New-York tribune., 1921-03-02
"a Corporations, 40 Indi-
yiduals Named by u. S.
Grand Jury as Combine
in Restraint of Trade
Action Is Result
OF Housing Probe
Group Charged With Con-
troll of SIS p. C. of All
Goods Made and Sold

to as "the cement Comoine, were IN
d;cted by the Federal grand jury yes
terdav for alleged violations Of the
sherman antitrust law. The action
resulted from testimony taken before
tbe Lockwood committee in its investi-
cation of the housing situation.
The indictments We're made on two
counts, one charging "comblnation and
conspiracy in restraint Of trade" and
the other Conducting a monopoly" 1t
is the theory of government officials
that the combination was brought
about by the activities of six dominant
cement companies whose financial
strength was so enormous, their plants
50 strategically located and their in
auence n the trade so great that it
was an easy matter for them to per-
suade or coerce the other firms to fol-
low their lead.
These dominant concerns are de-
scribed as the Alpha Portland Cement
Company, Atlas Portland Cement Com
pany, Lehigh Portland Cement Com
parry. the Cement Securities Company.
Giant Portland Cement Company and
the Universal Portland Cement Com
pany. These, together with the other
firms accused, are said to have a COM
bined capitalization Of more than
100000 900. Their plants were scat
tered over thirty-one states, their grip
on the industry stretching from coast
to coast
Control Most of Production
The Lehigh company is described as
d concern of many millions capitaliza-
tion, with more than fifteen plants scat
tered between New York and sCalifor-
MIA. The Cement Securities Company
is Western concern which the govern
ment officials allege monopolized the
Rocky Mountain states and dominated
the mills in California, the Northwest
and Texas. This firm has just effected
merger with the Portland Cement
Company, one of the giant concerns OF
the East. The merged corporations, it
is said, viii have an influence equal to
that Of the Lehigh company.
The Indictment sets forth that the
defendant corporations and individuals
control the manufacture and sale of
approximately So per cent of all the
Portland cement produced in the United
States. The product, 1t adds, is only
second in Importance to iron and lum-
Der in construction work and in the ex-
tent to which its price affects all build
ing operations. The Federal authori
ties hold that successful prosecution
OF these cases with its resultant disso-
luton of the combination can be rea-
sonably expected to bring about more
who esome condition in the building
Industry
Extent Of Their influence
1t is the governments contention
that the alleged combination had so
etfectually maintained uniform prices,
divided territories limited output and
regulated the class and character of Gus
toners who might purchase the product
and the purposes TO which it might be
applied IS in effect to exclude CEN ment
from Iron the ordinary channels of trade
and commerce. In fact, they claim
that because of the alleged conspiracy
cement was no longer an item of barter
and sale in the open market, but was
controlled by the manufacturers up
10 the moment it was actually en-
p-oyed IN construction work
Included IN the system whereby tney
are sald 10 have obtained this Grip
on the industry are several assoc;a-
tlons and bureaus throughout the covn-
Try created ostensibly for the purpose
ol quoting prices as to completed
transactions and to recommend" uni
!ofm trade practices. 1t is declared by
'he authorities that the scheme was
really used to fix prices and that the
so-cSiled recommendations" were
really orders of the controlling com
Pahles for maintaining uniform prices
liilillir" output and interfering w'th
bought. 'N
Other Alleged Practices
Some Of the other practices alleoed
20 nave been employed by the combina-
t'on are described as delivery prices. y
aroitrary trade bases" Specific ioh
contracts and Warehouse deliveries. "
IL connection with these practices, it
- charged that the cement manufac-
esrefS quoted prices only at the point
~ oeiyery irrespective OF it's distance
from the mills. No purchaser could
ouy direct from mills and bear .ex-
pense OF transportation himself.
IN N addition, it is said, prospective
ssui!aers were permitted to contract
1or only the amount of cement to be
employed on the job, and inspectors
.e Were employed by the firms to see that
uI's rule was not violated. If per-
..taaNce builder had more cement
man ne could use on any job effective
methods were employed to prevent his
using the surplus on any other opera
mon' 1t is charged This, it is said
prevented a surplus of cement being
anlown on the market and paved the
"ay Tor price raising.
Inc warehouse delivery contract
pssmi'ted dealers only so much cement
s; sS ,tney could obtain from the mills
,nhishln fifteen days after submitting
sneir orders. This, it is charged, prac.
s'sTSliy eliminated all future deliveries
me charges were handed up TO Judge
n,.agustus n. Hand of the United States
Dstfict Court, who ordered the defend.
- snss TO appear WITHIN the next few days
w;11 ~ 1a1nswer the charges. Bench warrants
m"' M De ns, issued for those failing to show
~. ~ Inc special assistants 70 the At
f;as.y General in charge of the inves
,ssason ,nsaan and prosecution of the cas-.
,b.uoe William Rand, Ben A. Mat
Ssn;s, SANS, Isidore J. Kresel and JOSEPH