Evening star., 1939-12-05
u. s., With Victory
In Milk Suit, Prepared
ToPress TrustDr
High Court Ruling Clears
Way for Prosecutions,
Arnold Declares
BY ]. A. FOX.


The Government prepared today
to press anew the drive on monopoly
in the agricultural industry, on the
basis of a Supreme Court decision
holding that milk handlers in the
Chicago marketing area are not
exempt from the application of the
Sherman Antitrust Act.
In a unanimous opinion read by
Chief Justice Hughes yesterday, the
Supreme Court reversed the ruling
of the Federal Court for the North
ern District of Illinois, where Judge
Charles Woodward said the Agricul-
tural Marketing Act had placed con-
troll of the marketing Of agricultural
commodities under the Secretary Of
Agriculture, thereby removing them
from the purview of the monopoly
laws.
Judge Woodward rendered his de-
cision in sustaining defense
demurrer to an indictment charging
43 individuals and IA corporations
and groups with conspiracy to fix
prices paid to producers and to Chi
cago consumers, and to control the
distribution and supply Of milk in
Chicago
The Supreme Court ruling sends
the case back to the lower court.
where it will be tried, unless the
defense interposes demurrer on
some grounds other than those al
ready covered, and thus brings about
further delay.
A Most Important Action.
Regarded as one of the most i'm
portant in the series of antitrust
actions the Department of Justice
has instituted in recent months, the
case is directed against the Asso-
ciated Milk Dealers, Inc, Chicago
distributors; the Pure Milk Associa-
ton, a cooperative sales and bar
gaining agency for 10000 producers
In Illinois, Indiana, Wisconsin and
Michigan; the Milk Wagon Drivers
Local of the American Federation OF
Labor in Chicago; 10 corporations
dealing in milk and milk products;
DR.. Herman Bundesen, president OF
the Chicago Board of Health, and
others. The Board of Health, the
Government charged, gave preferen-
tial treatment to the organized pro-
ducers and distributors to the detrl-
ment of Independents.
Shortly after the Supreme Court
ruling had been announced, Thur
man Arnold, Assistant Attorney
General in charge of the Antitrust
Division of the Justice Department.
said immediate advantage would be
taken of it.
THE decision in the Chicago milk
case enables thu Antitrust Dlvl-
sion to go ahead in prosecuting re-
straints of trade in agricultural
products after having had its activ-
tiles virtually suspended for a num-
ber of months" he explained. These
and other cases will be prosecuted
as rapidly as funds and personnel
are available. There is at present
a demand from Congress to investi-
gate the milk situation in other
cities"
Two decisions with important labor
eonnotations were handed down by
the court yesterday also.
In one, the court said that the
Interstate Commerce Commission
had a right to require that the eco
nomic interests of employees be safe
guarded where railroad consolida
tions displace labor.
In another, the court ruled that
the Newport News Shipbuilding g.
Drydock Co. must abide by an order
of the National Labor Relations
Board and disestablish an employees
representative committee that had
been serving as bargaining agency.
No dissents were announced in
either case.
The railroad decision, read by
Justice Stone, establishes new
factor to be taken into considera-
ton in railroad consolidation pro-
eeedings.
New Factor In Rail Mergers.
The case grew out Of proposal
Of the Chicago, Rock Island g. Pa
cific and the Chicago, Rock Island
& Gulf, affiliates that are in re-
ceivership, to merge certain account
ing functions as a measure OF econ
omy. Approximately so employees
would be displaced by the move and
others would be transferred. The
commission held they should get
severance pay, based on length of
service, and running as long as five
years, and also should be compen-
sated for any loss sustained in the
forced sale of their homes. The
railroads protested that this would
cost $4,000 and hree-judge court
In Illinois sustained their conten-
ton that the I. c. C. had no right
to impose such conditions. The I.
G. c. said the railroads would save
100000 annually by this program.
In reversing the lower court the
Supreme Court said the principle
now enunciated protected the pub
lie interest.
Circuit Court Reversed.
The shipyard decision, delivered
by Justice Roberts. reversed ruling
by the Fourth Federal Circuit Court
that the Newport News company
did not have to disestablish the 10
year-old organization, but was re-
quired only to cease interference
with it.
The labor board ordered dissolu-
ton after charges had been filed
against the company by the Indus
trial Union of Marine and Ship
building Workers Of America, a
G. I. o. af1lliate.