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U.S. Will Act Against Racket in Live Poultry

Criminal action against racketeers in the New York live poultry industry will be undertaken by the Agricultural Adjustment Administration and the National Recovery Administration as a result of a conference in New York early this week it was learned today.

The contemplated action will be in connection with the enforcement of the live poultry code for the New York metropolitan area, which places a ban on rackets and unfair trade practices in the industry. The code covers the five boroughs and the counties of Rockland, Westchester, Nassau and Suffolk in New York, Hudson and Bergen in New Jersey, and Fairfield in Connecticut.

Already an intensive investigation of the live poultry marketing situation is under way in New York. The Department of Agriculture, of which the Agricultural Adjustment Administration is part, has sent investigators and auditors to that city to gather evidence of violations of the poultry code. These investigators are cooperating with Leroy Peterson, code supervisor.

Alleged violations on which a number of those in the live poultry business are being investigated include sale of inedible products, rebates, destructive price-cutting, price discrimination, misrepresenting produce, excessive feeding, illegal sales, price misrepresentation and unlawful combinations. These practices are barred by the code.

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