The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-12-14
FIXING OF PRICES ALLEGED
Combination fav0rs Big interests
to Detriment OF Consumers
It's Alleged
BIG PR0FITs,lN THE WINTER

Chicago Dec. 1.-THE Elen board
OF trade. popularly known as the but
Ter trust" and the American Asso-
citation Of Creamery Butter Manufac-
turers. we're attacked by the federal
government IN a civil anti-tr suit
lled here today Tor the dissolution 0f
both concerns
sweeping conspiracy To fiN arhi-
trarily the price of butter ia the in
terest OF big manufacturers and cold
storage concerns and 10 the detriment
OF farmers and other small producers
and the consuming public. is charged
by Attorney General Wickersham
against the so-called trust, which he
would destroy as "A violation OF the
Sherman law.
As butter making has drifted 10
large manufacturers the natural in
crease in volume of business has been
curtailed ana prices TO people in the
country enhanced, especially during
the winter season, by the operations
OF the "conspirators," according 10 the
boVeThment5 petition.
Amcns the defendants Flgin board
Of trade Charles Il. Potter. Colvin
Brown, j. +. Mason, Elgin. 4. O. Haw-
lew, Jerseyville, III American Asso-
citation Of Creamery Butter Manu-
facturers Cunincorporated) James \.
Walker, George l.. Mckay. W Sher-
man White. Chicago. William u
Hoard. Fort Atkinson. Wisconsin:
Samuel p. Wadley. Dubuque. Iowa.
Arthur 5. Hanford, Sioux City Iowa
Other defendants reside IN Mime
sofa, Nebraska Kansas. Missouri ami
Indiana
Aside from the dissolution uf the
two ORGANIZATIONS the government
seeks To enjoin the defendants from
appointing a price fixing committee.
from fixing prices. from quoting or
publishing figures purporting TO he
market prices, unless based on bona
fde sales of butter, and from making
fictitious sales OF butter 10 mislead as
TO the actual price at which butter is
being sold.
The price OF butter fixed on the IN.
gin exchange the government main
tains is not the result of free and
open competition. regulated by actual
bona tide sales under the law OF sup
ply and demand. The price fixing
committee board is dominated and
controlled, IL is alleged. by large but
ter manufactures, known as central
izers, ana by cold storage concerns
This committee the petition adds,
has acted arbitrarily without any re
gard 10 actual values and fixed prices
wholly in the interest Of the conspira-
tors. From May to August when the
bulk Of Countrys supply Is made the
petition says, large centrali2ing con
Germs are the buyers. rather than the
sellers OF butter buying the surplus
product and storing IL for winter when
the price Is enhanced. Consequently
II is declared the prices fixed by the
board during the summer months have
been almost invariably below the
price at which the product acmauS
has sold upon the market while dur
ing the winter months the prices
fixed have been somewhat above tho
iildihfl ana pIlNbtt safes II ls fhdib
ed that the American Association OF
Creamery Butter Manufacturers,
composed OF about forty-six firms ana
individuals. IS used by the "conspira
tors" 10 maintain seasonabie differ
ences of prices without regard 10 trade
conditions or competition. All mem
bers of the association are required
II is alleged, To- use the prices thus es-
tablished as the basis of their con-
tracts for purchase or the sale of but
ter Before the summer of each year.
the petition continues. the large cen
tralizins concerns send representa-
tives throughout the butter producing
areas, contracting with small manu-
facturers for their entire seasons sup
ply. usually az hah or one cent
higher than tSe Elein price III there
fore the petition declares the price
fixed by the Elgin board should fall
below the real economic price OF but
ter, as fixed by the law OF supply and
demand. the profits accruing from the
corresponding drop in the contract
prices goes 20 the large centralisers
upon every pound which has been
Continusd on PAGE -Four.