Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-10-03
Monopoly Suit
Asks Dissolution
OF Smoot Firm
Justice Department
Names Sand, Gravel
Concern in Complaint

Dissolution of the Smoot Sand &
Gravel Corp. is sought in a bill of
complaint charging violation of the
Sherman Antitrust Act filed at Dis
trict Court today by the Justice De-
partment
The Justice Department asked
that the corporation be dissolved
and that its properties "be rear
ranged under several separate and
independent entities in such man
ner as to dissolve effectively" its al
legged monopolistic control over the
sand and gravel business in Wash
ington and vicinity.
The civil suit follows failure of
the District grand jury to return
an indictment last month against
the firm on a Government charge
of being practical monopoly"
The grand jury had heard evidence
an hour day for about a month
The complaint filed today names
as defendants the corporation and
six individuals who are its officers
or directors-L. E. Smoot, w. A.
Smoot, Thomas A. Butt, T. G. Her.
bert, r. M. Harper and Alvin M
Parker.
Price Cut Charged.
The bill charged that in 1928 the
prices of sand and gravel of the
Smoot Corp. we're cut drastically in
an effort to eliminate the COMPETE
ton of its leading competitor, the
Columbia Sand g. Gravel Co. The
Smoot firm did from about SIS to so
per cent of the business in this
, vicinity, while the Columbia firm
handled about 80 to IS per cent, it
was said
In 1881, the complaint continued
L, E. Smoot acquired secretly
through an Intermediary, Joseph
Hook, president of the Arundel Corp
of Baltimore, stock control of the
Columbia company. Within a few
days, it was said, the prices of sand
and gravel were restored to about
their former level. About eight
months later the Columbia company
was dissolved, giving the Smoot firm
control of approximately 80 per
cent of the sand and gravel business
in the District and in communities
in nearby Maryland and Virginia.
the complaint charged.
Labor Troubles Recalled.
Such monopoliZation has forced
the building and road construction
industries to be completely depend
ent on Smoot for these construction
materials, the bill continued. Con-
sequently, internal labor difficulties
within the Smoot firm has brought
about Stoppage of work on Federal
and District Government projects
and has caused enforced -idleness of
many laborers and the loss of thou
sands of dollars to labor, contractors
and Government authorities, it was
charged.
The investigation by the grand
jury followed a strike at the Smoot
company in July which tied up local
construction.
The Justice Department, in its bill
today. asked the court to appoint
such receivers and trustees as may
be necessary or appropriate to eff
fectuate a dissolution of the Smoot
firm and the alleged monopoly.
The department also asked that all
the defendants, corporate and indi-
vidual, be required to make such
divestiture and conyeyances of their
stockholdings and properties as
shall be necessary to accomplish
such dissolution
Affixed to the complaint were the
names of Attorney General Robert
H. Jackson Assistant Attorney Cen
eral Thurman Arnold, who is in
charge of antitrust prosecutions;
United States Attorney Edward M.
Curran, Special Assistants to the
Attorney General George S. Rob-
inson and Walter R. Hutchinson and
Special Attorney Manuel M. Cor
man of the Department of Justice.