Arizona republican., 1919-06-26
THE ARIZONA REPUBLICAN THURSDAY MORNING. JUNE 26 1919
KANSAS PROBES
 CEMENT TRUST

TOPEKA. June 25.-The preliminary proceedings in a scheduled sweeping investigation of charges that road ma terial men are in a combine to control prices and regulate production anu output of materials for the purpose of making excessive profits, have been started here by Richard J. Hopkins. attorney general Cement manufac turers in Kansas are appearing before Mir Hopkins to explain that they are not operating their business in viola tien of the Kansas statutes to prevent discrimination or unfair trade.
 This preliminary proceeding, if. the cement men are unable to convince the attorney general that there is open competition in their business. may be followed by proceedings charging tre manufacturers with violating the discrimination statute" f. is be lieved probable. however. that if to- days session is unsatisfactory to the state MT. Hopkins will resort to the inquisitorial powers of his office to prY into the inner secrets of the al legged combine. That is the samu remedy Kansas applied to lick booze" joints.
 
 r. H. Patterson, president and gen. eral manager of the Fredonia Port land Cement company, was the first manufacturer to appear in todays ii vestigation. He denied there was any discrimination in his business and alsv denied that he charged lola factory price" plus freight from lola to FRe- donia for cement at his plant. sJ further questioning. however, he ad- mtted that he sold only slightly under lola plus freight rate price,
 Recently when Wyandotte county attempted to purchase cement. deal= CTS and representatives of large manufacturing company admitted frankly the freight rate" plan of fix ing prices in districts. Mir Hopkins has the full information concerning statements made in Wyandotte county before cement men became wary of ! talking.
 From Mir. Patterson the attorney general also unearthed fixed charge on. every barrel of cement sold to the public in addition to a local dealers commission" That charge is for three mills barrel, MT, Patterson said, to the "Noreross Audit and Statistical Company of Kansas City"
 Reports to Audit Company
 Mir. Patterson said he made detailed reports to the audit company of his sales and alsosin connection herewith received reports from the "American Association about all cement business throughout the United States.
 It appears that everything about the cement business that adds cost to the consumer is fixed and certain and that everything that would explain just what purpose an audit company serves. that apparently does not au- dit. but keeps a check on distribution and prices through reports, is one of those things that comes under the general statement that is the way we run our business" So far that mys- terious process by which cement man ufacturers arrive at the same price tui their products, although one ships SC, eral hundred miles and the other none has not been explained
 It developed this morning that tht cement manufacturers are relying or the federal government to put stop tt the Kansas investigation into the al legged cement combine" A. W. Shul this, president of the Western ssate. , Portland Cement company. in a lette to MT Hopkins, declined to appear a Topeka. and stated that United State inspectors have given us a clear bil of health" Others repeat the sam statement to the attorney general.