The Birmingham age-herald., 1913-02-11
GOVERNMENT FILES
CONTEMPT CHARGE
AGAINST GROCERS
fContinued From Pagc Five,


States against the said Southern
Wholesale Grocers' association and
others 1t was averred and charged that
the defendants were publishing a list
of wholesale dealers who had an
nounced their intention of working in
harmony with and abiding by the con-
stitution and bylaws and the rules of
practice adopted by said association,
which said list was known as the
Green Book and that the defendants
herein were seeking to coerce and COM
pei manufacturers and producers to
sell their goods only to such wholesale
dealers as appeared upon said list or
so-calIed Green Book
"And petitioner AYERS that in VIOLA
tion of said provision of said decree the
defendants to this petition since the
rendition of said decree have published
and circulated two editions of said list
or book, except such minor changes
as were rendered necessary by Deaths
retirement from business, or the entry
of new concerns Into business and plac-
ing of them on said list by said asso-
citation or it's officers. The two edi-
tions of said list or book complained
of were published, ono in the month of
December, 1911, and the other in the
month of August, 1912
"And petitioner furthers AYERS that
said book as published in the months
of December, 1911, and August 1912.
is composed of those wholesale grocers
who have announced their intention or
agreed directly or Indirectly, expressly
or implicitly, to work in harmony with
said association.
In addition to publishing the Green
Book the government alleged that
President J. II. McLaurin wrote several
letters to various firms setting out points
and giving advice and making sugges-
tions that Indicate a violation of the dis
solution and Injunction.
A typical letter exhibited by the gov
ernment follows:
Charges Improper Letters
''w. b. Ashworth & Sons, Brevard, N C.
Gentlemen: Your favor of the 9th,
inclosing application for membership in
this organization. together with check
for s25, is in hand.
I'VE note that you propose to sell
goods at wholesale, but your feed busi-
ness will be conducted both wholesale
and retail We beg to advise that the
membership of this organization is con-
fined strictly to those merchants who
are engaged exclusively in selling at
wholesale. Under those circumstances
you can appreciate the fact that we
could not consistently accept your APP
plication for membership with us. Should
you see your way clear In the near fu-
ture to shape your business entirely
along wholesale lines 1t will be our pleas
ure to again consider your application
fer membership. We have just accepted
80 new members in this organization out
of your state, and we hope that you
will be able In the future to come in
with us as an exclusive wholesaler.
ssYours very truly,
April 2, 1922 President
The case of the government against the
grocers in which it was proved that the
association had violated the Sherman an
ti-trust law had its inception here. Ii
has been before local people and courts
for several years. Hinton G. Clabaugh
at the time of the beginning of the suit
was in the grocery business in Birming-
ham. He complained to the government
that because he was not member of the
Southern Wholesale Groeers' association
that he was unduly Disseminated against
by jobbers of staple products That
charge led to suit against James A. Van
Hoose, at that time president of the as
sociation. Mr.. Clabaugh, in the county
courts, subsequently recovered some
money from the defendants A congress
sional inquiry was directed into the oper-
atoms of the association eliminating in
the department of justice, filing disso-
luton proceedings against the association
In 1910. The late ]. A. Montgomery, SUBJ
sequently postmaster here. was the spe-
cal attorney for the department of JUS
tice instituting the suit.