Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1913-03-01
ACCUSED OF RAISING PRICES
DEFENDANT CORPORATION ALSO
SAID TO HAVE MADE UNFAIR
COMPETITION
TRIED TO STIFLF RIVALS
TOLD coNFEcTIoNERs 1T WOULD
RUIN THEM If THEY REFUs-
ED TO BUY OF 1T

4 New York, March dissolution of
the Corn Products Refining company
alleged starch, glucose and syrup
trust is sought by the federal gov
ernment in civil antitrust suit fill
ed here today, charging the SS0,00O,-
600 combination with entering con
Ispiracies and contracts to destroy com.
petition in violation of the Sherman
law 1t is alleged to have kept the
4 prices of corn products at unreason-
ably low figures to harass and dis
4 courage independent manufacturers
Controlling 66 per cent of the en-
tire American production of starch
glucose and so per cent of the inter
state trade in mixed syrups, the al
legged trust is charged with fixing
resale prices; with manufacturing
cheap grade candy at unreasonably
low prices in retaliation against con-
feetioners who buy starch and glu-
cose from independents; with prac-
ticalIy suppressing the private brands
Of mixed syrups Of grocers by quot
ing low prices on its own syrups;
and with unlawful threats and con
tracts to destroy competition.
Aside from dissolution, the govern
ment asks for an injunction prohibit
ing the alleged restraint of trade. The
suit recalls the long drawn out fight
between the department of agricul-
ture and the Corn Products Refining
company over the branding of its
corn syrups.
1t is alleged that the defendant
combination dismantled many of the
starch and glucose factories it alb
sorbed, selling the properties in most /
instances under covenants that the
land conveyed should never, or not
for long term of years, be used in
connection with the manufacture OF
similar products.
FIhe alleged trust and its predeces-
sors are charged with having taken
contracts from officers and directors
Of certain absorbed companies, not to
engage in the business for a period
Of years
When the Royal Baking Powder
company acquired control Of the
American Maize Products company,
the defendant combination, It is al
legged, threatened to engage in the
making Of baking powder, resulting
in an agreement whereby the Maize
company sold to the defendant the
surplus product not consumed by the
baking powder company. TO Suppress
competition, the combination is al
legged to have employed the firm Of
Stein Hirsch and Company in 1908
and 1909, to sell glucose at low prices
as independent manufacturers.
When the National Candy company
in 1906 the Clinton Sugar
Refining company whose output
would come in competition with that
Of the Corn Products Refining com
pany, the latter TIE bill says, inform
ed candy manufacturers throughout
the country that unless they bought
a sufficient percentage Of the glucose /
they needed from the defendant com
bination. 1t would go into the candy
business itself IN competition with
them. IN consequence. It is alleged
the Corn Products Refining company
acquired control Of the Novelty Can
dy company TO retaliate against the
Candy company and manu-
featuring confectioners purchasing
glucose from independents.
Until prohibited by the interstate
commerce commission. the company ]
is alleged to have secured from rail {
roads an excessive share Of the
through rates on account Of its own !
switching lines. which was alleged to 4
amount to rebates.