Evening star., 1946-09-22
A. & P. Plans Appeal
From Conviction on
Antitrust Law Charges
by the Asxocjoted Press

| DANVILLE. ILL.,, Sept. 21.-Thir-
teen corporations and Is officials
who operate or serve A 81 P stores
over the Nation were convicted to-
day of conspiring to control sub
stantial part of the country's food
I business.
An immediate appeal was planned
by the New York Great Atlantic g.
Pacific Tea Co, II of its subsid-
iaries and 16 of its officers who
called the bench ruling of Federal
Judge Walter C. Lindley "a severe
blow not merely to the chain but
to its millions of patrons.
IF upheld, 1t will mean less food
on every dinner table and less buy
ing power in every pay envelope" i"
the defendants said.
Decision Is Astounding.
In Urbana, Henry I. Green, asso-
ciate counsel for the company, said
"the decision is so astounding can
not express my opinion in polite
language"
Possible maximum penalties of
S., 1000 fine and a one-year prison
sentence confronted each of the de-
PENDANTS on each of the two counts
of a criminal information brought
by the Department of Justices anti
trust division.
Specifically, the defendants were
found in a 117-page decision to
have conspired to restrain trade In
food products and "to monopolize
substantial part of such products
in interstate commerce"
This, Judge Lindley held, was a
violation of the Sherman Trust
Act.
Unified in New York.
A. & P, the Government alleged
accomplished its illegal monopoly
through the following methods:
l. In the New York headquarters
OF John A. Hartford, 73-year -old
A. & P. president, and his brother
George, 80, board chairman, control
OF the vast network of purchasing,
manufacturing, distributing and SELL
ing agencies was unified.
2. Where A. & P. retail outlets
met strong competition from inde-
pendent or other group stores, some
A. & P. stores were allowed to stay
in business although operating at
loss. These losses were offset by
profits from other A. g. P. outlets
and eventually the competition was
forced to close its doors.
3. A. & P. misused its profits and
fixed prices.
4. Through its operating system
A. g. P obtained preference in
buying products. not only in rela-
ton to better prices but also better .
quality.
S. A. & P. at the same time con-
cealed all these foregoing practices
from the public.
Trial Consumed % Weeks.
During the trial without a jury
that consumed % weeks between
April is, 1945, and April 6, 1946.
the companies and individual de-
PENDANTS presented witnesses and
in denial of these charges.
On the witness stand, John Hart
ford put in capsule form the de-
fense position on A. & P. opera
ton when he declared:
"Our company grew to its present |
size because We believed it was
better to sell 200 pounds of butter
at l cent per pound profit than 100
at cents per pound profit. |
Judge Lindley acknowledged the
defense claim of high character" in
BUSINESS policies but said Congress
lid not "condone good trusts and
condemn bad ones; it forbade all.
The court declared that the prac-
tees of the Atlantic Commission /
(ACCO), produce buying subsidiary.
of the A. & p. ."over the years leave
a bad odor" and continued:
ut exploited its inconsistent posi-
tions; it collected brokerage fees for
buying or selling products) from
others for A. g. P. Golfers; its posi-
ton and its practices created a sharp
differential between A. g. P.'s pur-
chases of produce and those of its
competitors"
In announcing plans for an ap-
peal, the defendants declared Judge
Lindleys opinion "has, in effect,
knocked the props out from under
the entire American business system;
for the pattern of our operations is
so usual that no stable business in
America can now hope to defend
itself against the attacks of the anti
trust division"