Statement of Senator Patrick Leahy,
                     Ranking Member, Senate Judiciary Committee
                     Confirmation Hearing On the Nominations of
                     Daniel J. Bryant to be Assistant Attorney General for the Office of
                     Legislative Affairs and Charles A. James to be Assistant Attorney
                     General for Antitrust
                     May 2, 2001

                    I am pleased to join with the Chairman in welcoming the
                    nominees and their families and friends to this confirmation
                    hearing.

                    Dan Bryant is well known to this Committee. He served ably as
                    a member of the congressional staff, including as Chief Counsel
                    of the House Judiciary Committee’s Subcommittee on Crime.
                    Testimony to his work there is the presence here today of
                    Chairman Hyde, the Ranking Democrat from the House
                    Judiciary Committee John Conyers, and our own former
                    chairman, Senator Biden.

                    In addition, Dan knows the legislative process and -- at the risk
                    of costing him Chairman Hyde’s endorsement – I must say that I
                    have found him to be very respectful of the Senate’s role. I look
                    forward to hearing from him today. His is a most demanding
                    job.

                    Mr. James is an attorney from a distinguished firm. Today I will
                    have some questions for him about his experience representing
                    clients against government antitrust enforcement efforts.

                    It will come as no surprise to him if he is asked about his plans
                    for effective antitrust enforcement. I also doubt that any of us
                    will be surprised if there are even a few questions about the
                    Microsoft case.

                    The Antitrust Division’s most recent leaders, Ann Bingaman and
                    Joel Klein, did an extraordinary job reinvigorating the Division
                    and assembling a first-class team of professionals to enforce our
                    antitrust laws. His task will be to build on their work and
                    continue their successful efforts to protect competition and
                    American consumers.

                    I want to make three brief points.

                    Mr. James, you have been so successful in advising an
                    impressive list of corporate clients that some have joked that
                    you will have to recuse yourself from doing your job.

                    You have represented the corporate "Who’s Who" of who wants
                    to merge. Let me just mention airlines: Your clients have
                    included American, Delta, United and the new DC Air.

                    One of your deputies is also from your firm. It will be
                    imperative that you tell this Committee that you will recuse
                    yourself from matters affecting the clients of your firm.

                    In addition, we will want your assurance that you will not seek
                    waivers from those recusal rules in order to work on matter
                    involving those former clients. Even the appearance of
                    impropriety would subject the antitrust division to criticism as it
                    carries out its important functions.

                    Second, I want to mention two issues of importance to Vermont
                    and the New England states. One has to do with the increasing
                    concentration in the agriculture processing sectors.

                    One of the first bills I introduced with the Democratic leader this
                    Congress focuses on concentration in the meatpacking, poultry,
                    livestock, and dairy processing industries.

                    A study that is being released today by researchers at the
                    University of Connecticut raises serious concentration and
                    antitrust issues affecting New England – regarding a major milk
                    processor, Suiza Foods.

                    The report concludes that supermarket retailers and milk
                    processors, using considerable signaling of price intentions and
                    undue market power, have bilked New England consumers out
                    of almost $50 million.

                    The report notes that Suiza Foods has acquired major processors
                    in the region and then has dismantled or shut them down. The
                    report points out that in the Boston and Providence areas, Suiza
                    processes between 80 and 90 percent of the milk sold in
                    supermarkets.

                    In other parts of New England Suiza now controls or handles
                    almost 70 percent of the fluid milk. Thus, Suiza is following the
                    approach that the best way to eliminate competition and increase
                    market power is to buy competitors, and then dismantle them.
                    While they totally lose their investments in these local dairies,
                    they end up with no competitors and tons of market power.

                    This is especially disturbing, since milk is an essential food and
                    since these closures shut down major locally owned businesses
                    in these communities.

                    I will ask you later for your assurance, unless you have to
                    recuse yourself, that you will personally look into these reports
                    of price signaling and abuse of market power regarding Suiza
                    Foods, of Texas.

                    Third, in your writings you have been very critical of the role of
                    the FTC as a "dual" enforcer of antitrust laws.

                    I believe that as an independent agency the FTC has performed
                    valuable service to the nation. Their recent efforts to go after
                    brandname drug manufacturers for allegedly paying generic
                    drug companies not to compete is a good example of that
                    service.

                    Indeed, under a bill I recently introduced, along with Senators
                    Kohl, Schumer and Durbin, secret deals made by brandname
                    and generic drug manufacturers would be referred to the FTC
                    and DOJ so that consumers could be protected from improper
                    deals that withhold lower-cost generic drugs from the
                    marketplace.

                    The FTC has done a great job in this area, and I would like to be
                    assured that no matter who is in the White House, consumers
                    have access to low-cost generic drugs.