Salt Lake Telegram | 1930-02-20 | Page 7 | $2,000,000 Suit Filed Against Fruit Exchange

J Jr sun suni i r FILED AGAINST I I 1 f FRUIT EXCHANGE I Independent cp Charges Citrus Cit Cit- 4 rus Growers Others With Restraint LOS ANGELES GELES F Feb b. b CO 20 o AP AP- AP APA j A A. A al interests in fn southern California today toda turned their attention atten atten- attention tion to accusations mado o b by Llewel Llewellyn lyn hn J A. A Banks Bank In independent citrus grower an inS shipper Flipper of or Riverside e Ca Cal in a a. damage suit sul charging restraint of ot trade Banks alleged ed th that the tho California exchange C. C i C. C Its ill president various arIous lar large larg e financial houses tho Union Pacific railroad and other business Institutions institutions and persons persona r onA conspired to ruin his edit lt deJa delay his his' shipments and influence public discrimination dis crimination 1 against l his product beau be- be rau au ft A he be refused to join tho rho ex- ex cha change Banks to n addition to being a large citrus grove grower IO cr I is a n. newspaper publisher pub puh publisher lisher bank executive and fruit uit grower ro r at Mod Medford tc fOl ford Or Ore The California exchange ex- ex change which Banks B charges with Instigating tho alleged restraint is 18 isone one 1 of or the tho nations nation's largest cooperative tive tiyo marketing organizations r Teague last year Wa was named by President Hoover to lo tho the federal farm board oard to represent the tho fruit fruit- growing In industry in Its campaign for a agricultural I relief relict Banks declared In the complaint int filed in tn superior court here bore yesterday yester day dare t that ha t shortly after aner his hil refusal ll to join the exchange he be found his cr credit cut ut off at hanks banks In Ios An An- gales geles San Fernando J and Pomona lie Ile alleged rd the conspiracy was re Te- Te I Th complaint declared tho the ex exchange fOX fOX- change chango o paid independent growers 5 li Gants ants c a pound for tor fruit and it its members 3 2 1 1 cents no so independents would not cell soli produce to himlie him lie IrO said in a addition the exchange c hired hirer a staff of or secret operatives s to pr spread prad ad falso faleo statements l concerning Ills his brand an and caused newspapers to create public sentiment against in independent independent In- In dependent J brands brand The complaint declared that Charles I Stern vice president of the Fh First t National hanl of or Los An- An Ies refused him a loan but bald lio he h would ha have hano no difficulty if iC he herll did business through the exchange Ile IT JT char charged ed that thIt Henry y M. M Kobin- Kobin ron aon prominent banker r turned down lii hiM hil request t for fOI a n. loan saying ain be hI did not nut wish to interfere Tin The Federal Reserve c bank loaned him 8 for ninel ninety days for commission and at al the tho close dose of or the period withdrew the credit cre it l Banks anks aid sirl The Union nion P Pacific railroad wan wag accused li h by Banks Bank of or discriminating against J i hi his bis fruit and IntI causing causing- him himIn it In 10 lose 1011 large lare quantities R through spoilage c because Je of or delays in ecy p- p r. r Jn tin t as a a. result of oC tho the alleged conspiracy Banks Bank stated state hi his financial financial finan finan- cial con condition became precarious a- a a. 1 aa to 1 a a. board hoal of or creditors with John 1 A. A Pike at H its head Had was appointed to take o over his bis business Ho lie charged the board took convertible stR of or an and ISOO 1800 acres of or California and Oregon Oreon fruit land to pay debts de of fir Ui an and return returned him taint but The Tho land and he said al was wall worth north i. i When hen Banks Bauks complained to federal federal fed fed- eral uit inspectors that thal an undue number of inspectors ls l's besieged his bis and that t shipments passe passed In r C ornia were wera contemned condemned In the east the com compla pIa ant n I t stated la he was vas told that lint I if If you OU market your OUI fruit trough through tho the exchange you ou will ex- ex ex- ex 1 no such mch difficulties OTHERS NAMED Pike Piko and Stern the Se Se- Security First National bank the railroad railroad rail rail- rOl road the supply companies and other ether persons an and ill institutions were ere made co codefendants Teague said tho the exchange p never r dw cl lle 1 to or 01 did cUd interfere with Banks Banks' business an and ha had no direct director or Indirect business r relations with him J Ho 0 said paid the charges were mere absurd and utterly unfounded 1 f r of or tho the Union Pacific said tho roar road never nc discriminated l d among mon shippers