The Topeka state journal., 1911-09-01
LUMBER TRUST IS SUED.
Government Charges Conspiracy and
Asks for an Injunction.

Detroit. Sept 1-Charging conspir-
acy to restrain interstate trade and
CONNIE cree in lumber and its products,
United States District Attorney Frank
Watson has filed bill in United
States circuit court to enjoin the
Michigan Retail Lumber Dealers
association the Scout Publishing COM
pany of this city and the Lumber Sec
retaries' Bureau of Informationn of
Chicago from further alleged unlawful
| business methods
It is alleged that members of the
retailers association endeavor to pro-
hibit manufacturers or jobberS from
shipping to competitors who are nom
members of the organization A manu-
faeturer shipping to competing deal
ers is subject to a fine of 10 per cent
of the value of the sale, it is charged; ;
and, if the manufacturer refuses to
pay the penalty, the organized retail
ers are informe ed of it.
In case any association member con-
tinues dealing with the manufacturer
following notification that he has re-
fused to pay his penalty, the member
is subject to expulsion from the body.
The Scout Publishing company is
sues The Scout, a lumber trade jour
nal 1t is charged that from time to
time editorials were published advo-
eating the principle of the retailers
dealing only with manufacturers or
jobbers who observed the ethics of the
retailers organization. The govern
ment also asserts that The Scout pub
lished the names of the shippers who
engaged in interstate commerce and
trade in a manner alleged to be in
violation of the rules of the Retail
Dealers association, thereby answer
ing all purposes of a black list for the
defendant organization
When a manufacturer or jobber
failed to abide by the rules of the de-
fendant organization, it is alleged the
secretary of the association would
complain to the Lumber Secretaries
Bureau of Information and the latter
would in turn give notice to the sew
eraI lumber dealers associations
which the district attorney holds to be
in restraint of trade. The Secretaries
Bureau of Information is also said to
have kept The Scout informed of any
violation of the rules of the retail deal
ers.
According to the governments bill.
the organized dealers do not object to
the shipment of lumber to railroads or
to transportation companies or of sash,
doors and blinds to hardware mer-
chants who might keep regular stock
of such goods, provided the material
is sold in not less than carload lots.
The classes of competitors said to be
most specifically opposed are mail or
der houses and farmers cooperative
societies.
The government names the follow
ing Individual defendants in the suit:
Edward E. Hartwick of Detroit.
president of the Michigan Retail
Lumber Dealers association; Arthur
L. Holmes of Detroit, vice president of
the retailers association, member of
the Lumbe Secretaries Bureau of IN
formation and publisher of The Scout;
George P. Sweet, Grand Rapids, secre-
tary and treasurer of the retailers as
sociation and member lumber secre-
taries, and the following directors of
the retailers organization: J. J. Com
erford, Detroit; A. ]. Kraft, Battle
Creek; H. w. Rikerd, Lansing; John
Wood. Grand Rapids; F. D. jerks,
Port Huron, and c. A. Pollock, Cold
water.