Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-21
JUSTICE OFFICIALS
FACE NOVEL ISSUE
Department Considering Plea
of Packers for Inaugurating
Chain Store System.
ny DAVID LAWRENCE.

A novel procedure has developed in
the handling by the Department of
Justice of the plea of the packers to
b1 permitted to enter the chain store
business.
Technically, it was explained at the
Department of Justice yesterday, the mo-
ton made by the Government was to
dismiss the suit, but actually the Gov
eminent has reached no conclusion one
way or the other and will cross
examine witnesses before the District
Supreme Court in order to develop the
facts upon which TO base conclusion.
Usually when a consent decree Is
nodified by court proceedings the cor
poration comes into court arguing
that q change in conditions has oc-
Cured and seeking permission to ac-
uuire another company, the Govern
rnent's interest being to protect the
public against monopoly and restraint
of trade.
Present Proceedings Held Unique.
On this occasion, however, the pro-
ceedings are unique because the pack
ers are contending that marketing con-
ditions have changed and that the
public interest will be served and COM
petition will be promoted by permitting
the packers to engage in the retail
business from which they now are re-
strained by court order.
The wholesale grocerS are opposed
TO the viewpoint of the packers and
have filed with the Department of JUS
tice many objections to the plan. In
so far as the grocerS and the packers
have conflicting interests, the Depart
ment Of Justice will not take sides
with either, but will attempt to get
the facts by croSs-examining witnesses
and sitting the data offered Ivy each
side. When the witnesses for the
packers are on the stand, for example.
the Government Will insist upon proof
and win cross examine from the OPP
posing side. Then when the grocers
put up their case the Government win
demand proof again.
Court Solicits Opinion.
The court having asked the depart
ment for its opinion, it was necessary
to give an Affirmative or negative an
swer. If the department had expressed
no objection the chances are the modi-
dcation in the decree would have been
granted because it would have implied
the Government agreed with the view
point Of the packers with respect to the
consent decree. The Department there
fore, moved to dismiss the packers
petition Is q technical means Of get&1
ting the case fully developed before
the District Court. In q sense the De-
partment Of Justice win represent
neutral position, aiding the court to
come to Q conclusion after the facts
have been fully set forth and all proof
has been submitted.
The case Is stirring up considerable
interest In Congress and it is already
apparent that those who do not favor
the packers point Of view are not going
to let the Department Of Justice agree
to q modification Of the decree with
out q protest. There Is no evidence
that the department fayors the modi-
flcation, but the length of time taken
by the Government for informal con-
ferences led some members of Con-
gress TO believe that 1t might offer no
objection to the modification. II
Chain store Problem Cited.
AS . matter Of fact the whole chain
store problem has become so involved
that Il Is doubtful whether the De-
partment of Justice will care to express
an opinion at any time on the eco
nontcs of chain store versus inde-
pendent selling. The packers, on the
other hand, are arguing that there Is
nothing to prevent the chain store peo-
pie from going into the packing business
and competing with them while they
themselves are compelled to keep out
Of the chain-store system of retail dis
T1bution. IL PROBABLY VIII have 70 be
decided by the court In the fnal an
alysis without much help from the Gov
eminent on the economic side.
It may be that the Government when
finally compelled to state its conclu-
Sions win discuss whether the modifica-
ton would or would not violate existing
law and thus leave to the court to
determine whether upon the showing of
facts the modification would promote
competition.
Government View Not Revealed.
No tntimation has come from the
Government as to its portion, because
1t also has been searching for facts
and demanding proof from the various
business interests affected. It will prob
ably prove, however, one Of the most
interesting court actions Of this eco
nornic period, and may indirectly have
an effect on the chain-store problem,
particularly In setting forth Its legal
limitations, though tbs is a matter of
future legislation
Copyright, 1900
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