Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-07-02
WHOLESALE GROCERS
UNDER ACCUSATION
IOWA NEBRASKA MINNESOTA
ASSOCIATION MUST FACE
CHARGES.
FEDERAL TRADE BOARD
ALLEGES UNFAIR TACTICS
Accused of Preventing Nom Member
Retailers From Purchasing Goods
For Sale in Composition With AS
ISOLATION Firms-Officers Must Az.
pear Before Board.
by q. G. Dougherty.l

Washington, July 1.-THE Iowa
| Nebraska minnesota Wholesale Gro
GERS Association. with headquarters
In Council Bluffs, but which operates
generally in the three states named.
was today cited by the federal trade
commission in formal complaint
alleging unfair competition in the
grocery trade. The citation also is d.
rected against the officers OF the or
Eanization, who are John BlauI, pree-
ident, Burlington, Iowa: o. J.EMoore,
vice president Sioux City. Iowa;
John D. Fuller. vice president, Hast
ings, Neb., and John Mehlhon, secre-
tary- treasurer, Council Bluffs.
The members are too numerous :"
a statement issued by the federal
trade commission explained. Ito be
brought before the commission with
out manifest Inconvenience and de-
lay, but those selected as respon-
dents are representatives Of all the
members"
Shut Out Nom M embers.
Continuing the citation issued by
the commission said.
"The complaint is directed to the
associations policy and plan OF pre-
venting non-members competing
grocery concerns from obtaining nee
essary supplies from manufacturers
and others. The commissioa AYERS
that respondents nave caused various
manufacturers hy means Of boycotts
and withdrawal OF patronage to dis
continue dealing with non members.
or to refuse to sell such non-member
dealers on the usual terms, ETC.,
thereby either entirely 1spriving
non-members Of supplies OF compen-
ing them to pay prices far in excess
of those paid t.y tleir competitors
who are members of the association"
TO the charges made by the COM
mission, the association and it's Of
| ficers are given forty days to file an
answer. Immediately after the forty
day period has elapsed, the case
comes on befora the commission for
tcis! on Its merits. ,sfs.ss rzss
/. Thorne's Warning.
Attacking any unequitable increase
in freight rates, Clifford Thorne. the
Iowa wizard on freight rates, in testi-
nony before the Interstate Commerce
Commission. MADE the startling state-
ment that the total increases asked
| by the railroads and labor would
amount to a SAL, per cent increase
In freighta rates" which, he warned,
"if suddenly placed upon traffic
would demoralize American indus-
try"
Mr.. Thorne may be said to repre-
sent the public in the rate increase
hearings now under way since he at
tacks the general basis on which the
increases are figured rather than
seeking to secure special consid ora
ton for any particular class OF Ship
pers. He is retained by the American
Farm bureau Federation and sever
al middle western farm products
shipping associations. His figures
cover months of work by corps OF
expert statisticians and show that
the railroads are over valued to the
extent of several thousand millions OF
dollars. f.s IS. ~
His testimony before the commits
sion sought to show that the income
and expenditures for 1919 is not a
fair basis on which to figure future
expenses and profits Of the railroads.
He declared that even on the present
basis the calculations Of the rail-
allow for Increased expenses next year
allow for increased expenses net year
but no not allow for Increased in
come due to increased business.
Mr.. Thorne sought to show that
on the basis Of the figures he sub
mitted the railroads would need on
ly ain Is per cent increase instead OF
the proposed 27.s5 per cent to pay all
operating and maintenance expenses
and the six per cent dividends guar
anteed under the Cummins- Esch
railroad bill.