Evening star., 1948-04-17
U. 5. Says Conspiracy
To Fix Milk Prices
Began 18 Years Ago

The Government, through JUS
tice Department attorneys, charged
yesterday that an alleged conspiracy
to fix milk prices in the Washing
ton metropolitan area, which led to
indictment last month, began here
about IS years ago.
The Government filed a bill OF
particulars in the case voluntarily
yesterday because of requests made
in motions for such bill by eight
of nine defendants named in the
conspiracy indictment.
The Government claimed it did
not see that the defendants were
entitled to the bill At the time
of filing, the motions for the bill
of particulars were still pending be-
fore the court, and had not been
ruled on.
Verbal Contracts Cited.
The bill of particulars was asked,
the Government said, by the Mary
land and Virginia Milk Producers
Association, Inc; Bruce B. Derrick,
manager of the association; Chest
nut Farms-Chevy Chase Dairy Co.;
Simpson Brothers, Inc, doing busi-
ness as Wakefield Dairy; Thomp-
sons Dairy, Inc; Safeway Stores,
Inc, with headquarters in Cali
fornia, operators of the Lucerne
Milk Co.: the Alexandria Dairy
Products co. OF Alexandria, and the
Harvey Dairy, Inc, of Hyattsville.
Another defendant named in the
indictment is the Richfield Dairy,
Inc. ...-..
The bill Of particulars said the
Government has no knowledge Of
participation OF the defendant asso-
citation prior to 1890, when the asso-
citation and several distributors
agreed to enter into full supply con-
tracts" The bill added:
THE Government has no knowl-
edge of participation of the defend
ant, Derrick, prior to his employ
ment by the defendant association
in 1884"
"The bill declared that as part
of the conspiracy the defendant
entered into verbal contracts and
agreements, described in the indict-
ment."
Fraud Not Alleged.
Proof of the existence Of said
agreements among the defendants
will consist of evidence Of meetings
among the defendants at which they
discussed and agreed upon entry
into said contracts; written con-
tracts, and acts, writings, and
courses of conduct by the defend
ants, from which the agreement to
enter into said contract may be in
ferred."
The bill Of particulars charged
further that "it was part of the
agreement among defendants that
the defendant association refused to
supply milk to noncontracting dis
tributors at prices as low as those
charged the defendants"
The bill of particulars stated that
"the Government does not contend
that there was any fraud, bribery
or force.
The bill of particulars, in elab-
Grating further on the indictment,
charged part of the conspiracy was
an agreement upon a classification
of milk. Under this alleged agree
ment, the Government maintained,
prices charged to the defendant
distributors "for Glass / milk would
be higher than the prices charged
for milk in other classifications."
Led to Receivership.
The bill said that this agreement
began in 1943. 1t added that 1T
was a part of the conspiracy that
the defendant agreed not to resell
as fluid milk any milk purchased
by them at price below the Glass
l price.
The bill OF particulars charges
that the Holbrook Farm Dairy was
forced into receivership through
the alleged conspiracy.
The bill Of particulars was filed
at about the same time that argu-
ments on motions in connection
with the indictment were postponed
from yesterday until next Friday,
due to a crowded court calender.
Among motions yet to be heard Is
one in which the Alexandria Dairy
Products Co. asked the court to rule
that 1t be given separate trial In
Virginia instead of in Washington.
Among other motions filed in Dis
trict Court were one by Simpson
Bros. Inc, asking dismissal Of the
indictment accusing it of duplicity.
The motion was filed in behalf OF
the Simpson concern by Attorney
John r. Hillyard.
Mt. Rainier Mon Gets