The Hawaiian gazette., 1911-03-31
LUMBER TRUST GASE
ENDS IN FAVOR OF
THE Defendants

THE DEFENDANTS
After years Of waiting the lumber
trust case was finally disposed of yes
terday by Judge Dole, who handed
down a decision in favor of the de.
PENDANTS. E
In making his decision, Judge Dole
said:
Failure 70 Prove.
''The petition must be denied, the
evidence having failed to prove the all
legations or any OF them which might,
if established, show a violation of the
act. In the normal course of business
by competing companies, especially
where all deal in certain commodities
on a large scale, their prices naturally
tend toward an equilibrium, which may
at times be disturbed by the action Of
one of such companies in lowering it's
prices in order to obtain what it may
consider as its share Of the trade, or
perhaps more than its share. In such
case the Influences Of feompetition
tend to restore sneh equilibrium, either
by the action of the other competing
companies in lowering their prices to
meet the cut, or holding them, being
able to do SO without loss of trade, in
which case, the company which has
lowered its prices may either return to
the prices of it's competitors. or may
continue to compete with them upon
the lower basis, the tendency being
that either the former course will be
adopted or the other companies will
follow its lead.
Natural Condition.
''This equilibrium of prices, with
occasional disturbances thereof, is the
natural condition of trade under free
competition, and there is no element of
illegality IN it, whether it is reached
by suspicious watchfulness of each
other IS dealings by the competing COM
panies, or by friendly exchange of
information and views as to the state
of the market, with an expectation,
more or less definite, that they will all
approximate to the same standards.
The element of illegality only exists
where there is an agreement or under
standing that they will stand together
in fixing the prices of commodities
with the object of controlling prices
bhC UdoAAOSSs duA
such agreement or understanding is in
some way made or intended to be bind
ing.
No Binding Quality.
''This analysis fairly gives the rela-
tions of the defendants to each other
There was no binding quality in the
mutual expectation of the defendants,
if there was such an expectation, that
: h ,tI ~
fixing prices of lumber, nor was there
any intention that there should be such
binding effect. They were all free to
conduct their respective operations as
they pleased. The price lists severally
adopted by them were convenient mere
lily as basis of dealing with custom
ers, and all of the defendants freely
competed with each other in their sales
of lumber, in the way of discounts on
the price lists and in other ways as
well. e9tteSo
Statute Not violated.
tThere is no feature in the arrange
ment between tine American Hawaiian
Steamship Company and the defendants
which develops violation of the
statute on the part of the defendants.
They accepted the proposition of that
company to pool their orders for lumber
to be shipped on its vessels, in order
to obtain the lower freight rates offered
for large shipments. If there was an
improperly in such an arrangement, it
was on the part of the steamship COM
pany in not giving all shippers the bene-
fit of it.
"Decree may be entered Diminishing
the petition with costs to the defend
ants.''