FTC Files Charges Against Six California Lumber Groups

The Federal Trade Commission on August 20 announced it had filed charges against six California lumber dealers' associations and organizations charging unfair competition in restraining competiton and enhancing prices.

The respondents, all located in California, are: California Lumbermen's Council, San Francisco; Coast Counties Lumbermen's Club, Watsonville; Northern Counties Lumberdren's Club, Sacramento; Central Valley Lumbermen's Club. Stockton; Peninsula Lumbermen's Club, Redwood City, and San Joaquin Lumbermen's Club, Fresno.

They were given until September 18 to show cause why they should not be compelled to "cease and desist from practices alleged to be in violation of the Federal Trade Commission Act."

The lumber groups will resist the complaint through their attorney, Morgan J. Doyle of San Francisco. Foll'owing are excerpts from a letter by Mr' Doyle to the Building Supply N.ews, Chicago, Ill., regarding the suit:

"With respect to the attitude of the respondents in the matter, they will, of course, resist this proceeding of the Federal Trade Commission because it is unwarranted and unfounded. We do not concede the truth of any of the assertions and allegations contained in the Commission's complaint. We observe, that even if those assertions and allegations were true, the Government places itself in the anomalous position of today prosecuting and endeavoring to destroy business concerns, for doing the very identical acts and things which a short while ago the Government commanded and compelled them to do in compliance lvith the lumber codes.

"We have no fear as to the outcome of this litigation, but we very much deplore the fact that these legitimate, substantial tax-paying concerns should be subjected to this litigation which rve deem to be wholly unfounded and unwarranted.

"The Commrssion, of course, has not and will not reveal the name of the person or concern, who lodged a complaint against these respondents, but if that fact were disclosed or if and when it is developed in the course of these proceedings, you will find that this is simply another case where some individual or concern has succeeded in inducing the Government to take up and bear the expense of fighting his personal quarrels with these respondents."