Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1912-12-14
u. S. Government Seeks
Dissolution of Alleged
Butter Trust.
CIVIL SUIT is ENTERED
Makes Sweeping Charges of
Conspiracy to Control
Prices.


of trade, popularity known as the
butter trust" and the American Asso-
citation of Creamery Butter manufac-
/ turers were attacked by the federal
/ government in a civil antitrust suit
filed here today for the dissolution of
( both concerns.
Sweeping charges of a conspiracy to
! fix arblJrarIy me price of butter in
( the interest of big manufacturers and
cold storage concerns and to the detri-
ment Of the farmer and other small
producers and the consuming public
were made by Attorney General Wick
ersham against the so-called trust,
which he would destroy as a viola
tion of the Sherman law.
INCREASE CURTAILED.
/ Butter making has drifted to the
large manufacturers, the natural in
crease of the volume of business has
been curtailed and prices to the people
of the country enhanced, especially dur
ing the winter season, by the operations
of the 'cOnspiratOrs," according TO
the governments position in equity.
/ Among the defendants are: Elgin
Board of Trade; Charles E. Potter,
Colvin, J. P. Mason. Elgin; A o. Haw-
/ ley, JeTseyville, ILL.,; American Asso-
I 1cfatfonN OF Creamery Butter manufac-
turers, (unincorporated); James A
Walker, George L. Mckay, W. Sherman
! White, Chicago; William D. Hoard,
Fort Atkinson, Wis; Samuel p Wad-
ley. Dubuque, Iowa; Arthur S, Han
ford Sioux City. Iowa.
! TO PREVENT FIXING.
! Other defendants reside in Mime
sofa, Nebraska, Kansas. Missouri and
Indiana. Aside from the dissolution
Of the two organiza ions the 8eovern-
ment seeks to enjoin the defendants
from appointing a price-fxing commit
tee; from fixing prices; from quoting
or publishing figures purporting to be
market prices unless based upon
bona fide sales of butter and from max
ing fictious wash sales" Of butter to
mislead as to the actual price at which
butter is being sold.
No REGARD FOR VALUES.
/ The price of butter fixed on the
Elgin exchange, the government main
tains, is not the result Of free and open
competition regulated by actual bona
! fide sales under the law of supply and
demand. The price-flxing committee
of the board is dominated and control
ed, 1t is alleged, by large butter manu-
facturers, known as centralizers, and
| by cold storage concerns.
This committee, the petition adds
has acted arbitrarily without any re-
gard to actual values, and fixed prices
wholly in the interest of the conspira-
tors"
From May to August, when the bulk
of the country's supply is made, the
petition says, the large centralizing
/ concerns are buyers, rather than sell
ers, of butter, buying the surplus prod
uct and storing 1t for winter when
prices are enhanced.
ALL MEMBERS BOUND.
| Consequently, it is declared, the
prices fixed by the board during the
summer months has been almost in
variably below the price at which the
product actually has been sold upon
the market, while during the winter
months the prices fixed have been
somewhat above the market and pri-
vate sales. 1t is charged the American
J Association of Creamery Butter Manu-
/ facturers, composed of about 46 firms
and individuals, is used by the con
spirators" to maintain seasonable diff
| ferences in prices without regard 70
trade conditions or competition. All
members Of the association are reuuir-
/ ed, it is alleged, to use the price thus
/ established as a basis OF their con-
/ tracts for the purchase or sale of but
/ ter.
SEND OUT AGENTS
Before summer each year, the peti-
/ ton continues, large centralizing con-
! Germs send representatives throughout
the butter producing area contracting
with small manufacturers for the en-
! tire seasons supply, at usually a half
OF one cent higher than the Elgin
price
IF, therefore" the petition declares.
"the price fixed by the Elgin board
should fall below the real economic
price Of butter. as fixed by the law of
supply and demand. the profit sccru-
ing from a corresponding drop in con-
tract prices goes to the large cen raj
'zers upon every pound which has been