Sign Consent Decree

Washington, D. C., January 5-The National Retail Lumber Dealers' Association and the Mountain States Lumber Dealers' Association, on January 3rd, signed a Consent Decree in the District Court of Denver, Colorado, and, at the same time, entered pleas of nolo contendere to criminal indictments that had been returned against the two associations in April, 1941.

The indictment against the National Retail Lumber Dealers' Association had charged that the association was engaged in a combination and conspiracy to establish, maintain, and enforce an unreasonable policy and program of distribution.

The indictment against the Mountain States Association charged the association with the fixing of marketing areas and prices, and unlawful policies of dealer recognition.

Both associations denied the charges in the indictments.

After conferring with officials of the Department of Justice, it was determined that the best solution to the issues involved could be arrived at through negotiation of a consent decree. Consequently, a civil suit was filed, and the decree entered by agreement, which was concurred in by the Court in Denver. The associations stated they felt that the organized retail industry now has a very definite list of association activities which the Department would consider to be contrary to and in violation of the anti-trust laws under their present-day interpretation.

The Decree enjoins the associations from engaging in any plan or program to allocate territories or markets or customers, or to fix prices, and prohibits exertion of pressure against manufacturers and wholesalers for the purpose of discriminating against particular dealers or purchasers or classes of purchasers of lumber and other building materials.

The associations further stated that in respect to association activities barred by the Consent Decree, there was an unanimous concurrence that such activities were not a proper function of a trade asiociation. In fact, the industry has at all times denied its participation in the type of activities now prohibited.

In the course of negotiation of the Consent Decree with the Department of Justice, twenty-one other retail lumber dealer associations, state and regional, not in any way connected with the Denver indictments, expressed willingness to join with the National Association as signatories to the Consent Decree.

In disposing of the original indictments against the National Association and the Mountain States Association, and in accordance with usual practice wherein a plea of nolo contendere is entered, minimum fines were levied against the associations; in the case of the National, $1200 on each of two counts, making a total of $2,100; and in the case of the Mountain States, a total of $2,000. No fines were imposed on the twenty-one associations not parties to the indictment.

Following is a list of the associations joining with the National Association and the Mountain Stateb Association in signature of the Decree:

Arizona Retail Lumber and Builders' Supply Association, Carolina Lumber and Building Supply Association, Illinois Lumber and Material Dealers' Association, fndiana Lumber and Builders' Supply Association, Kentucky Retail Lumber Dealers' Association, Louisiana Building Material Dealers' Association, Michigan Retail Lumber Dealers' Association, Middle Atlantic Lumbermen's Association, New Jersey Lumbermen's Association, Nerv York Lumber Trade Association, Northeaster.n Retail Lumbermen's Association. Northwestern Lumbermen's Association, Southwestern Lumbermen's Association, Ohio Association of Retail Lumber Dealers, Tennessee Lumber Millwork and Supply Dealers' Association, IJtah Lumber Dealers' Association, Western Retail Lumbermen's Association, West Virginia Lumber and Builders' Supply Dealers' Association, \Misconsin Retail Lumbermen's Association, Iowa Retail Lumber Dealers' Association, Montana Retail Lumbermen's Association.