The Daily Missoulian., 1913-03-02
SUGAR AND STARCH
UNDER PROBE
DISSOLUTION OF CORN PROD
UCTS REFINING COMPANY is
SOUGHT BY GOVERNMENT

New York, March 1.--Dissolution Of
the Corn Products Refining company
an alleged starch, glucose and syrup
trusts sought by the federal gov
ernment in a civil antitrust suit
filed here today charging the $S0,00o,-
900 combination with entering con-
spiracies and contracts to destroy
competition in violation of the Sher-
man law. 1t is alleged to have kept
the prices of corn products at unrea-
sonably lower figures to harass and
discourage independent manufacturers
Controlling 66 per cent of the entire.
American production of starch ana
glucose and so per cent of the inter-
state trade in mixed syrups. the trust
Is charged with fixing retail prices;
with manufacturing cheap grade can
dy at unreasonably low prices in re-
talation against confectioners who
buy starch and glucose from independ-
ents, with practically suppressing the
private brands of mixed Syrups of
grocers by quoting low prices on its
own syrups; and with unlawful
threats and contracts to destroy COM
petition.
Aside from dissolution, the govern
ment asks for an injunction prohibit
ing the alleged restraint of trade
The bill, filed by United States At
torney Henry A. Wise is signed by
Attorney General Wickersham and
James A. Fowler, Jesse c. Adkins and
William H. Miller, his assistants.
1t is alleged the defendant comhina-
ton disrnantled many of the starch
and glucose factories it absorbed, sell
ing the properties in most instances
under covenants that the land con-
veyed should never. or not for long
term of years, be used in connection
with the manufacture of similar prod
ucts. The alleged trust and its pre-
decessors are charged with having
taken contracts from officers and di
rectors 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 engaged in the
making of baking powder, resulting in
an agreement whereby the maize COM
pany sold to the defendant the sur
plus product not consumed by the
baking powder company, To sup
press competition, the combination is
alleged to have employed the firm of
Stein, Hirsch & Co, in 1908 and 1909,
to sell glucose at low prices as indie
pendent manufacturers.
When the National Candy company
organized in 1906, the Clinton Sugar
Refining company, whose output would
come in competition with that of the
Corn Products Refining company, the
latter, the bill says, informed candy
manufacturers throughout the country
that unless they bought sufficient
percentage of the. glucose they need
ed from the defendant combination It
would go into the candy business it.
self, in competition with them, In
consequence, it is alleged the Corn
Products Refining company acquired
control of the Novelty Candy COM
pany to retaliate against the National
Candy company.
Until prohibited by the interstate
commerce commission the company is
alleged to have secured from railroads
an excessive share Of the through
rates on account of it's own switching
lines which was alleged to amount to
rebates.