The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1911-06-01
WICKERSHAM STARTS NEW LEGAL
WAR AGAINST TRUSTS, UNDER
THE STANDARD OIL DECISION


Federal antitrust proceedings brought
under the Sherman law, as interpret
ed in the Standard Oil decision, the
department of justice filed in the
United States Court here today a suit
against constituent organizations of
what is popularity known as the "lum-
Der trust" alleging the existence Of
a widespread conspiracy 'unreasona-
bly, to restrain the lumber trade in
this country.
Ten trade organizations and more
than $50 individuals are named as de-
PENDANTS. 1t alleges violations of the
Sherman antitrust law and seeks a
permanent injunction restraining the
defendants from continuing the con-
spiracy charged.
1t is said the suit may be the first Of
a series planned by Attorney-General
Wickersham, looking to the breaking
up of alleged agreements between the
retailers of commodities to maintain
high prices; to force all ultimate con-
sumers to buy from retailers and to
blacklist wholesalers who sell to 9th
ers than members of the retail organ-
izations.
The elaborate system of blacklisting
attributed to the alleged lumber con-
splrators, copies of circulars sent out
by the organization, classifying con-
sumers as proper" and Improper"
extracts from reports threatening
"short shrift" to dealers daring to vic.
late the rules of the organization, and
branding such officers as "poachers,"
''scalpers," mavericks" and "illegiu-
mates" are fully set forth in the
governments petition.
1t lis alleged that not only private
consumers have been blacklisted, but
that many great industrial concerns
have been put under the ban by the
lumber dealers. The government bill,
aggregating 10000 words, is replete
with sensational allegations and in
teresting exhibits.
Trial National in Extent.
The suit is directed specifically
against retail organizations in the
Eastern States, but the trial will en-
brace methods adopted by retailers
and wholesalers throughout the Unit
ed States.
Although. the lawyers in charge OF
the case believe the Standard Oil de-
cisien involving reasonable" or "un-
reasonable" restraint will not affect
the lumber case, as it is represented
to be one of simple conspiracy, never
theless, the accusatory parts of the
bill conform to that decision and
charge undue" and unreasonable"
restraint of the lumber trade.
Lesser stress is laid on the alleged
conspiracy between the defendants
themselves. In general the case is re-
parded as Attorney-General Wicker
sham's long-planned test suit to have
the courts determine how far comDln-
ations of retailers may go to prevent
the ultimate consumer from dealing
directly with the wholesaler or pro
Queer
The government takes the position
that any agreements or acts Whlch
prevent consumer from buying where
he chooses or to his best advantage
are in unreasonable" restraint Of
trade and violate the Sherman law.
No attack on the middle man, as such'
is intended, the department of justice
holding that there is legitimate OPP
portunity for him.
II is known that while the depart
ment has been making NATIONWIDE
investigation, it's agents have reported
that the case is nearly paralleled IN
the marketing of many other commodl-
ties. If the governments contentious
are sustained, there is promise OF
sweeping attack upon some alleseu
conspiracles.
Acknowledgement Wickersham per-
sonally directed the gathering OF the
evidence, which has occupied more
than a year. His special assistant
Clark McKercher, who has been IN
active charge of the preparation OF
the case, fled the bill today which
also was signed by Henry Wise, Unit
ed States District Attorney at New
York; James A. Fowler, assistant 20
the encouragement, and Felix Frank
furter, assistant United States attor-
ney.
In its bill the government alleges;
That the retailers have conspired
among themselves to prevent manu-