Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-02-08

NAY Dut yesterdays amendment
arguments. The civil suit is just
a REPETITION of previous criminal
charges which couldn't be sus-
tanned"
Strong Allegations
The government suit contains
strong language. Among other
things, it alleges that the dairy
farmers association:
Fixed arbitrary and non
, competitive prices :"
Excluded other CO.
operative associations from sup
. plying milk to dealers"
Acquired dealer and
m a nufa cturing outlets by
threats ="
Required dealers to take full
requirements of milk from the
defendant or penalized dealers
i. :. refusing to do So"
Threatened or engaged in
predatory pricing"
Sought action by govern
mental agencies for the purpose
OF excluding competition.
Established hig h e r
prices for milk purchased for re-
sale in the Washington Metro
politan Area and lower prices
for milk purchased for resale
outside the Washington .
area"
I Price fixing by milk producers
co-operatives is sanctioned by
Federal law under the same
philosophy as other farm price
supports, although the me-
chanics are different. A unique
twist. which complicates the
price structure enormously. is
that the same milk can bring
three different prices, depend
ing on its use.
i How 1t Works
Here's how it works in the
Washington area. AS Glass ! milk
NOW about $3.50 per hundred
weight, it's the white liquic
the baby drinks. AS Glass II
about $3.50 per hundredweight1
you consume it as cream, whip
; ping cream or cottage cheese
AS Class III tabout S3.10 pei
hundredweight). you eat it as ice
cream. hard cheeses or butter
or buy it as powder. The blend
price farmers get is usually
closest to the Glass price be-
cause most milk goes into the
familiar big bottles.
Mr.. Hooper readily admitted
his association members receive
one of the highest blend prices
in the country. but adds. Please
don't confuse the prices our
farmers get with what the house.
wife pays. We have nothing to
do with retail prices. Actually,
retail prices in Washington are
no higher than in other large
cities, Chicago and New York,
for example. Dealers in this area
make up the difference by more
efficient operation"
Outlet Seen as Target
The Justice Department is
believed to be hoping to force
the association to get rid of it's
retail outlet. Embassy Dairy,
purchased in August. 1854. for
S3,850,000 cash. The Department
alleges the association pur-
chased Embassy Dairy for the
specific purpose of eliminating
competition. because it was one
of the largest dealer outlets in
the Washington area Supplying
large Federal agencies) and be-
cause it purchased its milk from
farmers who we're not members
of the Maryland and Virginia
Milk Producers Association.
| Mr.. Hooper apparently feels
his organization has a strong
position because possession of
retail outlets by producers CO.
ops is commonplace.
Were trying to get this thing
out in the OPEN" he said, 80
we won't be plagued by all this
legal action. Already we've spent
close to 100000 answering
criminal charges that were
dropped or dismissed. If Justice
Department attorneys are going
to bring these irresponsible
charges against us, the Govern
ment ought to reimburse us. !.
They could win by breaking our
backs"