The Montgomery advertiser., 1909-12-13
Manufaeturers Compel whoIesaIers te sign Price Contraets and Whele- salers Adopt Same Tseties for netnilers--Secret
 COntracts Are to
 Blame.

| / 
 New York World.
 l High prices of foodstuffs are be- I ing investigated by the United states I District Attorneys office here because of complaints by the largest whole l sale grocers that what seems to amount to a criminal conspiracy ex- l ists among some manufacturers to maintain prices to the consumer. l It is learned that several leading | manufacturers of food products have been called before District Attorney wise and informed that the contracts l they have been using to force whole salers to keep up prices are in re- straint of trade and violation of the anti-trust law.
 The World has secured copies of some of the contracts and affidavits manufacturers have been compelling l wholesale dealers to sign. the effect of which has been to increase prices 1 from 20 to 30 per cent. to housewives on many of the staple articles needed in every kitchen.
 Not content with receiving their own profit and seeing that wholesaler and retailer receive a profit on the goods handled. the manufacturers to the consumer.
  After hearing the complaints of the wholesale dealers, studying the con tracts and consulting with the Att torney General, the District Attorney has notified some of the manufactur- CTS that they must cancel all such contracts. Many manufacturers not notified are taking the hint, and It was said yesterday a geenral annui- ment of contracts Is going on that rnav raafflf tn a grant saving fo cOu- sumers. Now that discovery has been made of one of the evident causes of high prices. the investigation will be push ed into meat contracts and some new contracts that are being forced upon wholesalers in the butter, egg and poultry trade. Officials behind the investigation will not discuss the like- lihood of indictments against manu- lecturers or combinations formed to control certain lines of food, but it is certain that warnings have been quietly given that manufacturers must obey the laws.
 The large wholesalers believe they should be permitted to buy or sell to the best advantage of their cus- toners and 1t is said that the lead- CTS will agree within a few days to refuse to sign contracts or agree ments of any kind that tend to re- strain them from giving low prices to retailers, who will be forced by competition to lower prices to the public. They will insist upon quan- tity price.
 Fines Imposed, Threats Made.
 The manufacturers have been fore ing compliance with their high price to the public contracts by means of a series of fines, fixed upon whole salers and threats of boycott. One of the contracts called to the attention of the District Attorney reads in part as follows:
 q. We promise and agree not to sell or cause to be sold this commod- ity for less than the list price now in indirectly, either by rebates, commits sions, allowing a greater than the customary discount (not to exceed 2 per cnt.) for cash in ten days, allow ance or advantage of any kind what soever. Should any advance be made in the list price we agree to con- form to the new price immediately upon receiving the advice of the change.
 hs9 We further agree that when requested by the company we will re- fuse to sell the commodity at any price, or loan or exchange them for other goods to any dealer who is sell ing or has sold same for less than the established price.
 "3. We further agree that when a charge of violation of this contract shall be made against us, we will fur nish the company with a certificate (on forms to be furnished) to the ef- feet that we have not violated the provisions of this contract in any way which certificate shall at the request of the company, be veri- fled by our oath and also by the oath of the salesman making the sale. Re- fusal on our part shall be conclusive evidence against us that the charge Is true, and we will then pay to the company, as liquidated damages. $50"
 Must Agree or Get No Goods.
 At the bottom of the contract is printed In large, black letters. Please date, sign and return, as no orders will have attention until this agree ment has been entered into"
 This parting sentence is notice to the wholesalers that they must agree lo the manufacturers plan of main. taining prices or they will not be given any goods even though they may pay the manufacturers price.
 Another large manufacturer of a staple article in addition to employ ing contract somewhat similar, in- sists upon salesmen for the whole saler signing an affidavit that he has not sold any of the manufacturers' product to retailer below the card or contract price in force on and since