New Britain herald., 1924-04-22
CASES
 NOT PROSECUTED
This Is Claim Made Against
 Daugherty Today

| Daugherty investigating committee
 further evidence to support his testi
 mony that antitrust cases were no properly prosecuted under Attorne. i General Daugherty after facts war
 ranting legal action had been develop
 cd by the commission and turned oyel 10 the justice departemnt. ] Turning from conditions in the to llacco industry. which he described a i length yesterday. Mir. Thompson re
 lated how he and his colleagues un
 covered price fixing" and "coerciv, measures among lumber producers il an investigation in 1919. The result
 of this inquiry. he said, were laid be
 fore the justice department before Mir. Daugherty took office. Sui against the Southern Pine association was instituted in ths closing days O the Wilson administration, he declar, ed. but has remained in status quo ever since and now rests in the dis trict court at Kansas City"
 The Southern Pine association. Mir Thompson explained, included mosi of the large manufacturers of thai commodity.
 "The investigation as we reported it to the department of justice" he said. showed price fixing and price regulation and production restriction hy different groups of the Southern Pine association and coerciye meas ures towards various concerns to make them work in cooperation with the as- sociation.
 ii Organizations Probed "There were fl organizations fin dit- ferent parts of the country. such as the West Coast and Northern Hem lock associations. We made investi- gations of them all."
 The department of justice proposed at one time to let "a consent decree" be entered against the Southern Pine association and allowing it to continue some of it's operations. We refused that" the witness said, "because 1t would be just like letting criminal go with the gun still in his hand"
 John II. Kirby Of Texas, Mir. Thompson said, had been head of the Southern Pine association. Senator Wheeler read into the record speech made by Mir. Kirby in New Orleans last month, vigorously defending At torney General Daugherty and Secre- tary Fall.
 No criminal prosecution of any kind has ever been brought::" Senator Wheeler asked.
 NO sir"
 Notwithstanding, the evidence shows conclusively there had been violation of the criminal statutes?'
 "I don't want to say conclusively," Chairman Thompson replied, because that is the point for jury, but to my mind there is no doubt about it."
 Chairman Thompson said lumber prices had gone ID during recent months Ito points higher than they were during the war"
 Tn the spring of 1921" he pro- ceeded. two attorneys from Colum- bus, Ohio, came down 10 see Attorney General Daugherty. Nothing has been done since"
 He was asked if J. E. Todd, Daugh- erty's former law partner, was one of these lawyers, but said he had no positive information as to their iden- tity.
 Build Your Own Home
 The witness declared the Southern Pine group had financed the "Build Your Own Home" movement and promptly raised prices"
 Taking up the case of the West Coast Lumber association, he said that in 1920 the trade commission presented a report seeking prosccu- ton of that organization.
 Nothing has been done since" he said. "snd no action taken. There was 8 better sentiment out there and they were not go well organized as the Southern Pine but they soon got together and joined in the Build Your Own Home deal. Prices mount ad--they ran them up to the levels to the Southern Pine.
 My opinion is that the evidence Is much more direct ss to the West 1 Coast than to the Southern Pine"
 Altogether. the witness declared, there vas strong evidence of q gen- .ral conspiracy among lumber as- sociations, resulting in high prices | ind very considerable profits to the 1 umber manufacturers"
 Against the Western Pine associa- | ion, Mir. Thompson said, the depart. 1 nent of justice did file 3 civil suit in | 1923. Outside of this, he said, no &C., i ion was taken.
 George II. Chamberlain. counsel 1 Or Daugherty, asked why the trade l had not instituted suits l ,n it's own account.
 We are going ahead on many 1 Sherman act cases now" the chair l nan replied. "We have other cases ] ust as serious as these; and we are | imply overwhelmed with work. ] We've had 10 call our men in from he field under present appropria- ions"
 Well, wasn't the department of ustice overwhelmed too?"
 T was five years in that depart nent." Mir. Thompson replied. ''snd hey never have been overwhelmed as se arc"
 Deeisions Too Confused
 Haven't you heard 1t stated by de- artment of justice officials that the ouft decisions are so confused that is not advisable 10 start criminal rosecutions in these trade association ases?" Mir. Chamberlain asked.
 "I never heard it," Thompson re- lied. f. The witness charged that during the 'sT the government fixed maximum" rirrs on Iumhers which the rnanufac-