Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-06-13
Uncle Sam After
Quaker Oats Co.

Chicago, June 12.-The Quaker Oats
Company-the so-ealled Oatmeal Trust
controlling 80 per cent. of the oat-
meal products and by-products of the
eountry-was attacked by the federal
government in civil antitrust suit
filed here, "Wednesday, charging a mo-
nopoly in "deroga ton of the common
rights of the people of the Unite 1
States" and in violation of the Sher-
man law.
While the government does not spe-
officially ask for the dissolution III
the Quaker Oats Co, ii petitions tie
court to decree the corporation IN
and of itself to be illegal and to en-
join the company from engaging in
interstate commerce in oatmeal pro-
ducts until its alleged monopoly. has
been abandoned and the competitive
conditions existing prior to the com5i-
0Ation restored.
The monopoly is declared TO have
been effected by combinations. con-
spiracies and unlawful acts in restraint
of trade, to terminate which the gov
ernment seeks various permanent in
functions. Pending final hearing of the
case, the petition asks for temporary
injunction to bring about competition
at once.
| The name of Myron T. Herrick. Amer
! lean ambassador to France, Is mentioned
! in the governments bill, not as de-
/ PENDANT, but one of the directors ane
| organizers in 1891 of the American Cerea
| Co., which is declared to have been FORM
| cd with the design of restraining ana mo
nopolizing the oatmeal trade This com
pany, which acquired about so per cent
| of the business. is described as one o.
| the earlier steps in the creation OF TN
present alleged monopoly.
| Following are named as defendants:
| The Quaker Oats Co, The Great W est
ern Cereal Co., Henry p. Croweli. Rober
| Stuart, James II. Douglas, John stuart
/ A. Stamford White. John +. " elling an,
Joy Morton, all of Illinois; j.. Il. ->utt
Cleveland: James II. Andrews5 AKRON
| Ohio, and Whiting G. Snow, Montclair
n. j. The government asks for an in
junction prohibiting the 10 individual de
PENDANTS from carrying on all interstat
commerce until they satisfy the cour
that they are not engaged in any comb
nation or conspiracy to thwart competi
ton in the oatmeal business.
COMPETENT is made particularly in TIL
bill against a contract, described as
conspiracy, in restraint of trade. be
} tween the Quaker Oates Co.. and tn
Great Western Cereal Co, by which
tho former acquired the business of tn
latter which is said to have been insol
vent from the date of the contrac;
June %, 1911. The cancellation of thi
, agreement is asked.
/ At various times from 1858 to tn
present, the defendants are alleged t
i have combined and conspired to sup
y press competition In 1889, it is de
j clared, 10 cereal manufacturers, con
: trolling more than 30 Per cent. of tn
E business, entered into pool. eliminat
$ ing competition among themselves an
q fixing prices. In 1891, most of these con
: ceras were absorved, it is added, by til
Americal Cereal Co., organized for tn
purpose of carrying on the pool, D
|. Henry p. Crowell, Robert Stuart, j. |
Mutt Thomas u. Wells (since dc
! ceased),, Walter D. Douglass, Ferd
napd Schumacher tnow GeceaseD, G. |
! Newell Robert Gordon. Myron I. Hell
. rick, James Parmelee, j. Fl. Andrew
: and Minor J. Allen.
In 1901, this corporation was acquire
!. and later succeeded by the prcser
Quaker Oats CO. The bill was filed b
United States Attorney Wilkerson Z
the direction of Attorney General Ms
Reynolds and James A. Fowler, assist
ant to the attorney general.
!, The Massachusetts House, Thursda,
n passed over the Governors veto u