Evening star., 1949-04-18

renewed its fight to smash an
alleged conspiracy which the De-
partment of Justice contends con-
trolls the price of milk in the Wash
ington area.
Before the United States Court
of Appeals for the District. Assis-
tant Attorney General Herbert A.
Bergson pleaded for reversal of a
lower court decision which quashed
an indictment naming the Mary
tland-Virginia Milk Producers As
sociation and seven large daries
as conspirators to violate the Sher-
man Antitrust Law.
The indictment was dismissed
by District Court Judge Richmond
B. Keech after a three-day hear
ing last April on the grounds the
evidence was insufficient to sup
port criminal charges against the
defendants.
Seen Based on Exemption.
Mr.. Bergson told the appellate
court today that the Government
feels Judge Keech based his de-
cision on the view that the Capper-
Volstead Act and the Clayton Act
exempt cooperative dairy pro-
ducers from provisions of the
Sherman act when they move in
concert to perfect milk marketing
agreements.
1t is the Governments conten-
ton, however. Mr.. Bergson said,
that when a cooperative control
ling 80 per cent of the areas milk
supply conspires. with seven dairies
which distribute SO per cent of
the milk consumed in the area,
it automatically removes itself
from the protection of the Cap
per-Volstead and Clayton acts.
Named with the Maryland-Vir-
ginia Milk Producers Association
and its secretary treasurer. Bruce
B. Derrick, are the following
dairies: Chestnut Farms Chevy
Chase. Thompson's, Lucerne. Alex
andria, Wakefield and Ricffleld.
Domination Charged.
Mr.. Bergson told the three
judges on the appellate tribunal
that the $1,000 members of the
Milk Producers Association and
the seven dairies dominate q $685.
000, ,000-a-year milk business In
the Washington area.
Under the agreement which the
Government charges continues
conspiracy. Mr.. Bergson said. the
producers agreed to sell only to
dairies entered into contracts
with them and the dairies In turn
agreed to purchase milk under
three separate classifications and
to resell 1t to consumers as a price
agreeable to the producers.
''The agreement called for the
conspiring producers and distri-
butors," Mr.. Bergson said. Ito do
what they could to force non-con-
spring producers and distributors
into bankruptcy by denying them
adequate supplies OF milk"
Agreement Held Legal.
Mr.. Bergson said the Govern
ment admitted the milk cooper
ative had legal authority to agree
on a fixed price to be charged for
milk produced by its members but
contended that that price should
apply to all distributors.
Attorney william e. Leahy. rep
resenting the Producers Coop,
erative. told the appellate court
that the present case represents
'the first~attempt by the Govern
ment to assault the normal law
full activities of co-operatives.
He contended that the agree
ment between the co-operatives|
and the diaries was entirely legal
and justified by stern necessity
founded on bitter experience.
Mr.. Leahy contended that the
reference by Mr.. Bergson to 81
conspiracy case brought against
a milk cooperative In Chicago had
no application in the present case
because the total milk supply OF
that city was involved and because
1t was a ''racketeering case"
Presiding Judge Henry w
Edgerton pointedly asked ny.