The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-07
POULTRY TRUST one
STEP FROM JAIL DOOR
Thirteen .IObbcrs and Whole
salcrs Lose Before Appel
late Division.
cor , MONTHS SENTENCES
only Hope Now Is That Court
Of Appeals Will Re-
verse Verdict.

''h'S ts"stN
-hc Appellate Division handed down a
decision yesterday affirming the convic-
.'on and sentence OF thirteen members Of
the poultry trust. which means that I'M
less tho Court OF Appeals revcrses the
verdict later, n bakers dozen Of wealthy
Sbolesalers and jobbcrs of New York city
must spend three months in the state
pententiary.
So far as the District Attorneys office
can ascertain. II the Judges of the higher
courts refuse n certificate OF reasonable
doubt pending appeal next week, these
men will be the first in the country ac-
tually TO go TO Jail for establishing a
monopoly in restraint OF trade" and
sitting competition by illegal agreements.
The victory has been gained only after
the longest trial In recent history of the
District Attorneys office. and after an
appeal that required as many briefs. re-
sponses, answers, counter claims and the
Ike as would satisfy the investigators
into the United States Steel Corporation
District Attorney Whitman yesterday
had the highest words of praise for WILL
IAN A. DE Ford. his assistant, who pre-
pared the case in five months. tried 1t in
three months and devoted 1--WE months
more for the appeal.
Unanimous Decision.
The decision yesterday was unanimous
and was written by Justice Mclaughlin.
IN IL he characteriZes the combination en-
tered into by dealers In live poultry Of the
city as aimed to destroy competition and
20 fix not only selling but buying prices
The combination controlled 30 per cent.
or more OF the live poultry traffic Of the
city II prevented competition by driving
ali purchasers out of the buying field, and
ruined independent retailers who sought
10 compete by establishing stands next
door where prices were cut until the In
dependent was compelled to go out OF
business.
The Justice holds that the defendant.
are very clearly guilty of violating tn,
state law against consp!rj.cies to do any
act Injurious to trade and also guilty o.
violating the general business law. whicr
pOhibts a monopoly.
Mr.. DE Ford was set at work on III,
poultry cases In the latter part OF 100!
because OF the complaints of merchant,
and producers that New York city. so fla,
~ live poultry was concerned. was in tn,
e-!p OF combination that for effective
ness made any other corporation looi
like an amateur
Tie outcome OF Mr.. DE Ford's investi
zion Was the !ndicting Of nineteen whole
saievs and Jobbers In live poultry. Anon.
these men were Erviug V. Dwyer. Ar
thu. q. Dwy.r. Charles West-rb-rg. Will
lam W. Smith. Charles X. Jewell. Jane
H. Norris, William II. Norris, Charles 7
Hawk. Charles Thatcher. Cl"n.n BishuI
samuel Werner solomon Frankel an,
Charles Werner and six others who sub
seQuertly We're released. Among then
were two women who had succeeded :,
Nhe business OF deceased husbands.
Convicted In August.
The trial commenced May 23. 1914, an
Terminated In IL verdict OF gully agains
me defendants on August &c, about on
week less than three months. Tho cas-
xas heard before Judge Rosalsky. AN
the testimony filed 5000 Typewriter
pages
The case attracted countrywide atter
ton, tor while the United states Ia
conducted many prosecutions under III
Th.rrnan act there had never Ut that tim
teen Jail sentence imposed
Since that time, however. the bath
Cub cases, the naval stores cases an
ehs National Cash Register cases nav
ended with prison sentences. but all thes
aye sun on .pIts-.. NJ JH'Sh'''.e
Imprisonment has ever been anirned d.
fore by IL higher court.
The testimony showed that In the sal
% live chickens In New York six differ
snt merchants or middlenen get shar
% the price ultimately paid by the cor
sumner. Starting with the poulterer .
PRODUCER there comes the shipper OF IN
country agent 10 whom he Sells theh tn
y.csiyer In New York. to whom ne sell
d. lou then the 1ODDer, WI
r,.s his stock In crate lots; then IN
slaughter house man. who kills the Tow
AID after that the retailer.
The receivers and the jobbers got 70
gether Il vas proved at the tr'al. an
that made the combination elective Ih
receivers organized the New york Li'
Poultry Association around 1906, ana TN
tohbers formed the Jobbers Association
The West Side Market.
Agreed on Prices.
The two associations met ana agree
- 10 prices, both for the producers an
.lN consumer. divided territory. organize
associations OF retailers, licensed siauSi
t-- house men and made ARRANGEMENT
20 have all money received pooIed an
distributed every week 1t also made pr'
Yls!ou for preventing any wholesaler froi
cutting prices.
7. was In the actual working or IN
agreements that the effectiveness Of III
combination was observed, according
the District Attorney. The large popul'
zion OF New York city, which require
that poultry and all meats be killed unds
certain regulations makes New iork
mos. valuable market for producers
Illasmuch as one combination cohtroile
% per cent OF the trade the receivers ma
'.e power OF fixing the price TO the shii
oers who in turn fixed 1t for tho PR
dgcrrs. The price was unalterable'
Occasionally all Independent wouiu al
pesr IN the producing field. whereupo
The trust would advance its prices .
that tho Independent would not be an
!, purchase with any hope or making
profit by sales, II he should be tt
strong he was either bought out or mac
member II not he was broke. 1t wa
." same way with distribution.
\; the same time running through u
case there are indications mat o'c'
Sorally the trust did lose Some shreW
.rd.v!duas would buck the trust arour
t,- holiday time when the coinbinatio
lad "a right To expect harvest. The
would open up ana ahe great splurR
Tie associations did not Ike that,
tH"y reached down into the treasury al
bought Off the most energetic or the!
'neiI. Tho consumer paid the price
The thirteen defendants will surrend
themselves to the court on Monday
Tuesday. according to Isaac n Jacobso
their counsel This will be done 30 tn
Re may nnnly for N certificate OF renBO