Nader Suit on Milk Prices Links White House to Deal
Consumer advocate R Nader accuses Nixon Adm in suit of 'improperly and unlawfully' raising Fed price support level for milk in return for contributions from dairy indus to various Repub campaign coms; suit says most of coms were created covertly, with obscure or misleading names, to bank milk money for Nixon's re-election; White House, Agr Dept bar comment; suit charges that price rise--reversal that followed by 2 wks Agr Dept decision not to raise milk subsidy--was granted illegally in Mar '71 for 'extraneous' pol reasons and under 'improper and unlawful influences'; says crucial 'influence' which preceded contributions was White House meeting on Mar 23 at which Nixon and Agr ex-Sec Hardin met with 16 dairy indus leaders; says that until price rise, contributions went chiefly to influential Dems, including Sens Humphrey and Muskie; asserts Humphrey and Muskie, together with 11 other Sens (all but 1 of them Dems) and 47 Reprs (all but 14 of them Dems) who recd contributions rushed last Mar to sponsor legis at dairymen's request; bills would have raised milk subsidy; brunt of charges in suit falls on Nixon Adm; suit holds that as result of Adm's decision, cost of milk to consumers was raised 4 to 5%; says 3 dairy indus 'pol educ trusts' have $2.4-million to disburse; nominal defendants in suit are Agr Sec Butz and Commodity Credit Corp; real defendants, named or implied, are Nixon, Hardin, various Cong members, chiefly Dems, and nation's 3 largest dairy mktg cooperatives--Assoc Milk Producers, Dairymen Inc and Mid-Amer Dairies; suit also attacks system of campaign financing; W A Dobrovir, public-interest atty who prepared suit, says it is 1st civil action ever brought to correct failures of Fed Corrupt Practices Act; suit holds many of receiving coms are dummies or fronts; dairy indus contributions are alleged to have come from recently organized 'pol educ' arms of 3 cooperatives; they are identified as: Trust for Agr Pol Educ (TAPE) of Assoc Milk Products; Special Pol Agr Community Educ (SPACE) of Dairymen; Agr and Dairy Educ Pol Trust (ADEPT) of Mid-Amer Dairies; chronology of Nader's case detailed; other Cong beneficiaries of contributions include Sen Proxmire and HR Agr Com Chmn Poage