Evening star., 1939-07-13
81 Indictments
In Milk Monopoly
Cases Dismissed
More Than Years
Probe Was Conducted
In Chicago
~ the Associated Press.

~ the Associated Press.
CHICAGO, July 13.-Indictments
accusing 43 individuals and IA
corporations and groups in the milk
industry of violating the anti
monopoly law were dismissed today
in Federal Court.
Leo F. Tierney, special assistant
to the Attorney General, announced
the Government would appeal the
ruling directly to the United States
Supreme Court.
The dismissal was embodied In
Federal Judge Charles E. Wood
ward S sustaining Of defense demur-
rers to the indictments.
Ninety-seven defendants, individ-
uals, corporations and associations
in the milk and ice cream industries,
were indicted November !, 1898,
after l6-week inquiry by Federal
grand jury. A years investigation
by the Department of Justice pre-
ceded the grand jury action.
The ice cream indictment named
20 individuals and 20 corporations.
Those named in the milk bill in
cluded DR.. Herman N. Bundesen,
president of the Chicago Board of
Health, and two aids; Capt. Daniel
Gilbert, ace investigator of the Chi
cago States attorneys office; 10
milk distributors and 81 officials of
the concerns; Associated Milk Deal
ers, Inc, bargaining agency of the
major Chicago distributors, and 10
officers; the Pure Milk Association,
sales and bargaining agency for
more than 10000 member dairy
farmers in Illinois, Indiana, Wis
consln and Michigan; the Milk
Wagon Drivers Union and seven
officers.
Discusses Control.
1.-THE whole theory and policy Of
the Agricultural Marketing Agree
ment Act is that Of governmental
control, regulation and supervision"
Judge Woodward opined.
"A study of the statutory policy
from the Sherman Act Of 1890 to the
Agricultural Marketing Agreement
Act of 1887 shows a constant and
growing tendency on the part of
Congress to control and regulate the
production and marketing of agri-
cultural products through the ad-
ministrative agency of the Secre-
tary of Agriculture.
He said that so far as interstate
commerce was concerned agricul-
tural production and marketing has
been removed from the sphere of
trade and barter in a free agency
to status of dependence and obedi-
ence to the supreme, exclusive and
plenary control of the Secretary of
Agriculture, subject to judicial re-
view in the mode prescribed by the
statutes"
Judge Woodward held that the
Secretary of Agriculture was en-
powered adequately to prevent or
regulate the acts charged in all four
counts Of the milk indictment.
The indictment alleged conspiracy
to fix prices, suppress competition
and control of the milk supply in
the important Chicago area; giving
preferential treatment" to farmers
dealing with the accused distributors
organization in the inspection of
dairy farms for the approval or dis
approval of products; refusal to in
spect farms Of producers desiring to
sell to dealers outside the alleged
monopolistic combine; using threats,
intimidation and violence" to pro-
tect major distributors from COM
petition.
Statement by Court.
In a statement separate from the
Sl-page decision, the court said:
After as careful and thorough
study as the court has been able to
give this matter, the court has ar
rived at the conclusion that under
the Agricultural Adjustment Act, as
re-enacted in the Agricultural Mar
keting Act, the sole, plenary and
exclusive jurisdiction over the mar
keting of milk in the Chicago area,
so far as such marketing affects in
terstate commerce, is vested in the
Secretary of Agriculture.
THE acts referred to confer am
pie power upon the Secretary of
Agriculture whereby his orders may
be enforced. 1t results that prose-
cutions for violation of the Sherman
(Anti- -TrusD Act, so far as the mar
keting of milk is concerned, are
withdrawn from the Sherman Act"
The court said 1t was sustaining
demurrers to the third count of the
indictment on the ground it charged
four distinct and independent con-
spiracies in single count.
Judge Woodward held also that a
motion to quash the indictment on
the contention that it was returned
by an illegal grand jury should be
overruled and that the motion to
quash service on Borden Wieland,
Inc, dairy products dealer, should
be sustained.
The courtroom was crowded with
counsel for the defense and the
United States. Judge Woodward
read only a two-page statement
containing summary of his ruling
and notified the attorneys the en-
tire decision would be made avail
able to them.
In criminal cases the Government
only may appeal from decisions
based on an Interpretation or con-
struction of the constitutional laws.
Such an appeal lies directly from
the lower court to the United States
Supreme Court. The future course
of the Government in this case, at
torneys said, will be left to a decision
by Attorney General Frank Murphy.