The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1911-02-05
MAY Be COMPROMISE.
IN GROCERs CASE
Association May Be Dissolved
Voluntarily
WOULD END LITIGATION
Stated Nv Local Federal Authorities
Tint Governments Delay In Start
ing Case Indicates Compro-
mise VIII BE Reached

The United states authorities ana lne
Southern Wholesale Grocers associa-
ton are conducting negotiations look
ing to compromise of the dissolu-
ton petition filed several months ago
In the federal court. according to the
general impression among the people
interested in the litigation.
It is stated that the dissolution suit,
which was directed against the associ-
alton, charging illegal restraint of
trade, will be ended provided the
grocers' association and the depart
ment of justice officers come to an
understanding.
The ground for the rumors which have
been heard frequent here is the long
delay which has featured the case since
Assistant Attorney General o. E. Har-
rison filed request that the case be
expedited or given precedence over all
other litigation. The most restless
spirit seemed at that time to charac-
terize the officials of the department
of justice, but since that action not
one step has been taken SO far as any
record goes.
1t is stated without hesitation In
the federal building that the govern
ment's delay in getting the case start
ed indicates only one thing, and that
is that the case will be compromised.
Dissolved of Own Accord
The method to be pursued seems to
be that the grocers will dissolve OF
their own accord and cease doing bus
mess under the present charter. If that
step is taken 1t Is said the entire pur-
pose of the federal action will be ac-
complished, for the government only
requested the dissolution of the asso-
citation at the hands of the federal
courts. 1t is stated If the grocers agree
to dissolve as directed in the petition
of the government there will be no
need of long drawn out litigation.
It is known positively in Birming-
ham that the grocers' attorneys, Gen.
Luke e. Wright and Carruthers Ewing OF
Memphis, would agree to the dissolu-
ton of the association If such would
end the case. The attorneys, while In
Birmingham defending the association
against Hinton G. Clabaugh, stated
without any hesitation that II the as
ISOLATION was illegal as charged by
the United States, 1t was not known
to the officers. and that II a disso-
luton would satisfy the department of
Justice the attorneys would agree to
dissolve the association. and re-organ-
ize under another charter in some other
state. +,
This attitude of the grocers attor-
neys was made known to the depart
ment of justice attorneys and 1t is
expected that the voluntary action will
eventually be accepted by the United
States.
In the petition filed here several
months ago, the government charged
combination operating in restraint of
trade and in violation of the Sherman
antitrust laws. The government did
not at that time ask any criminal &C
ton and 1t is stated none would re-
suit if the case was victory for the
government. However, 1t was stated
here by Assistant Attorney General
Harrison that perhaps action on GRIM
inal line would be taken IL the as
ISOLATION was dissolved.
BY reason of the fact that the civil
and criminal nature of the government
action has not assumed definite form
since the actual petition was filed, 1t
is rather to be expected that the I'M
explained delay In the famous case
will result in 1t being stricken from
the docket without any expensive
work being performed.
Omcials Are silent
The department of justice officials In
Birmingham will not comment upon the
non-activity of the government in the gro
GERS case, and none of them will admit
the possibility of compromise Neverthe-
less, the opinion is general that COM
promise will finally end the case.
1t is stated that one of the develop
ments which has caused the government
to cease the plea for expedition was the
result of the Clabaugh federal case, which
was victorious for the grocers, and the
Florida cases, wherein only a fine of 81
was assessed against the defendants.
The cases were tried before federal
judges and 1t Is said If the government
case could have been made out in them
the local dissolution case would have re-
ceived attention before this time.
o. D. Street, district attorney for the
United States in Birmingham, said here
few days ago that no new Develop
ments had taken place in the srit. but
the reason for the delay in getting into
action was the employment of Assistant
Attorney General Harrison on some coal
rebate cases in Ohio However. 1t Is
stated that no movement Is likely to
be made soon in the appointment Of an
examiner to take the testimony, and that
any move soon.
While in Birmingham on other business
short time ago, the attorneys for the
grocers' association. Gen. Luke e. Wright
and Caruthers Ewing, both stated that
they would agree to dissolve the associa-
ton If the government would agree to 1t.
In speaking of this yesterday Judge VIII
liam 1. Grubb said: p
Judge Grubb Discusses Matter
II cannot account for the delay In the
grocers' case and have no information
about a compromise of that litigation.
However, If General Wright and Mr.. Ew-
ing would dissolve the association, as
they said would be done, it seems to me
it would accomplish the entire result con-
templated by the petition filed.
1.-THE petition does not pray for any
criminal action against the members OF
the association, and only requests the
dissolution of the association along clear
ly defined grounds. II the demands Of