Trust Busted

With hardy enthusiasm the National Food Products Corporation pushed its propaganda a month ago (TIME, Feb. 15). It had incorporated itself in Maryland for a potential value of $2,000,000. It was to hold securities in food producing and distributing companies, to purchase and sell securities and to underwrite securities of companies in which it would hold an interest. Its ramifications would be wide, its profits alluring. Three hundred seventy thousand shares at $45 were to be offered at once, for payment the middle of February.

Then on Feb. 13, before stock payments, the U. S. district attorney at Manhattan doused that hardy enthusiasm, filed suit in Federal Court there to restrain promotion of the food products concern as a potential violator of the Clayton anti-trust act. The food corporation lawyers laughed, called the suit "a joke." In "about ten minutes" an answer could be prepared, would be filed the next day. None was. Last week lawyers came into court and abjectly consented to the modification of the corporation's intents.

Within 60 days the corporation must dispose of all its voting stocks in Abbots-Alderney Dairies, Inc., James Butler Grocery Co., Economy Stores Corp., Great Atlantic & Pacific Tea Co., Inc., National Dairy Products Corp., Reid Ice Cream Corp., U. S. Stores Corp. It may keep its shares in Tellings-Belle Vernon (dairy products), Cleveland; H. C. Bohack Co. (chain stores), Brooklyn; First National Stores, New England; Detroit Creamery Co.; David Pender Grocery Co., Virginia; U. S. Dairy Products Corp. of Philadelphia; and non-voting stock in U. S. Stores Corp. and James Butler Grocery Co.

The corporation is forever enjoined from acquiring in any manner any voting interest in more than one company in any one line of business in one section or community in the U. S. Directors of two or more competing concerns may not be in the management. No use may ever be made of stock ownership, interlocking directorates or any similar means to reduce competition among companies selling food stuffs.

More than merely consent to such a decree, the corporation officials had further to agree to publish the consent decision by paid advertisements. They did so at once, and gained thereby because they had thus opportunity to clear the cloud on their intentions.