New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-03-03
TAYLOR Admits Cushman's
New Company Put End
to Competition.
SIX-CENT LOAF WAS
ALTRUISM, SAYS WARD
Answers Indirectly When Asked
About Use of Plaster Of
Paris for Flour.

Evidence of n Local combination OF
large bread manufacturing interests
which may Warrant action By the At
torney General was adduced yesterday
at the state inquiry into the advance
Of prices Of bread, -four and wheat.
While the facts may bear further IN
vest igation. il is known that the tes-
timony OF Edmund St. John Taylor,
member OF the executive committee
ard sales manager of ). tushman
Sons. Inc, was considered remarkably
frank and Illuminating BY Deputy At
torney General Becker.
The Deputy Attorney General sought
to ascertain through the witness
whether the Cushmsn concern. which
was organized last December with
$4,000 900 capital. amounted to com
bnatiOn in restraint of trade. IL ap-
peared from Mr.. Taylor's testimony
that the new organization consisted OF
ali the original S. Cushman's sons,
who operated independent bakeries
prior to December, together with
Herschman g Bleier, Of $50 East Sew
enty-secoud Street. who, 1t was admit
ted, were the principal competitors OF
the CuShmans.
Mr.. Becker refused to comment on
The Taylor testimony Il is under
stood. however, that, in the opinion of
some of the Investigators, the new
combination bears some of the ear
marks, on a smaller scale, Of the so
called trusts" the federal government
has sought to dissolve.
Mr.. Taylor testified that the original
Cushman sons organized the firm of
5. Cushman G. Sons in 1892, and that
a year later a friendly dissolution oc-
Cured, resulting in the organization
o. eleven different concerns. These
firms divided the territory in this city.
and each agreed not to sell bread out
side the district assigned to it. accord
ing 10 the witness. That eliminated
competition among them. although
they appeared to be working independ-
entity and competing with one another,
as Mr.. Becker pointed out.
Absorbed Chief Competitor.
Last December. Mr.. Taylor testified,
the original Cushman Srms combined
"a :. Cushmans Sons. Incorporated,
and s2,000.000 of the capitalization was
paid up. All the Cushman firms had
operated several branches. They CON
sisted Of S. Cushman's Son, lncorpO-
rated, Of 517 West Fifty-ninth Street,
with seven branches; Cushman Bread
Company, Of 80 Lawrence Street, with
three branches: Cushman Globe Com
pany. of 415 Amsterdam Avenue. with
ten branches, and Uerschman 4 Bleisr,
with six branches.
The witness said that the Hersch-
man & Bleier Company were taken into
the new corporation subsequent to Its
formation, in December.
"They were your chief COM etltors,
we're they not?" asked Mr.. Becker.
yes, they were sharp competitors,
replied the witness. "They sold bread
along the same routes followed by the
Cushman concerns"
George S. Ward, vice president Of
the Ward Baking Company, was also a
witness. He waived immunity. He said
the Ward company was capitalized at
S30,000,000 and was formed three years
ago by buying out plants throughout
the East and Middle West. He en-
phatically denied that any drivers re-
ceived orders to tell retail customers
to sell the bread at six cents after the
Wholesale price was raised TO five
cents. on February 10. He said he
gave the order to advance the price
after some of the statesmen had report
ed that the Shuts Bread Company had
announced rise.
I'VE were all reluctant to advance
the price" said Mr.. Ward: mo one
wanted to take the lead. We believed
the attitude Of the government, ma
tional and state, vas to throw protec-
ton around the small baker. We felt
we might be criticised if We main
tanned the lower price, with the result
of forcing into bankruptcy many small
bakers.
80 your object in advancing the
price was altruistic as well as pract-
cal. was that il ?" asked Mr.. Becker.
The witness replied in the atirma
tive.
Mr.. Becker referred to the story
from Boston, including report made