Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-05-19
Gigantic Conspiracy to
Maintain Prices is
Alleged.
ARE MANY DEFENDANTS
Elaborate System of Blacklist
ing to Enforce Rules of
Organization.

New York, May 19. - Sweeping
charges of a gigantic conspiracy to
maintain high prices. blacklist concerns
not regarded as proper" and TO vio-
late generally the Sherman antitrust
law, are made in a government suit
fled by Attorney General Wickersham
in the United States court here today
against the so-called lumber trusts.
Trade organizations and more than
a50 individuals are named as defend
ants in this suit. which may be the
first Of several planned by the depart
ment of justice against combinations.
of retailers in staple commodities and
necessaries of life to prevent the ulti-
mate consumer from buying anywhere
except from local retailers.
FULL OF SENSATIONS.
The governments suit is replete with
sensational allegations, and it is as
serted builders and consumers of lum-
ber the country over are at the mercy
of the retailers organisations in differ
ent sections of the United States. The
suit filed today is against the Eastern
State Retail Lumber Dealers associa-
ton.
CONFORMS to DECISION.
New York, May 19.-This is the gov
ernment's first antitrust suit conform
ing to the supreme courts Standard
Oil decision. in that it alleges undue
and unreasonable" restraint of trade
OF consumer and manufacturer. 1t is
evidently the purpose of the plea TO
conf1ne the charge largely to that feat
ure, sn1zffst6s ss befng placed snpoh re- Z
straint Of trade among the conspira7
tors themselves.
LONG GATHERING EVIDENCE.
Wickersham and his special assist
ants were more than a year gathering
the evidence on which today's suit is
based. This evidence includes copies
of alleged agreements. blacklists and
reports of various organizations brand
ing wholesalers and retailers who have
dared TO violate the rules of the asso-
Citations as "poachers, mavericks,
"scalpers" and "illegitimate dealers"
TO whom short shifts" must be ap-
piled.
SYSTEM OF BLACKLIST.
The government charges, in brief,
that by an elaborate system of blaok
listing, not only individual consumers,
but some of the largest industrial cor
porations have been prevented from
dealing directly with the wholesalers.
BY alleged unlawful agreements and
acts 1t is charged all competition for
the trade of the contractor, builder,
manufacturer of finished lumber pro-
ducts and the individual consumer has
been thrown into the hands of the re-
tailers in the Eastern States Retail
Lumber Dealers association and its
constituent organizations. The govern
ment's bill alleges that in some locali-
ties the wholesaler selling 10 a con-
sumer has either been heavily fined or
expelled from the organization.
MOST IMPORTANT YET.
Officials of the department Of justice {
regard the suit as the most important
in principle of any yet undertaken by 4
the government against the alleged /
Conspiracies said TO affect the cost of I
living.
II is believed that. should the courts /
uphold the governments contention I
that it is violation of the Sherman I
antitrust law TO prevent the ultimate /
consumer from buying direct from the
producer. other suits viii be started
against the cor Ainations Of retailers
alleged TO be in control of the market
ing of many commodities of life.
The government asks for a perma-
nenu injunction restraining the defend
ants from continuing the conspiracy
charged