The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-08-21
ANTITRUST WAR
COMING ON FOOD
PROFIT

| WASHINGTON OPP An ant
TRUST war on food profiteers is in tn
making in the department of justice
it was learned here August 7.
Officials of the antitrust divisio
plan to file at least a half a doze
major suits in the next few month
in Chicago, Los Angeles, New Yorl
and one or two other large cities,
was revealed.
The suits will be divided into ma
tional, regional and local cases witt
special emphasis on action agains
acknowledgements concerns.
1t is expected that the suits will
reduce the retail price of bread by on,
to one and half cents a loaf ant
the price of milk by at least three
cents a quart.
Comparable reductions are pre-
dicted for other bakery and dairy
products as well as meats and canned
fruits and vegetables.
The investigation which the anti
trust division has been making, with
the aid of other departments of the
government, first centered on an ex
animation of trade journal records
and special questionnaires sent tc
companies concerned.
The federal bureau of investigation
was then summoned for more specific
information and the cases are now
being assigned to attorneys who will
prepare the legal cases.
1t is expected that from 35 to 40
persons will devote their entire time
to the prosecution. More would have
been assigned had the antitrust divi-
sion been granted it's request for a
the disposal of President Roosevelt
for special defense expenditures.
The inquiry was prompted by the
hundreds of complaints of food prof
iteering that have been received by
the department of justice since the
outbreak of the war last September.
The request for additional funds
was made on the basis of the COM
plants and on the contention that
greater enforcement of the antitrust
laws is necessary to insure rearma-
ment would take place without artifi-
cial price restraints. The request,
however, was denied.
Antitrust action in the food indus
try will center around bakery and
dairy products and tin and paper con-
tanners. In the cost of a can of peas,
It was explained, the cost of the con-
.ainer sometimes amounts to 400 of
The total cost to the consumer.
In the bread industry, investigators
nave found that when costs go down
he price of bread remains rigid but
hat when the floor and labor costs
Use, the price of bread also rises.
Specifically the probe centers
around the price policies of three of
he major baking companies. Also
'orcing small bakers into associations
hat fix rigid price scales.
The first milk suits will probably
Do filed against two of the major COM
)anies in the industry. 1t is expected
hat the suits will be filed in Chicago
where similar action against local con-
,erns tumbled milk prices by three
o five cents quart.
The meat packing suits will also be
brought in Chicago, it was said. Pre-
iminary inquiry has shown that price
,hanges of many of the big packers
re simultaeous and identical through
tut the nation.
A year or so ago certain packers
to market ready packaged
:uts of meat but they suddenly
lropped the plan The antitrust d.
-ision is trying to find out if pressure
~ organized distributors was respon-
ible.
1t is also investigating the possibil-
ty that certain packers control the
rice of meat paid by distributors
through the use of patents on meat
licing packaging machines.
The tin and paper container cases
re slated for prosecution in New
,ork Two companies are scheduled
or suit
A Wisconsin cheese association and
large company with its main plants
4 Wisconsin are principals in the |
airy investigation. The company Is |
aid to control major portion of the
heese market.
The chief regional investigation in
Olives at least two companies con-
rolling a large part of the. fruit and
egetable packing on the west coast.