December 25, ll)i;i 



HARDWOOD RECORD 



25 



nil for the reason that the industry has been going along for 

 nearly two years, ever since the original restraining order was 

 issued by Judge McCall, in March, 1920, without the aid of the 

 information and data regarding prices, stocks and production 

 furnished under the open competition plan. It is emphasized that 

 if the open competition had been in full force and effect at the 

 lime of the decision and had been estopped by the decision, the 

 situation would be entirely different. As it is, the industry will 

 proceed along the same lines as during the past two years and 

 will conduct its business in the most intelligent and most efficient 

 manner possible. 



How Will It Affect Others? 

 There is considerable speculation as to the effect of the decision 

 on the United States Steel corporation and other trade organiza- 



tions havmg a system for exchanging trade information. It is 

 felt that it is not quite just or equitable to deny to the hardwood 

 industry the right to enjoy information regarding stocks, produc- 

 tion and prices on past transactions when other industries are 

 permitted, through their various agencies, to gather and dissemi- 

 nate information of a somewhat similar character. The next 

 move of the Department of Justice is therefore awaited with the 

 keenest interest. 



The trade here, too, are keenly interested in the efforts now 

 being made by Secretary Hoover, of the Department of Commerce, 

 to ascertain the bearing the decision will have on co-operative 

 efforts on the part of himself and association to bring about 

 closer co-operation in building up business in the United States. 



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Activities from Which Members of the Open Competition Plan Are 

 Permanently Enjoined by the Supreme Court 



In its original bill of complaint filed February 16, 1920, 

 in the United States Court, western district of Tennessee, 

 which report was signed by the then Attorney-General A. M. 

 Palmer, the following specific wording was used in describing 

 those activities, the continuance of which should be per- 

 manently prohibited: 



"That the court order this cause to be heard upon the 

 application of the plaintiff hereby made for a preliminary 

 injunction, after ten days' notice to the defendant, on a cer- 

 tain date to be designated by the court; and that the court, 

 upon such application and hearing, issue its preliminary 

 injunction against the defendant and all other persons whose 

 names are unknown to the plaintiff unlawfully combining and 

 conspiring with them as aforesaid, and all other persons 

 whomsoever, commanding and enjoining them pending the 

 final hearing of this cause as follows: 



' ' (a) Not to make any further oral agreement at their 

 next regular monthly meeting at Cincinnati, O., on the sec- 

 ond Tuesday of the month; at New Orleans, La., on the second 

 Thursday of the month; at Memphis in this district on the 

 second Friday of the month, and at Little Rock on the third 

 Thursday of the month, or at any other time or place, to 

 eliminate such competition as may still persist amongst them. 



' ' (b) Not to take any further step in compiling, printing 

 or distributing, through their said 'manager of statistics,' or 

 otherwise, at Memphis, in this district, or elsewhere, the next 

 issues of the above described monthly 'stock reports,' 

 monthly ' production reports, ' or -weekly ' sales reports, ' or 

 any other issues of any such or similar reports. 



' ' (c) Not to discuss prices which have been charged, or 

 are to be charged, by the defendants, or by any other per- 

 sons, for hardwood lumber, at any of the coming association 

 meetings of the defendants. 



"(d) Not to exchange, through their said 'Manager of 

 Statistics,' or otherwise, written predictions to the effect 

 that high prices for hardwood lumber will continue to be 

 maintained or enhanced. 



"(e) Not to distribute, through their said 'Manager of 

 Statistics,' or otherwise, any further written or printed 

 statements, explanations or arguments, in citing the defend- 

 ants to maintain and enhance their prices for hardwood lum- 

 ber. 



"(f) To forthwith take appropriate action as members 

 and officers of the above described association to abandon 

 and to effectively announce the abandonment of, all efforts 

 whatsoever, by or through such association, having the pur- 

 pose or tendency to maintain or enhance the prices of hard- 

 wood lumber. 



"(g) Not to do any further act or thing whatsoever hav- 

 ing the purpose or tendency to continue in effect or to further 

 the above described conspiracy to maintain and enhance the 

 prices of hardwood lumber." 



The bill closed with a praj-er that upon the final hearing 

 of the cause, the injunction shall be made permanent. 



In his decision handed down March 16, 1920, John E. 

 McCall, Federal judge for the district court, accepted the 

 wording of the government petition in full, closing with the 

 following enjoining paragraph: 



"It results from what has been said that temporary injunc- 

 tion will issue as prayed for in the bill of complaint. 



(Signed) John E. McCall, Judge. 



The decision of the Supreme Court of the United States, 

 handed down on Monday, December 19, 1921, sustained the 

 injunction of Judge McCall and decreed that it should be 

 made permanent. 



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