Federal Move In U.S. Milk War

Press, Volume CVI, Issue 31332, 31 March 1967, Page 11

Federal Move In U.S. Milk War

(N.Z.P.A.-Reuter—Copyright)

WASHINGTON, March 30.

The United States Department of Justice yesterday took action against the National Farmers’ Organisation, charging that it was using coercion in trying to monopolise the inter-state sale of milk in 19 states.

A civil anti-trust suit filed by the department in the United States District Court at Des Moines, lowa, said that the farmers’ organisation had used violence and threats to force non-member farmers, delivery and process workers to join a campaign to keep milk off the market. The N.F.O. campaign, started on March 15, is designed to obtain better milk prices for farmers. In its suit, the Justice Department said that the

N.F.O.’s actions against nonmembers had unlawfully curtailed the flow of milk between states, and asked that the N.F.O. and its members be permanently prohibited from threatening non-mem-bers, and from trying to monopolise the sale of milk by illegal means. The United States Government suit did not object to the organisation keeping its own members’ milk off the market, but it stated that its action had substantially reduced competition between N.F.O. members and nonmember farmers. The suit added that the 19 states affected by the N.F.O.’s campaign had produced about 66 per cent of the country’s total milk supply in 1965. The Justice Department’s suit is based on a section of the Sherman Anti-Trust Act. which forbids any attempt to create a monopoly . Federal law is applicable in this case because large quantities of the milk concerned normally move across state lines during processing and sales, the Government said. Since the campaign began, there have been reports of arson, milk tankers being hijacked or fired at, farmers threatened and threats to poison milk supplies. Many thousands of gallons of fresh milk have been poured away by N.F.O. members and their supporters.