The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-05-13
AGREED ON PRICES
Missouri Kansas Wholesale
GrOcers' Assn Under Fire.
State Will Try to Show 1t Fixed
Sugar Scale.
SMITHMEYER Is PRESIDENT
POehler Company Charged With
Violating Antitrust Act.
Suit Brought in Douglas County
Alleged 80 Illegal Pacts.
'SMITHMEYER is PRESIDENT

the Kansas antitrust law in connec-
ton with charges of price fixing
sale grocery concerns in Kansas,
thirty-eight Missouri firms and Off
cials of the Poehler company.
Smithmeyer and Kirchoff went to
the court house where the warrants
were served. They were arraigned in
the Douglas county district court and
released on bonds of $1,000 each.
Hearing of the case was set for No
Vember term of court.
The warrants were issued on infor-
nation filed by Attorney General
Richard J. Hopkins of Kansas.
Efforts will be made, by the state to
show that sugar prices for this state
were fixed thru agreements by the
Missouri Kansas Wholesale Grocers
| association. Additional arrests may be
made by the state in it's campaign
against wholesalers charged with anti
trust law violations, according to r. ].
Hopkins. attorney general. 1nquisi-
tions were held in the state house to-
day, but no additional evidence Sc
cured
1t is the plan of Hopkins to show
that members of the wholesale grocers'
| association agreed upon prices which
should be charged for sugar. On the
other hand it is apparent that the de-
fendant companies will seek to show
that their profits were due to pur-
| chases made on a rising market and
that no illegal acts were performed in
connection with their operations.
Charge Illegal Selling Agreements.
| Charges of violation of state antitrust
| laws have been filed in the Douglas county
| district court against f n. Smithmeyer,
| president. and George Kirchoff, secretary,
| of the Theo. Poehler Mercantile company.
The suit was brought by J. r. Wilson,
| county attorney of Douglas county, and
| charges that combinations and agreements
| were entered into by Poehler company rep
resentatives which resulted in Illegal SELL
ing agreements by eighty.two wholesale
companaes IN ,;s Kansas ana Mlss2nrl Ms
| terests and by companies alleged to have
been associated with them in price raising
| in the petition. 1t is charged that the
| alleged combination in restraint of trade
extended to various commodities handled
sugar, flour, canned goods, soap, cereals,
| coffee, tea and dried fruits. The suits fol-
lowed series Investigations by the
| state. County nrney Wilson brought
| action after renee with the attorney
generals office.
Smithmeyer Heads Body.
"Smithmeyer is president of the
Missouri-Kansas Wholesale Grocers'
| association" Hopkins said today, "and
| in view of the fact that it is apparent
prices were agreed upon at a meet
/ ing of this organization in Kansas
City, it was only natural that he
| should be arrested first. Other ar
rests will probably follow and further
| Iinquisitions will be held, altho no fur
| ther action may be taken at this
| time"
Hopkins declined to make a state
ment regarding the arrest of all Off
| GERS of the wholesalers organization.
He said information secured tended
to show that profits were made as a
1 Of fG nf
officers"
| Cutler Declines to Talk.
| Otto B. Cutler, local manager of the
| Poehler Mercantile company in To-
peka, today declined to comment on
| the case. He said he knew nothing of
the charges except as recited by Hop
kins thru his avenues of publicity.
'I am confident the company will
be able to meet any charges made in
court when the proper time comes,
| Cutler said. But I have no comment
to make on the case. My only infor-
nation is the press notices given from
the attorney generals office"
| Wichitan on Carpet.
John B. House, president of the Leh-
man -Higginson Wholesale Grocer
company of Wichita, was on the car
pet today. But House wasn't exactly
| a productive witness, altho he wat
| under fire the greater portion of the
morning.
House said he had no record of ad-
vices and information which may have
been sent out. thru the association
sal Hpkins. He further stated
that his company sold its sugar or
a per cent margin"
Hopkins was not certain whether
this statement meant a z per cent
margin over market advances or q
fixed profit on purchase price.
After Sugar Profiteers
Additional action probably will bs
brought by the state, especially in tbs
prosecution of alleged sugar profiteers
1t is asserted by Attorney Genera
Hopkins that some of the wholesaler
bought sugar for $14-60 a hundred
pounds and sold it for more than $25
Mayor John l. Powell of Wichita, i:
president of the Wichita Wholesale
Grocer company, one of the companie!
alleged to have entered into the agree
ment with the Poehler interests
: Mayor Powell has made flat denta
of any association with the Poehler'i
or combinations thru Smithmeyer Of
Kirchoff.
Four large wholesale houses il
, Kansas are owned by the Poehler's
They are located in Lawrence, Topeka
Emporia and Mcpherson.
May Seek Custer of Firms.
1t is probable the petitions now ol
file may be amended to seek ouste
of the companies from this state &C
cording to reports received in Topeka
Should conviction be secured in an,
of the cases, the defendants are sub
ject to both fine and imprisonment
while corporations operating in viola
. ton of the state antitrust law are sub
, ject to custer action.
: Charges by the state are to the eff
: feet that Smithmeyer and Kirchof
/ entered into illegal trust agreement
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