The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-07-24
SEVEN DEFENDANTS
IN BIG LUMBER
CASE ARE GUILTY
So Says the Jury at
Ten O'clock Last
Night.
SENTENCE AUG 81
Penalty is Maximum Fine OF
IS, 900. Accused Will
Appeal Case.
SENTENCE AUG 81

The big case of alleged illegal
combination on the parts of certain
were being tried at Parker before
Judge Robert B. Trip, was given to
the jury yesterday afternoon at three
o'clock and at 1000 O'Clock last
night verdict of guilty was brought
in against the Fullerton Lumber
company, and James Jordan, it's au-
ditor; j. II. Queal & Company and
its auditors, l.. c. Kroh and f. S.
Vaughn; o. G. Meyer, local manager
of the Fullerton Lumber company
at Geddes, and Pat Mahaney, auditor
of the Floete Lumber company. The
Floete Lumber company, N. j. Kra-
mer Its local manager at Geddes, and
r.. G. Turner of Mitchell were acquit.
ted under the advice of the court
The above named who constituted
the defendants in the case, were in
dtcted by the grand jury of Charles
Mix county on June 18th, \ last,
charged with entering into combi-
nation to fix prices to prevent COM
lpetition in the retail lumber trade at
Geddes and in Charles Mix county
| The case was taken from Charl-
es Mix county to Turner coun-
ty on change of venue and the trial
commenced at Parker. the county
seat the 18th of June.
Spangler & Haney of this city
French & Orvis of Yankton, j. e
Upton of Geddes and Allen Bogue
of Centerville appeared for the de-
PENDANTS and Attorney-General Roy
al c.. Johnson, States Attorney A. b
1 of
Falls appeared for the state.
Summary of Evidence.
1t was contention of the state tha
in Oct. 1910, the three auditors O.
the line companies, Jordan, Kroh ant
Mahaney met at Geddes with the
local managers, o. G. Meyer and
Claude Smith, manager of the Quea
company and entered into an agree
ment or combination to fix two sched
ules of prices to govern the retail
trade in Geddes. A maximum price
4 based on $1,000 a thousand feet
for dimension stuff and other mater
ial in proportion to be used when the
Farmers Cooperative Elevator com
pany of Geddes did not enter into
competition, and minimum sched
nle of prices based on $24.0O thous
A and other material in proportion, tt
be used when the Farmers Cooper
ative Elevator company did attemp
to compete. The minimum schedule
of prices was based OH the actual COS
of the material at Geddes, and th'
managers We're instructed, the stat,
lcontended, to use that price
whenever it was necessary to under
bid the Farmers Cooperative Ele
vator company. The object was t,
force the latter company to sell a
cost or below with view to forcinj
them out of business.
Only One Witness.
1T is said to have appeared from
the testimony of Claude Smith, loca
agent of the Queal company, VIII,
alone testified to the meeting a
which it is claimed the agreement t,
fix prices, as charged in the indict
ment was made, that Smith had beel
arrested on the charge af havinl
embezzled funds belonging to tn,
Queal company and that after his ar
rest the manager of the Farmer
Cooperative company signed his bal
bond. 1t was contended by the de
PENDANTS that in consideration of thi
service and because the Queal com
pany refused to dismiss the charg
against Smith that he and the man
ager of the Farmers Co-operativ
company Framed up" the charg
that an unlawful agreement had bee
made.
Agreement With Contractors.
1t was also asserted by the stat
that the line companies had agree
ments with certain local contractor
at Geddes and whenever it was nee
essary they made bids against tn
Farmers Cooperative Elevator CON
necessary for the contractor to bid a
to furnish the latter with materia
at the cut figure. Wenever it wa
necessary for tie contractor to bid a
low as the minimum on a job, to ge
2 it.
The evidence is reputed to hav
shown that the companies and partie
convicted, operated under this pla
from October, 1910, through tn
year 1911 and until the Queal CON
l pany abandoned it's yard at Geddes i
!. the spring of 1912.
The Farmers Cooperative Elevat
: or company an organization of farm
!, ers of Charles Mix county and tn
: loyalty of the farmers in that pal
of the state enabled the company
exist in spite of the alleged comb
e nation against it.
l., Will Appeal Case.
:. The date of procurement of ser
f tence on the case was deferred III
J. til August 31st, on application of til
l. defendants in order to give them tim
e to secure transcripts of the evident
+ in the matter and prepare record
l. for an appeal to the supreme cour
It The maximum penalty which can
fixed in the case is $5000.0O fr