New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-15
EIuin Board of Trade and
Creamery Manufacturers
Wrong Public, Says u. S.
MAKE PRICES TOO HIGH
"Conspirators" Throttle Com
petition and Arbitrarily Raise
Cost to Consumer, Asserts
the Government.


Creamery Butter Manufacturers were at
tackled by the federal government in
civil antitrust suit for the dissolution OF
both concerns hled here to-day.
Sweeping charges of conspiracy 10
fix arbitrarily the price Of butter in the
interest of big manufacturers and colo
storage concerns, and TO the detriment OF
the farmer other small producers ana
the consuming public. are made by At
torney General Wickersham against the
so-caled trust which he would destroy
as a violation of the Sherman law. Butter
making has drifted TO the large manu-
facturers. the natural increase in volume
OF business has been >Curtailed and prices
TO the people OF the country have been
enhanced especially during the winter
season, by the operations OF the CON
fpirators." according to the government
petition in equity. The defendants are:
Elgin Board of Trade-Charles II: Pot
ter Elgin. Ill: IL. e. Christians, Richheld'
WIS: j. p Mason, Elgin, H.; GOWN W.
Brown, Elgin, ILL.,: A. 9. taWIey, JeIseS
VILE. III. American Association creamery
Butter Manufacturers (unincorporatedl-
James A, Walker, Chicago; George r.
Haskell, Lincoln, Ne6.i WlIllaIn r.
Hoard. Fort Atkinson, Wis; Georse H.
Mckay, Chicago: i. II. Forney, Abilene,
Kan; Henry Bridgeman, duluth Mini,
Joseph II. Rushton, Omaha; Charles
Harding. Omaha; Arthur ;. Haniord,
Sioux City, Iowa; Carl w. Kent Kansas
city, Mo. Henry a. Page. Toledo sam
Mel Schlosser. Plymouth. Ind; Mllnam
A. TiIden. st. Paul: Samuel p. Wadley.
Dubuque. Iowa. and w. T. Sherman
White, Chicago,
The bill is signed by Attorney General
Wickersham. James A. Fowler, assistant
10 the Attorney General: United States
Attorney Wilkerson, Of Chicago, and
Stanley d. Montgomery. Albert G. WEIGH
and Charles f. Dewoody. special as
slstants TO the Attorney General.
Asks Price Fixing Injunction.
Aside from the dissolution Of the two
organizations. the government seeks TO
enjoin the defendants from appointing
price-fxing committee, from fixing prices
from quoting or publishing figures pur-
porting TO be market prices unless
they are based upon bona fde sales of
butter; from demanding that the EISln
price be used as a basis in making con-
tracts for butter, and from making iic-
titious or wash sales" OF butter TO mis-
lead 50 to the actual price at which but
ter is being sold.
The price Of butter fixed on the Elsin
exchange, the government maintains, is
not the result of free and open competl-
ton, regulated by actual bona fde sales
under the law Of supply and demand.
The prioe-f1xing committee Of the board
IS dominated and controlled, 1t Is alleged,
by large butter manufactures. known as
centralizers, and by cold storage con-
Germs. This committee, the petition adds,
has acted arbitrarily and without amy
regard TO actual values and fixed prices
wholly in the interest OF the cOnspira-
tors"
From May to August, when the bulk ~
the country's supply is made, the petition
says, large centralizing concerns are buy
ers rather than sellers Of butter, buying
ND the surplus product and storing il for
winter. when the price is enhanced. Con-
sequentlv Il is declared that the prices
OF butter fixed by the board during the
summer months have been almost in
vaviably below the price at which the
product actually has sold upon the mar
ket. while during the winter months the
prices fixed have been somewhat above
market and private sales.
Calls Them Conspirators.
1t is charged that the American Asso-
citation Of Creamery Butter Manufact-
urers. composed OF about foroty-six firms
and individuals, is used by the 'conspIa-
tors" to maintain these seasonal differ
ences in prices, without regard to trade
conditions or competition. All members
IL l.
legged, 10 use the price thus established as
the basis of their contracts for the pur.
chase or sale of butter.
Before the summer Of each year. the
petition continues, the large centralizIng
concerns send representatives throughout
the butter producing area, contracting
with small manufacturers for their ell
tire seasons supply, based upon the fig
ures of the Elgin Board of Trade, usually
one-half or one cent higher than the
Elgin price. Vast quantities OF butter are
thus purchased from farmers and others,
il is said. by members OF the defendant
association. The petition goes on
II. therefore, the price fixed by the
Eigin board should fall below the real
economic price OF butter as LAe , pE I sr1
-Uruing from the corresponding drop IN
contract prices goes 10 the large central
izers upon every pound or butter which
had been purchased in advance under
contract based upon the Elgin price
System Not Generally Known.
The system by which the price Of but
ter is fixed Is not generally known 10
The widely scattered producers, but on
the contrary. the price Is published
throughout the United Etatcs in news
pape4 and otherwise without any accom- ,
determined and readers Of quotations
thus published, and particularly farmers
and other small producers OF butter ana !
sellers OF butter fat, are led TO believe I
that the price quotations are prices estab-
lished by actual bona fidc sales and pur- |
chases Of butter in open competition upon !
tine Elgin Board Of Trade
The alleged combination and conspiracy
is said 20 have been formed some five
years ago"
Elgin. H., Dec. l4.-Elgin butter
barons" have no fear OF the dissolution OF
their organization. When the Supreme |
court Of the United States is fully in
formed on this subject. as / have no |
doubt II will be. believe the action will !
be dismissed" SAID President c. II. Pot |
ter this afternoon.
Under the ARRANGEMENT adopted in 1896 {
a quotation committee OF FIVE members is (,
elected. The board convenes each Mon !
day and acts as primary market. A I,
-, ,,rlfcb tn. 70