The New York herald., 1921-07-01
CEMENT MEN SUED
BY j. S. AS A TRUST
Dissolution of Manufacture
ers Association Asked In
der Sherman Law.
FILED IN NEW YORK
First Action Taken as Re.
suit of Exposures Made
by Untermyer.
10 COMPANIES ARE NAMED
Accused of Conspiracy in Re-
straint of Trade by open
Price Consultations.
10 COMPANIES ARE NAMED

A civil suit under the Sherman anti
trust act for the dissolution of the
sociation was begun by the Govern
ment in the United States District
Court here yesterday. The complaint,
| filed by United States Attorney Will
lam Hayward, accuses the manufac-
turers of having built up, by means
of a so-called open price" association,
great combination amounting to a
| conspiracy in restraint of trade, re-
sulting in enormous profits to the cor
porations, "unconscionable prices for
! their product and the restriction of
building. thus depriving men of en-
ployment and preventing relief from
the grave shortage of housing facili-
ties
This is the first of many dissolution
suits likely to be undertaken through
out the country as a result of the ex-
posures made by Samuel Untermyer
and the Lockwood committee. 1t is
described as supplementary to the
criminal action in which seventy four
cement corporations and forty-two in
diyiduals were indicted on March
last charged with violating the crimi-
nal provisions of the Sherman act.
The association involved in the pres
ent case has headquarters at 10 West
Forty-fourth street, New York. 1t COM
prises nineteen manufacturers having
mills In New York. New Jersey, Penn
sylvania, Maryland. Virginia and West
Virginia and selling cement in the East
ern States. All but one of these corpo-
rations are under criminal indictment.
Their annual output is about $1,000 900
barrels Of cement. or a third of the
total output in this country.
Two Women Indicted.
| The nineteen corporations named in
the suit are: The Atlas. Allentown, AL
pha, Bath, Coplay, Dexter. Edison,
Giant, Glens Falls. Hercules, Knicker-
booker, Lawrence. Lehigh Valley, Naz-
areth. Penn-Allen. Pennsylvania, Phoe-
nix, Vulcanite and Security cement
companies. Four individuals, two Of
them women, are named. They are E.
p. Alker. president of the association:
C. Raymond Hulsart, vice-president;
Miss NJ. B. Phalen. secretary, and Ma
rion S. Ackerman, treasurer.
The complaint says that the regional
associations are unincorporated bodies
whose fundamental principle is the ex-
change OF statistical data enabling each
member to know what his competitors
are doing and to conduct his business
accordingly. Most of the members of
the regional associations also are men,
bers Of the National Portland Cement
Association, the dissolution Of which
also may be asked.
Against the concerted action of the
defendants" the complaint says. "the
dealers and the public have stood and
now stand defenceless. The outstand-
ing result of the combination and con-
spiracy is the uniformity accomplished
between defendant corporations"
Appear TO Sanction Extortton.
All companies, It is alleged. quote the
same price for cement, T. O. b. at the
| point OF delivery, the buyer paying the
| freight and deducting the amount when
| he pays for the cement. The manu-
facturers sell only to dealers. The pub
lie has to pay any price the dealer de-
mands. as high as 81 and s. a barrel in
the last two years The Government
charges that the policy of the manu-
| facturers was 'tantamount to sanction
ing the extortion engaged In by the
| dealers"
THE activities of the defendants" the
complaint says, have resulted in elimi-
mating every semblance of competition 10
which the public is entitled, which the
law contemplates and which but for the
combination and conspiracy described.
would exist. Another result is the con-
troll and regulation of production. Hav-
ing knowledge of each members capa-
city to produce, the quantity actually
produced, the quantity actually In stock,
the quantity under contract. and I'm addi-
tion meeting frequently and discussing
the probable demand for cement Il is a
believed the market will absorb without
breaking prices. and plaintiff alleges
that defendant corporations have mate
rally restricted production"
The petition Is signed by William
Hayward. Attorney General Daugherty
and four Of the Attorney Generals
special asslstants-James A. Fowler
Oliver r. Pagan, Ben A. Matthews and
Roger Shale. The defendants have
twenty days In which TO submit an an
swer. Their counsel is Archibald Cox OF
233 Broadway