Evening journal., 1912-12-17
UNCLE SAM
ON TRAIL OF
BUTTER TRUST
WilminGtOnianS Interested in
Charges Of Conspiracy
to Fix Prices
CLAIMS PRICES NOT FIXED
ACCORDING TO SUPPLY

Many Wilmingtonians are much in !
terested in the suit brought by the
Federal Government against the Elgin
QH) Board of Trade, popularity
known as the butter trust The
American Association of Creamery
Butter Manufacturers also is a sub
jeot of the Government antitrust
suit.
Sweeping charges of conspiracy to
fix arbitrarily the price of butter in
the interest of big manufacturers and
cold storage concerns and TO the detri-
mont OF the farmer, other small pro-
ducers and the consumer are made
by Attorney General Wickersham
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 i'm volume of
business has been curtailed and prices
10 the people of the country have
been enhanced especially during the
winter season, by the operations of
the "conspirators" according to the
governments petition in equity.
Attacks Elgin Exchange.
Aside from the dissolution of the
two organizations the government
seeks to enioin the defendants from
appointing a price-iXing committee
from fixing prices: from quoting or
publishing figures purporting to be
market prices unless they arc
based upon bona 6de sales Of butter;
from demanding that the Elgin price
be used as basis i'm making con-
tracts for butter. and from making
fictitious or "wash sales OF butter
to mislead as to the actual price at
which butter is being sold.
The price of butter fixed on the
Elgin Exchange, the government
maintains is not the result of free
and open competition regulated by
actual bona fide sales under the law
of supply and demand The price
fixing committee Of the board is
dominated and controlled it is all
legged by large butter manufacturers,
known as "centralizers and by cold
storage concerns This committee, "
the petition adds. has acted arbitrar-
lily and without any regard TO actual
values. and fixed prices wholly I'm the
interest of the conspirators.'
Stored For Winter.
of tho country's supply is made, the
petition says large centralizing con-
Germs are buyers, rather than sellers
Of butter, buying up the surplus prod
uct and storing it for winter when
the price is enhanced Consequently
il is declared the prices of butter hX-
ed by the board during the summer
months have been almost invariably
below the price at which the product
actually has sold upon the market
while during the winter months tho
prices fixed have been some what
above market and private sales.
u is charged that the American
Association Creamery Butter Manu-
facturers composed of about forty
six firms and individuals is used bs
the "cors pirators" TO maintain these
seasonable differences in prices with
out regard 10 trade conditions or com
petition. All members of the associ
alton are required, it Is alleged L
use the price thus established as thu
basis OF their contracts for the pur
chase or sale of butter.
About Quoted Prices.
The system by which the price o
butter is fixed is not generally know
TO the widely scattered producers, ac
cOrding TO the petition, but "on TN
contrary the price is published
throughout the United States I'm news
papers and otherwise without accom-
panyng statement of how the pric
is determined and readers of quo
tations thus published and particular
Is farmers and other small producer
of butter and sellers of butter fat ar
led TO believe that the price quota
tons are prices established by actua
bona fide sales and purchases of but
ter i'm open competition upon the El
gin Board of Trade"
The alleged combination and cor
spiracy is said to have been forme
some five years ago