Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-05-20
METHODS OF TRUST
allegations in Governments
Bill Against Lumbermen.
BLACKLIST AS A WEAPON
Declared to Have Been Used to Pre-
vent Price Cutting.
SAID TO BE COMMON PLAN
Like Methods Reported to Be Fol-
lowed in the Distribution of
Other Commodities.

y EN- 1oRk. May 2D-The suit brought
by the United States Department of JUS
ticc against the alleged lumber trust was
the overshadowing topic of couversat ton
today in every circle of business. The
suit is directed specifically against retail
organizat tons in the eastern states, but
the trial unquestionably will embrace
methods adopted by retailers and whole
salers throughout the United States.
Although the lawyers in charge Of the
case believe the Standard OIL decision in
volving reasonable" or unreasonable
restraint" will not affect the lumber case
as it is represented to be one of simple
conspiracy, nevertheless the accusatory
parts of the bill conform to that decision
and charge undue and unreasonable
restraint of the trade of the consumer
hnd manufacturer of lumber. Lesser
stress is laid upon the alleged conspiracy
between the defendants themselves.
Test Long Planned.
In general the case is regarded as At
torney General Understands long
planned test suit to have the courts de-
termine how far combinations of retail
ers may go to prevent the ultimate con-
suiner from dealing directly with the
wholesaler or producer.
The government takes the position that
any agreements or acts which prevent a
consumer from buying where he chooses
or to his best advantage are in 'unrea-
sonable" restraint of trade and violate
the Sherman law No attack ON the mid
dlernan as such is intended. the Depart
ment of Justice holding that there is le-
III,
1t is known that while the department
has been making d nationwide investiga-
ton OF the question as ii relates to lum-
Der. its agents have reported that the
case is nearly paraileled in the market
ing of many other commodities in dafy
use If the governments contentious IN
this case are sustained there is prom
Use of a sweeping attack upon similar al
legged conspiracies.
Of Highest Importance.
The Department of Justice regards the
case as the most important in principle of
all the antitrust suits undertaken. At
torney General Wickersham personally
directed the gathering of the evidence.
which has occupied more than year.
His special assistant, Clarke Mckercher.
who has been in active charge of the
preparation of the ca-.. filed the bill,
Wnlcn was also signed Dy fIPnry "A. w Use,
United states district gtotrney at New
York; James A. Fowler. assistant to the
Attorney General, and Felix Frankfurter,
assistant United States attorney
Local Men Defendants.
The defendants in the suit are:
William T. Galllher. W. A. II. Church,
George T.. Walker. Lee l.. Herrell of
Washington officers of the Lumber Ex-
change of the District of Columbia, q
voluntary organization. and Thomas W.
Smith, John w. Tolson and Samuel Ross,
its directors.
Briefly, in its bill. the government al
leges:
That the retailers have conspired among
themselves to prevent manufacturers and
wholesalers from selling lumber direct to
the consumer. consumer for these pur-
poses is held to be contracting builder,
mail order house. farmers cooperative
union, or. the citizen who buys a pine
board to repair his woOdshed
That hundreds of consumers. including
the largest industrial corporations in the
country, have been compelled by alleged
unla wful agreements to buy lumber from
retailers at much higher prices than they
would have paid to wholesalers.
Uncle Sam Not Blacklisted.
The United States government, how
ever. the bill says, has never been black
listed in that class.
That wholesalers and retailers, i'm joint
conventions and by agreements, have
classified consumers into proper and
improper" trade and have prepared and
exchanged blacklists.
That. although the National Wholesale
Lumber Dealers AssoCia ton is not
named as a defendant. by agreements
with it. the Eastern States Association
has organized and circulated blacklists
which have affected the lumber trade In
New York. North Carolina. Kentucky.
Pennsylvania, Maryland, Michigan, West
Virginia, Massachusetts,, Tennessee, South
Carolina, Virginia, New Jersey, Illinois.
Indiana, Florida. Georgia. Missouri. Ala
bama. Rhode Island. California, MissiS-
sippi. the District of Columbia, the Ca
madam provinces OF Quebec, Ontario,
Nova Scotia and British. Columbia.
Results of Blacklisting
That as a result of the alleged black
lists wholesalers have been directed not
to sell lumber to retail dealers who have
dealt with consumers in wholesale qua n
titles and that in the case Of wholesalers
who have dealt with consumers in re-
tail quantities the organized retailers
were directed not 10 Duy IumDer from
them.
That retailers who have sold wholesale
lots or have competed outside their al
lotted territory have been posted to the
traders as "pOachers or "scaiperS" and
in some instances have been heavily fined
or expelled.
The result of this illegal operation"
says the governments bill, has been to
close the door of the wholesale dealer
and manufacturer to the consumer in all
parts Of the United States. and to de-
prive the wholesaler Of the trade of a
consumer in territory covered by re-
taller, except through the medium OF the
retail yard.
The Eastern States Association was
organized In 100. when retail organiza-
tons then existing in the states mention
ed became constituent members.
Had Earlier Agreement.
The government charges that the retail
ers before that time, however, had ar