The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-12-14
And the American Association
of Butter Manufacturers.
CONSPIRACY IS CHARGED
A Dissolution of Both Concerns
Is Asked For
And Injunction From Appoint
ing Price Fixing Committee.


of trade, popularly known as the
'butter trust,'' and the American As
s citation of Creamery Butter Manu-
IA turers were attacked by the fedora
government in a civil antitrust suit
filed here today for the dissolution OF
both concerns
Sweeping charges of 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 to the consuming public are made
by Attorney General Wickersham
against the socalled trust. which he
would destroy as a violation of the
Sherman law.
Butter making has drifted to the
large manufacturers, the natural in
crease in volume of business has been
curtailed and prices to the people OF
the country have been enhanced espe-
cially during the winter season by the
operations of the conspiratOrs, &C
cording to the government petition IN
equity. The following are named as
defendants:
Elgin Board of Trade; Charles H
Potter, Elgin. ILL.,; H. c. Christians
Richfeld, Wis: J. P. Mason, Elg1n'
ley, JerseyviIle, H.; American Assoc1a-
tion Creamery Butter manufacturers
Inincorporated; James A. Walker, chi
caeo: George E. Haskell, Lincoln,
Neb.; William D. Hoard, Fort Atkln-
son, Wis; George L. Mckay, Chicago
E H. Forney, Abilene, Kan; Henry
Bridgeman. Duluth, Mimi; Joseph H
Rushton, Omaha; Thomas Harding,
Omaha; Arthur s. Hauford. Sioux City,
Ia; Carl w. Kent, Kansas City; >
A. Page. Toledo, O.: Samuel H. Schlos-
ser. Plymouth, Ind; William A I'll
den, st. Paul; Samuel P. Wadley, Du-
buque, Ia, and W. T. Sherman White,
Chicago.
Injunction Is Sought
Aside from the dissolution Of the two
organizations the government seeks to
enjoin the defendants from appointing
a price-fixing committee; from fixing
prices, from quoting or publishing fig
ures purporting to be market prices
unless they are based on bona fde
sales of butter; from demanding that
the Elgin price be used as basis in
making contracts 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 compe- |
tition regulated by actual bona fide |
sales under the law of supply and de- (
maud
The prices-ffxing committee of the
board is dominated and controlled it |
IS alleged by larger butter manufac- /
turers known as centraliZers and by |
cold storage concerns. This committee
the petition adds, has acted arbi-
trarily and without any regard to act
uaI values and fixed prices wholly in
the interest of the conspirators."
From May to August when the bulk
of the country's supply is made, the
petition says large centraizing con-
Germs are buyers rather than sellers of
butter, buying up the surplus product
and storing it for winter, when the
price is enhanced. Consequently it is
declared the prices of butter fixed 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. the prices fixed have
been somewhat above market and pri-
vate sales.
Prices Are Fixed.
1t is charged that the American as
of creamery butter manu-
"a acturers composed of about 46 firms
and individuals. is used by the con
spira tors'' to maintain these seasOnable
differences in prices without regard to
trade conditions or competition. All
7uirel it is alleged to use the price
,hus established As the basis of their
contracts for the purchase or sale OF
outter.
Before the summer of each year,
he petition continues. the large cen
railing concerns send representatives
the butter producing area,
contracting with small manufacturers
Tor their entire seasons supply based
1n the figures of the Elgin board.
usually one-half or one cent higher ,
han the EIgin price. Vast quantities
IF butter are thus purchased from !
farmers and others, it is said by mem
lers of the defendant association. /
eff therefore, the petition de- ,
,Iares, f'the price fixed by the Elgin ,
BOARD should fall below the real
economic price of butter as fixed BY
he law of supply and demand. the
7r7ht accruing from the correspond ,
ng drop in contract prices goes to the /
arge centraliZers on every pound of
'utter which had been purchased in
-dvance under contract based upon
he Elgin price,
The system by which the price of br1tta,. :
s fixed Is not generally known to the
widely scattered producers according to
he petition but "On the contrary the /
rice IS published throughout the United |
ut any accompanying statement of how |
he price is determined and readers ~
uotaHons thus published ana particularly
armers and other small producers of but I
sr and sellers of butter fat are led to
eheye that the price quotations are
rices established by actual bona fida
aies and purchases of butter in open }
ompetiuon upon the Elgtn board of
rade."
The alleged combination and conspiracy I
said TO have been formed some five |
ears ago.
Officers of the American association I