Daily capital journal. (Salem, Oregon) 1903-1919, 1914-01-05
Butter And Egg Organizations Scalp
Is Sought In Suit Scheduled for
Argument Now.
BOARDS OF ELGIN AND
CHICAGO WORK TOGETHER
Assorted That They Fix Prices and Are
Working in Restraint Of Trade
At All Times.


Chicago, Jan. 5.-The government 8
final effort to smash the alleged butter
and egg trusts and prevent forever the
formation Of pools to boost prices began
before FedeRl Judge Lands today
Backed by the report of Master in
Chancery A, B. Morrison, District At.
torney Wilkerson began arguments ask
ing for the dissolution of the butter
and egg boards of Chicago and Elgin
If the claims Of the government are
allowed, the big butter and egg men
will be practically enjoined from act.
ing in concert to fix prices, regulate the
operations in the markets, or in any
cooperate for their mutual profit
against the public markets.
The governments 8 attack on the al.
legged trusts began on June l3, 1910
when suit was filed against two boards
as corporations, by Attorney. General
Wickersham Their lawyers filed de.
murrer, but this was over.ruled and in
June 1911, the suit was referred to
Master Morrison, who has taken evi.
dence intermittently since that time.
Morrison completed and filed his re.
port early in December In nearly
every particular he sustained the con.
tentions of the government that tho
two boards were operating in restraint
of trade.
Morrison found that the Chicago and
Elgn boards virtually form one organ.
ization with interlocking directorates
and officials, who maintain a monopoly
and regulate the prices of butter and
eggs in Illinois, Indiana, Missouri, the
Dakotas, Wisconsin, Michigan and other
contiguous states opebting from
Chicago and Elgin for nearly a quarter
of a century, according to Morrison,
they obtained such control that they
fixed prices at which farmers and small
creamery men must sell their products,
fixed the retail price to the consumers
in the large cities, restricted the sup
lply in times Of heavy production Of
both butter and eggs, and reaped big
profits through this artificially created
scarcity.
Morrison found that creamery rep.
resentatives on the boards went into
Middle West states in the flush periods
Of production and made contracts with
farmers to buy at the then existing
market prices, fixed by the two boards
themselves. II butter and egg deal
er not connected with either board at.
tempted to out.bid the trust represent.
atives, the trust flooded the section in
which he was working with a surplus
supply Of butter and eggs, causing
prices to drop at big loss to the small
competitor. Prices were then advanced
TO repay the 'big fellows for their
losses
Attorneys for the defendants deny,
that the existance of the butter board
rs price.fixiug combinations reap hard
ships either to the fOrni-produCers or
to the consumers in the city. They de.
clare the butter and egg speculators to
be real public bcncfactors because they
preserve stores in cold storage houses
for use In the winter
Owncs Of cold storage warehouses,
containing the stores Of butter and
eggs held by the "big fellows" have
been summoned to appear before the
federal grand jury to disclose the names
OF big speculatOrs in food. The action
Of that body, however will be indie