Tom C. Clark

“ Likewise the details of Bowman's cost study show a failure in classification. Only one additional point need be made. Its justification emphasized its costs for 'optional customer service' and daily cash collection with the resulting 'delay to collect.' As shown by its study these elements were crucial to Bowman's cost justification. In the study the experts charged all independents and no chain store with these costs. Yet, it was not shown that all independents received these services daily or even on some lesser basis. ”

“ In defense the appellees each introduced voluminous cost studies in justification of their pricing systems. The entire case was submitted via stipulations, depositions, and briefs. There was no dispute as to the existence of price discrimination; the sole question was whether the differences in price reflected permissible allowances for variances in cost.
In view of our disposition, we need not relate the facts in detail. Both appellees are major distributors of fluid malk products in metropolitan Chicago. ”

“ The sales of both dairies to retail stores during the period in question were handled under plans which gave most of their customers-the independently owned stores-percentage discounts off list price which increased with the volume of their purchases to a specified maximum while granting a few customers-the grocery store chains-a flat discount without reference to volume and substantially greater than the maximum discount available under the volume plan offered independent stores. These discounts were made effective through schedules which appeared to cover all stores ”