Evening star., 1921-06-30
GOVERNMENT FIGHT
ON PRICE control.
STARTED WITH SUIT
Attorney General Brings
Action Against Cement
Manufacturers Combine.
VIOLATION OF SHERMAN
ANTITRUST ACT CHARGED
Every Consideration for Public
Eliminated by Defendants, Mr..
Daugherty Declares.

Every semblance of competition to
which the public is entitled has been
eliminated from the cement industry.
Attorney General Daugherty said to-
day in announcing that the govern
ment would file today in New YORK
civil suit against the Cement Manu-
facturerS Protective Association. its
officers and members. This is the
opening gun in the new admlnistra
tons fight against price-hxlng ana
war protiteering.
according to the Attorney General
produce approximately 100000 bar
fels of Portland cement annually.
which is upwards of so per cent OF
the quantity produced in the north
eastern section Of the United states
and approximately 1913 per cent OF
the quantity produced in the United
States.
VIII Seek Injunction.
Were it not for the combination
which the government now seeks 10
dissolve, there would be competition
in the manufacture and sale OF
cement. according to the Attorney
General. Pending decision on the
government plea that the defendants
be enjoined from maintaining the
Cement Manufacturers Protective
Association. the Attorney General in
dicated that the government would
seek preliminary injunction.
The Cement Manufacturers Pro-
tective Association" said the state
ment of the Attorney General. lis or
ganiZed along the lines of what have
come to be generally known as the
Eddy plan. the new competition.
open price plan and open compete
tion plan The forms of these plarsS
vary in minor details. but the out
standing and funda mentl principle Of all
is the exchange between members OF
comprehensive statistical data, which
enables each to know what his COM
petitors are doing. For some time past
the investigation of every complaint OF
an alleged violation Of the Sherman
antitrust act has invariably led D.
the door of one of these associations
The members of the association
minutes with disclaimers of any in
tention to violate the law. AS soon
as the association begins to function
properly the price of the commodity
in which its members are interested
begins TO advance and the customary
signs of competition begin to disap-
pear.
The cement industry is one Of the
most thoroughly organized industries
in the United States. There is the
Portland Cement Association. known
as the National Assoc iation. to which
practically all of the manufacturers
Of cement throughout the United
States belong
Investigation Made.
1.-THE decision TO institute civil suit
against the Cement Manufacturers
Protective Association was not
reached until after a comprehensive
investigation had been made and the
facts ascertained had been carefully
considered. The books and records of
the association and its members were
thoroughly examined to ascertain the
facts from the inside: and hundreds
of dealers and contractors located
throughout the northeastern section
of the United States were examined 10
ascertain the facts from the outside.
Upon comparing these facts and
after affording representatives OF the
association and its members an op-
portunity to explain them it was my
opinion and the concensus of opinion
of Col. Croft, the assistant to the at
torney general in charge of the en-
forcement of the Sherman act: United
States Attorney Hayward and James
A Fowler, special assistant to the At
torney General. that the operations of
the association and its members con-
stitute a fragrant violation of the Sher-
man act.
Conspiracy Alleged.
Briefly stated, the means by which
the combination and conspiracy was
brought about are as follows:
1.-The members of the association
attended meetings.
"At which those present We're urged
to enter into some sort of gentle
mems agreement that will be sacred
to gentlemen:
AT which higher prices were per-
sistently advocated. one member say
ing on one occasion. L think the
grass is green and the men who make
the prices are likewise green
AT which curtailment of produce
ton was advocated as an effective
means of assuring higher prices;
'At which the Withholding of c.
ment fropl the market awaiting a fair
price was advocated:
"At which the object of the as
sociation was declared to be co-opera-
ton. but it was pointed out that
satisfactory cooperation could not be
assured unless all manufacturers of
Portland cement belonged to the as
sociation. since it was possible that
one or two companies staying out
might destroy all the good work the
rest of us might do"