Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1912-12-26
Makers of Kellogg Toasted
Corn Flakes Charged With
Violation of Sherman Ante
Trust Law.
CONCERN CHARGED WITH
CONTROLLING PRICES
Attorney General Finds Fault
With System of Manufac-
turcr Fixing Cost of Article
TO Consumer.
IIw rcasI Wire " Evening ucraldl

I Iy lcnS,I Wire " Evening IIcPaldl
u,u"ll Dec. ?s.--The Kellogg
Toasted corn Fluko company In all
',r'I ,u hr violating tho sherman law
w o. piitiuu IN equity nied Ia tho
u''u 50 i"s district court here toe
u'. Cos urdpr or Attorney General
N .,r,r.'um tu settle for all lim0 the
extent Zoo which a manufactures may
,uuuw r,lail prices Tho company
1ud o. uilirors. rngaged In the mantle
H,t1r, ul k"lluggs TonBtod Corn
''t '"'r gee, y N'Cu with nHinR prlcos
% which tn" nnkCs are sold 10 re-
Ht.yr oud consumer. preventing oom-
p,'..u Nhi h would reduce the
pr,. .n the puhlic aud creating a
uuun, ,uN hl concentrating the entire
th" htuds al Iobbors and retailers
vino Nhtdo 10y price agreements aXace~
ct nl thr defendants
n I# alleged that tho defendants
have invoked the patent laws through
ihc usu' oi a patented carton IN which
the ilul,"s nr" packed as n "mcro sub
trrIusr aud device" TO escape tho pro-
,ist"uH of the sherman law. Tho
E"N"rum"nt asks for lnJunctions to
prevent the company. lts officers and
uEeut9 IRON controlling tho Drioo OK
th" hrcnllist food after IL leaves the
hands ui thv manufactures,
Tho following are named as de-
frudunts. EciloEg Toasted Corn Flake
company aud win y. KELLOGG, VILE
lrcd -. EcllUgg ana Andrew Rose,
! Respectively president, secretary ana
! Irnurul maHagrr OF tho eoInpany, nu
! 't l'nitlG Cr,ck, Mitt,tsNg 1'he suit
. 3. regarded hS tho government ne OF
| vast importance bUcuuec of lis bear
! lnG un tho right of manufacturers
! TO .untrul rIircB To- the consumer
/ u ull, .rd that tho company sells
uu's lu iuhburS, refusing absolutely ia
. d,.l dtrv,lN with UonsuuuIs or with
/ tho retail trade. tho commodity, Uc-
,uIdtug .. % lC zion, is sold 10 job
. h,lt ui uniform priCo undor an
'..rorurut thHi th" iubhrrg VIII sell to
! u.lr.u,rH i o. price iiNcd by tho de-
I,udiutt. rhr defendants uro Charg-
e. WITH Hriruy "nturclug the agree
| m.nl uI Nl',H hy absolutely roiuaing
| Goo d,I with any luhbCr who falls 10
maintain the specified price. IL N
pointed out that u notice signed oy
tho krilurg corn FlukcA company IN
printed uu % llNp ui tile carton, In
anr.h lhr llnltua are packed, stating
ihll tine Iiukugo und It's contents are
! sold ,uuditiunaliy with tho distinct
understanding that they will not be
i,luilrd at less than 10 cents per
d / lIIi. Nthf, fhl h'lllhk " N'NN NiAhh NhN'
priru tho Noudrr ls warned BY the
notice TINT n" II liable Ia prosecution
, us an lutrlngcr Or patent rights.
-, rhn government Insists that tht
: patented carton VHn afford n nrotec'
rIun IN attempting to tiN retail resale
prices nrruuar II Ia alleged:
Tho carton was not In fact pntont
'nhlr ~ All of its material features
had long been In usO before tho pat
: cut WUs issued, the Naluo of tho car
= ton n negligible. tho contents alon'
hriug desired by tho purchaser; IN
] defendants having sold tho carton
aud contents lu lunh"rs, have phrte'
. with ull Iitlr tu tho commodities ant
have uu l,i,Il right to iiA prices a
Anirn tho retail purchaser from ~
luhn,r shaft lee required To sell, an
r. Isllg. "Ils u'r Is rcHortcd To Gs
w,rr ,uur,rluGr ana device Ia avoi
Inr piu,I-iuu. uI the antitrust l0'
,,uI tho pro, Iduua 0f tho common ln'
u ,uullullIuE vurh contracts