Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-05-20
DISSOLUTION SUIT
FILED AGAINST
LUM Be R
TRUST !
Government Alleges Concern Is
Combination in Unreasonable
Restraint of Trade in Viola
ton of Sherman Law,
ACTION FIRST SERIES
PLANNED BY WICKERSHAM
Elaborate System of Blacklist
ing Attributed to Alleged Con-
SplratorS in Which ConSum-
erS Are at Mercy of Monopoly,

spiratorS in Which Consum-
erS Are at Mercy of Monopoly,
IBy Morning Journal Special Leased wirel
New York. May i9.--ln the first
federal antitrust proceedings brought
under the sherman law as Interpreted
In the Standard OH decision, the de-
partment of Justice filed In the Unit
ed States court here today aga.rst
constituent organizations Of what IL
popularity known as the lumber
trust" alleging the existence of q
widespread conspiracy 'unreason,
ably to restrain the lumber trade in
this country.
Ten trade organizations and more
than i50 individuals are named as de-
PENDANTS. II alleges violation OF the
Sherman antitrust law and seeks a
permanent injunction restraining the
defendants from continuing the eOd-
splracy charged.
II II said the suit may be the first
OF a series planned hv Attorney Cen
eral Wickersham, looking to the
breaking up of alleged agreements
between the retailers OF commodities,
agreements TO maintain TO high prices.
TO force all ultimate consumers 10
buy from retailers and to blacklist
wholesalers who sell to others than
members of the retail organizations.
The elaborate system of blacklist
Ing attributed to the alleged lumber
consipartors, copies of circulars sent
out by the organization, classifying
consumers as proper ana "improp-
err extracts from reports threatening
short shrift" to dealers daring to
violate the rules of the organization
and branding such officers as
"poachers,' ''scalpers," mavericks
and "illegitimates, are fully set forth
In the governments petition
II is alleged that hot only private
consumers have been blackllsted, but
that many great Industrial concerns
have been put under the ban by the
lumber dealers The governments
bill. aggregating 10000 words is re-
plete with sensational allegations and
interesting exhibits.
The suit is directed specifically
against retail organizations In the
eastern states, but the trial Will em-
brace methods adopted by retailers
and wholesalers throughout the Unit
ed States.
Although the lawyers In charge of
the case believe the Standard OH de-
cislon involving reasonable" or "un-
reasonable" restraint, will not affect
the lumber case as II IL represented
to be one of simple conspiracy never
the less the accusatory parts of the
bill conform to that decision and
charge undue and unreasonable"
restraint of the lumber trade.
Lesser stress Is laid upon the al
,ttspp pN haf hA Rfq a.
ants themselves In general the case
Is regarded as Attorney General Vic
kersham's long planned test suit to
have the courts determine how far
combinations OF retailers may go to
prevent the ultimate consumer from
dealing directly with the wholesaler
or producer.
The government takes the position
that any agreements or acts which
prevents a consumer from buying
where he chooses or to his best ad-
vantage are IN unreasonable" re-
stralnt of trade, and violate the Sher-
man law. No attack on the middle
man as such. Is intended, the depart
mont of justice holding that theer n
legitimate opportunity for him.
II Is known that while the depart
ment has been making a nation wide
that the case Is nearly paralleled In
the marketing of many other COM
modties II the governments conten-
tlons are sustained there Is promise
OF sweeping attack upon similar al
legged conspiracles.
Attorney General Wiokersham per-
sonally directed the gathering of the
evidence which has occupied more
than n year.
The principal defendants In the
suits are:
The Eastern states Retail Lumber
Dealers association, a New York cor
poratlon, the central body of the nine
other defendant organizations Its or
ficers and twenty-five other lndivld-
ual members.
The New York Lumber Trades as
soclation, rs officers and thlrty-two
trustees; the Building Material Mems
association of Westehester county.
New York, It's officers and six direc-
tors
The Lumber Dealers association Of
It's officers and twelve
directors The Massachusetts Retail
Lumber Dealers association, Its off
GERS and eight directors.
The Lumber Dealers association of
Rhode Island. its officers aud eight
directors
The Retail Lumber Mems assooia-
tlon of Baltimore, It's Officers and
seven directors The officers Of the
New Jersey Lumber Mems Protective
association and twenty-five members;
the officers OF the Retail Lumber
Mems association OF Philadelphia and
twelve directors; the officers OF the
exchange of the District OF
Columbia and its directors.
In It's bill the government alleges:
That the retailers have conspired
lmong themselves To nrevent manu-
'acturors and wholesalers from selling
lumber direct to the consumer.
That hundreds of consumers in
'ludng the largest industrial corpor~
ition In the country. have been COM
Delled by unlawful agreements to
juy lumber from retailers at much
higher prices than they would have
paid 10 wholesalers.
The United states government, how
aver the bin says. has never been
In that class
That wholesalers and retailers in