Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-02-24
DEALERS IN FOOD
FACE PROSECUTION
Attorney General Hints at In
diCtments as Result of
Investigation.
MUST BE PRICE FIXING

Attorney General gregory state
ment. following a conference with the
President at the White House. that
measures which may be "of consider
able avail toward lettering the stu
alton as regards shortage and high
prices of foodstuffs probably would be
announced shortly. has been Interpreted
by many to mean that prosecutions
under the Sherman antitrust law may
be looked for.
While inquiry at the Department of
Justice today failed to find anything
tangible toward veriflcation OF this
surmise. it was learned that the de-
partment Is ready to prosecute for any
conspiracy to withhold food supplies
or boost the prices through interstate
traffic. just as soon as reasonable
amount of evidence is procured to war
rant an indictment.
To detect any such conspiracy. IL it
exists. the department is directing
and has been practically since the be-
ginning Of the European war-a ma
tion-wide investigation under the gen.
eral direction of Assistant Attorney
months George w. Anderson. United
States district attorney at Boston, has
been acting as special agent OF the
department, making official visits from
to observe conditions and direct grand
jury sessions. Through United States
attorneys-of which there are one or
more in every state in the Union. with
an army of investigators and special
agents at their call as needed from
time to time-the department is pur-
suing this survey and guardianship OF
the food supply of the country.
Indictments Not Justified.
Absence of prosecutions up to any
certain date is prima facie evidence
that no accumulation of evidence has
ments for conspiracy to withhold or
manipulate the food supply.
In cities where rioting has recently
occurred a specially close watch is
being kept.
In Chicago special agent for this
work is employed with a large force
of investigators.
The work of the Department of
Justice, therefore, as far as the public
Is concerned in the present food stu
alton is that nationwide investigation
Is being made to ascertain if there is
any conspiracy to fix the prices of
commodities in interstate commerce.
of this investigation has been to show
that there has been no conspiracy of
such proportions as to cause the pres
ent high prices. The accumulation Of
evidence rather points to a disposition
on the part of those traders who have
the food supplies to hold them for the
highest prices they can get and that
this general rise is the result of a
trade rather than an act of conspiracy.
For instance. the commissioner of
agriculture in New York reports that
eighths of the potato crop Of
the farmers.
Powerless to Remedy Conditions.
In this connection it is pointed out that
the Department of Justice as the pros
ecuting and punitive agency Of the
government is powerless to remedy condi-
tons as they appear to exist. There is
no federal law under which a man may
be prosecuted for charging exorbitant
prices. The government has to show
that these prices were fixed by an agree
ment, conspiracy or monopoly and that
1t occurred in interstate commerce. Thus
there are two chief considerations:
First-High prices which are simply
the result Of common selfish impulse to
take advantage of extraordinary condi-
tons OF the times cannot be prosecuted
under the. law.
Second-Sales by local dealers to local
consumers. which is the cause Of so much
disturbance in several cities, falls entirely
outside the activities and authority OF the
federal government. The Department Of
Justice cannot prosecute group of deal
ers in one community or one state for
conspiracy to raise the prices or reduce
the quantity doled out for a given price.
These conditions have to be dealt with by
the state authorities.
While in the course Of it's Investigations
the Department Of Justice has discovered
several such cases of local conspiracy. 1t
has been powerless to act and has turned
the evidence over to the state authorities.