New-York tribune., 1913-12-29
JEWELLERS AGREE
TO END COMBINE
Wholesalers and Retailers,
Syndicates Prepare to
Obey Anti Trust Law.
PACTS HELD TO BE
RESTRAINT OF TRADE
Federal Trust Busters" and n,
tenders Reach Satisfactory
Plan of Settlement,

friendly suit under the Sherman ,.v
with an outcome only less sien,soa..
than the voluntary separation of :,
American Telephone and Telegram c.-
pany and the Western Union. Ia th,.
to be to be settled against the N.,.
Wholesale Jewellers Association and a.
National Association of Manufac,u.,.
Jewellers and their members. These a.
sociations and their members have agroo,
to the entry OF q decree in the fado-.,
courts forbidding them from enpaoin. ..
certain practices deemed to be in v,o,..
tion Of the Sherman law. Felix II. lew
counsel for the National Wholesale Ian.
elers Association, will begin TODAY :,
series OF conferences with II. Snovd.,
Marshall, United States District Al.
torney. with a view to arranging the d..
tails OF the settlement.
The whole thing is an outgrowth Of sn
attempt on the part OF retail jewellers "a
eliminate the big profits of the middle.
man. They found that in buying thA
product OF the manufacturing jewellers
through the jobbers they were paying bid
prices TO line the middeman's pockets,
SO a goodly percentage OF them forme.t
little syndicates, or groups, with the pur.
pose OF dealing with the manufactured
directly. entirely eliminating tho jobber.
Naturally the jobbers, forming a largo
and exceedingly wealthy body. struggled
against any such upset of the existing or-
haip -
entered into among both wholesalers and
manufacturers by which any manu-
facturer selling directly 10 retailers was
to be blacklisted by the members OF this
National Wholesale jewellers Associas
tion.
This association. which Is unincorpo>
rated, has a membership OF 172 firms and
individuals. jobbers and wholesale deal.
ers In jewelry in California. Illinois,
Michigan, Minnesota, Ohio. Pennsylvania
and New York It maintains Offices In
Philadelphia The manufacturers as
sociation. which IS also unincorporated,
has a membership Of only sixty-seven
firms and individuals, manufacturing
ieuelry in Massachusetts and Rhode Isl
and. It's headquarters are at Providence.
Mr.. Marshall said yesterday that the
government had obtained conclusive EVIL
dence OF the violation OF the Sherman
law on the part OF these associa lions. and
that the associations themselves, as soon
as they had consulted lawyers, also be-
came convinced OF the completeness OF
the case against them. The government
instituted criminal proceedings against
them last June, but abandoned the suits
soon afterward. when the def endants SIX
nined their Willingness 10 abandon the Oh
tectionabIe agreement and In other re-
spects abide by the Sherman law
As n result the associations will not be
d;~soIved. but permitted 10 continue their
activities along legitimate lines. Tile ds-
cree TO be entered against them. cnjo!n-
ing then, from conspiring in restraint Of
trade. Is regarded as a formality. Inc
LAWYERS for both sides think they VIII
have completed tho details OF the neso'a-
lions in time to have 1t entered by jan
uary u.
Thi. case, according TO Mr.. Marsnsl' Is
a conspicuous example OF what mas oeeh
going on steadily since he took once
eight months ego. He has got great
many complaints of violations OF the
sherman law from great many dinere'''
sources. and II. after investigation the
alleged violations have appeared 70 nave
. h,si. IN fact, he has proceeded immedi-
.,e,v against the offenders Ana uHe
after time, he said, the defendants havs
voluntarily abandoned the practices oo'
,sc+ea 10 or severed the relations 70
which exception was taken.
In other words. he has found here in
N.u York very complete evidence o.
What President Wilson has called the de'
s,rs q, business to conform with the law
once the law is understood ana its en-
forcement expected.