Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-16
PUSH GROCERY. SUIT
Government to Press Case
Against Southern Association.
UNDER ANTITRUST LAW
Regarded as Practical Step Toward
Reducing Cost of Living.
SAID TO CONTROL FOOD PRICES
Washington Wholesalers Members
of Big Organization Under Fire
of Department of Justice.
UNDER ANTITRUST LAW
SAID TO CONTROL FOOD PRICES

The Department of Justice believes
ern Wholesale Grocers' Association and
various members of the association
under the Sherman antitrust law it
has taken a practical step toward the
reduction in the high cost of living.
and ii was said at the department to-
day that every effort would be made to
bring the suit to a speedy trial
Every wholesale grocer in Washing
ton. it was said this morning by
grocer is a member of the local asso-
citation. which is in turn a branch of
the Southern Wholesale Grocers' Asso-
citation, and all the grocers / o~e pay
dues as members of the southern $50
citation. The suit. therefore is of great
interest not only to the grocers of
Washington, but also to the consumers
here if. as the Department of Justice
alleges. a victory on the part of the
government may result in the reduction
of the prices of groceries to the con-
sumers.
The suit was filed yesterday In Birmng-
ham, Ala, by Oliver ID. Street, United
States attorney for the northern district
of Alabama II was explained at the
department today that Birmingham was
selected because it was in a way the
center of operations of the Southern
Wholesale Grocers' Association. The de-
PENDANTS in the suit have until the first
Monday i'm August to file answer to the
government and TO demurr. But the gov
ernment expects that the case will be
referred to a master to hear testimony,
and that the taking of testimony Will
be well under way before the middle of
August. When this testimony has been
taken report will be made to the court.
which Will take action in the matter.
About Five Hundred Members.
The Southern Wholesale Grocers' Asso-
citation is composed of all the wholesale
grocers doing business In Alabama, Ar
kansas. Florida. Georgia, Kentucky,
Louisiana, Mississippi, North Carolina,
South Carolina. Tennessee. Texas. vir
ginia and the District of Columbia, ac-
cording to the Department of Justice.
While II cannot state the exact number
of members of the association, the de-
partment believes that II is not less than
500
In its general allegation Of conspiracy
in restraint of trade the government de-
clares that the Southern Wholesale
GrOcers Association and its members
have conspired to prevent manufacturers
and producers from selling actual neces-
earles of life direct to the retailer or
consumer, or to any wholesale dealer who
is not member of the association or
listed in the so-called green book" pub
lished by the association.
The government also accuses the assO-
citation of fixing prices at which COM
modities may be sold and of preventing
producers from selling to any wholesale
grocer who does not maintain the prices
so fixed.
The government also accuses the asso-
citation of combining to coerce manufac-
turers and producers to bill their goods
at prices higher than they had been
previously. Part of this increase, it is
said. is rebated quarterly to the president
of the association. and in turn paid to
jobbers. who during the quarter have
maintained the limited selling price.
Organized in 1892.
The Southern Wholesale Grocers' Asso-
citation. according to the petition of the
government. was organized about 1892 by
persons and firms doing a wholesale
grocery business in the southern states
AT the annual meetings of the association
committees were appointed to fix the
prices of the various commodities
These committees also arranged the
terms upon which the rebates should be
made to the jobbers and recommended
that producers should not sell TO whole
green book. The government claims also
that wholesale grocers who were given
the benefit of being included in the green
book were compelled to swear to main
tain the prices set by the association
The Department of Justice has been
looking into the activities of the Whole
sale Grocers Association for some time
The facts brought out at the congression-
al investigation into the high cost of
living this year also aided in bringing the
government to the conclusion to institute
suit against the association.