Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1919-04-01
GIGANTIC CORN
PRODUCTS TRUST
GIVES IN To LAW
Withdraws Appeal; Will
Dissolve, Retaining
Big Plants.
CLARIFIES SITUATION
ON COMBINE QUESTION

Washington, March 31.-WithdrawaI
today, by the Corn Products Refining
company Of its appeal to the Supreme
court from DEGREES holding the company
to be a combination in restraint of trade
and ordering its dissolution in eonse-
quence, was hailed by the department
Of Justice as an important new step In
clarifying the application of the Sher-
man antitrust law.
ssIt is the view of the attorney general
that the rule in this case" said a state
ment issued at the department, coupled
with the similar decree entered last Nov
ember in the Harvester case, should go
far toward clearing and settling the law
on this important question
AS analyzed by officials connected
with the attorney generals office, the
action is 8 complete victory for the gov
ernment, with the additional provision
that the government shall have the
right to such further relief as may be
necessary, If, at the end of three years,
the measures directed 10 compel com
plianee with the law are found ID have
been inadequate.
Restraint in Practices.
In the Corn Products case, the gov
ernment charged that the company with
subsidiary concerns, engaged in. unfair
competition, fixing prices for its prod
ucts and gaining other adyantages ever
cnn petiters thru the payment of freight
rebates on shipments of starch, glucose.
grapes, sugar and other products.
Judgment was rendered ir the federal
district court of New York against the
defendants, restraining them s'from re-
suming the practices cited and ordering
dissolution of the concern along the gen
eral lines ordered Big the federal court
in the Harvester company case.
RESULT is COMPROMISE
New York, Marck' 31.-Dissolution of
the Corn Products Refining company.
which is required to sell to competitors
before 1921 all but three ef it's manu-
featuring plants. was ordered by Federal
Judge Learned Hand, tcday. The de-
cree, following dismissal by the su-
preme court of a few hours earlier of the
corporations appeal from a previous
judgment dissolylng the concern, was the
result OF Il compromise agreement be-
tween the defendant and the govern
ment, which charged that the company
was monopoly.
The corporation. whose properties are
valued at s5o0o,o00. is permitted TO re-
tain it's factories at ArGo and pekin, ILL.,,
anu fIuEeWater. ~ II. II must A1SppSF
of its plants at Chicago. Granite City,
Ill, and Davenport, Iowa, Oswego, \.
u. and Jersey City. n. ].
The properties which will be re-
tained, f. T. Bedford. president of the
company. said. are the largest. but he
described the judgment as "a little more
drastic than we were willing for long
time to consent TO"
5000 Bushsi Capacity Left.
The decree was agreed upon. Mr.. Bed
ford added. in order TO avoid long con-
tinuation of the litigation. In view OF
the permission TO retain the Argo. Pekin
ard Edgewater plants. he said the di-
recters considered the compromise lutlg-
ment IA reasonably fair settlement" par
ticulariy as it did not destroy the or
gauization nor take from the concern its
trademarks.
The factories to be sold. ohe stated.
would reduce the corporations daily
grinding capacity by 5000 bushels.
The company, Mr.. Bedford said. owned
100 per cent Of the stock of its sub
manufacturers of candy, starch,
glucose AMI other corn products. The
merger was affected in 1906. At thas
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