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

tive that supplies the Washington
The milk producers associat
to the original charges on Nor
probably will delay proceedings
another 10 days.
| Harassment Criticized
Local dairymen have been ex-
tremely critical of the Justice
Departments operation in re-
gard to the association. William
B. Hooper. general manager OF
the association, told The Star:
II think someone in the JUS
tice Department believes that
milk producers co-operativeS
are not in the public interest
The attack on us is probably the
first step in an effort to break
them down all over the country
The Maryland and Virginia
Milk Producers Association has
been hauled into Federal Dis
trict Court three times in the
past seven years to face charges
of alleged monopolistic tenden-
cies. Criminal indictments were
obtained in each case. Two of
the cases were dropped and the
third dismissed.
Mr.. Hooper said what par
ticularly bothers him is that the
Justice Departments actions
seem to contradict Federal pol
icy as expressed through the De-
partment of Agriculture. In a
statement to the association
early this week he said the two
agencies are in utter conflict"
because the Agriculture Depart
ment actively promotes pro-
ducers' co-operatives. He said he
would like to get together with
them and thresh it out.
Exemption Cited
Later, he told The Star he
thought the Justice Department
was trying to make law" add
ing, Their attorneys bring these
actions against us despite the
fact that the Capper-Volstead
Act of 1922 exempted agricul-
tural producers co-operatives
from antitrust laws and in
vested policing power in the De-
partment of Agriculture"
The Capper-Volstead Act,
which sanctioned the co-opera-
tives. provides that the Secre-
tary of Agriculture can file a
cease and desist order when he
has reason to believe that a pro-
ducer's cooperative monopolizes
or restraints interstate trade to
the extent that the price of any
agricultural product is unduly
enhanced.
epartme en- t of Agriculture
sources said they have never
considered their jurisdiction ex-
elusive and that, in practice. they
do not issue restraining orders
against the co-ops. They stated
further that they believe CO.
operatives can violate antitrust
laws.
The Washington area milk
producers organization. with its
/ .920 members. is similar in set
up to other perative S
throughout the nation. All of
them are designed to better dairy
farmers financial position by
centralizing management and
stabilizing prices farmers receive.
blend Price" Set
Milk producers co-operatives
serve as clearing houses for all
milk produced by their members.
They pay dairy farmers a blend
price" NOV $4.8l per hundred
weight in the Washington area +,
which is an average of the in
come received for all classes Of
milk during a given month.
In some areas. "blend prices"
are determined by the co-opera-
tives; in others, by the Depart
ment of Agriculture. Farmers
decide which, by vote. Fluid milk
prices in the Washington area
are set by the Maryland and Vir-
ginia Milk Producers Association:
its members include all but a
small fraction of the areas dairy
farmers.
The Justice Department civil
suit. filed on November 81, 1856,
and amended yesterday. alleged
that the Maryland and Virginia
Milk Producers Association has
monopolized" interstate trade in
fluid milk in the area comprising
Montgomery and Prince Georges
counties. the District. Arlington
and Fairfax counties and the
cities of Alexandria and Falls
Church. Va.
They couldn't make the GRIM
inal charges stick Mr.. Hooper
said, so now they're trying to
make a civil case, using the same