The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-05-13
CLABAUGH GOES
10 FEDERAL COURT
Seeks $4,000 For Damages
From Wholesale GrecerS
UNDER THE SHERMAN LAW
Names Several Prominent North Ala
bama Wholesale Grocers As De-
PENDANTS in Suit Filed in
Court Yesterday.

The fight of Hinton C. Clabaugh against
the Southern Wholesale Grocers' associa-
ton took on a new feature yesterday,
when suit was filed in the federal court
here and the Sherman antitrust act was
| invoked against James A. VanHoose,
president. and other members of the as
| ISOLATION. The plaintiff asks for $4,000
| damages and the bill of complaint filed
| yesterday completes a dual suit now be-
ing waged by Mr.. Clabaugh against the
grocers' association.
As is the case in the suit instituted in
| the state courts, the plaintiff AYERS,
among other things, that he was forced
out of the wholesale grocery business by
the association, 'all of which plaintiff
AYERS was unlawful and in violation Of
an act of Congress approved July 2, 1890.
and entitled An act to protect trade and
commerce against unlawful restraints and
monopolies.'
The suit filed in the federal court In
wolves prominent wholesale grocers Of
Birmingham Gadsden and Admission. Be-
sides Mr.. VanHoose, president of the as
ISOLATION, there are also included lin the
| list of defendants the Alabama Grocery
company, the McLester- VanHoose COM
pany, the B. F. Roden Grocery company,
all of Birmingham; the Caldwell Spence
company of Gadsden, and the Bell &
Weatherly company of Admission, all al
| legged to reside or to be found In the
Northern district of Alabama, and aver
red to be Officers, members or agents of
said association and actively assisting in
! its objects and purposes herein complain
ed Of"
1t is averred that the association was
at one time incorporated under the laws
of the state of Virginia as a non-stock
| company.
1t has been generally expected that Mr..
| Clabaugh would file suit in the federal
court under the provisions of the Sher-
man act as part of his attack upon the
| Southern Wholesale Grocers association
for an alleged destruction of his business,
he having contended at the time the mat
ter of high prices In Birmingham was
| first agitated that the association oper-
ated to prevent any independent concern
from doing business under circumstances
that constituted a restraint of trade pro-
hibted by the act of Congress-
His first suit, filed in the circuit court
of jefferson county against President
vanHoose In November, 1908, invoked GER
tain of the Alabama antitrust acts and
claimed that Mr.. VanHoose was mainly
responsible for the conditions COM
| planned of.
This first suit was continued for Sec
ond time at the defendants request by
Circuit Judge A. o. Lane on May 10 and
was set specially for hearing on June H.
| Hence it Is probable that unless there Is
to be another continuance the state suit
/ will be heard first.
| The defendants in the federal suit in
addition to the association and President
! VanHoose are prominent wholesale firms
of Birmingham, Gadsden and Admission
| which are said to have Joined the associa-
| ton some time ago and are probably
| Joined in this suit on the theory that all
of the members are responsible for the acts
| of the associations officers and agents;
| that being the contention in the federal
| suit won by John T. Hammond against
the Consolidated Grocery company and
i other members of the association In
Jacksonville, Fla, in which Mr. Van
Hoose was witness fer the defendants.
This suit is not to be confused with
| United States under the Sherman act An
instance of the latter type of action is to
be found in the recent proceeding by the
| government in Savannah, in which certain
members of the so-called turpentine trust
| were found guilty of violating the pro-
| visions of the Sherman act
/ AS so much interest attaches to local
proceedings under this act, the brief but
| comprehensive language is given of sec
] z n a
latter providing the civil remedy and the
| first two Furnishing monopoies and con-
| spiracies tending to restrain trade:
"Sec. /. Every contract, combination in
| the form of trust or otherwise, or conspir-
acy, in restraint of trade commerce
| among the several states, or with foreign
nations, is hereby declared to be illegal
| Every person who shall make any such
| contract or engage in any such combina-
tion or conspiracy, shall be deemed guilty
of a misdemeanor and. on conviction
thereof, shall be punished by fine not ex-
ceeding $1,000 or by imprisonment not ex-
ceeding one year or by both said pun
| ishments, in the discretion of the court.
"Sec. 2. Every person who shall monopo
| lie or attempt to monopolize combine
| or conspire with any other person or per-
| sons, to monopolize any part of the trade
or commerce among the several states, or
| with foreign nations, shall be deemed
thereof shall be punished by fine not ex-
ceeding s5,0OO or by imprisonment not ex-
| ceeding one year. or by both said punish
ments, in the discretion of the court.
Sec I. Any person who shall be injured
in his business or property by any other
| person or corporation by reason of any
thing forbidden or declared to be unlawful
by this act, may sue therefor in any cir
cult court of the United States In the dis
| trict in which the defendant resides or is
found without respect to the amount In
| controversy, and shall recover threefold
the damages by him sustained and the
costs of suit, including reasonable at
torneys fee"
The present situation will doubtless be
| of considerable interest and discussion at
the annual meeting of the association in
Hot Springs the latter part OF this month.
Mr. VanHoose is president of the asso-
citation, S. w! Lee of the Alabama Gro
Gerry company is treasurer, and J. w. Lee
is special representative, all residing In
Birmingham