Evening star., 1947-09-07
Grand Juries Facing
Busy Week in Probe!
OF Oil and Housing
By Robert K. Welsh


Justice Department antitrust
division prosecutors will center
grand jury investigation again In
the District this week in the
busiest activity of that kind here
in recent years.
The grand jury which heard 2s
gasoline and oil company witnesses
during the last week of August Is
to resume its inqdiry tomorrow
morning.
An investigation Of housing Gin
dustry practices, particularly in the
building construction field, may be
started this week by another Dis
trict grand jury which on August
u indicted the Washington Real
Estate Board and the National As
sociation of Real Estate Boards, de-
partrnent officials indicated.
Groups Denied Guilt.
The realty organization pleaded
not guilty in District Court last
Thursday to charges of conspiracy
to restrain trade in the District by
fixing brokers commission rates.
They have until October Is to file
additional pleas or motions.
The investigation of the petroleum
products industry in this area is
primarily to get information" at
this time, a Justice Department Of
ficial said. This repeatedly relates
not only to price trends but also to
illegal tie-ins between filling sta
tions and major distributors.
Such tie-ins, it was explained,
could be violations of the antitrust
laws by restraining trade, prevent
ing competition or requiring dealers
to handle products of only one COM
rany and conform to dictated"
price schedules.
w. B. Watson Snyder special as
sistant to the Attorney General,
and a veteran of more than 20
years as an antitrust division prose-
cutor, said further witnesses will be
called this week. The heaviest
part" of the grand jury presenta-
ton has been completed he said.
Kramer to Handle Probe.
Victor H. Kramer, special assis-
tant to the Attorney General, and
an antitrust division attorney for
nine years, is to handle the grand
jury investigation of building in
dustry prices and practices. He was
in charge of the real estate lnvesti-
cation.
Only nine other Justice Depart
ment; antitrust cases involving
trade and commerce primarily in
the District have gone into court
here since 1922.
Three were grand jury indict-
ments charging criminal conspiracy
to Ak prices or otherwise restrain
trade. Two of the criminal cases
resulted in directed verdicts for
the defendants. The third, aimed at
the American Medical Association,
the District Medical Society, two
other medical groups, and 81 in
dividuals in 1888, went to the Su-
preme Court where conviction of
the associations was upheld in 1943.
The court record for the civil suits
was: one dismissed without preju-
dice, four disposed of by consent de-
crees which made trials unneces-
sary and usually ended in aboli-
ton of the associations in question,
and one carried to the Supreme
Court where "the validity of the
petition was sustained"
ANA Case Recalled.
Bread prices, sand and gravel bids,
truck drivers, excavators, plumbers,
cleaners and dyers, painters, stone
masons and doctors figured in the
cases.
The action against the American
Medical Association, the District
Medical Society, the Washington
Academy of Surgery and the Harris
County Medical Society of Houston,
Texas, and 81 individuals charged
conspiracy to obstruct the Group
Health Association, Inc.
According to the indictment re-
turned December 20, 1888, while
Thurman Arnold was Assistant At
torney General in charge OF the
antitrust division, the Group Health
Association, Inc, was organized in
February, 1887, as a non-profit, CO.
operative association Of employees Of
certain Federal employees working
here.
The indictment charged that the
four defendant associations con-
spired to restrain the Group Health
Association, Inc, from providing
medical care and disqualification for
its members, It also accused the
defendant organizations of prevent
ing doctors from serving with the