Evening star., 1949-09-15
Food Chain
Continued From First Page.)

NSOlllllluC0
destroy A. & p, but an attack on
the entire system of efficient low
cost, low-prof1t, mass distribution
which this company pioneered" l."
he said.
Monopoly Is Denied.
"A. g. P. was the first chain store
in this country and the methods
we developed have been adopted
by other grocers as we'll as mer-
chants in other lines. There are
today literally hundreds of chain
stores and voluntary groups OF in
divdiual merchants operating with
the same methods and in the same
pattern here, under attack.
If the antitrust lawyers sue
ceed in destroying A. & P, the
way will be cleared for the destruc-
ton of every other efficient large
scale distributor.
There is nothing even ap-
preaching monopoly here; for as
every housewife knows, the retail
grocery business is the most COM
petitive in the country and we do
only a small part of it. Nor was
there ever any charge that we
raised prices; for the whole basis
of this attack is the fact that we
sold good food too cheap.
There is nothing in our opera
tions, or in any previous court
decision involving us, or in the
antitrust laws themselves to
justify the dissolution of the
A. & P.
Would Force Price Rise.
obviously, it is the theory of
the antitrust lawyers that the
people of America have no right
to patronize a company if their
patronage will make that company
grow; and that any big business
must be destroyed simply be-
cause it is big, and even if the
public gets hurt in the process.
This action is just opposite
to the purpose of the antitrust
laws, which were meant to in
crease competition and keep prices
down; for if it succeeds. it will
serve only to cut down competi-
ton and force prices up. A. g. P.'s
policy always maintained and kept
alive the spirit of competition.
Frankly, the owners of A. & P
could make enormous amounts OF
money by breaking up this COM
pany as the antitrust lawyers
wish, and selling off the parts.
But we believe this attack is
threat to millions of consumers
who rely on us for quality foods
at low prices; to hundreds OF
thousands Of farmers who rely or
us for fast, low-cost distribution
of their products; and to our no.
600 loyal employees"
Would Create Competition.
The Justice Department said
that by means of threats to end
patronage A. & P. secures secret
preferential prices and rebates
from suppliers and obtains price
preferences on various pretexes
unrelated to any actual savings by
or services to such suppliers."
CAS- was found in the criminal
case, A. g. P. expanded its retail
sales, and eliminated competition
from independent grocers, meat
dealers, and local food chains by
temporarily selling food at loss
in selected areas in order to ex-
pand its sales outlets in such areas
and recouping these losses by
charging consumers higher prices
in less competitive retail areas"
the department added.
Assistant Attorney General Her.
bert A. BergSon, IN charge OF
antitrust cases, said the break
down of the A. 81 P. system, in
the departments view, would
create wider competition "and
bring food prices down"
When the chains criminal anti
trust conviction was upheld by
the Court of Appeals at Chicago
last February. 1.-The unanimous de-
cision was written by Circuit
Judge Sherman Minton, who was
designated for appointment to
the Supreme Court today by
President Truman.