Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-09-11
Department of Justice Ready
to Go After Any Agreement
to Raise Prices.
SYMPATHY NOT QUESTION
IN ADMINISTERING LAW
Dairy Representative, H. E. Gasch,
Tells of Added Burdens on
Production.

The Department of Justice has
a threatening hand appraised,
ready to strike any group of
bakers, milk producers or others,
either in the District of Columbia
or those engaged in interstate
commerce, if they combine to fix
and raise prices.
This information was obtained today
by q reporter for The Star. following
widespread reports which have persist
ed for several days that the prices of
bread. milk. Ice cream, coal and other
commodities are about to be raised.
They will not be raised, 1t was ascer-
tanned at the Department of Justice. as
the result of any agreement. because
the Sherman act for the regulation of
interstate commerce forbids such
agreements, and that law is specific in
forbfdding them among the states
and 'in" the District of Columbia and
other federal territory.
Law Must Be Observed.
1t was said today at the Department
of Justice that. Notwithstanding the
general belief that there has been an
increase in the cost of wheat and an
increase in the cost of milk production
and distribution. any violation of the
law. under which agreements to raise
prices are shown, will result in imme-
date Indictment. Special agents of the
department are gathering information
as to bread prices and possible agree
ments for the various district attor-
neys.
This news will come as hard blow.
especially to the milk producers and
bakers. who are urging their claims to
a possible increase in prices upon the
public.
No Information could be obtained to-
day as to the report of the intention of
the bakers and dealers to put up the
price of bread from S to 6 cents loaf.
not seem to know what there is in
store in the way of a possible increase.
Setback for Milkmen.
But it is expected that the plans of
the committee of Maryland, Virginia
and District of Columbia milk pro-
here Saturday, to obtain a raise in the
price of milk will be given set
back" by the attitude of the Depart
ment OF Justice They. as well as
bakers, have been hoping, it is under
stood. that they could appeal to the
public for a square DEAL" as well as
to governmental agencies. and show
that an increase of prices is necessary
Investigation today as to reports of a
prospective increase in the prices of ice
cream developed the fact that such a
prospect is largely dependent upon the
possibility Of the increase in price of milk.
As to reports of a coal famine there
seemed today less anxiety on the part of
large dealers here in that commodity than
there Is among dealers in bread and milk
One large coal operator here declared
that there is an acute car shortage for
coal and a bad labor condition at the
mines. both making coal scarce. He said
that the recently threatened railroad
goes were laid, in tying up lot Of cars
and that the car-supply situation had
not yet been Strengthened out. This. he
said. might result in much higher prices
for coal this winter.
See Justice Of Advance.
Department of Justice officials, COM
menting informally today on the
threatened rise in prices for commodi-
ties. said they believed there is con-
siderable truth in the reports that the
milk producers of the country have
been hard hit by the increased cost of
everything that enters into their busi-
ness during the past few years. They
have been obliged to continue to pro-
luce a certain amount of milk sold by
the measure, such as quart and of
standard quality, which there. has been
10 means of lessening in either guam
;ity or quality.
Rread producerS ea;d a.
other hand, have been able to meet
some of the increased costs in their
business by decreasing the size of the
loaf. which is not of either standard
weight or quality in all communities.
Nevertheless. it was pointed out at
the department. no matter how much
sympathy either the public or the gov
ernmental agencies might feel for the
made has advanced in price, and no
matter how much sympathy may be
felt for the milk producer because of
the increased costs of his business, the
Sherman law forbids agreements to fix
and raise prices and will be carried out.
Herman E. Gasch of the milk produc-
ers' committee, which is to compile, on
behalf of Maryland, Virginia and Dis
trict of Columbia producers, a report
on increased costs. to be brought be-
fore another meeting of the milk as
ISOLATION. here, September %, said to-
day that he had not been officially noti-
ned that he Is expected to serve on the
committee. but that he is preparing
himself to serve. Likewise Charles J.
Brand. chief of the Office of markets
and rural distribution of the Depart
ment of Agriculture. whom the milk
producers hope to enlist in their aid.
said today that he had not yet been
asked to aid. but would try to get al
cost facts for the milk producers if
they wish.
Gasch Tells of Higher Cost.
Nr. Gasch presented figures on the
cost Of milk production in this coun
try of late years. and compared the
Distric, of Columbia with Baltimore
and Maryland. where. he explained, the
cost OF production is not so great. In
the District of Columbia. he pointed out
there is severe loss to the dairy farm