The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-12-15
GOVERNMENT ACTS
IN BUTTER TRUST
DEPARTMENT of JUSTICE STARTS
SUR AGArNsT THE ELcIS
BUTTER BOARD.
BRIEF is MADE UP
CHARGES THAT "PNICE-F1xISG'
. COMMITTEE FIXES QUOTA-
TI0Ns IN BOTH SUMMER
AND WINTER.

WASHINGTON, Dec. 14.--As fore
casted exclusively by the International
News Service. the department of JUS
tin today began an action to dis
solve the Elgin Butter Board, which
fixes the price of butter throughout
the United States. The suit to dis
solve the butter trust under the Sher-
man antitrust law was begun in Chi
cago, but the action was initiated in
Washington. and will be directed from
here. District Attorney Wilkerson, of
Chicago. who will bring the suit for
the government, is now in Washing
ton.
In the governments brief 1t is
charged that rules and regulations OF
the Elgin Butter Board. which wiz
tually controls the butter market,
have been made:
FIRST. ITO prevent the price OF
butter from being fixed by free and
open competition on the board.
Second To enable the conspirators
to use the board for the purpose OF
fixing the prices of butter lower dur
ing the season of manufacturing and
higher during the winter months.
Third. To require all its members
to use the board price as basis for
all contracts made by them in the pur-
chase and sale of butter.
Price Fixing Committee.
IT Is charged that the board Sc
cured the adoption of a price fixing
committee, consisting of men interest
ed in the butter or in the cold stor-
age business, and that this commit
tee has been constantly under the
domination OF the board.
1t is contended further that the
producers OF butter are widely scat
| tered throughout the United States.
/ that they have no means OF knowing
general conditions In the trade, nor
! what at any time the price of but
] ter in existing trade conditions ought
! to be; that the system by which the
| price of butter is made by the de-
/ PENDANTS and the price fixing com
! mittee Of SAID defendant corporation.
| IL not generally known. but that, on
| the contrary, the price Is published
! throughout the United States. III
| newspapers and otherwise without any
! accompanying statement Of power the
| price is determined; and readers OF
quotations ttses published and par
/ tlculaIIy farmers and other small
/ ~ 3ucers OF butter and sellers OF
/ butter fat are led 10 believe that the
price quotations are prices established
/ by actual bona fide sales, and pur-
! chasers Of butter in open eompe-
titien upon the gin board Of trade.
because Of the lack OF informa ton
| ar@ong farmers and other producers,
as TO the method by which the Elgin
! price is established, and because of
| the rule of the defendant association
! ly which its members are required 10
moke all contracts for butter with
reference to the prics established by
the Elgin board Ii has come to be
the case that vast quantities Of but
ter are purchased ~ members Of the
defendant association frpm farmers
and other small producers Of butter,
located in States ether than the State
in which such members are located
under contracts by which the pro-
ducers agree 10 accept from the buyer
either the price fixed by the Elg!n
board. or q given amount above or be-
low the price to he. fixed by the Elgin
GARD for all butter which the pro-
ducer should deliver to the buyer dur
ing Il given season.
Hurts Small Dealers.
1T has fur her resulted from the
combination and conspiracy herein
|Ie1ore altered and from the acts done
Iaud agreements entered into and pur-
suGnt Ia said combination and con-
--t.prY. that the int0} state trade
,ord commerce of the United States
has been so unduy and unreasonaoiy
restricted that the price paid to sma y
producers fer butter has heen reduced
10 such an extent that said small pro-
ducers Rave received and do receive
much less for the butter sold by them
than they w0u'd receive In the absence
If .uch camhinagicn and conspiracy
The incentive to the small producers
"a enga~ 70 in the manufacture OF butter
has thereby been lessened and this has
resulted IN tie manufacture dFfting
jee oentralIzers and in cnrtaiiment IN
thu natural Increase In the volume w
,-tarnfacture. and q con9equent en-
hancement Of the prices paid ny the
e. nnuming puhlIc for butter during al
seasons Of tie year. and particularly
IN tre. winter season.
| The said &c mbinatlon ard con
s, 'racy and the restraints Of trade and
commerce caused by them, and the
injury 10 the American public, viii
continue unless restrained"