The New York herald., 1921-03-02
CEMENT CONCERNS
NJ 81 STATES ARE
pICTED as TRUST
Corporations and 40 In
Riduals Named as Viola
!, tors of Sherman Law
B by Grand Jury.
MONOPOLY is CHARGED
Action Taken Here Result
OF Evidence Gathered by
Untermyer for Lock-
wood Committee.
CAPITAL OF S6OO,OoO,O 900
Ironclad Control Of 85 P. G. Of
Product Alleged and De-
struction of Competi-
ticn Charged.
CAPITAL OF 100000, 1000

undertaken under the Sherman anti
thrust law was begun here yesterday
y when forty individuals and seventy
-FOUR corporations, comprising what is
known as the cement trust" were
indicted for alleged combination in
restraint OF trade and attempts to
monopolize the cement output of the
country. Eighty-five per cent. of this
output is alleged to be under their
control.
The prosecution is the result of evil
dence gathered by Samuel Untermyer
before the Lockwood Legislative Com
mittee on Housing and turned over
by him to the Federal authorities. who
] were the only ones in a position to
deal with the combine, the members
of which are scattered through thirty
J one States and are said to represent a
capital of about $6o0,000.000.
1t is also the first blow in the ma
\ tionwide drive which William Rand
! and Isidore J, Kresel, Special Deputy
! Attorneys General, were appointed to
| conduct against big combines which
! are alleged to have arbitrarily boosted
the prices of building materials, there
by embarrassing the public in its ef-
| forts to find a practical solution to
the housing shortage.
Bench Warrants Asked.
= The indictment was filed late in the
iafternoon by the special Federal Grand
Jury. empanelled In January to hear
evidence relating TO building trades COM
ibines. After II had been handed to Fed
eral Judge Augustus NJ Hand. Ben A.
Matthews, special Deputy Attorney Gen.
eral who is associated with Mr.. Rand
n and Mr. Kresel. asked that bench war
! rants be issued for all of the individual
defendants who are officers of corpora
tions named in the indictment. 1t is un-
derstood that before any effort is made
70 execute these warrants these defend
! ants will be given opportunity to come
into court voluntarily.
According TO the Federal prosecutors.
II he principal defendants named in the
indictment and the ones alleged to have
been primarily responsible for the for
L nation OF the combine are the Lehigh
I Portland Cement Company of Allentown,
Y Pa; /; the Atlas Portland Cement Com
4 pany OF this city. the Cement Securities
y Company of Denver, the Alpha Portland
\ Cement Company of Easton, Pa, and
\ the Universal Portland Cement Company
Of Chicago.
Through the strategic location OF their
plants and their financial strength these
five corporations are said to have been
able to dominate the industry and to
force other concerns to do their will.
Officers of the concerns named in the
indictment are G. S. Brown. r. NJ. Coo
gan, C. A. Irwin and +. @. Mckelvy of
the Alpha John r. Moron. l. r. Burch
and d. II. MacFarland of the Atlas
Harry C. Tnxler. E. NJ. Young and A.
Y. MCGOWAN of the Lehigh, and Il. Il.
Alfieck and Blaine s. Smith OF the Uni
versal. Brown and Moron were among
a group OF cement men questioned under
. subpoena by Mr.. Untermyer before the
II Lockwood Committee on December IS.
All Prices Made Identical.
The contention of the Federal prose-
4 cutors is that those named in the in
\ dictment efrectualIy maintained uni
\ fcrmity Of price. II is charged that they
! combined to divide and allot certain
portions OF trade and commerce TO mills
| within certain territorial subdivisions OF
the country and to eliminate competi-
tlon between the mills In these subdi-
visions. Maintenance of uniform
practice of refusing to quote prices of
cement xcept f. o. b. the point OF de-
O.. 81.
for bags In which cement is placed for
shipment, uniform terms OF credit and
rates of discount and other alleged acts
in violation of the sherman laws are
enumerated in the indictment.
Through the maintenance OF arbi-
trary freight bases through which all
mills In certain localities have been de-
liyering their output. II Is claimed. con-
sumers have been denied the opportunity
OF reaping any benefit through proxim-
ity TO the mills. The effect OF this sys-
tenn is TO make prices Identical and 1t
Is clsmed that the business of asking
quotations on cement has become an
idle ceremony, as the quoted prices arc
invariably the same.
Check ON Surplus Supplies.
Another feature of the business
brought out by tho Lockwood Commit
lee and dealt with In the Indictment is
ihc specific work contract" This pre-
rludes prospective builder from con-
+racting for more than the exact amount
l,f cement needed for a particular Job
lt compels him TO state that II is to be
fused for no other job. and its effect. II
ts claimed, Is to prevent the accumula-
Ton of any surplus which might en-
barrass move for boosting OF prices.
To prevent builders from violating the
kerms OF these contracts the defendants
Continued on Psffh Page.