New-York tribune., 1919-08-20
One Refunds s4 to Orphan
Asylum; Another $l45 to
Soda Water Manufacturer:
Inquiry Is Announced
Resales Are Under Fire
L. S. Attorneys Investigate
Triple Disposal in Search
for Evidence of Crime

The first concrete action on large
scale in the war on trade abuses which
tend to increase the cost of living will
be taken to-day when Assistant U. S.
Attorney Ben A. Matthews presents
to the food administration evidence
on the alleged triple resellng of two
carloads of sugar.
Such reselling. a violation OF both
the Sherman and Lever acts, according
to Mr. Matthews. brought the price of
the sugar from - cents a pound, itself
above the government price, to 1424
cents
Mr.. Matthews said that he plans to
take steps to have the license of the
company which began the sale cycle re-
voked by turning over the evidence to
the food administration officials who
have revocation powers. He pointed
out that the Sugar Equalization Board
controls the sugar industry here, is
suing licenses permitting firms to deal
in sugar.
EvideHce for Grand Jury
After the matter has been taken up
by the food administration, he said,
he probably viii prepare the evidence
for presentation to the Federal Grand
Jury, to obtain an Indictment charg
ing violation of the Sherman or Lever
act, or perhaps both.
As outlined by Mr. matthews. a firm
OF exporters III New York City were
the original holders Of the two car
loads Of sugar. They sold them a p
cents a pound 10 q firm Of brokers.
who in turn disposed OF one carload
20 Boston wholesalers and another to
Worcester dealers for l4sa cents d
pound. Mr.. Matthews is interested in
tracing the sugar further and ascer-
tanning It's cost to the ultimate con-
sumer.
Both the Lever and Sherman acts
prohibit .resales not in the regular
business cycle. Reselling under the
Lever act is punishable by two years
imprisonment and $1,000 fine. The
Sherman act provides for the dissolu-
tion Of the firm by civil proceedings
and also permits of criminal action
against the heads Of violating firms.
Refund Of ONercharge on Sugar
sugar was made by dealer yesterday
after persuasion by Arthur Williams,
iederal Food m.nistra7or. Lyman
Levitt. a Wholesale sugar merchant OF
46l Hudson Street, was charged by
J. de Forrest Hoilenbeck, of the Albany
Orphan Asylum. with charging Sl4 a
hundred pounds for one thousand
pounds Of sugar
Mr.. Hollenbeck. when he learned that
II cents vas the maximum price to be
charged complained to NJ. Williams
Levitt was as1ed to appear before the
Federal Food Administrator, and, after
q discus. ion, gave Mr.. Holenheck
chccA for /. MAX. .ng the cost mi the
sugar to the orphan asylum 10 cents
pound.
We are gong to investigate the ac-
tivlties Of Nh. Levitt's firm before tax
inc further action Mr.. Williams de
clared. Mr.. Levitt tells Us that this
is the only case Of overchargiNr by his
hrn. and We intend to see if he is right.
II we tind that he has made d general
practise Of overcharging, we will lmme-
dlatsly turn the matter over - the
Sugar Equalization Board for license
revocation proceedings
Another Sugar Charge Refund
Nh. Williams also announced that the
firm Of Miller & Wrfe. which admit
ted charging - and 12la cents a pound
for 5000 pounds OF sugar, made re-
fund Of Sl45 TO the complainant. a soda
water manufacturer.
4 complete organization for inquiry
into the reason for high prices has been
formulated, Henry A. Cutler, special
assistant United States attorney, an
nounced Yesterday. Mr.. Cutler and A.
H. Williamson, another special assist
ant United States attorney. are investi-
eating the causes for the high prices
of fruit cheese. clothing and shoes.
R. 7. Joyce. another special assistant.
has been selected by United States At
torney Catfey 10 cooperate with Gov
ernor Smith and the local District At
torney in the inquiry into the milk sit
uation. Mr. Joyce was appointed as
result Of Governor Smiths request tog
Federal aid in the milk inquiry.
Mir. Cutler announced yesterday that
fruit growers organizations are being
investigated with view OF ascertain-
ing whether they are violating the
sherman or Lever acts. An average Of
five witnesses are being examined daily.
The dried fruit situation is not beng
overlooked, Mir Cutler said. as the rise
in prices OF those commodities has
been remarkably rapid.
Inquiry Into Shoe Prices
Eve want TO learn also just what
makes the cheese marke, and who are
the men behind the making" Mr. Gut
ler said We are also paying especial
attention to the reasons for SIS for q
pair Of shoes If there are combina-
tions there are going TO be jail sen
tences. We are trying to ind out
whether this reported leather shortage
is genuine or whether it is just-re-
ported.
We have been told by the Attorney
General that we must not wait for
further authorization on uncovering
the existence of combination. We
must Immediately present our evidence
to a grand jury We purpose to file
bills in equity for the dissolution of
all proved combinations in restraint of
trade and we also viii prosecute
criminauy."
The Assistant United States attor-