Evening star., 1914-07-13
BREAKS Up COMBINE
IN THREAD INDUSTRY
United States Court in New Jersey
Dissolves Trust Which Con-
trolled Business.

Every person using thread in the
United States is interested in the disso-
luton decree in the Threat Trust case
recently entered in the United states
district court for the district of
New Jersey, in which the Department
of Justice has broken up a combination
which heretofore has controlled the man.
ufacture. sale, and selling price. of this
universally necessary COMMODITY.
BY the decree open and free compet-
ton in the manufacture and sale of
threads Is insured the public: the uti-
mate consumer-the housewife-s cna bled
to purchase thread at a fair competitive
price, ard not price dictated by the
trust: jobbers and dealers are in posi-
| ton to make fair profit: and to all who
desire the right is restored to engage
in the thread industry without oppres-
sion by a wealthy and powerful combina-
ton.
Few Independent Manufacturers.
When the government began its investi-
CATION of the thread industry there were
not more than ten or twelve Independent
thread manufacturers. OF these there
were but two of any consequence en-
gagged in the making of domestic thread.
The other independents, realizing. 1t is
said, the hOpelesSness of competition with
the big organization and the great ex-
pense and difficulty of introducing new
brands to the public. apparently were
satisfied to market long lengths and to
deal with consumers who preferred quail
| ity to trade name or brand.
IN the decree all the unfair methods
heretofore practiced by the defendants
| were enjoined.
Practices Forbidden.
| Briefly. these are as follows:
| The preparation of lists of wholesale
and retail dealers, with whom trade in
| thread shall not be carried on. In short
the maintenance of a blacklist
| The preparation and exchange between
the defendants of trade agreements as to
trade discounts. trade rebates or terms
or conditions of sale.
The purchasing or acquiring of fac
tories. plants or brands of any COM
petitor.
The fixing of resale prices or the black
| listing or determinations against dealers
who sell thread below the fixed price. un-
less such dealer sells below cost.
The giving or offering of bonuses, re-
bates, etc.
The pooling of orders for the purpose
of obtaining special discounts or con-
cessions.
>.
The employment of special forces OF
statesmen. commonly known as flying
Squadrons.''
The soliciting or exacting from dealers
or from customers or competitors agree
ments not to handle or to cease handling
competitors brands or from any dis
elimination against those who do so deal
| in competitors brands.
Interference With Trade.
Canvassing the retail trade of obnoxious
dealers or jobbers for the purpose of in
| terfering with or preventing their trade
| in thread.
Attacks on the credit or business repu-
tation or quality of thread dealt in by
competitors or the circulation of false
reports concerning such competitors.
! 1ntimdatons or threats to prosecute al
legged infringers of trade marks. unless
such alleged infringers are in fact actual
| and illegal infringers.
The giving of secret rebates to induce
customers of competitors to transfer their
| trade.
The selling or offering to sell thread be-
| low cost of production. or concentra ted
price-cutting in different sections of the
United States. making due allowance for
| the cost of transportation and differences
| in grade. quality or quantity sold.
| The offering of bonuses rebates in
| the form of free goods. except that pur-
chasers and prospective purchasers are
allowed to receive not less than ) per cent
of their total purchases as samples to be
| distributed to the trade.
| The court by its decree specifically re-
| tains jurisdiction for the purpose of en-
| forcing the decree for modifying the same
in the future should it he shown that by
reason of changed conditions or changes
| in the statute law of the United States
| the provisions of the decree have be-
come inappropriate or inadequate to
maintain competitive conditions, or have
| become unduly oppressive to the defend
!