Evening star. [volume] (Washington, D.C.) 1854-1972, 1950-05-15
Court Dismisses
ChargeAgainst
Three Diaries
Denies Acquitted PIeo
Of Producers and
4 Other Doiries

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Farms-Chevy Chase. Thompson's
and Wakefield DIARIES of conspir-
acy to fix milk prices but ordered
trial Of the remaining six defend
ants to proceed.
The judge denied a motion for
acquittal for the Maryland and
Virginia Milk Producers Associa-
ton. B. B. Derrick. association
secretary-treasurer, and Alexan-
dria. Richfield. Harvey and Lu-
cerne "a Safeway Store subsidiary
DIARIES which. the court said. had
full supply contracts with the pro-
Queer group.
Judge Holtzoff ordered that the
remainder of the trial which has
been going on in District Court
be limited to the subject of the
full supply contracts, which he
said constitute. in effect. agree
ments to Ak prices and therefore
violation of the Sherman Act"
The full supply contract is a writ
ten agreement that a dairy will
buy all its milk from the assica-
ton.
Sees No bad Faith"
The judge noted that the three
defendants acquitted have not had
full supply contracts in writing
since 1888. However, it was
brought out during the trial that
the three diaries have been getting
the bulk Of their milk from the
association since that time with
out any written contracts.
According to the indictment.
Chestnut Farms has supplied
Washington with ~ per cent Of
its milk, Thompson's Is per cent
and Wakefield 20 per cent.
The jurist observed, during his
45-minute ruling before a crowd
ed courtroom, that "in justice to
all. there is no evidence that any
defendants acted in bad faith"
He also added that there is no
evidence that the prices estab-
lished by defendants were "un-
reasonable"
Indicted in 1948.
The court held that there was
Substantial evidence" that the
full supply contract constituted "A
scheme for controlling and fixing
prices"
Legal Right to Withdraw.
The Government contended
that part of the conspiracy has
been the associations withdrawal
in March. 1947. from Federal
marketing order which had con-
trolled prices here during the war.
The prosecution charged the pro-
Queer group voted to withdraw in
order to avoid a seasonal drop In
milk prices.
Judge Holtzoff. however. held
that the association had legal
right to withdraw from the order
and 'liberate itself from Govern
ment control"
The Government also had at
tackled a classification plan which
divides the milk supply here into
three classes for price purposes:
Glass for fluid milk. Class II for
cream and Glass III for ice cream
mix and other dairy products.
Farmers are paid according to the
use to which their milk Is put.
Classification Plan Sound"
The classification plan. the court
held. is generally acknowledged
as economically sound" although
prices thus may be fixed artifi-
cially. The judge added that in
the hands Of 'unscrupulous men"
the classification plan might be
misused. but he said there had
been no evidence in this case Of
any misuse of the plan.
Judge HoltzoH said then that
the Government had not sub
mitted sufficient evidence to sus-
tain a finding that the defend
ants had conspired to Ak whole
sale prices. He added that while
there may be some possible bass
of suspicion, suspicion Ii not
evidence"
He said there had been isolated
instances Of the distributors buy.
(See MILK, Page A-3.)