Congresman Fountain Still Nibbling bn Raw Cheese Deal •mittee on said today that a Federal court ruling that three companies most pay the government $253,000 was “another forward atop'’ in a a 1/8 year fight by the Subcommittee to recover more than $2 million paid out by the Department of Agri culture in 1954 cheese and-hotter “purchase-resale”, transactions. In the transactions, the Depart ment’s Commodity credit Corpora tion ‘purchased” approximately 85 million pounds of cheese and 5 million pounds of butter which was simultaneously “resold” at a lower price to the origihal owners. The cheese and butter was never moved from the warehouse in which it was stored, but OOC paid the own ers the difference between the “purchase” and “resale” prices. Hearings on the unusual trans actions were held by the Subcom mittee in June and July, 1955. Congressman Fountain then asked the Comptroller General for a on the legality of the trans On August 15, 1855, on the basis of evidence brought dot in tiie Subcommittee hearings, the Comptroller General ruled the transactions to be “unauthorized and improper”. After. some 8 months of study, the Justice De partment informed the Subcom mittee pta April 87,' 1858, that it would Bring legal action for re turn of the unauthorized payments, and a series of lawsuits were sub sequently tiled for this purpose. The Department of Agriculture has continued to ^maintain that the _'Pro*>e^> end entr; if "the Department have ► court as ’ In a ^eriafcm handed down July 3, Chief Judge Roszel C. Thomsen of the U. S. District Court for Maryland ordered $100, 572 repaid by the Great Atlantic & Pacific Tea Company, $108,683 by the National Biscuit Company and $94,665 by Swift & Company, to gether with interest at 6% from the date of judgment. Judge Thom sen declared in his opinion that the evidence indicated that “inventory protection and reimbursement to processors were major objectives” of the purchase-resale program, Frosty Mom Meats Inc. “Helping to build a better Livestock Market for Eastern North Carolina” if' 'ixiir No Commission Charge rather than the support of prices paid to farmers tor their motile and butterfat. The ffudge also conotad ed that action taken by COC at the request of the Industry had de pressing effect pa the priefeofinfflr and butterfat." The entire record of the itiubcommittee’s hearings yras admitted In evidence and Judge Thomsen referred to the hearings, frequently in his 34 page derision, giving (particular'attention to ad missions obtained by the Subcoin mlttee that the r/^mply In addition to Oongreeaman Fountain, members ot the Inter governmental Relations Subcom mittee are: Robert E. Jones (D Ala.); Henry Si: Reuas (D-Wis.), Overton Brooks (D.-La.), Chet Halffield , Robert H. Michel (R.-Dl.), mm H. May, Jr.Ot - Conn.). Representatives William L, Daiwson tD.-Bl.), Chairman off the full admupittee, and Ctere- B. Ho« man