Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-12-14
ACTUAL VALUES IGNORED
CLAIMED IN THE PETITION
Alleged Alliance of Big Manufac-
turers and Cold Storage Concerns.
FIVE YEARS IN COMBINATION
Secretary Of American Association
Creamery Butter Manufacturers
Denies Charge of H.
legal Practices.

CHICAGO, December 1.-THE Elg1n
Board of Trade, popularity known as
the butter trust and the American
Association Creamery Butter Manu-
facturers were attacked by the federal
government in a civil antitrust suit
filed here today for the dissolution of
both concerns.
Sweeping charges of a conspiracy to
fix arbitrarily the price of butter in
the interest of big manufacturers and
cold storage concerns to the detriment
of the farmer, other small producers
and the consuming public 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 in
vO,ume of business has been curtai ed
and prices to the people of the count y
have been enhanced. especially during the
winter, season, by the operating of the
'cOnspirators, according to the govern
ment's petition in equity
The bill is signed by Attorney General
Wickersham, James A. Fowler. assistant
to the Attorney General; United States
Attorney WilkersOn of Chicago, and
Stan.ey ID. Montgomery Albert c. Welch
and Charles F. DeWoody, special assist
ants to the Attorney General.
Injunction Sought.
Aside from the dissolution of the two
organizations. the government seeks to
enjoin the defendants from appointing a
price-fixing committee; fiom fixing
prices; from quoting or publishing fig
ures purporting to be market prices
unless they are based upon bona fide
sales OF butter; from demanding that the
a k
ing contracts for butter, and from max
ing fictitious or wash sa.es'' of butter
to misIead as to the actual price at which
butter Is being sold.
The price Of butter fixed on the Elsin
exchange the government maintains, Is
not the result of free and open compe-
tition regulated by actual bona fide sales
, Under the law OF supply and demand:
The prtce-fxing committee of the board
is dominated and controlled. it is alleged,
by large butter manufactures, known as
centralizers, s1t by cold-storage con-
Germs. This committee, the petition adds.
has acted arbitrarily and without any
regard to actual values. and fixed prices
wholly in the interest the conspir-
ators.''
1t is charged that the American Asso-
citation Creamery Butter Manufacturers
composed of about forty-six firms and in
dividuals, Is used by the "conspirators'' to
maintain these differences in prices with
out regard to trade conditions or compe-
titlOH. All HueiilDeFS OF the ASSOCIATION
are required, Ii is alleged. to use the
price thus established as the basis of their
contracts for the purchase or sale of
butter.
Alleged Deception.
is fixed is not generally known to the
widely scattered producers. according to
the petition. but ION the contrary, TN,
raric ylrih liShad
States in newspapers and otherwise with
out any accompanying statement of how
the price is determined, and readers o.
quotations thus published, and particu-
larry farmers ana other small producers
OF butter and sellers of butter fat are le-
TO believe that the price quotations ar,
prices established by actual bona fidt
sales and purchases OF butter in open
competition upon the Elsin Board O..
Trade
The alleged combination and conspiracy
is said 10 have been formed so he five
years ago
Charges Denied.
Officers of the American Association of
Creamery Butter Manufacturers deny tha,
the organization has ever attempted to fix
the price Of butter, or that it has any con-
nection with the Elgin Board of Trade.
George L. Mckay. secretary of the asso-
citation, said:
Our association has ff;y-tWo members
embracing the largest creamery butter
manufacturers in the central states Gun
members make about one-tnird of all tn.
hiSh-Srace butter sold in the Uniteo
States. We have no connection with the
Eigin Board Of Trade and never have at
tempted TO fix the price or manipulate
the output of the product.
Our work is purely educational we
send out bulletins from time to time To
the farmers. showing them how to buy
and use cattle To the best possible advan-
taSe in their business
j. y. Walker. presiden: of the associa :
ton, Is in Washington attending meet
ing of dairymen.
The annual meeting of the E.lgin Board
of Trade IS scheduled to be held in klgln
MONDAY, when II Is said the action of the
government in iiiing the suit for the as