The Birmingham age-herald., 1914-04-02
Attorney Percy Announces Fines Will Be Paid and
 Case Dropped
CASE HAS BEEN IN
 COURTS FOR YEARS
First Convicted of Violating Sherman Law and Then Convicted of Con- tempt of Court For l,.ering
 Decree

The Southern Wholesale Groeers' asso- ciaron has given up the ghost.''
 Convicted of operating in violation of ton will pay the fines assessed by Judge
 William l. Grubb of the federal court, stated Walker Percy of counsel for the association yesterday. That there would be no appeal from the contempt of court decree of Judge Grubb. rendered during
 the summer of 1913, and that the 5000 ip
 fines well as the costs would be paid.
 was the statement of Mir. Percy.
 MT. Percy said last night following conference with J. H, McLaurin. president
 of the Southern Wholesale Grocers' as-
 sociation, that it had been determined
 to pay the judgement and end the litiga-
 tion. The association has until May l
 to pay the fines and cost. but 1t is pos-'
 sible that a check will be mailed sooner. Defendants Fined The fines that are to be paid were as- sessed against J. H. McLaurin as presi-
 dent of the Southern Wholesale Grocers association, $l000; the Southern Whole sale Grocers' association as corpora tion, $2500; w. Hunt of Wilmington, sl00O, anu MT htlCntis dHolICi $10o0 The costs cannot be made known, it was stated at this time.
 The defendants were fined by Judge Grubb for contempt of the federal court in that the defendants violated a decree of the court to which the defendants sub scribed relative to issuing a so-called
 Blue Book of listed and favored deal CTS, and of the decree and in violation of the Sherman law.
 The case against the Southern Whole sale Grocers' association has been close ly identified with Birmin gham. There vas started here many years ago an 1nVesti-
 gation as to the high cost of food stuffs. Hinton G. Clabaugh. in the wholesale grocery business on Morris avenue. charged that the reason for the high cost of groceries was the combination of wholesale grocers operating in restraint of trade, and in the interest of the favor ed few jobbers. His sudden cessation of business, he charged was because he was not in good standing with the Whole sale Grocers association He sued the association, at that time headed by James A. VanHoose of this city. He fought the case in the circuit court and eventu- ally compromised with Mir NanHoose for $1O,00O. He subsequently, sued in the federal court and lost. In the mean time he had secured a trunk filled with letters and hurried that to Washington
 
 tee of the Congress Investigating his claims about alleged Illegal combina- tions. The department of justice was instructed to look into the matter and the appointment of Mir. Clabaugh a special agent for the department of jus tice soon followed
 Association Attorneys The association was represented in the beginning by General Luke E. Wright of
 Memphis and Caruthers Ewing also of
 that city. General Wright visited Wash ington, talked to Attorney General Wick
 ersham and subsequently 1t was all nounced that a decree by agreement would
 be entered.
 It was soon thereafter that the an nouncement was made that the assoca-
 ton was violating the decree and this association and the co-defendants were
 cited for contempt. The case was heard
 here with Walker Percy and Borden
 Burr associated with General Luke E.
 Wright in the defense.