Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-04-24
DAUCHERTY IS HIT
FOR FAILURE To
PROSECUTE TRUSTS
Chairman of Federal Trade
Board Says Southern Pine
Association PriCe-Fixing
Went Unpublished

WASHINGTON, April 22.-Chair-
man Huston Thompson, of the fe' =
eral trade commission, today laid
before the Daugherty investigating
committee further evidence to sup
port his testimony that antitrust
cases were not properly prosecuted
under Attorney General Daugherty
after facts warranting legal action
had been developed by the commits
sion and turned over to the depart
ment of justice.
Turning from conditions in the
trade industry, which he described
at length, yesterday, the commission
chairman related how he and his
colleagues uncovered price-fiXins"
and ''cOercive measures" among
lumber producers in an investigation
beginning in 1919. The results of
this inquiry, he said, were laid be-
fore the justice department before
Mr.. Daugherty took office. Suit
against the Southern Yellow Pine
association was instituted in the
closing days of the Wilson admin,
istration, he declared. but "has re-
manned in status quo ever since and
now rests in the district court at
Kansas City"
boosted zine PrlCeS
John II. Kirby, of Texas, Mr..
Thompson said, has been head of
the Southern Pine association. Sen.
ator Wheeler read into the record
a speech made by Mr.. Kirby in New
Orleans last month, vigorously de
Tending Attorney General Daugh-
erty and Secretary Fall
The effect of these methods and
of other conditions" Chairman
Thompson resumed, was to increase
the price of yellow pine from $15.29
per thousand feet in 1915 to $50 per
thousand feet in 1920. The profits in
1920 averaged $25 per thousand
feet"
No criminal prosecution of any
kind has ever been brought?" Sen
ator Wheeler asked.
"No. sir"
Notwithstanding the evidence
shows conclusively there had been
violation of the criminal statutes?"
II don't want TO say conclusiVely,'
Chairman Thompson replied, be
cause that is the point for a jury.
but to my mind there is no doubt
about it."
Action Halted
Chairman Thompson said lumber
prices had gone up during recent
months ito points higher than they
were during the war
I'm the spring of 1921" he pro-
ceeded, two attorneys frcr1 Column
bus, Ohio came down to see Attor-
ney General Daugherty. Nothing
has been done since"
The witness declared the South
ern Pine Group had financed the
build your own home" movement,
and promptly raised prices" TAX
ing up the case of the West Coast
Lumber association. he said that in
1920 the trade commission presented
a report seeking prosecution OF that
organization
Nothing has been done since, "
he said and no action taken. There
was a better sentiment out there,
and they were not SO well organ
lied as the Southern Pine, but they
soon got together and joined in the
build your own home deal. Prices
mounted they ran them up to the
levels corresponding to the South
ern Pine.
MY opinion is that the evidence is
much more direct as to the West
Coast than the Southern Pine
Price Conspiracy Charged
Altogether, the witness declared,
there was strong evidence of a gen
eral conspiracy" among lumber as
sCciations, resulting in high prices
and very considerable profits to the
lumber anufacturers."
Against the Western Pine associa-
ton, Mr.. Thompson said, the depart.
ment of justice did file a civil suit
in 1928. Outside of this, he said, no
action was taken.