The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-15
BROAD CHARGES
OF CONSPIRACY
Product Bought Up in Summer
at Low and Arbitrary Prices for
Benefit of Manufacturers and
Cold Storage Concerns, to
Be Disposed OF in
Winter.


the butter trust" and the American:
Association Creamery and Butter
Manufacturers were attacked by the
Federal government in a civil anti
trust suit fled here to-day for the
dissolution OF both concerns.
Sweeping charges of a conspiracy 10
fix arbitrarily the price Of butter in
the interest of big manufacturers and
cold storage concerns 10 the detriment
of the farmer. other small producers
and the consuming public are made by
Attorney-General Wickersbam against
the so-called trust" which he would
destroy as a violation OF the Sherman
law Butter making has drifted to
the large manufacturers, the natural
increase in volume of business has
been curtailed and prices to the peo-
pie of the country nave been enhanced.
especially during the winter season. ~
the operating Of the -conspirators."
according to the governments petition
in equity.
The Defendants.
The following are named as defend
ants:
Elgin Beard Of Trade: Charles II.
Potter. Elgin. Ill; II. c. Christians.
j. .
Colvin W Brown. Elgin: A. C. Hawley.
Jerseyville. Ill: American Association
Creamery Butter Manufacturers Quinn
corporated): James A. Walker. Chi
cago: George Z. Haskell. Lincoln. Neb ;
William D. Hoard. Fort Atkinson.
Wis: George l. Mckay. Chicago; e
II. Forney, Abilene. Kansas; Henry
Bridgeman. Duluth, MINI: Joseph II.
Rusnton. Omaha; Charles Harding.
Omaha: Arthur S. Hanford. Sioux City.
Iowa: Carl w Kent, Kansas City. Mo-:
Henry A. Page. Toledo. o.; Samuel
Schlosser. Plymouth. Ind; William y.
TiIden. St Paul: Samuel 2. Wadley.
Dubuque. Iowa, and W. T. Sherman
White. Chicago.
The bill is signed by Attorney-Gen-
eral Wickersham, James \ Fowler.
assistant to the Attorney General:
United states Attorney Wilkerson. OF
Chicago. and Stanley D. Montgomery,
Albert C. WEIGH and Charles T. De-
Woody. special assistants TO the At
Aside from the dissolution of the
two ordinations. the government
seeks TO enjoin the defendants from
appointing a price-fxing committee
from fixing prices, from quoting or
publishing figures purporting to be
market prices unless they are based
Upon bona-fde sales of butter: from
demanding that the Elgin price be
used as a basis in making contracts
for Butter. and from making fictitious
or wash sales" OF butter to mislead
as 10 the actual price at which but
ter is being sold.
Not Result of Competition.
The price of butter fixed on the FL
10 In
tains. is not the result of free and open
competition regulated by actual bona
fide sales under the law OF supply ana
demand. The pricefxing committee or
the board is dominated and controlled.
ii is alleged. by large butter manufac-
turtles. known as centralizers. and by
cold storage concerns. This commit
tee the petition adds, has acted ar
bitrarily and without any regard to
actual values and fixed prices wholly in
the interest OF the conspirstors."
From May to August. when the bulk
of the cOuntry's supply Is made. the
petition says. large centraiizing con-
Germs are buyers. rather than sellers
OF butter buying up the surplus pro-
duct and storing u for Writer. when
the prIce IS enhanced. Consequently.
il Is declared. the prices of butter fixed
by the board during the summer
months have been almost invariably
below the price at which the product
actually Ia. sole upon the market.
while during the winter months the
prices fixed have been somewhat above
market and private sales
Used by .Conspirators.-
II is CHARGED that the American AS
ISOLATION Of Creamery Butter Marufsc-
turers. composed of about foTty-siN
firms and indiviS uals. is used by the
"conspirato. s. 10 maintain these sea-
sonal differences IN prices without re-
gard TO trade conditions or competition
All members OF the association are re-
ouired. IL IS alleged. to use the price
thus established as the basis OF their
contracts for the purchase OF sale OF
butter.
BEFORE the summer OF each year. the
petition continues. the large cenf~aliz-
ing concerns send representatives
throughout the butter producing area
contracting with small manufacturers
for their entire Seasons supply based
upon the figures Of the Eigin board.
usually one-hsif OF ono cent highcr
than the E1rir price. Vast Quantities
Of butter are thus purchased from
farmers and others. II IS said b. mem
bcrs Of the defendant association
II. Therefore. the petition declares.
the price nxcd by the Eigin board
should fall below the real economic
price % butter. a. hxcd by the law Of
supply AMI demand. the profit accruins
from the corresponding drop IN con-
tract price, goes 20 the large ccntrsiiz-
ers upon every pound OF butter which
had been purchased On advance under
contrsct based upon the f:lgin price"
trE 10 -
butter t. hxed Is not generally known
70 the widely scattered Producers. ac-
cording to the petition. but -on the
contrary. the price IL published
throughout the United states. IN
newspapers and otherwise. without
any accompanying statement of how
CONTINUED on Niath Psge)