Evening star., 1934-04-01
PrecedentS Seen
in Interstate
Dyers' Case.
u. S. PREPARES
OTHER TRIALS
New York Judge
Cites Danger to
Commerce.

BY the Associated Press.
NEW YORK, March 31.-The
right of the Federal Govern
ment, under the national in
dustrial reoove1y at, to set a
minimum price was upheld to-
day by Federal Judge John C..
Knox.
The decision, which had been
awaited by the N. R. A. before
remodeling its code set-up, was
made in enjoining the Spotless
Dry Cleaners, Inc, from cutting
prices under the minimum rate
established by the cleaners and
dyers' code authority.
The decision was regarded as chart
ing course for code enforcement.
Other cases are under preparation in
Washington for court presentation.
The Spotless Co. controls 80 stores
in New York City. Its cleaning work
is done by plant in New Jersey, re-
putedly under its control.
Interstate Case.
Argued in February before Judge
Knox, evidence in the case showed the
company charged 80 and As cents for
pieces of work. the minimum price for
which under the code was set for 10
and rs cents.
The Federal court assumed juris-
diction in the Governments suit to
enjoin the Spotless Co. from price
cutting because of the interstate rela-
tions Of the companies involved.
Judge Knox's decision was praised
by United States Attorney Martin
Conboy, who said it was of utmost i'm
portance to the N. R. A.
THE N. r. A. and the codes have
been attacked on every possible legal
and constitutional ground" Conboy
said. "Of course, it is gratifying to
know that the Government has been
upheld upon its first appearance in
court on a clean-cut issue involving
the aim of national recovery"
Judge Knox set forth that lin rem
dering this decision, l know full well
that it may be a distinct step beyond
the boundaries which, in peace times,
have been said to circumscribe the
powers of the Congress. -
Expediency Cited.
"' Congress may act as it has
and is competent to authorize this
court to take such steps as will allow
interstate trade to be conducted in
smoother channels and in accordance
with the execution of policies that are
believed to be wise and expedient."
The decision of Judge Knox, it was
recalled at the Federal Building. is
closely related to another far-reaching
ruling recently set forth by statu-
tory court in New York. which upheld
the right of New York State to control
minimum prices for milk and cream.
For the purpose of my decision" 4"
Judge Knox wrote, Il shall disregard
the strike of workers in the industry.
which is said to be attributable to the
price cutting of defendant
aside from this, enough has been
shown to enable me to conclude that
such price cutting as has occurred has
seriously impeded and changed the
customary and usual flow of interstate
commerce In the dry cleaning industry
between the States of New York and
New Jersey.
Commerce Hampered.
IF defendant be permitted to con-
tinue its unfair prices, further changes
in such currents and flow are inevi-
table, and these will contribute to
the Illustration of the purposes of the
national industrial recovery act"
It has been the history of price
cutting, Judge Knox recounted, to
stem movements in interstate COM
merce" and there is no reason to
suppose that there will be a differ
ence here"
The Spotless Co. was given 10 days
for an appeal, during which time the
injunction will be imperative.
Great damage would be done to the
defendant company, the jurist gave
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