Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-03-16
Grand Jury Due
To Start Milk
Probe April I
Special P1neI Asked
By Anti Trust Unit
After FBi Probe

Assistant Attorney General
Stanley N. Barnes, in charge Of
the Justice Departments anti
trust division, said today the
District grand jury will start an
investigation into the production
and sale of milk in the Washing
ton area about April q.
; He declared this climaxes ex-
tensive effort by the department,
in which the Federal Bureau OF
Investigation has played a part.
United States Attorney Leo A,
Rover said the department has
requested that a special grand
jury be impaneled to conduct
the inquiry. It will be chosen
early next month.
Yesterday in the criminal
clerks Office of the U. S. District
Court for the District of Column
bia, the department filed author
ity for three Of Its lawyers to aid
in the inquiry.
Letters of authorization were
signed by Deputy Attorney Cen
eral William p. Rogers and au-
thorized Attorneys John T. Duff
ner, Joseph j.. Saunders and
Ephraim Jacobs to press either
criminal or civil action or both,
II necessary. either in the Dis
trict or elsewhere. The attor-.
neys are empowered to make any
grand jury presentation they md
advisable in connection with the
Investigation.
purely an Investigation"
"This is purely an investiga-
ton, but it has now reached the
grand Jury STAGE" said MIR.
Barnes. This has been pre-
coded by a lot of legwork and
effort on the part of the De-
partment Of Justice through its
only investigation arm. the Fed
eral Bureau of Investigation. As
yet there is no 'case'-civil or
criminal"
Whether the investigation will
ultimately result in criminal in
or civil action against
offenders will depend upon the
outcome. Mr.. Barnes said. He
he will decide II civil
action is to be taken, II that
course seems desirable at the
proper time. The grand jury,
Of course. can indict.
A number of Washington
diaries have received subpoenas
in connection with the inquiry.
Some Of these call for the ap-
pearance Of officials before the.
grand jury April q.
Diaries Say They're In Dark
A spokesman for the Maryland
and Virginia Milk Producers As.
ISOLATION said he does not know
what the investigation is about.
The diaries likewise said they are
in the dark about what the Fed
eral Government is seeking to
prove in the inquiry. The Justice
Department beyond Mr.. Barnes
statement-was non-committal.
The Governments move yes
terday came as a surprise to
the interested parties, although
the FBI has been active recently
In tracking down information
deemed pertinent to the inquiry.
Last August /, the Maryland
and Virginia Milk Producers As
ISOLATION purchased Embassy
Dairy, largest Independently
owned dairy in this area. in a
$3.50, 900 cash transaction. The
dairy distributed about 10 per
cent Of the areas milk.
At that time, it was said the
| ,900-member dairy farmer CO.
operative-the ociation--had
almost complete control of milk
purchased for the Washington
urea. The association became a
as well as d suppiier Of
milk. ~
Conviction Reversed
The District experienced an
extensive price-fixing proceeding
several years ago. when the
Maryland and Virginia MILK Pro-
ulcers Association and seven
Washington area diaries were in
iicted on charges Of fixing milk
prices and expressing compete
ion in the industry here.
This eliminated in the re-
1ersal by the U. s. Court of APP
peals Of q restraint. Of trade con-
;piracy conviction Of the asso-