The Birmingham age-herald., 1908-02-27
WILL TURN EVIDENCE ID
 FEDERAL AUTHORITIES
cIabaugh, Walters G Grove Claim Demand Was Made on. Them To Make Affidavit They Would
 Maintain Prices.


 mally high prices being charged in Bir- mingham for staple groceries 1t has been ascertained to reasonable degree of cer- tainty that the fault does not lie at the door of the retailer The line of fire has been raised above the level of his head onto the headquarters of the Southern Wholesale Grocers' association, and from evidence atshand, the bulk of which is in writing it begins to appear that the true root of the evil has been located. This can be settled, however, only through a thorough and systematic investigation, which, by the way, will follow if indica- tions are adjudged correctly.
 The Age-Herald's agitation of the ques- tion has brought forth much comment on both sides of the matter, but the first real allegation as to the specific cause of the high prices was made yesterday. It comes in 8 clear-cut, concise form, and the sub ject is handled strictly without gloves. The question is rapidly assuming a more or less sensational nature.
 Wholesale Firm Makes Charges
 The editor of The Age-Herald received a letter yesterday from Hinton G. Cla- baugh of Clabaugh Walters & Grove, wholesale grocers, 2223 Morris avenue, which will, from all appearances, be re- ceived like the explosion of a bomb by the parties concerned. Tn this letter Mir. ~.a- baugh points directly, and in emphatic terms, at the Southern Wholesale Grocers' association as the concern at the bottom of the whole affair of high prices, alleges unfair, underhand methods" and states his intention of pushing an investigation of the association by the federal authori- ties.
 In a nutshell, the association is an al- legged trust, an alleged violator of the Sherman antitrust law, it being claimed that it fixes the prices on groceries all over the south at whatever it sees fit.
 The Southern Wholesale Grocers' asso- citation is large, well-organized and, ac- cording to allegations, very powerful organization, covering all of the southern states.
 Regulate Prices Every Week.
 It is specifically set out in the commu- nication received from MT. Clabaugh that the local wholesalers meet, or did meet
 
 and regulate the prices to be charged the trade for the ensuing week.
 J. A. Van Hoose. president of the South ern Wholesale Grocers' association, whose name is mentioned in the letter, positively denied the allegations of the communica- tion last night, and stated that he would probably reply in writing to the letter when it appeared in the news columns of the paper.
 Speaking briefly on the subject, how ever, he said: ''The Southern !, ,nolesale Grocers' association does not fix the price on groceries. The association was rigidly investigated about a. year and A half ago by the Department of Justice of the United States, upon an order of Attor- ney General Moody, and a report on the matter was to the effect that the asso- citation was complying with the law in every respect.
 Cabaugh's Formal Letter.
 MT. Clabaugh's letter to the editor of The Age-Herald is as follows:
 To the Editor of The Age-Herald.
 As we are all Birmingham boys who have recently embarked in the whole sale grocery business, we are some what interested in the articles pub lished in your paper concerning the prices being charged the consumer by our local retail grocers. In the outset we wish to say that we do not care for publicity or free advertising, but we wish to lay before you certain facts and respectfully ask you to publish this let ter.
 We full yagree with the various re-. tail merchants in their statement that they are not charging the consumer an exorbitant profit, but we might add that it is our firm belief that the trou- ble lies at the door of the wholesaler, together with some of the manufactur- CTS, who seem to be lined up with them pretty strong in the Southern Whole sale Grocers' association. But let us say right here that it is our belief that the manufacturer is being pinched and forced to demand a regulated selling price and profit for the jobber--other- wise the disp1easure and enmity of the association would undoubtedly be in. cured. It doesn't seem to make any difference what character of jobbing business is carried on, and although some jobbers conduct tn cir business economically and are willing and anx- ious to dispose of their goods on a close margin or profit, much closer than that fixed" he cannot do so. and the manufacturer Is forced to protect the long shot. loose-credit system jobber.
 Why MT. J. A. VanHoose, president of the Southern Wholesale Grocers as- socia ton, had the audacity, although. we are not members of their associa- tion and have not made application for membership, to request us to make an affidavit. that we would pledge our selves to strictly maintain prices on all listed goods we cannot understand.
 Furthermore, most of the local whole salers meet, or at least have been mee-- ing up to 8 very shert time ago. every week and regulate prices to be charged the trade for the ensuing week, or until another meeting may be held. They have even gone so far as to have con- mittees to look after the different com modities
 For instance, one jobber would phone. the competitor, who, for any reason, happened to be absent from the meet ing, what sugar sh ould be sold for dur ing the next week. Should there be a decline or change of any kind in cam ,d milk, then another jobber was to re