the attorney for the
association was informed carte
blanche that the articles would not
be filed. His position was that the
association was organized in re-
straint of trade, inasmuch as it
banded the members together to
buy only of such wholesalers as
would recognize only such members
of the retail association that lived
up to the agreements of the associa-
ton, and also that would refuse to
sell to such lumber dealers as were
outside Of the association, or were
engaged in selling lumber at price
lower than that fixed by the whole
sale and retail combination. This,
Mr.. Schmahl held, was in violation
of the laws Of the federal govern
ment, and that while no such laws
were on the Minnesota statute books,
yet he did not believe that an officer
of the state government should
countenance or become party to
violating the federal antitrust laws.
The attorney for the association
contended that it was not for him to
pass upon, but that the articles
should be received and proper pro-
ceedure taken in the courts by such
parties as those who wished to over
throw or quash the intended corpor-
alton. The secretary still insisted
that he was right, and it is said,
Uniformed the association attorney,
that the articles would not be re-
ceived, but out of courtesy to him
and to the member of the proposed
association, he would submit the
proposed articles of association to
the attorney general for his opinion,
reserving the right to act as he
pleased at any time after the opinion
was rendered.
The heavy work following the last
days of the legislature prevented
the legal department from taking
up the matter at as early a date as
the members of that department
could have hoped for, and it was not
until last Friday morning that Geo.
t. Simpson, assistant attorney gen.
eral, acting on the advice of his
superior. Gen. Young, and the other
advisories Of that department. up
held the position by Mr.. Schmahl,
and while not giving as clear an
opinion on the subject of restraint
of trade" as the various people in
terested could have wished for, the
opinion was a big victory for the
State department. 1t was one of a
series of causes for elation in that
office during the past few months.
The money turned into the State
treasury for filing and recording
fees is far beyond the same period
of all predecessors, and when the
legislature wiped out the manufac-
turing clause on the advice of the
department head, it made perm
anent increase for future years GER
tain. 1t is expected that when the
fiscal year closes on July 31st next
the report will show filing fees
amounting to ts15O,OOO as having
been paid into the state treasury,
and that helps the general revenue
fund in q magnificent manner.
slContinued on 9Th oa9e