Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1911-05-20
Department Of Justice Alleges Conspiracy
to "Unreasonably' Restrain Trade
ELABORATE BLACKLISTING SYSTEM
Alleged Combination of Retailers Furnished Lists
"Proper" Persons to Deal With-Eastern States Re-
tail Lumber Dealers Association and Nine Affiliated
Companies Named as Defendants.

er, mail order house. farmers CO. op-
erative union or the city who buys a
pine board to repair his woodshed).
Consumers Forced to Buy of Retailers
That hundreds of consumers. some
of them the largest industrial COR
porations I'm the country, have been
compelled by alleged unlawful agree
ments to buy lumber from retailers at
much greater prices than they would
have paid to wholesalers. But the
SAYS. has never, been blacklisted in
that class.
Classification of Consumers.
? The wholesalers and retailers in
joint convention by agreements have
classified the consumers proper
and improper trade and have pre-
pared and exchanged blacklists
BIackIists Circulated.
That although the National Whole
sale Dealers association is not named
as a defendant in this action, by
agreement with it the Eastern States
Retail Lumber Dealers association
has organized and circulated black
lists which have affected the lumber
trade.
"Poaehers" and "ScaIpers"
d.
lists wholesalers have been directed
not to sell lumber to retail dealers
who have delt with consumers in
wholesale quantities and that whole
salers who have delt with consumers
in retail quantities have been pro
tested" to the organized retailers who
were directed by their organization not
to buy lumber from such wholesalers
That retailers who have sold lumber
in wholesale lots or who have COM
peted for business outside their allot-
ted territory have been posted to the
traders as "poachers'' or -scalpers,"
and in some instances have been heav-
ily fined or expelled from the organ
izaticn.
Wholesalers Deprived of Trade.
The result of this Illegal operation"
says the governments bill, has been
to close the door of the wholesale -eald
er and manufacturer to the consumer
In all parts of the United States and
to deprive the wholesaler of the trade
OF 2 consumer in territory covered
by retailer except through the medi-
um of the retail trade"
Association Organized in 1902.
The Eastern Staes' association was
organized in 1902. when the retail or
mentioned became constituent mem
bers.
The Boston Agreement
The government charges that the re-
tailers had before that time, however
arranged with the National WhoIesal-
ers' association to classify the trade
and the so-called Boston agreement
was made, resulting in the bylaws Of
the National Wholesale Lumber Deal
ers' association being changed to con-
tain the following provision:
Whenever 1T shall be determined
that any person or firm or corporation
is not a legitimate customer for the
wholesale trade, according to the prin-
ciples recognized by this association
as best conserving the lumber busi-
ness, the members shall not thereafter
sell to such person, firm or corpora
ton"
Provision Subsequently Modified.
The government alleges that at sub
sequent meetings at Baltimore and
Pittsburg this was modified to admit
arbitration of disputes as too classifi-
cation, but that it's tenor and effect
always remained teh same.
In March, 1906, the government cites
there was a. convention of wholesal-
ers at Washington, at which it is al
legged an important report was present
ed. OF this report the following is
quoted in the governments bill:
"A Maverick, Roaming at Large"
I'VE are al in favor of high prices
and fixed high prices. We should fix
the status of 'poacher' Ga retailer
who competed for business in the ter
ritory of another) and keep it fixed
His pace should be with the scalper'
"a retailer who sells at wholesale
prices) and the illegitimate dealer.
werever he may be found The mar
rowness of such a view will be pointed
out, and the most mean and acrimon-
ious cry against it will come from the
operator who is selling wherever he
can and to whoever he pleases, seem
1ngly without reason and always with
out care as to custom or channel for
distribution. He is a maverick roam
ing at VIII over our land, drinking of
the clearest stream and feeding in the
best pastures. He must be caught
and branded. No association should
permit him membership and no indi-
vidual should at any time or under any
condition permit trading with him,
neither buying nor selling, and, simple
as the process may seem. you may de-
pend upon it, If applied his will be
short shift
Three Bureaus of Inform alton.
The bill then alleges that among the
organization with which the retailers
and wholesalers are in touch to pre-
vent selling direct to the consumers
are the Lumber Secretaries bureau of
tional Lumber Manufacturers associa-
ton, ST Louis, and the Lumber Credit
agency, Chicago. None of these is a
defendant.
Blacklist Distributed to Members. .
The bill further alleges that names
for blacklists have been gathered by
individual members of the association
concentrated at the headquarters of
the Eastern States Retail Lumber
Dealers association, No. IS Broadway,
New York CITY, and distributed to
members under the titles of State
ment to Members" and ''Oficial Re
mort" 1t is alleged that the bIacklists
have been discussed and approved in
the executive sessions OF the associa-
ton.
One of the Queries Sent Out.
Another is a sample of queries al
legged to have been sent out regarding
prospective customers. 1t reads:
Kindly advise us in strict conf
dence, for the use OF this bureau. what
you know of the moral standing, finan-
cial responsibility and business meth
DDS of ---(blank). The source of this
Information will not be disclosed"
Answers to such queries, the gov
ernment alleges, seldom concerned the
financial or business responsibility of
the party inquired OF. but invariably
indicated if he were '.prOper't or i'm