Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-03-09
CHARGE VIOLATION
Of ANTI TRUST LAW
BY COTTON FIRMS

Violation of the Sherman anti
trust act and Illegal combination to
arbitrarily reduce the price of cotton
are the charges lodged against cer-
tain cotton}a brokers, factors and
dealers operating in Georgia by the
heads of the state department of ag-
ricultuFe and the state bureau of
markets in a" petition filed Saturday
afternoon iii the United States dis
trict court for the Northern district
Of Georgia. .+a.. u.s.. s..
Judge Samuel H. Sibley, of that
court, upon considering the petition
and allegations made therein, forth
with, issued a temporary injunction
against the dealers mentioned in the
petition, restraining them from put
ting into operation any arbitrary
practices such as those charged by
the plaintiffs. The hearing on the
petition to- determine whether or
not it shall be made permanent will
be held March 20 before Judge Sibley.
The plaintiffs are j. J. Brown, state
commissioner of agriculture, and l..
B. Jackson, director of the state bu-
reau of markets.
The defendants named in the pet:-
ton are: George H. McFadden &
Brothers, the Latham Bradshaw Cot
ton company, Anderson, Clayton 4
Co., Howard, Taylor & Co, and the
Strickland-Jordan company. It is
stated in the petition that none of
the defendants, so far as is known,
are residents of Georgia, but that
they maintain offices in Atlanta and
conduct a General business in the
buying and selling of cotton through
out the state.
1t is charged that at meeting held
by the defendant brokers and others
February % in the offices of the At
lanta Commercial Exchange, certain
agreements were entered into under
which the cotton dealers arbitrarily
fixed the price on, the grades of cot
ton, below good middling, this reduc-
ton averaging 2 cents per grade
below, the current prices then obtain
ing in the market. .sr
re- no Go Before Grand Jury
TT was indicated Saturday after
noon by the petitioners that the fill
ing of the civil suit against the cot
ton dealers would constitute only one
phase of the case, and that presenta-
ton of the evidence to a federal
grand jury would follow. The OBJ
ject of this later move being, the
petitioners stated, to- secure indict-
nents charging violation of the Sher-
man antitrust law. The petition
for Injunction was filed by H. H.
Dean, well-known Gainesville attor-
ney. 49,.
7 j.. T, Jennings, manager Of the
Atlanta branch Of the firm of George
Fl. McFadden 6 Brothers, declared
Saturday night that the meeting on
February %, at dhich it is charged
that the alleged illegal price-fixing
agreement was formulated, was not
secret gathering. but was open to
the public. He further asserted that
the only purpose was to standardize
the prices on the lower grades of cot
ton, but that none of the dealers
were obligated to follow this price
schedule. -. ais
For many years it has been cus-
tomary to hold such meetings." said
Mr.. Jennings, land the meeting Feb
ruary %2S was no different from any
of the others. As matter of fact,
the meeting February 28 was follow
ed by another on Tuesday of last
week, because several cotton dealers
were absent from the first gather
ing" '%@'''" = q" &9f.' %a'f%%''7l% '4&
f "If we have violated the Sherman
antitrust law ~ or any other statute,
we know nothing about it, and am
sure no court would consider the
Standardization of low. grade cotton
prices as Illegal restraint of trade. .