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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Dec. 15, 1912)
THE SUNDAY OllEGOXIAX, PORTLAND, DECE31BEB 15, 1913. GOVERNMENT TURNS OH "BUTTER TRUST" Conspiracy to Fix Prices to Detriment of Farmer and Consumer Alleged. Your Account DISSOLUTION IS INTENDED A I tor iiej -General Wickershani As sens Elgin Board of Trade and , Creamery Manufacturers Are in . Agreement. CHICAGO, 111.. Dec. 14. Charging a conspiracy to fix arbitrarily the price of butter hi the interest of big manu facturers and cold storage concerns, and to the detriment of the farmer, other small producers, and the consum ing public, the Gederal Government' to day began a civil anti-trust suit against the Elgin Board of Trade, otherwise known as the "butter trust," and the American Association of Creamery Manufacturers. An attempt will be made to dissolve the so-called trust, which Attorney-General wickersham alleges is a violation of the Sherman law. The Government's petition In equity declares that butter making has drift ed to the large manufacturers, the nat ural increase in the volume of busi ness has been curtailed, and prices to the people have been enhanced, espe cially during the Winter, by the oper ations of the "conspirators." Trrntr-fnnr Are Defendant. The following are named as defend ants: Elgin Board of Trade; Charles II. Potter, Elgin, .III.; H. C. Christians, Richfield. Wis.; J. P. Mason. Elgin; Colvin W. Brown. Elgin; A. C. Haw lev. Jerseyville, Ill.;'Amerlcan Associa tion of Creamery Butter Manufactur ers (unincorporated) and 17 individuals in different cities. Including Duluth, Minn.. Omaha and Kansas City. The bill Is signed by Attorney-General Wlckersham. James A. Fowler, assistant to the Attorney - General; Vnlted States Attorney Wilkerson; of Chicago, and three special assistants. Aside from the dissolution of the two organizations, the Government seeks to enjoin the defendants from appointing a price-fixing committee, from fixing prices, from quoting or publishing figures purporting to be "market prices" unless they are based on bona fide sales of butter: from demanding that the Elgin price be used as a basis In making contracts for butter: from making fictitious or "match sales" of hotter to mislead as to the actual price at which butter is being sold. The price of butter fixed on the Elgin Exchange, the Government maintains. Is not the result of free and open com petition regulated by actual bona fide sales under the law of supply and de mand. The price-fixing committee or the board is dominated and controlled, it is alleged, by large butter manufac tories, known as centralizers, and by cold-storage concerns. This committee, the petition adds, "has acted arbitrarily and without regard to actual values and fixed prices, - wholly In the inter ests of the conspirators:" From May to August, when the bulk of the country's supply Is made, the petition says large contrallzlng con cerns are buyers, rather than sellers of butter, buying up the surplus prod uct and storing it for Winter, when the price .of butter fixed by the board during the Summer months, have been almost- Invariably below the price at which the product actually has sold upon the market, .while during the Winter months, the prices fixed have been somewhat above market and pri vate sales. It Is charged that the American As sociation of Creamery Butter Manu facturers, composed of about 46 firms and individuals. Is used by the "con spirators' to maintain these seasonal differences In prices without regard to trade conditions or competition. All members of the Association are re quired. It Is alleged, to use the price thus established as a basis of their contract for the purchase or sale of butter. Before the Summer of each year, the petition continues, the large central izing concerns send representatives throughout the butter producing area, contracting with small manufacturers for their entire season's supply, based on the figures of the Elgin board, usually one-half or one cent higher than the Elgin price.. Vast quantities of butter are thus purchased from farmers and others. It is said, by mem bers of- the association. "Jf, theretoi.7 thei petition de clares, "the price fixed by the Elgin board should fall below the real eco nomic price of butter, as fixed by the law of supply and demand, the profit accruing from the corresponding drop in contract prices goes to the large centralizers on every pound of butter which had been purchased in advance i-0er contracts based upon the Elgin pice." Aliened Combine Five Years Old. The system by which the price of butter is fixed is not generally known to the widely scattered producers, ac cording to the retitlon, but "on the contrary, the price' Is published throughout the United States in news papers and otherwise, without any ac companying statement of how the price Is determined, and readers of quotations thus published, and partic ularly farmers and other producers of butters and sellers of butter fat, are led to believe that the price quotation. re prices established by actual bona nde sales and purchases of butter In open competition on the Elgin Board of Trade." .he alleged combination and con spiracy Is said to have been formed "siime five years ago." Officers of the American Association of Creamery Butter Manufacturers deny that the organization has ever at tempted to fix the price of butter or that It has any connection with the Elgin Board of Trade. ELGIN" JlEX riJOFESS XO FEAR President of Board Says lie Expects Action to Be Dropped. KI-GIX. 111., Dec. 14. Elgin "butter barons" have no fear of dissolution by the Superenie Court of the United States. "When the Supreme Court of the United States is fully informed on this subject, as 1 have no doubt It will be, I believe the action will be dismissed," said President Potter today. The Elgin Board of Trade was organ ized in 1ST! and chartered under the laws of Illinois in 179. Prices of but ter were quoted between the figures of the three highest sales up to 1896. . when a quotation committee of five members, two of whom are usually pro ducers, two dealers and one a broker, was elected. The Board convenes each Monday and acts as a primary market. A call board is maintained on which the receipt of the New Tork market are first announced, producers than, nlaca is wanted, whether check or savings. Xo restrictions placed on amount for opening a check account. Savings Accounts may be opened for $1.00 and upward, on which 4 per cent interest is paid. MERCHANTS SAVINGS & TRUST . COMPANY Sixth and Washington Sts. Open Saturday Evenings, 6 to 8 their supply before the Board and offerings- are made. The prices are for actual sales upon which butter is de Uvered, It is stated. After the call board, has closed the quotation committee meets and recom mends a price. From this appeal can be taken to the Board as a whole and a pew price fixed. "If enjoined we will obey the Injunction,"- said President Potter. "But for the Elgin Board, the price of butter would be much higher than It is at present. - "In reference to the 'centralizers- the Government names in its suit, I wish to state that these men are benefactors of, fnstead of "conspirators' against the prpducers and consumers. During the months of May, June and July the sup ply exceeds the demand. Butter is pur chased by these so-called centralizers and placed in cold storage. In the Winter months there is practically no butter produced and before the Elgin Board of Trade quotation committee was named, the price of butter in Win ter often reached 50 cents a pound. Now it sells for 35 cents most of the time or around that price for fresh extras. "There never has been any -manipulation on the Elgin Board of Trade since I have been a member." POPE'S BROTHER GAINER Faithful Service as Postmaster Brings Grant of $35. TURIN, Italy. Dec. l4.-The Minister of Posts and Telegraphs has awarded $35 tovAngelo Sarto. in recognition of his long and faithful services. Sarto, who is postmaster at Grazie. in the Province of Mantua, a few days ago requested an increase In his salary, which amounts to 50 cents a day. He asked the deputy for his district to use his Influence and the deputy took Sarto, who Is more than 76 years old, to the Minister of Posts and Tele graphs, to whom he made his appeal in person. It was favorably received and today's compensatory grant of $35 is the outcome of his visit. WRECK'S BLAME IS FIXED Engineer and Brakeman Account able for Indianapolis Fatality. INDIANAPOLIS. Dec. 14. Willis Tork and Carl Gross were accountable for . i . t ....,! Unmtltnn & Davton railroad wreck in a suburb of this city on November la. wnen id me were lost.' according to the report of Cor oner Durham. Coroner Durham declared mat unaer the rules of the railroad company, En VnrV wn reflnonsibln for the closing of the switch after his train had passed onto tne siaing. jjraKeman Gross is criticised for reporting to York ,., ihA Kwitch was closed. The open switch caused the wreck. OPIUM TAKING IS CHARGED Dresden Professor Says American Athletes TJso Stimulant. BERLIN, Dec. 14. America la addict ed to taking opium, according to Pro- . ir nn nf nrerien. He ad- iessur - t - dressed the Association for the Scien tific Investigation or sport last nigm on the subject of "Sport and Stimu-i-4 in hia lecture enumerated the stimulants to which the various nations are addicted. The association, which was recently formed Includes many of the leading physicians and experts. Professor Hueppe, who Is a court councillor, holds high rank as a writer on alcoholism. ESCORT AND MONEY GONE Man Gives Girl Carfare and letter She Finds Her Pocket Picked. SAN FRANCISCO, Dec. 14. "Better take these: they might come in handy," said the escort ofMiss Eve Willis last night as he pressed two nickels Into her hand and assisted her to a trolley C""odav Miss Willis complained to the police "that after taking her seat she found her pocket had been picked of a wallet containing $35. She had met her escort at a dance and couldn't re member his name. The nickels did come in handy. . NAU'S One-Quarter Off Sale. All our high-grade ladles" bags, leather goods, manicure cases, Henc kel's cutlery, etc., at above reductions. NAU'S PRESCRIPTION PHARMACY. Corner sixth and Alder streets. Northwest Postmasters Named. OREGOXIAN NEWS BUREAU. Wash ington, Dec 14. The President today renominated C. H. Kellogg as post master at Puyallup. Wash., to succeed George W. Edgerton. and renominated Postmasters Theodore Hall, of Medical Lake, and Thomas N". Henry, of Pros per, Wash., and Charles C. Moore, at St. Anthony. Idaho, Rainy Skies Make More Apparent The added comforts the wonderful economies made possible by this great mid-season half-price sale Yesterday the store was thronged again and again by crowds of fair shoppers, justly demonstrating an implicit belief in the honesty and the integrity of this store's adver tised reductions. Tomorrow we shall serve equally well a still greater throng. We invite you to come and share with hundreds of others in these astounding bargains. ALL OUR LADIES' AND MISSES' FANCY MAN ; TAILORED SUITS AND ENGLISH MANDELBERG Raincoats Half Price Exclusive Fabrics Handsomely Tailored Genuinely Reduced $16.50 Raincoats, half price. . . .$8.25 $20.00 Suits, half price f?'22 $18.00 Raincoats, half price. .. .$9.00 $22.50 Suits, half price $11.25 $20.00 Raincoats, half price... $10.00 . $25.00 Suits, half price ...... $12.50 $22.50 Raincoats, half price... $11.25 $27.50 Suits, half price. $lo.75 $25.00 Raincoats, half price. . .$12.50 $30.00 Suits, half price .$ 15.00 $27.50 Raincoats, half price... $13.75 $35.00 Suits, half price $1AaS $30.00 Raincoats, half price. .. $15.00 . $40.00 Suits, half price $2222 $32.50 Raincoats, half price... $16.25 $45.00 Suits, half price $22.50 Exceedingly Liberal Reductions on Blues and Blacks In this store "Half Price" carries no double meaning it means what it says. i BEN SELLING MORRISON STREET AT FOURTH . .. l - raw jtmwyx$Sm - :C4-rP nil 1 It v IS x- f ' CARABAOS HAVE JIHX Army and Navy Men at Tenth . Annual "Wallow.'-' "EMPIRE DAYS" RECALLED Speeches Are Made trging United States to Keep Philippines, on Ground Time for Indcpend- -ence Is Not Arrived. WASHINGTON, Dec 14. Enlivened by songs, speeches and "stunts" recall- i-. J TTnltpri States OC- lng tne enny - cupation in the Philippines, the tenth annual "wallow" of the Washington corral of tho Military Order of Carabao, . . . v,A mnxt mlncessful In the history of the organisation, whose members comprise most of the Army. Navv and Marine Corps officers who served In the Philippines during the "days of the empire." from 1898 to 1902. Chief Justice yiw . 'Z Justices Vandevanter and Lon; ot the Supreme Court; Secretaries Stim son Fisher. MacVeagh, Nagel and 11- . .-. . .""..nuT-sil HITCHCOCK son ana rrauMoin-. ; were among the prominent gTiestg who helped to make the occasion notewor thy. Reforms Keclted ly Messenger. While the dinner was in progress there arrived from Manila In an aero plane, which first appeared on a screen as a speck and approached until it be came real size, a messenger extraordi nary, who announced that the Filipino tribes, "in cockpit assembled," had "just adopted a 'declaration of Inde pendence. To prove that they should receive independence, the declaration recited that the United States had been tyran nical by suppressing inter-tribal strife, encouraging business and commerce, raising the standard of living In the islands, economically collecting the revenues, and so on through a long list of reforms. t General Brans Toaatmaater. The messenger urged the Carabaos to get the United States to decrease the number of battleships in Philippine waters. , The toastmaster was Major-General Robert K. Evans, In command of the Department of the Gulf. Henry D. Es tabrook, of New Tork. spoke in favor of retaining the Philippines, declaring that the time had not come to ar range for independenc& for the Fili pinos. Ontario Club Shows Growth. ONTARIO, Or.. Dec. 14. (Special.) Fifteen new memDers have been added to the Commercial Club this month and several others have signified an inten tion to Join. This enthusiasm was caused by the successful exhibit made at the Minneapolis Land Show last month. Many inquiries are being re ceived at the rooms of the club from persons who saw the exhibit. As a result of the exhibit one year ago over 0 families moved Into this section. BANKS SHOW GAINS Controller Shows Number Has Doubled in 12 Years. BUSINESS STILL . LARGER Net Earnings for Fiscal Year Equal to 8.59 Per Cent on Capital and Surplus Four-Fifths of Na tional Debt in Hands. WASHINGTON, Dec. 14. Business in general; as reflected in the condition of the banks of the United States, has shared In the country's prosperity, ac cording to Controller of Currency Lawrence O. Murray, In his annual re port, made public today. The banking power of the Nation, represented by capital, surplus, profits, deposits and circulation, reached dur ing the year the enormous total of $22,348,707,000, a high record, showing an Increase of 5.69 per cent over 1911 and 27.8 per cent over 1908. Since 1900 the banking power has Increased 111 per cent, or more than doubled. Dur ing the last 12 years the number of banks has Increased by over 107 per cent and their volume of business, as Indicated by deposits, snows an in crease of over 127 per cent. Money Rate Higher Since August. The Controller's report consists of a mass of statistics with analyses. In connection with the rates In mon ey, wtiich recently have been soaring, the Controller simply observes that the rates were normal up to August, with a tightening of the money mar ket thereafter. According to the last condition report, September 4, the Controller points out that New Tork and Chicago were slightly deficient In the amount of their legal reserves, and St. Louis slightly excessive. Banks In the major portion of other reserve cities were also slightly deficient, but the country banks maintain an excess of the legal requirements. Clrcnlntlon Not All Issued. Less than 70 per cent of the total amount of National bank notes which the National banks might circulate un der the law, has been issued. Based upon the September 4 report, the banks might Increase their circulation by 8321,927,060, Murray says. The National banks, the report Indi cates, held over 80 per cent of the bonded debt of the United States In ths way of security for circulation and public deposits and as Investments. During the fiscal year 1912 the Na tional banks paid dividends aggregat ing $120,300,872, or 11.66 per cent' on capital and 6.93 per cent on capital and surplus combined. . The net earnings of $149,056,603 were equivalent to 8.69 per cent of capital and surplus. During the last 43 years the banks have paid an average annual dividend of 9.17 per cent on the capital stock. iitght National banks, with an ag gregate capital of $l,100,0i.0, failed during the year ended October 31, while 83 National banks, with an ag- a come wiiico us and solve the men's gift problem in this store, where he would do his own purchasing j competent Slesmen will assist you in selecting appropriate and lasting gifts, which, coining from this store, will carry added value -neckwear, 50c to $3.50 . leather novelties 25c to $25 silk hose, 50c to $3.50 a pair gloves, $1.50 to $4.00 night robes and pajamas, $1.50 to $15.00 a suit canes and umbrellas, $1.00 to $10.00 eor nine miff links and studs. 50c to $10.00 . suit cases and traveling bags, $3.00 to $25.00 special, regular $10.00 imported silk pajamas, $5.00 linen anu. 5 no. jj.ciuujo.cj. iii&iui 1 reefers and mufflers, $1.00 to $10 ' cRn suspenders, 50c to $3.50 silk and flannel sh $ 2.0C ) to $6.00 - thermos novelties and motor lunch sets, $1.00 to $71.00 knitted, fancy and dress vests, $4.00 to $12.00 -hat and cap orders, $1.00 to $10.00 silk and opera hats, $8.00 and $10.00 sweater coats, $5.50 to $7.50 if in doubt, give a merchandise order ". a suit mall orders -solicited HTfllo Michel mail orders solicited 331 Washington street between 6th and 7th streets, imperial hotel building gregate capital of $21,605,260, were placed ir. voluntary liquidation. PolU County, Educators Meet. DALLAS, Or, Dec. 14. (Special.) The Polk County educators met here today and discussed several topics rel ative to education in the county's schools. SKILL PROMPTNESS AND UP-TO-DATE DENTAL SERVICE Are always at your command at this office. AVe make a specialty of treating people from out of town instantly, so that they will not suf fer any loss of time and can com plete their work in one day when necessary, v Our 20 years of active practice in Portland has enabled us to systematize our business in such a way that your work is completed without the delays and discomforts common to most dental offices. DR. W. A. WISE In personal attendance. Ask to see him. o that you can be iur you are la the right place. ttt that eon u pistes. With Flexible Suction. -The very beat and latent in modern dentistry. No mora falling platss. . Our brldg w o r k has been brought to the high est state of p e r f a ctlon. The teeth on this bridge are Inter c h a n geable at will with out removing from the mouth. We Give a tS-Tear Guarantee. 26 YEABS' ACTIVE PRACTICK Vf Wise Dental Co. FAILING Bfll-WNO. Kntranre on Third bt. T11IK1 AM WASHINGTON. Southeast Corner, rhuaea Main 02 A 02.