Evening star., 1938-01-01
HALT
0RDEREDBYF.T.C. I. c.
Nationwide Building Mate.
rial Group Cited in Effort
to Lower Costs.
By the Associated Press.

BY the Associated Press
A Nationwide building material
supply association was ordered by the
Federal Trade Commission today to
stop price-fixing and other practices
allegedly tending to increase costs to
consumers
The effort to hammer down prices
comes at a time when the Roosevelt
administration is preparing a cam
paign to stimulate home construction
through lower costs. and when ad-
ministration men are declaring lex
cessive" prices helped cause the eco
nomic slump
However. the investigation on
which the Trade Commission based
its order was conducted before the
other two developments crystallized.
The oder directed the National Fed
Grafton OF Builders Supply Associat-
tions and its dealer members to cease
unlawful" practices which have
tended to suppress competition
Intimidation Charged.
These practices include, the COM
mission said. boycotting non member
dealers and "intimidating" represent
atives of manufacturers to prevent
them from doing business with non-
members wishing to buy direct from
the manufacturers.
At the time the complaint was is
sued. the National Federation con-
fod of ~ oeeoriofi fiope ~ daolo ",
80 States and was found by the COM
mission to constitute a national COM
bination.
The commissions order said Law
renee I. MacQueen, secretary OF the
federation, in a form letter to the
federated units, had praised the fed
eration's activity IN ''bucking a de-
partment Of the Government" and
thereby obtaining for dealer distribu-
ton s50,OO0,00o worth of goods which
the Government was determined 10
buy direct"
Bucking Government.
In 1885 the Government, through
the Relief Administration, announced
a policy of buying direct from manu-
factrers.
In connection with relief projects
it sent Ohio manufacturers an inquiry
for 100000 barrels Of cement, the COM
mission said.
The commission said that Mr.. Mac
Queen, in form letter, declared the
Governments policy of direct buying
must be stopped" Later. he reported
to the Federation that no cement COM
pany quoted prices, and that when the
Government issued the inquiry to man.
ufacturers outside Ohio. again no di-
rect bids were made, the commission
asserted.
Subsequently. it was alleged, Mr..
MacQueen wrote the federated units
and termed the Federation's activity
'one of the finest pieces of cooperative
work this industry ever engaged in
in "bucking department Of the Gov
ernment."
Local Groups Included.
Hearings on the complaint against
the National Federation we're held all
over the country and many witnesses
testified.
The respondents have 80 days in
which to reply to the commission s
order and they can contest it in a
Federal District Court.
The National Federation Of Build
ers' Supply Associations. at the time
Of the issuance of the complaint, in
cluded the Greater Washington Build
ers' Supply Association. the Virginia
Lumber and Building Supply Dealers
Association, the Maryland Builders
Supply Association and the Lime and
Cement Exchange of Baltimore City,
according to the findings.
Respondent associations named in
the order to cease and desist, but which
were not listed IS units Of the Ma
tional Federation, included Middle At
lantic Council Of Builders Supplies
Association.