New-York tribune., 1912-02-10
PRODUCE MEN FACE TRIAL
ulrphy to Hear Butter and Eggs
Case in TOmhS Court.
NEARING SET FOR TUESDAY
Now York Mercantile Exchange
will Be Brought In on John
Doe" Proceedings.

-,.,rct Attorney Whitman said last even
,bs, John Doe" proceedings would be
p..d Tuesday against the New York
s,.,.ontile Exchange or its members to
..-tsin whether any crime had been COM
'.,,,Ad in making or attempting TO make
.,ter into an agreement combination or
.,,gsment whereby competition. within
-. county and State of New York, in the
,s,,lv and price, and in the purchase and
-.s of butter and eggs. articles and COM
.,,dites Of common use within such county
md state, is or may be restricted and pre-
,.ntsd. in violation Of the provisions Of
s.r,,on 34l Of the business law
Tbe proceedings will be before Magistrate
,,rpby IN the Tombs court. and are the
o,,oone Of an Investigation conducted by
yrpliam A. DeFord, an Assistant District
,,torney, who has been examining many
Witnesses during the last two weeks. The
.rorp information that will be presented
"a Magistrate Murphy by Mr.. DeFord con-
.i,ts OF forty-seyen typewriter pages.
BESIDES asking the magistrate to deter
mine whether Section Sit OF the Business
law has been violated, Mr. DeFord wants
1, 10 be ascertained whether the persons
named in the affidavit, or two or more of
them. ARE guilty or have been guilty, with
On the county or State of New York. Of
copspiring together to commit an act in
,,rlous to trade and commerce within those
sections. in violation of Section No. $50 of
he Penal law
After saying that, upon information and
belief, the active factors in the wholesale
butter and egg business were the producer,
the shipper the receiver, the jObber. the
cold storage warehouseman. the retailer,
,he ultimate consumer and the inspector,
lir. DeFord said there were at present $50
persons, firms and corporations engaged I'm
tbe business in this city, one-half OF whom
we're receivers" and the other half job
bers" lie added that practically all of the
persons thus engaged were members of the
New York Mercantile Exchange, a combi-
nation OF all the wholesale dealers in but
pr and eggs within this city and county.
This combination" said the District
Attorney. had been in existence since 1903,
with some slight variations in method.
The exchange was incorporated on March
e. 1874, as the Butter and Cheese Ex-
change Of the State of New York, chang
Inc to its present name in 1882.
After giving a list of the officers Of the
exchange, Nh De Ford said the organiza-
ton fixed the different grades Of butter
and eggs and the prices which the re-
oeivers Of butter and eggs should pay the
shippers; at what prices the shippers
should sell to the jobbers, and at what
prices they should sell to the retailers.
In explaining the business methods of
the exchange, Mr.. De Ford said that about
70 o'clock every weekday the superinten-
dent of the exchange would make an open
call on the floor Of the exchange for offers
Of sale, or bids for the purchase of certain
grades Of butter and eggs. This was
known as the butter call" and continued
for about half an hour.
The egg CALI followed. and then the
price quotation committee got busy and
fixed the prices. which were posted on the
Blackboard Of the exchange. Mr.. De Ford
Characterized the sales so made and listed
as being in part bona ide and in part
fictitious or washed"
In another part of his statement. Mr..
De Ford said William c. Taber and F. G.
Cmer were officers or members Of the eX-
change or its committees, and were inter
tsted in a publication known as the PRO
ducers' Price Current" which published
daily current market quotations in the
city and also a weekly trade paper re-
lating to the butter, cheese and egg bust
ness