Evening star., 1948-03-09
U. 5. Will Seek
Early Trial Of
Milk Concerns
Action to Be Pushed
On Indictments
In Price-Fixing

IAN early and speedy trial" of sever
Washington area dairies, the Mary.
land and Virginia Milk Producers
Association and Bruce B. Derrick
association general manager, all in.
dicted yesterday on charges of vic.
lating the Sherman Antitrust Act.
John Ford Baecher, first assistant
in the antitrust division, declared
1--WE are ready to 60 right now"
Mr.. Baecher said summonse.
would be issued today for the min,
defendants and that they would b,
assigned on the conspiracy charge
within the next 10 days.
Those indicted in addition to tn,
association, located at 1756 X stree
NV, and Mr.. Derrick were:
Chestnut Farms Chevy Chas,
Dairy Co.
Thompson's Dairy, Inc.
Richf1eld Dairy Corp.
Simpson Bros, Inc, doing bust.
ness as Wakefield Dairy.
Safeway Stores, Inc, of Oakland
Calf, which operates the Lucern,
Milk Co.
Alexandria Dairy Products Co. O.
Alexandria.
Harvey Dairy, Inc, of Hyattsville
Md.
Indicted I'm Conspiracy.
The dairies, the producer cooper.
ative and Mr.. Derrick were indicted
by special grand jury on a charge
of conspiracy to fix prices and re-
strain trade in milk in the Metro
politan Area.
Attorney General Clark described
the Indictment as another phase in
the Governments drive \"to prose-
cute illegal conspiracies to fix the
prices of food, clothing and hous-
ing"
Roger J. Whiteford, attorney for
Chestnut Farms Dairy, in state
ment, denied that his client had ever
agreed with any of the other de-
PENDANTS to fix the price of milk
or milk products sold to Washington
area consumers. He added:
1T seems most strange that the
antitrust division has seen fit
to indict not only the farmers CO.
operative association of 1900 farm
ers and all of the principal distribu-
tors in the District of Columbia,
but, by inference and citation, also
the Health Department i" /" for its
obedience to the acts of Congress,
the United States Department of
Agriculture, the Virginia State Milk
Commission for obeying it's State
statutes and the Department of
Agriculture for carrying out the
Agriculture Marketing Agreement
Act OF 1887, which regulated the
marketing of milk in the Washing
ton area for a period of eight
years o."
Actions Defended.
Mr.. Whiteford added that the in
dictment was simply another illus
tration of the unfortunate position
in which business frequently finds
itself when it has followed the plan
established by one branch of the
Government and Is indicted by an
other"
John F. Hillyard, attorney for
Wakefield Dairy, declared in a
statement that Justice Department
officials Should know, after their
recent studies, that the spread
which the local distributors have
between the cost of milk and the
sale price is smaller than anywhere
else in the United States. At the
same time, the cost of milk to the
consumer is lower than in many
cities comparable to Washington.
He added: 1--WE emphatically deny
that We have ever conspired to fix
prices and express the opinion that
competition is greater in our line
than in any other business in this
CITY,"
Chain Denies Conspiracy.
Attorney Elisha Hanson, speaking
for Safeway Stores, denied that the
chain or the Lucerne company had
conspired with any one to fix prices
OF milk, either the buying price or
the price at which Safeway sells. "
"Safeway, as owners of Lucerne,
considers its relations with the
Maryland and Virginia Milk Pro-
ducers Associations cooperative to
have been on no different basis than
Its business with any company or
any producers association that pro-
vides Safeway adequate or agreed
supply OF any food" he added.
Declaring that he was shocked"
at the implications of the indict-
ment, M. H. Burchell, spokesman
Tor the Alexandria Dairy, also took
note that 'tit was the Government
itself which said that no distributor
could pay less for milk than the
price 1T set" He pointed out that
his dairy buys and sells milk ex-
clusively in Virginia and that State
law requires the Virginia Milk Com
mission to set the price for both
consumer and farmer.
Indictment Is Cited.
TIL Indictment alleged that the
producer association induced the
Health Department under the guise
OF health regulations, to prevent the
importation of milk into the District
OF Columbia from sources outside"
Maryland and Virginia and from
producers who have not been in
spected and licensed by District
health authorities.
DR.. George c. Rutland, head of
the District Health Department, de-
MED his agency had been "coerced
or persuaded by anyone" He said
his responsibility is Ito get good milk
for the District" DR.. Ruhland add
ed that health requirements for
dairymen in this area are higher
than elsewhere and because of this.
1t costs producers money to keep up
their barns and other equipment.
Our regulations are considered,
q model and are based on the
United States Public Health Service
CODE" the health officer declared
He also noted that when a shortage
of milk occurs in this area, milk is
allowed to come in from other States
providing health officers in those
areas "can certify to proper health
conditions"
Other Changes Listed. =,