The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-02-14
Allege Trade Restraint.

Attorney -Genera! ralmer's complaint
Is against the monthly stock production
ard sales reports, market letters and
periodical district meetings Of the open
competition membership of the asso-
citation, and he asks that the court
grant a preliminary Injunction prevent
Ing the further issuance of such re-
ports or holding Of such meetings. II
Is necessary that the court shall
promptly issue the preliminary injunc-
tion the camplalfit says, to restrain the
defendants until final hearing, from
further carrying out by such means or
otherwise, their unlawful combination
maintenance and enhancement of the
present abnormally high prices by such
means pending such final hearing. will
constitute an irreparable injury in that
such prices will be transmitted to and
paid by the public without possibility
of restitution, and, especially in that
numerous essential industries will be
induced by such abnormal prices to
largely curtail their purchases of such
lumber in Interstate commerce, and
thus to largely curtail their production
of articles made from such lumber at
this critical period. when decrease of
production is a menace and increase OF
production Is vital to the economic well
fare of the United States"
The government alleges that the de-
PENDANTS have been In unlawful combi-
nation to maintain and increase prices
of hardwood lumber or their manufac-
ture since January, 1919. "At the be-
ginning of the year 1919 the defendant
companies were still demanding for
their said lumber approximately the
same prices as had prevailed before
the signing of the armistice in the war
with Germany; and the aforesaid man
ufacturers and wholesale and retail
dealers, makers of furniture, building
material, etc, were buying such lum-
Der from the defendants only in small
quantities for the purposes Of imme-
date necessity recites the complaint
''in the belief that the prices demanded
We're too high; and that they were in
tending to largely increase their pur-
chaSes of such lumber from the defend
ants in Interstate commerce as soon as
the prices therefor should be reduced,
by competition amongst the defendants
to more reasonable levels"
Then the complaint sets forth the
charge that instead of permitting the
expected normal regulation Of the hard
wood lumber market by the natural
economic law of competition. the men,
bers of the association formed the al
legged combination.
The hearing of the petition for the
preliminary injunction has been set to
John e. Mccall. judge Of the United
States district court of West Tennes-
see,
The data which the government pre-
sents to sustain its charge consists of
exhibits Of various monthly market let
ters issued by Mr.. Gadd as manager
of statistics, and letters from various
members of the association indorsing
the open competition plan.
The government seeks to establish
upon this data the assumption thai by
means OF these letter and various re-
ports issued by Mc, Gadd the members
of the association were advised az to
prices they were getting for their COM
modify and constrained to come to mu
tual agreement on these prices and 20
refrain from competitive activities in
prices and other matters. The cita
tion Is made that the lumber manu-
facturers joined together in this open
competition plan under the slogan Co
operation. not competition, Is the life
of trade
Complaint Is also made that Mr..
Gadd's market letters from time to
time contained arguments restraining
and limiting the production of hard
wood lumber by the members in order
to avoid "overDroduction."
r. NJ. Carrier, of .Sardis, Miss, is
president of the association. and James
Il. Stark, of Memphis. is the chairman
of the executive committee. Several
other officers and directors. In addition
to these named. reside in Memphis.
Among these is J. NJ, Pritchard, secre-
tary manager.
The association has a membership Of
nearly 450 members who represent the
ajority of the output of hardwood
lumber in the United States. The 1913
members named as defendants in the
governments suit under the Sherman
act. are only those who subscribe 20
the open competition plan"
This plan means the free exchange
of information of cut of mill and sales.
The members agree to report their
sales to the association. together with
amount of stock on hand each month
and other data from which reports
may be filed showing the condition OF
the industry.
The statement that the association
welcomes the governments most
searching investigation and that
good VII come Of it, was made by
Mr.. GaM when apprised Of the filing
of the suit.
The statement was dictated and is
sued by him in behalf of the executive
committee of the association. It calls
attention to the fact that the plan un.
der fire of Attorney General Palmer's
guns was explained TO the federal trade
comInissios and sanctioned by thai