The Birmingham age-herald., 1911-05-20


 New York, May 19-In the first federal antitrust proceedings brought under the Shssman law as interpreted by the stan dsSd oil decision, the department of jus tice filed suit in the federal court here to- day against various constituent organiza- tions of what is popularly known as the "Lumbert Trust" alleging the existence of a widespread conspiracy, "unreason- ably, to restrain the lumber trade in this country.
 It is said the suit may be the first of a series planned by Attorney General Wickersham looking to the breaking up of alleged agreements among the retailers of many of the commodities of life to maintain higher prices, to force all ulti- mate consumers to buy from retailers and to blacklist wholesalers who sell to others than members of the retail organ izations in the various states and cities.
 Ten trade organizations and more than 150 individuals are named as defendants in today's suit. It alleges violation of the Sherman antitrust law and seeks d permanent injunction restraining the de- fendants from continuing the conspiracy charged.
 The elaborate system of blacklisting at tributed to the alleged conspirators, copies of circulars sent out by the various or ganizations classifying consumers as proper and improper trade, extracts from reports threatening short shrift' to dealers daring to violate the rules of the organizations and branding such of lenders as ''poachers," ''scalpers, 'mav- ericks and "illegitimates' are fully set forth in the governments petition.
 It is alleged that not only have private consumers been blackisted but many of the great indtIstrial concerns of the coun- try have been put under the ban by the lumber dealers. The governments bill, aggregating 2o.o0o words, is replete with sensational allegations and interesting ex- hibits.
 Case Embraces Entire Country
 The suit is directed specifically against retail organizations 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- yoiving 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 opinion and charge undue and unreasonable l restraint of the trade of the consumer and manufacturer of lumber. Lesser stress is laid upon the alleged conspiracy between the defendants themselves In general the case is regarded as Attorney General Wickersham's long planned test suit to have the courts determine how far combinations of retailers may go to pre- vent the ultimate consumer from dealing z 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 "unreas- enable" restraint of trade, and violate the Sherman law. No attack on the mid dlenan as such is intended the depart nent of justice holding that there is legit- innate opportunity for him.
 1t Is known that while the department has been making nationwide investiga- ton of the question as 1t relates to url- Der, its agents have reported that the case is nearly paraleled In the marketing of many other commodities in daily use. If
 
 are sustained there is promise of sweep ing attacks on similar alleged conspira- cies. The department of justice regards the case the most important in principle of all the antitrust suits undertaken.
 Attorney General Wic1ersham personal 1y directed the gathering of the evidence which has occupied more than year His . special assistant. Clark McKercher, who has been in active charge of the prepara- tion of the case filed the bill today, which was also signed by Henry A. Wise, United States district attorney at New York; James A. Fowler. assistant to the At toriey General, and Felix Frankfurter, as- sistant United States attorney.
 Principal Defendants
 The principal defendants in the suit are:
 The Eastern States Retail Lumber Dealers association, New York cor poration the central body of the nine other defendant organiza tions, it off cers, directors and 25 individual mem bers.
 The New York Lumber Trade asso- citation, it's officers and 32 trustees
 The Building Material Mems asso- citation of West Chester county, New York, It's officers and six directors
 The Lumber Dealers association of :. Connecticut, its officers and 12 di rectors.
 ile NdSSdCHuScltS RttdA iCedlcIS dS- sociation H. w. Sears, Middleboro, Mass, its officers and eight directors
 The Lumber Dealers association of Rhode Island, It's officers and seven di- rectors.
 George A. Shock of Asbury Park, N J., A. K. Bennett, J. F. Glasby and James M. Reilly, all of Newark, N J., the officers of the New Jersey Lum- bermans Protective association, a vol untary association and 22 members. William c. Mcbride, Fischer Dal- Yymple and Charles F. Maule of Phil adelphia officers of the Retail Lum- bermans association of Philadelphia a voluntary organization and 12 di- rectors.
 William T. Gallaher, w. A. Church. George p. Walker, Lee l.. Terrell of Washington, D. C., officers of the Lum- Der Exchange of the District of Co., lumbia, voluntary organization. and Thomas w. Smith, John w. Tolson and Samuel Ross it's directors.
 Briefly, in its bill. the government alleges:
 .That the retailers have conspired | ! <coNuuNuImn ON pAaE QN