The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1911-02-21
Naval Stores Case
Will Be Reviewed
Supreme Court of the United
States Grants Request Of
Shotter and Others.

sy Assoosassd Press.

Washington, Fsh. 2o.-The supreme
court Of the United States today grant
ed request that = review the convic-
tion Of o1icials Of slhe American Naval
Stores Company. accused of having
violated the Sherman antitrust laws.
The American Naval Stores Com
pany. whose ofacisls were concerned in
the action of the court today has been
referred to AZ the "turpentine and rosin
trust" AZ distributor and exporter
Of what IL claimed to be more than so
per cent OF the turpentine and rosin
obtained from the long leaf yellow pine
Of the Carolinas, Georgia, Florida, Ala
bama, Mississippi. Louisiana and
Texas. the company long has been q
prominent hgure In the trade Of tho
world.
PROSECUTION BEGAN IN 1908.
Today's action was the outcome Of a
prosecution begun in 1908 in the United
States circuit court of Georgia against
the company, its officials and others
for violation Of the Sherman anti-tru
law against conspiracy in restraint OF
trade. 1t had been preceded by other
prosecutions.
In one OF these, Spencer P. Shotter,
whose activities as chairman of the
board Of directors has made him prob
ably the most prominent figure in the
company. was found guilty OF violating
the interstate commerce laws and fined.
In another he was found guilty OF vio-
lating the Sherman antitrust law and
fined. In the case before the court to-
day he had been sentenced to prison
for alleged violation of the antitrust
law. In addition to payment of a fine.
The. governments claim of con-
spiracy among the defendants was
nased partly ori recdaiaf system of
markets Tor tuI4entine and rosin- IT
was said sby the government that the
open or quOtation market Ia the United
States for the sale of naval stores. was
Savannah Ga. At all the other pore.
and markets, it was claimed. the
prices were based on the closing prices
at Savannah.
BOUGHT BELOW COST.
This being the cssse, the government
claims the defendants conspired to stay
out Of the Savannah market in the
early part OF 1908 in order to depress
that market and during that time 10
make large purchases ct closed mar
kets, where the prices would be de-
pressed because of the depression at
Savannah. Evidence was produced ~
the government In an endeayor to show
that 80 successful was the conspiracy
that the defendants bought naval
stores for less than the cost of produc-
ton. The defendants denied they had
any part in the manipulation Of the
market d.
The government presented testimony
iE support Of the claim tEat barrels Of
rosin In the control of the American
Naval Stores Company were graded
up" without inspection. and that small
quantities were titled out habitually
from its barrels of spirits of turpen-
tine. These practices. it was arsuei,
were used by the defendants in order
to obtain a monopoly and In order to
put their competitors out of business.
The defense was that such evidence
could not be presented to prove an al
legged offense under the Sherman anti
trust law. but only was proper evil
dence In indictments respecting cheat
Ing and swindling IN violation of state
laws.