Pine Bluff daily graphic., 1920-02-15
THREE PINE BLUFF
 FIRMS ARE NAMED
 IN ALLEGED TRUST
Atty. Gen. Palmer Seeks to Restrain Hardwood
 Group
OPEN COMPETITION IS
 BASIS OF COMPLAINT
Executive of Association Enters De- nial of Charges-McIntyr and Sons, Jefferson. and l. C.
 Love Co. Named

Memphis, Tenn, Feb. Legality of the "open competition plan, operated in cojuncton with the statistical department of the Ameri- can Hardwood Manufacturers asso- citation, was challenged in bill in equity filed in federal district court here today at the direction of A. Mitchell Palmer, attorney general and was defended in statement is- sued by F. R. Gadd, manager of statistics, acting as spokesman for the executive committee of the asso- citation.
 The bill asked an injunction to re- strain Mr. Gadd and 332 lumber con. cerns and individuals in 16 states from continuing practices alleged to have been involved in the open com petition" plan which, it was charged constituted a conspiracy in restraint of trade in violation of the Sherman law. The application for prelmi- nary injunction will be heard March g..
 It was announced that Judge c. B. Ames, assistant to the attorney gen eral, and Henry s. Mitchell, spec, ial assistant, under whose supervis- ion the bill was drawn, will attend the hearing.
 In effect the governments com plaint charges that by means of cir. culars and pamphlets and through oral agreement among firms and in dividuals participating in the so- called plan prices have been main. tained and competition among the defendant companies eliminated.
 Mr. Gadd, in his statement, denies that there has been any effort to control prices, and outlines the pur- pose of the "open competition" plan as solely to distribute statistical and other information in connection with the hardwood lumber industry.
 "We believe that at no time have we transgressed the law" MT. Gadd said in his statement, "and we well come the governments most search ing investigation.
 "We have no thought to control production or price fixation All that we are doing is to publish to our members the true market facts.
 "There never was greater error than that the open competition plan of the American Hardwood Manu- lecturers association could control the price or any relation to the fix ing of price"
 MT. Gadd likened the reports is- sued by his bureau to government crop reports and declared the method of operation was explained in detail some months ago to the federal trade commission.
 The government, in it's bill, asks that the issuance of further produc- tion, stock and sales reports under the so-called plan be enioined and that members listed as defendants to the suit be restrained from making any further oral agreements" at group meetings of lumbermen which it, was stated, have been scheduled to be held in the near future at Cincin- nati. Memphis, New Orleans and Lit tie Rock, Cor at any other time or place to eliminate such competition as may still persist among them"
 Firms named in the bill in Pine Bluff are the Jefferson Hardwood Lumber company, the J. C. Love Lumber company and J. F. Mcintyre and Sons. incorporated, Memphis dispatch last night said.
 According to an official of the J c. Love Lumber company. the only one of three local firms from which statement could be obtained last night, "there is nothing to the act ion" whatsoever. and "it does not amount to a hill of beans."
 Officials here deny there is a slo- gan. "Co-operation, not competition, is the life of trade" "The action has been taken against the Ameri- can Hardwood Manufacturers asso- citation and it's members. We lumber men are interested in this corpora tion only as corporation, from whom we get data and weekly re- ports on the prices paid for lumber. Lumber is sold on an open competi- ton plan, the prices paid being re- ported, but not the name of the customers.
 "This association, in other words, is a school on the lumber business. and has as another purpose the ad- vertising of the lumber products of it's members. Weekly reports arc sent out to members in the form of bulletin and we get the best prices for lumber that we can in an open competitive market"
 The association includes every lumber firm of any consequence throuphout the United States.