The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-03
THREAD TRUST ALSO
AGREES TO DISSOLVE
Decree for Disintegration Filed
in the Federal Court
at Trenton.
SUIT BEGUN LAST YEAR
The American Company Charged
With Controlling 80 Per
Cent. of Thread Output.
SUIT BEGUN LAST YEAR

WASHINGTON June 2.-The American
Thread Company will undergo dis
solution as the result OF an agreement
between the trust and the Department Of
Justice, which entered suit against the
company and It's associates more than a
year ago.
decree which forms the basis OF the
agreement was filed to-day in the United
States District Court at Trenton, N. ].
1t Is set forth In the decree that the
American Thread Company. the Thread
Agency. the English Sewing Cotton Com
pany, the Spool Cotton Company. ]. 4 p.
Coats. Limited: the Clark Thread Com
pany, the Clark Mile-End Spool Cotton
Company. George A. Clark & Bros.
James Chadwick & Bros. and Jonas
Brook & Bros. have entered into a COM
bination to restrain trade in violation
OF the Sherman law.
The decree restraints all of the de-
PENDANTS from cooperating in the future
in pursuance of this alleged conspiracy.
The Companies Restrained.
The American Thread Company. the
Thread Agency and English Sewing Cot
ton Company are restrained from acquir-
ing or holding. directly or indirectly, any
interest In the capital stock or other
securities OF the Spool Cotton Company.
]. & i. Coats, Limited the Clark Thread
Company. the Clark Mile-End Spool
Cotton Company George A. Clark *
Bros, j. d Il. Coats, Inc. James Chad
wick &c Bros. and Jonas Brook & Bros.
The latter group also Is restrained
from acquiring any interest in the former
| y-.tt t,..Ns Al a..
qured before January l. 1916 to dispose
OF any interest 1t now holds In the Ameri-
can Thread Company and English Sewing
Cotton Company. This sale must be to
persons not its stockholders or officers.
II Is further provided that so long as
| one or more of the defendants. the Ameri-
can Thread Company. the Thread Agency
and English Sewing Cotton Company, as
a group on the one hand, shall have the
same controlling stockholders or any of
| the same officers or directors as one or
more of the defendants, the Spool Cotton
Company. ]. & Z. Coats, Ltd. the Clark
| Thread Company, the Clark Mile-E
| Spool Cotton Company. George A. Clark
& Bros, ]. =. Coats, James Chadwick
n Bros. and Jonas Brook Bros,
| both groups shall be enjoined from engag-
ing in interstate sewing thread trade
| within the Jurisdiction of the United
States.
Many Practices Forbidden.
There is set forth long list of prac-
tees which in the future are not to be
engaged in by any OF the defendants
The prohibitions include the soliciting OIL
confirming of any agreement in regard to
a list OF wholesale FOR retail dealers In
the United States with whom trade In
sewing thread shall not be carried on.
The decree also prohibits agreements
with any competitor fixing trade discounts
and rebates; agreements for purchasing
acquiring factories and plants of competi-
tors in the United States from Offering
| wholesale and retail dealers in sewing
thread bonuses or rebates dependent or
the aggregate future purchases to be made
by such dealers. There is long list OF
/ other so-callcd unfair practices.
Among the individual defendants ar,
Frank +. Bailey. Robert C. Kerr E. Mar.
tin Phillips. Sir Thomas Glen Coats. Johr
William Clark, Walter =. Neel. Rober
p. Symington, James Valentine, JOSEPH
Bowker, James c. NJ. Clark and C. p
Allen.
II was charged In the brief filed b!
United States District Attorney John Ii
Vreeland that the American company con
trolled 80 per cent. of the domestic thread
business OF the country and 60 to 20 PEI
cent. OF the manufacturers thread bust
ness.