Evening star., 1924-04-25
ASSERTS DAUGHERTY
DELAYED TRUST CASE
Trade Commission Head, Recalled
to Stand, Says Recommends
tions Futile.

The Senate Daugherty lnyestigat-
ing committee went forward today
with its inquiry into the enforcement
of antitrust laws.
Several witnesses had been sum-
mored from Chicago for questioning
regarding the charge first pre-
sented to the committee by Chairman
Huston Thompson of the Federal Trade
Commission that the Department OF
Justice had delayed its Intervention
in the business field, even though the
commission recommended prosecu-
ton.
The committee was still unaware
of the whereabouts of the RECORDS OIL
CASTOR B. Means. its star vines
whose collection of documentary evl-
dence yesterday turned up missing.
An executive session was to be held dur
ing the day to discuss contempt pro
ceedings against NJ. ;. DauSnerty'
brother of the former Attorney 1eh-
eraL
Thompson Recalled.
Chairman Thompson Of the Iraoe
Commission was recalled at the out
set of the session and was asked
about conditions in the statlone[s
trade, Investigated by the coLhniiS
sion in 1919 A recommendation was
made TO the Department of Justice
for action, he said, but the depart
ment sent back a memoranoum say
ing there had been no Vioiatlor oI
law among the paper WnolesaleIs
and retailers named. organ,aation naa a,d N
the industry, Mr.. thompson saio'
centered in Chicago
"Our investigation showed there
was price regulation by cooperative
action" he said. "On March 19, 1920,
the Trade Commission referred the
facts to the Department OF Justice.
ON April 21, 1921, the commission re-
ceived a letter from Guy D. Hoff,
then assistant attorney general.
saying the department was engaged
in its own Investigation"
Sidney Morris & Co., Chicago
firm, also appeared as complainant
he added, charging that a combina-
ton Of stationers was cutting off
supplies to 1t.
Letters in Case Cited.
The Morris concern declared in a
letter to Goff. the witness said, that
Il was "being forced out of business
because it would not join the Chi
cago stationers" in fixing extortion-
ate retail prices. Copies of this and
other letters on the subject were fur
nished the committee by Benjamin c.
RacharACh, q Cn1CagO attorney rep
resenting the Morris concern.
Chairman Thompson SAID the COM
mission several times renewed is re-
quest to the Department of Justice
for proceedings under The Sherman
act, but that the department finally
even stopped answering official let
tiers about the case
AS a result, in January. 1929, the
commission requested the department
to return its records in the case.
"It WAS nine months later before
we got an answer to that request"
Chairman Thompson said. Then the
commission instituted its own pro-
ceedings.
Delay Not Explained.
Ibid they give you an explanation
Of the delay?" asked Senator Jones,
Republican, Washington
mo, there was no explanation" Mr.
Thompson said.
The commission chairman said the
Chicago stAtioners had a national
catalogue commission" through which
it worked to establish prices. He
said he would not express an opin-
ion as to whether the procedure was
successful in accomplishing its object,
because of his official responsibility.
Bacharach was called to the stand
and testified that in 1921 District
Attorney Clyne was preparing to ask
for grand jury indictments against
Chicago Rtationers. Later Clyne told
him to 'kke 1t up with Washington"
y went to washington and saw
71S---~{- - 7(-fs..-s.S ii