The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-03-08

lumber.
Prices OF lumber have been increased
by operation Of the "open competition
plan" according to letters from MEM
bers of the association, introduced as
evidence. The letters were read in sup
port of the governments contention Tor
an injunction to prevent operation OF
the plan.
The letters were written In response
to request from F. r. Gadd, manager
OF the statistical department of the as
soeiation. which conducts the open
competition" organization. Many mem
bers responded to the request with let
ters Of thanks and commendation for
information which, according to the
government, caused the increased
prices.
The "open competition plan" is a
great benefit wrote the Southern
Pine and Lumber company, of Tex
arkana, which announced that the sales
report of the organization had been "a
great help and great influence which
to sell for less than another is getting"
continued the writer.
The Dorsey Land and Lumber COM
pany reported that the ''open comped-
tion plan" according to the govern
ment, had "done more to stabilize
prices than any other influence" An
other said, the plan had caused a run
away market .+.
Quotes Ohio Firm.
The Yellow Poplar Lumber company
an Ohio firm, was quoted by the gov
ernment as saying that the plan has
enabled us to secure more money than
we otherwise could have gotten"
There is now a friendly rivalry to
see who can get the most" Is the COM
mendation of the North Vernon Lum-
her company, Of North Vernon, Ind,
according to testimony offered by the
government.
Another association member, COM
mending the '"open competition plan,
said he had agreed on-a price for a
sale OF 100000 feet Of lumber, but be-
fore the customer arrived to close the
trade he received the sales report of
the American Hardwood Manufactur-
( ers' association and added 81 per thou
sand feet to the price. The customer
sAevepted the price without complaint,
he added.
The Barr Holiday Lumber company.
Of Ohio, according to government tes-
timony considers the open competi-
tton plan" very profitable as well as
pleasant"
A Mississippi member reported that
/ he added two dollars to the price of
gum and seven dollars to the price of
oak after attending an open cempe-
tition plan meeting at Jackson. Miss.
George c. Brown & Co., of Memphis
reported that the most direct benefit
of the open competition plan meeting
had been that they had found "a most
unusual demand at prices We had not
hoped for"
Prices of lumber have increased 147
per cent in the last year, according to
4 comparison of prices today and those
which prevailed on the market a year
ago, according to Mr.. Mitchell.
Show Minutes.
In the effort to show that the associa
ton is attempting to control prices and
TO get them higher the government in
troduced a complete series of the min-
utes of the 'Open competition" meet
ing which were alleged to include oral
discussion of prices. Much of the al
legged price discussion We're read to the
court by Mr.. Mitchell Price discus
sions are said to have occurred at Gin
cinnati New Orleans Shreveport, Little
Rock, Memphis and Jackson, Miss.
where open competition" meetings are
alleged to have been held since the plan
became effective. "
Stock reports, reports on productions
and market reports, all issued by the
organization, also were introduced by
the government and briefly discussed
by Mr.. Mitchell in attempts to show ar
effort OF increase prices.
''Co-operation and not competition IL
the life of trade was written on the
first of a series of reports issued by
the association which was read to the
court Mr.. Mitchell laid stress on tht
motto Is reviewing the work of the
organization. The increases said t.
have occurred in the hardwood marke
since the "open competition" plan has
been in effect vary from 20 to $40 pei
cent, according to the governments fig
ures.
Collusion Shown?
Mr.. Mitchell attempted to show tina
4 efforts had been made at one groul
meeting OF the organization to proven
an increase in production, though th
production at that time was only 6
per cent of normal A few letters wer
read which warned against prices go
ing so high that they would drive con
sumers to use the wood substitutes
However, most Of the letters presente
by the government made no referenc
to that question, but commented on eX
cellept and continued strength of TIL
market.
The final evidence of the government
was AN answer to the suit filed by tn
West Virginia Timber company, G
Charleston W. Va. 1t announced tha
it had refused to furnish information
of its sales or stock to the headquar
ly was dropped from the mailing lis
Later, the answer stated the compan
resigned its membership.
Judge Mccall, who Is presiding a
the trial made little comment durin
the hearing, but paid close attention t
statements in which lumbermen sal
business was good. though stocks wer
low and logs scarce. The defens
opened its case at 1880 o'clock Monda
afternoon. The courtroom was crowd
ed with lumbermen from all section
of the tri-states. Stanley Horne, edi
tor of the Southern Lumberman, c
Nashville, was in the courtroom
throughout the day.
Answer Filed.
Tracing the rise in price of Iumbe
to causes over which IL had no con
,rol and which It alleges are purel
natural causes, the American Hardwoo
Manufacturers association. Monda
filed its answer to the governments ae
tion. The answer was filed just previ
= to the opening of the hearing befor
b Mccall. In effect it was a com
denial OF all allegations made b
government about the association.
e answer of the association.
Thy document. was not complete
Sunday night at conference G
associations attorneys at the Hptt
\ bso. The attitude OF the assoeia
in regard to the governments al
4 lions is shown in the closing line
or Ne answer as follows:
while denying, as they have de
MED, that the rise in prices eomplaine
of was due to any other than the nat
ural causes. above set forth, the de
their lawful rights in associating them
selves for the purpose OF furnishin
each other with accurate informatio