Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-05-07
COMPETITION CURB
LAID TO FLOUR MEN
Conscious Attempts to Evade
Antitrust Laws Seen by
Trade Commission.

B. no Associated Press
Activities 10 restrict competition
sr1onE -four millers are charged In
preliminary 1eport m the milling md
bread industries made public todaE
BY the Fedora Trade Commission. II
reserved final conclusions. asserting
that refusal ~ certain concerns TO
furnish data was blocking inquiry int"
competitive conditions.
Tho INQUIRY was made under 8
Senate resolution and the commission
said ire partial report presents in De
tail extensive documentary evidence
already obtained RELAXING to alleged
violations Of the antitrust laws ny
certain corpora tons and indicates
conscious attempts 70 evade tn" sald
laws"
The INQUIRY into com pc tive condi-
lions has not been completed. me
commission stated in summary "t
the report. because mos % ih' tafSef
-four milling compa nies n hen 'ets
active in furtheflTe agreements 10
restrict competition Described IN ms
report either refused 90 ~ mit The
examination of th~h rt>'' a@''rndenoe
Alas touching such comDs. Hr pee
ices or refused 80 re-rr't ronleS I"
No made Of sparifcHl desc hed
Ietters relevant 10 a1'e,Ni Nio'a*t"ns
81 the antitrust arts.
Stand ~ Some CompSnioS.
The larseSt and NOS active OF
these comma MICS refusing - re mli an
eYs ANIMATION Of thei" ro""eepo "denre
vero the Washhurr COSBY 60. ana
the Ptlehurv Flour NiN@ 60 Another
larse Gonna ~ active - such n1affers
the Kansas Flour Milo Co. rermitted
the examination ~ It's correspondence.
but refused COPIES a ne made or anV
~ more than 500 ls-f"''s "r other doc
umentsrv evidence se,e"!ed
The national orea aizstion Of -four
millers. known 40 me Millers' Ma
t!onal Federation and controlled by
the larger compa Des through Durai
voting. permitted examination of tts
correrpondence hut refused copies to
he made Of ANY of more than 300 let
ters or other documentary evidence
selected.
The commission has issued sub
roenae TO compej the r"oduction or
certain ~ these documents. hui the
matter is now being contested In the
courts by the Mi'lers' National FEEDER
alton.
Eennvt Mad on Profits.
Summarizing what il has ascer-
taired with resnect 10 COSTS and
PROFITS OF four milling corpa MES. the
commission said:
For - ideniiCsl compan MES win
"a pital employed aEGregatinG more
than SO nNn 600 in each year. ana n
average annual output exceeding 20
top ~
nroft from, 1919 80 io'4 was 81 per
cent. and for the Years 1923 and 1924.
il was s. per cent and 50 per cent
respectiN Aly The rate 90 re; urn on
the GONNA MES '"vestnen; tcs pital
stock and surplus was naturally
higher. namely ~ per cent. for the
period ai9 to 1924. and ST per cent
and 50 ner cent. respective, for the
years 1921 and 1924.
With respeci 10 conscious at
tennis" to evado arti-trust laws. the
commission cited Corresnonde he
tween l.. r pinnA" secretary ~ the
Minnesct2 Nillers' t''uh Of Minnea y
ais and e Y. Topping. secretary NJ
the Southw ern Nilers' League Of
Kansas CITY. Mo.
In August 1928. P;nnev wrote Top
ping asking information regarding tho
method Of advising Your members
regarding prices for local territory
rut out ny Your club
Refers to L. 6. Department.
The directors make the price. and
thev think. should he raii@i upon
by the Depa rtment OF Justice To eX-
plain, We would he in a predica ment,
Pinney added.
In reply. Topping said states In
league territory were ha ndled sep
arately. and suggested that for strictly
Minnea POLLS club territory the Pills
hurry Flour Mills might he taken and
their quotations he used as ba sis the
club sending the informa lion to other
members.
Use blank stationery. and | would
not put any name 10 the auoIat lions"
he continued. Just let il appear as
. regular msrke; latter
This can he understood among
your members and there need he
nothing attached ~ il thai would in
any way involve anyhodr.
" think YOU woul6 have con
siderable ~ task to convince tho
Department Of Justice Of your
Innocence.