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R. A. Long had been a member of the as- ent of George K. Smith as to yellow pine sociation for 15 years; was its president in values, was president of the Grayson-McLeod the years 1904 and 1905; was from time to Lumber Company, with an authorized capital time a member of its board of directors; and of $1,000,000. was influential in establishing the policies of Charles S. Keith, member of the committee the association, being in the habit of attend- on values, market Committee of Thirty, and ing the meetings of the association, delivering one of George K. Smith's correspondents, addresses as its president, and likewise as a was general manager of the Central Coal & lay member. He was, with Mr. White, a fre- Coke Company, with an authorized capital quent member of the committee on values of of $7,000,000, manufacturing about 83,000,000 the association until 1906, and became and feet of lumber per year; the capital of his continued one of the correspondents of the company being employed, however, in both secretary, George K. Smith, concerning prices the coal and lumber business. of yellow pine lumber. Mr. Long was con

An examination of the record will show nected with the Long-Bell Lumber Company that the affairs of the association were domof Kansas City since 1884, and was for a inated by men of the character mentioned, number of years its general manager. The few in number, but having large interests Long-Bell Lumber Company has an authoriz- and controlling large business and trade. It ed capital of $2,000,000, and manufactured readily appears, if the figures in the record about 275,000,000 feet of lumber annually in are correct, that the few names mentioned 1906, 1907, and 1908, and for a number of produce and handle a large part of the outyears prior thereto had annually manufactur- put of the mills of the association. ed about 200,000,000 feet. The Long-Bell

Price List Lumber Company likewise operated about 62 retail yards at points in Kansas. Mr. Long sued a price list to its members, and to the

From its organization the association iswas also interested in the Calcasieu Long Leaf Lumber Company and in the Lufkin trade. This was designated as the flat rate

sheet price list, or in booklet form as Land & Lumber Company; both of said companies being engaged in the yellow pine in the Yellow Pine Price Current, as published

and circulated down to the year 1906, and dustry along with the Long-Bell Company. The extent of the business of neither the Cal subsequent to that time as a market recasieu Company nor the Lufkin Company ap the association's established classifications,

port. This price list was made up by taking pears in the record; the authorized capital of the one, however, is $1,200,000, and for the grades, and sizes, and quoting prices for the

respective items thereon, for sale and delivother for Missouri is $8,000.

8. H. Fullerton, likewise the president of ery by manufacturers and wholesalers at the association for one or more years, a mem- tain territory to be reached upon certain

points from places of shipment within cerber of its board of directors at times, promi- freight rates; the freight rate being includnent in discussions upon the floor of the as- ed in the price quoted. No quotations were sociation, a member of the committee on val- made for delivery at points where the freight ues and of the market Committee of Thirty rate was in excess of 45 cents from place of of 1906, and correspondent of George E. shipment, and the minimum freight rate Smith as to prices of yellow pine lumber, employed was 10 cents. The work of preinfluential in the affairs and policies of the paring this list, including the naming of the association, was largely interested in the prices to be quoted, was committed to a comlumber trade. He was president of the Chi- mittee of the association at first called the cago Lumber & Coal Company, a wholesaler price list committee, and afterwards called of yellow pine, with annual sales of about the committee on values down until the year 200,000,000 feet, and with an authorized cap- of 1906. ital stock of $350,000. The Chicago Lumber

It seems that in the latter part of the year & Coal Company also operated a large num- 1905 or the early part of the year 1906 cerber of retail yards, about 62, in the state of tain investigations of the operations of the Illinois, but had its chief business office in association or certain of its members alleged the city of St. Louis. Mr. Fullerton was also to be in violation of the laws of the state of president of the Bradley Lumber Company, a Mississippi leveled against combinations and manufacturing concern which manufactured conspiracies in restraint of trade were inabout 200,000,000 feet of lumber per annum, augurated by that state, and the board of diand which companies he ordinarily represent- rectors of the association early in 1906, in ed in the meetings of the association. He view thereof, adopted the following resolualso sold for smaller companies and mills to tion upon the part of the association and enwhom be made loans. He also owned stock tered the same upon the record of their proin the Colonial Lumber & Timber Company. ceedings:

Nelson McLeod, at one time president of "Resolved, that neither the committee on the association, member of the board of di- values nor any other committee or officer of rectors at times, member of the committee on this association shall make to the association values for the association, member of the of existing conditions applicable to the trade

or any member thereof any report other than market Committee of Thirty, and correspond- and of existing prices ; nor shall this associa

tion, nor any officer or committee thereof, make | trade. The members of this committee in either to the association as a whole or to any the aggregate usually represented interests member thereof, any recommendation affecting prices to be charged for lumber or the amount largely predominant in the business repreof the product or output thereof."

sented in the association. The minutes of the board also made refer

These committees from the very beginning ence to the Mississippi investigation and a made reports to the open meetings of the proposal for an early meeting in St. Louis, at association down until the year 1906, and which attorneys from various states were to since which time no reports have been made be present and furnish opinions as to the direct to the association; but George K. proper handling of all questions coming be- Smith, under the authority of the board of fore the association which could in any way directors and his list of correspondents, bas conflict with the state or federal statutes had complete control, and has issued the regoverning trusts or combinations. The date port direct, without submitting it to the of the meeting was reserved.

members in the association meetings. The At the annual meeting of the association reports of these committees were frequently in January, 1906, following the adoption of discussed by various members in open meetthe above-quoted resolution by the board of ing, and were either adopted as submitted or directors, no report was made by the price as amended, and were then recorded by the list committee or the committee on values. secretary and promulgated by him. A copy The proposed meeting of the board of direc- of the report of this committee is found in tors was bad on the 27th and 28th days of the record, and, except as to prices quoted February, 1906, at which various counsel and named and new grades and sizes added, were present, and a new arrangement was is substantially the same as all other reports made for the formulation of the price list of the committee. Section 5, providing for the appointment of a

When George K. Smith, under the direcCommittee of Thirty by the president, to be tion of the board of directors, took charge of known as a "Market Report Committee," was the report in 1906, he appointed a list of coradded to the by-laws, and the committee was respondents for the association, 63 in numappointed, and the work of preparing and ber, known as “Correspondents of the Yelgetting up the price list was assigned to it. low Pine Manufacturers' Association.” This The list of members of this committee is list was appointed under the authority of found in the record and embraces many the board of directors. The members were whose names have frequently been connect- manufacturers of yellow pine, and practicaled with the price list committee and the com- ly all were members of the association. mitee on values, and all of whom had large Each member was given a number, and corinterests in the lumber trade. This commit- respondence was carried on by that number. tee, however, failed to take up the work as- In the number are found many who were at signed it. This failure seems to have been various times associated on the price list, under the advice of counsel. It met, how values, and market report committees of the ever, in October, 1906, in connection with the association. board of directors, but issued no report, and One of the purposes of this list of correthereupon the board of directors authorized spondents was to furnish information when and directed George K. Smith, secretary, to requested by George K. Smith as to prices take the matter in hand, and to make and at which they were selling lumber. This inprepare the price list or “market report,” formation served a double purpose, for it alas they at that time termed it. Thereafter so disclosed to George K. Smith, secretary, the same was gotten up by the said George whether or not they were observing the asK. Smith, secretary, and the prices quoted sociation price list. Secretary Smith, in unwere named by him, with the aid of a list of dertaking the correspondence, inclosed correspondents, hereinafter referred to, and sheet which was a copy of the price list in was to the time of the institution of this suit force with a blank column at the right of the published and promulgated by him to the column of prices quoted, with a request to members in the trade under the name of the the correspondent to indicate any items quot“Market Report."

ed thereon which he was selling or offering The old price list committee and the com- at a different price from that named in the mittee on values as well were usually appoint- list. The correspondent, in answering the ined at annual or semiannual meetings of the quiry, if he was selling or offering at the association upon motion; the number there- price list, would make no change upon the of being provided in the motion. The mem- slip, but would simply check the blank spaces bers usually served until the next meeting opposite in the blank column. If there were of the association, or for a year, and were items which he sold lower than the list, he either reappointed or othe in their stead. I would insert the price at which had sold The list of those reported in the record from or was offering in the space in the blank time to time as members of this committee column opposite the item; if higher than embrace members of large interests as J. B. the price list, the same method was emWhite, R. A. Long, Nelson McLeod, S. H. Ful- ployed. lerton, Charles Keith, Isaac Enoch, and men That Secretary Smith, in making up the of like standing and interest in the lumber market report, was not at all times governed

by the replies received is illustrated by the May 11th. The advance is on finishing boards said report for February 25, 1908. From the and some length of dimension. Now I will read compilation above shown, it appears that of

the entire list, so that all may know what it

is." those replying to the secretary's inquiry as

In 1903 the committee made a report to "Heart Face Flooring, Grade 'B' and Bet- through the chairman, R. A. Long, which, ter," 25 answered that they were making the same price as the January list, 6 that they among others, contained the following ob

servations: were quoting lower, and one that he was quoting higher; the price was advanced by believe that the trade should stand an advance

"In view of the extraordinary conditions we the secretary in the new report 50 cents over of 50 cents per M on all items on the rightthe report for January. He added this 50 hand side of the list and some items on the leftcents, according to his statement, from hand side. If err we must, we desire to be

on the side of conservatism, and so we recomknowledge he had of the conditions of the mend the reaffirmation of the list adopted May market, and from stocks on band by different 2d, and of requesting our members to adhere dealers in this particular line. On “Edge to these prices. By so doing for a period of

20 days they will be able to secure all the busiGrain Flooring” 92 correspondents replied

ness wanted at said prices. We also believe that they were quoting the same price as that by adhering to this condition that by Authe January list, 5 that they were quoting gust 15th a good liberal advance can be made." higher, and 13 that they were quoting lower. In January, 1904, in an address entitled The secretary advanced the price above the “Marketing of Yellow Pine," delivered before list 50 cents. In all instances the replies the association at New Orleans, Captain J. showed that a greater number were selling B. White, among others, made the following at less price than the prices quoted in the observations: January list than were selling for a greater “Until lately the jobber and the lumber merprice; but, in each instance where the price chant were the only ones to be consulted in was changed at all, it was advanced for the the marketing and selling of the lumber product.

This individual, as already mentioned, had beFebruary list. It was never the policy of come largely a'manufacturer, and the time has the secretary to quote a lower price if an now come when we should fix a fair and reaequal number quoted the list and any above. sonable price for our yellow pine lumber in all An investigation of the official proceedings competition with other woods used for like pur

markets, governed only by its just merits in and meetings of the association shows that poses. There is no competition at anywhere the matter of selling prices of lumber was near present prices except among ourselves. one of the chief matters to which the associ- The lumber should go to the retailer at certain

just and fixed prices." ation gave its attention. In fact, all the work of the association seemed to tend in

In 1905, at the July meeting, when the comthis direction, and to keep the central body mittee report on values was before the of the association in touch with and in con

house, the following, among other remarks, trol of all the matters touching the trade by

were made: which prices were affected. In the various and reported an advance in prices, on account

Mr. White: “The committee on values met discussions of the report of the market re- of the pressure brought to bear by a large port committee by members upon the floor of number here who are not on that committee. the association, it seemed that the general When it came to a question of voting on the desire expressed was to maintain a uniformi- mittee voted very enthusiastically, but not so

price list, it looked to me as though the comty of prices among the dealers generally and very many 'ayes' from the back of the hall. It have higher prices upon the market. In has been customary to inquire how many pro1901 the committee reported through N. W. pose to issue the list; we want to see how it

strikes every one, and would suggest that the McLeod that it was impracticable at that chair call for a rising vote of those who are time to recommend a uniform list, as stocks willing to issue the list, and separately of those were very much broken, and trade was good, who use the list as a basis for their prices.” and many members found it necessary to Twenty-two responded that they would issue make prices on some items considerably high- the list, and nine that they would not issue er than would be satisfactory to others, and it, but would use it as a basis. therefore a list as a basis of minimum mar S. H. Fullerton: “I think the issuing of this ket values was recommended. It was moved list should be universal. I think the time is that this report be adopted, and that all stuff is worth. Every one should issue the list;

ripe to get the prices. We have said what the members be urged to have the list sent out it causes a great deal of confusion when all do to the trade. In 1892 the report of the price not do it. I would like to see everybody issue list committee was made, and the secretary the list. It is due to the trade. If the prices said, in offering the same:

are not legitimate and equitable, let them stand

up and say so now. There is no use in entering "I will say for the benefit of those who may into this thing in a half-hearted way. Let us not have seen the list adopted by the Arkansas go out of this room feeling that we are all State Association that our price list committee going to do the same thing. If any one feels has paid the gentlemen the compliment of con that the prices are too high, let him say so now. sidering their judgment as perfect, as they have It is not too late to rectify them. Let them made no changes whatever in the list adopted stand up and be a man. We want uniformity of by the Arkansas Association at Little Rock on prices." the 13th day of July, considering that that was J. A. Freeman: "I am glad to hear that we a fair expression of the market and no changes have such an urgent appeal to stand by the have been made. This is a slight advance over prices. I did not myself vote that our company our association price list that was adopted April would issue the list, although we would base

S. H. Fullerton: "The list should be uniform a flat rate sheet, and published for the asin adoption. There is coming a time when the sociation by E. J. Schuster Printing Comorders will be coming in very rapidly, and we need a uniform schedule. The effect will be pany, under the direction and supervision of good upon the trade."

George K. Smith, secretary. This was known J. A. Freeman: "I believe Mr. Fullerton is as the association official price list. The right. The uniform issue of a list would certainly be beneficial to the trade, and wouid not addressograph department maintained by the interfere with any one who is going to ask fifty association collected the names and addresses cents above the list."

of all dealers in the trade territory to which C. S. Keith: “What date does the list be- from 10 to 45 cent freight rates were applicome effective ?”

The Chair: “The committee's report provides cable, and had them arranged accordingly, for the 19th."

and these extracts were addressed to each At the January meeting, 1905, the com- of these dealers through this agency. The mittee on values reported :

association also issued a long leaf f. o. b. "That, while present conditions would war- list and a short leaf f. o. b. list (distinctions rant an advance in prices, it is thought best growing out of different weights of different to reaffirm the January 10th list, with a view lumber) containing quotations for delivery at to early action toward an advance later on. B. White, Chairman."

the mills, which were the same as the official The same was adopted on motion of J. A. flat rate sheet less the freight. From 600 to Freeman.

1,500 each of these were mailed out each time In an address to the convention in Janu- a new list was issued by the association, and ary, 1904, Mr. J. B. White again said:

bearing the same date as the official list, “There is nothing now in competition with and extracts therefrom. yellow pine-we are simply in competition with Not only did the association order and ourselves. Let us get together, and any rea- print for its own use and circulation a great sonable price will be sustained.'

number of these lists in the various forms N. W. McLeod, upon the same occasion, referred to, but the individual members of the said:

association ordered and purchased from the "There is this to say, however: I am satis- Lumbermen's Printing Company, upon their fied the trade of 1904 will be of good volume, and it rests with the producers themselves and own account, or made special orders for the particularly with those of this association-as same through the association of many addito how many bulwarks they shall throw about tional copies. These special orders of the the trade to protect it from the folly of undue individual members were under special covcompetition between the manufacturers themselves, for yellow pine has no competition to ers which bore the name of the member for fear in other wood."

whom printed, and the orders run ordinarily Upon another occasion J. B. White sent a for from 25 to 200 copies, though in some telegram to the association, as follows: instances exceeding that number. A number

“Greetings to all. Hold to the list. We are of these special covers were identified and advancing as follows: All items above January introduced in evidence. 4th list.'

After George K. Smith undertook the prepIn his evidence in this case S. H. Fuller- aration of the so-called market report in ton, at page 2080, says:

the place of the former committee on values "Well, I believe in higher prices. I do not and the market committee, he made his orthink that lumber is selling at anything like its ders for a new price list or market report in value. I am very well satisfied of that." J. A. Freeman says:

writing, referring to the date of the last ef

fective list at the time, and indicating such "I think that about the only reasonable course in the matter of finish, for instance, in changes as he desired therein, giving the order to protect ourselves, would be to advance date which it should bear, to be issued upon prices 50 cents every time we meet together; and become effective; giving also the number my motive in suggesting this is that there are certain people who will always cut prices 50 to be printed and the number to be reserved cents, no matter what it is, so, if we advance it for special covers. These orders were writeach time, we may in time get the price up to ten upon stationery of the association; were its proper level."

signed by Smith, as secretary. The printer, In 1904 Mr. Freeman stated that he in complying with the order, used the old thought the adoption of the report of the forms, which were continuously kept in type, committee would serve the best possible pur- and would make only such changes thereon pose. The report was adopted.

as were indicated in the order. In January, 1905, the committee on values The Lumbermen's Printing Company ceaswas made permanent and charged not only ed the printing of the Price Current under with the duty of carefully studying all mar- that name for the association in December, ket conditions and conditions of stock, but 1905, and about the time of the alleged sale was also given authority to take such action of the stock therein by Smith (which it will to secure a curtailment of the manufactured also be noted was about the time of the product as seemed necessary when deemed movement against the association by the needful by the committee. Adopted.

state of Mississippi) Smith announced that The price list, or so-called market report, the association was going out of the price was published and issued in various forms list business, and that it was up to the printto the trade by the association, and by the ing company to print the Price Current in individual members. It was first issued as' booklet form upon its own responsibility, under its own name, from that time forward. , some extent from the general activity of the Although George K. Smith announced that country in periods of active business; but in the association had gone out of the price list periods of general activity lumber prices, business in December, 1905, yet it appears with a few variations downward now and from the record that he steadily continued then, continued upon the whole to advance the publication of the official flat rate sheets. and grow higher. The prices named by the On the 27th day of March, 1906, he issued price list committee and named in the printthe same on the 23 cent basis. On the 18th ed market reports, were usually boosting of July, 1906, he again got out a 23 cent flat prices; all the witnesses for the respondents rate sheet and called it a market report. agree upon that proposition, while the reThe Lumbermen's Printing Company, in the spondents themselves say that such prices meantime, issued three Price Currents under were taken as a basis, and that they either its own name, one of date March 2, 1906, sold at the same or at so much less, that is, and one of date March 28, 1906, and one of in making a sale, their proposition would date July 18, 1906. These three were printed be that they would sell so much stuff at the from association forms (it appearing that market report of a certain date, or at so the forms were at all times the property of much off that report. The witnesses for the the association), and were compiled from as- state testified that with the issuance of a sociation form price lists and lists being market report the dealers had to pay the made up by George K. Smith. The issue of prices mentioned therein; if the new market March 2d was upon the price list of the as. report quoted advanced prices, the advanced sociation handed the printer by Mr. Smith prices had to be paid upon the market in orand other members of the association. The der to get the material, and, where material issue of March 28th was based upon list is advances were made by the wholesalers, the sued by Smith on March 27th, and contained retailers also had to advance the price on the same prices. The issue of July 18th was stocks on hand. based on figures given by Smith; a market report being also issued by him upon that

Curtailment. date. Subsequent to July 18, 1906, the print- In the early part of 1904 a movement took ing company did not undertake or claim to form in the association looking to the curissue a Price Current in its own name, but tailment of the production of yellow pine thereafter, and continuously to the time of lumber among members of the association the filing of this suit, printed the same under The reasons assigned for such action were the name of the association, and took its based upon unsatisfactory conditions as to orders, as hereinafter stated, from George prices prevailing at that time among dealK. Smith, secretary, issuing also the f. o. b.ers. Prices at that time seemed to be upon lists and the extracts from the market report the decline, and this was attributed to the for the addressograph.

fact of the large production of lumber. It Shortly afterwards, and doubtless in view was sought by concerted curtailment through of the fact of Schuster's publication, the as- the association to arrest this decline and sociation market Committee of Thirty met make conditions more favorable for stable in conference with the board of directors of and advancing values. It seems as early the association, and the board authorized as January of that year the secretary, George George K. Smith to take charge of the mar- K. Smith, had become alarmed about the proket report and price list matters, with the duction and its consequent effect upon prices result that on the 10th day of November a and called the association's attention thereto new list was published through the Lumber- at the January meeting of that year. As men's Printing Company as formerly, and early as March of that year an attempt from such time forward price lists and mar. seems to have been made to regulate the ket report publications were kept securely amount of production by united action; but within the control of the association; Mr. the required number to make the undertakSchuster getting along the best he could. ing feasible failed to enlist.

At the semiannual meeting of June, 1904, Prices.

which was held at St. Louis, Mo., the secreFrom 1896 to 1908 the increase in yellow tary, George K. Smith, made his official repine lumber prices has been approximately port to the association, in which he called 100 per cent. on various items; on some, attention to the excess in amounts of lumber more than 100 per cent.; on some, a little being manufactured in excess of sales, and less; and this in spite of the fact of vastly the excess in amount of stocks on hand June improved methods of manufacture during 1st over the amount of the same on hand that period from former periods which tend June 1, 1904, and other matters. in the aggregate to cheapen the cost of production, and demands for new uses which President Long's Address, January, 1904, tended to lessen the waste of the native pro

Meeting. duct. Certain portions of that period of

Mr. Long, in depicting the situation at that time were characterized by great business time, among other things, said: activity in all lines, but not all. The prices

"To obtain full advantage of these favorable

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