The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-16
Suit Is Result of InVestiga-
tionS Into the High
Cost Of Living
STATEMENT BY ATTORNEY
I GENERAL s DEP PARThENT
Charges Arc Made Tint the southern
Wholesale Grocers' Association Has
Kept Outside Concerns From
Buying Goods Direct

Washington, June 15.-Another ae-
| tion under the Sherr IAN antitrust law
was started by the department of JUS
! tice today when oliver ID. Street Unit
ed States attorney for the Northern dis
trict of Alabama, was instructed to
| file at Birmingham a petition against
| the Southern Wholesale Grocers asso-
citation, its OFFICERS and members, al
lleging that the association constitutes
combination and conspiracy in re-
traint of trade and asking that 1T be
dissolved.
The suit it was said at the depart
ment today, is one of the results of the
Investigations which the government
for some time past has been making
with reference to combinations that
seek to eliminate competition, main
tain a high scale of prices and profit
and increase the cost of living. In the
opinion of the officials the investiga-
tion clearly Indicated that an unlawful
conspiracy existed.
Mr.. Street was in conference for sew
eral days with the department and
left last night for Birmingham The
issue will be pushed to speedy trial,
the officials believing that they have
ample evidence to substantate the
charges made.
The following statement regarding
the. matter was made at the depart
ment of justice:
statement About Suit
"The petition alleges that the COM
bination was organized for the pur-
pose and has resulted in coercing and
preventing manufacturers from selling
the actual necessaries of life direct to
the retail dealers or consumer or to
any wholesale grocer in the southern
states unless said grocer is listed in a
so called green book published and
distributed by the association; that
manufacturers are persuaded, urged
and coerced by the association to fix
| limited selling prices at which staple
articles of food are to be sold and
| to refuse to sell such commodities to
any wh olesale grocer who does not
maintain the prices so fixed and listed,
that in certain lines manufacturers a nd
producers have been induced to bill
their goods at an enhanced price and
to turn over percentage to the pres
ident of the association who rebated
the same to the jobbers maintaining
such limited selling prices; that no
firm could become member of the
association or be listed in the green
book unless a majority of the other
firms in the locality gave heir ap-
proval, and that unless such firm was
duly listed it was unable to secure di-
rect buying privileges from those man
ufacturers who observed certain rules
of practice adopted by the associa-
tion."
There are many other allegations set
forth in the bill as to the general scheme
and plan by which this combination
sought to prevent the free flow of COM
petition among the members thereof and
to restrict trade and commerce.
Complaints Received
The department for some time has re-
ceived complaints as to the burdens suf-
feI ed by the people of the southern states
because of the operations of this asso-
citation. After a careful investigation,
ciation operates to increase the cost of
necessaries OF life, such as coffee, sugar,
cereals. soap and many other lines.
The association as set out in the gov
ernment's petition or bill, consists of va
| rious firms and corporations engaged In
the wholesale grocery business within
the states and territories of Alabama,
Arkansas, Florida, Georgia, Indian Ter
ritory, Louisiana. Maryland, Mississippi
North Carolina, Oklahoma, South Caro-
lina, Tennessee. Texas, Virginia and the
District of Columbia.
Specifically the action was brought
against the general association. and all
its members, The McLester-VanHoose
company of Alabama, James A. Van
Hoose of Alabama, Robert McLester OF
Alabama, The Alabama Grocery company
Of Alabama. s. w. Lee of Alabama, Jo-
seph H. McLaurin of Florida, l.. M.
Hooper of Alabama, F. E. Hashagen of
North Carolina. @. w. Bartleson of Flor
ida, Robert Moore of Alabama, Thomas
c. Davis of Arkansas, B. B. Earnshaw
of the District of Columbia, c. c.. Guest
of Georgia, F. II. Scovell of Louisiana,
w. T. Reeves of Mississippi, r. A. Nor
row of North Carolina. J. H. c. Wulbern
OF South Carolina, j. d. Faucette of Ten
nessee, w. A.; Scott of Virginia and James
w. Lee of Alabama. A number of these
persons are officers or members of the
advisory board of the Southern Whole
sale Grocers' association.
In addition to the decree of dissolution.
the court is asked perpetually to restrain
the defendants from doing any act in
pursuance of or for the purpose of carry
Ing out such combination and conspiracy
complained of.