The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-16
ACTION
c ELIMINATION OF
CLABAUGH FIGHT
Single Handed Struggle of Biz
mingham Man of Nation
al Interest
HISTORY OF FAMOUS
CONTENTION REVIEWED
Testimony of Clabnugh Before Con-
gressionaI Committee Investigating
Cost of Living Basis of Pray
err for Dissolution
by CHARLES FELL

BY CHARLES FELL
The petition for an injunction, filed In
tho United States court yesterday, where
by it is sought to bring about the disso-
luton of the Southern Wholesale Grocers
association, which now has headquarters
at Memphis, is generally considered to
be the direct outcome of the fight which
has been persstently waged upon the
association by Hinton G. Clabaugh foe
more than two years.
During the latter part of April Mr..
Clabaugh spent several days in Wash
ington and during that time he appeared
before the subcommittee which was then
investigating the causes of high prices
prevailing on various commodities. Mr..
Ciabaugh's evidence, according to reports
from washington, created something of
a sensation, and it was stated al that
time that federal investigation of the
Southern Wholesale Grocers' association
would probably ensue.
The petition filed in the United States
court yesterday was placed in the rec
ords of the court by United States Dis
trict Attorney Oscar D. Street on in
ersham of Washington. hence it is pre-
sumed that Mr.. Clabaugh's latest trip to
Washington is the cause of the new turn
in the fight upon the wholesale grocers
whereby the affair is placed in the hands
of the federal authorities.
AS stated, Mr.. Clabaugh's fight upon
the Southern Wholesale Grocers' asso-
ciatio dates back more than two years.
and it has been, perhaps, the most We
hement and persistent ever waged in this
country by a single man. The attack
upon the wholesale grocers attracted at
tention from all parts of the nationl, al
though southern grocers were the most
vitality interested.
Files Suit Against VanHoOse
During the early part of 1907 Mr.. Cla-
baugh and associates embarked in the
wholesale grocery business, the firm be-
ing known as Clabaugh, Walters & Grove.
| Later Mr.. Walters and Mr. Grove with
drew and Mr.. Clabaugh took charge. of
the business and conducted 1t alone for
several months. He eventually filed Pc
tition in BANKRUPTCY, and a little later
came the suit against James A. Van
| Hoose, as president of the Southern
| Wholesale Grocers' association. Mr..
EanHoose was succeeded as president Of
the association by Mr.. Phillips of Mem
phis at the Little Rock meeting Of the
organization. Joseph H. McLaurin Of
Florida is now president
The famous Clabaugh- VanHoose case,
it will be recalled, was settled by the
circuit court for $4,000, the terms be
ing reached by agreement. This COM
promise verdict was rendered on January
81, 1909, although. for reasons best known
to the parties involved, the announce
ment of a settlement of the case was
withheld from the public for several
months.
The suit against the Southern Whole
sale Grocers association proved to be
perhaps the most sensational and the most
generally interesting civil case ever tried
In the courts of Jefferson county. The
case against Mr. VanHoose, as president
of the association, was heard by Judge
A. o. Lane, in the circuit court.
The announcement of the settlement
of the suit by agreement came as news
of interest throughout the United States
especially among the grocers, as the at
tcntion of this class of business men
had been closely fixed upon the progress
of the litigation from its incipiency.
The original suit In the state courts
was for $4,000, Mr.. Clabaugh averring
that he had sustained damages to that
amount. He alleged in his bill of COM
plant that he was forced out of the
wholesale grocery business through the
interference Of the Southern Wholesale
Grocers' association. He further averred
that the association was a trust or COM
bine which fixed and maintained prices
upon the necessities of life, in violation
of the Sherman antitrust act and in
violation of certain Alabama acts OF
similar nature. He charged also that
members of the association refused to
sell him goods necessary to carry on his
business, thereby forcing him out of the
field.
Case Goes to Trial
The case was a long time going to trial,
but during the latter part of 1908, after
having been twice continued. 1t was call
ed, and for several weeks there proceed
ed one of the sharpest legal battles ever
waged in the Jefferson county coudts.
The shrewdest counsel was employed by
both the defendant and the plaintiff and
for weeks and weeks they wrestled with
the case. A great mass OF evidence, writ
ten and oral was presented. Such vast
amount of testimony was probably never
before called for in single case tried in
the local courts, the estimates OF the
court stenographers running into the mil
lions of words. Many letters and other
laid before the trial jury and, by way of
the agitation against high prices which
INN ediately preceded the case, many peo-
pie were attracted to the courtroom dali
| ly. Inquiries were received from all parts
OF the country regarding the case during
the trial.
After many days the case was eventu-
ally submitted to the jury After delib-
Grating for more than As hours the jury
finally reported that it was unable to
agree upon verdict, and mistrial was
declared The case was tried with II ju-
rors by agreement
After the jury had been discharged 10
members signed a statement explaining
the report to the court. 1t was stated that
that a number of the jurors had agreed
to award 900 damages. the full amount
sued for by Mr.. Clabaugh. Others thought
this too much, but 10 members of the pam
ell finally agreed upon verdict of $780,
O0O The eleventh man, however, held out
on the contention that If Mr. VanHoose
was being sued in representation of the
association, and that If he was person
ally responsible for the payment OF the
verdict returned by the jury. he would
not consent to verdict of 100000
larry Tssues Statement