New-York tribune., 1919-08-28

the Legislature. This power will be
given if tho committee fails to remedy
certain faults in tho milk traffic, he
predicted
Mayor Hylan appointed Mrs. William
Randolph Hearst, Preston 2. Lynn and
Senator Charles e. Russell to serve or,
his fair milk price committee. in an
nouncing tho appointments, he made
public the following letter to District
Attorney Swami:
'As you arc Investigating the milk
conspiracy, would it not be proper for
you to look into the increase of capital
stock by the Sheffield Farms Slawson-
Decker Company from S2,79O,OO0 to
$9,0o0,o00 and find out if possible what
tho $6,300,0o0 in capital stock repre-
sents, who got the additional stock and
what was paid for it?
Told to Look for Water"
"If this $6,3O0,O00 represents in
whole or in part water pumped into the
company to enlarge it's capitalization
and presumably greater cost Of
IN the price of milk is an endeavor
on the part of those in control to
pay return on this tremendous in
GREASE of capital stock.
I'VE hear the Milk Trust harpng
on the increased cost Of operation If
this stock represents water pumped
INTO the company, it is one method
Whereby the cost of operation is in
creased illegally and improperly"
d. Z: Austin, president of the Nestle
Food Company, and William A. Levy, of
plies grocers with dipped milk, testi-
fed at yesterdays session Of the ex-
traordinary grand jury. They will
probably be called again to-day. I.
Elkins Nathan, who visited the Grim
nal Courts Building yesterday but did
not testify, and Sheppard Raresheid.
assistant treasurer Of the Borden Farm
Products Company, will also take the
stand to-day. it is expected
Assistant District Attorney Alfred ].
Talley. in discussing conversations
with the witnesses outside of the grand
jury room, declared that dealers are
continually shifting the blame for the
high prices on the Dairymen's League,
the producers organization.
Calls Price Two Cents Too High
He said that Levy told him that milk
could be sold for at least two cents
cheaper than it is at present were it
not for the eXorbtant demand of the
Dairymen's League. According to Mr..
Ialley, Levy said that the league has
false basis for its price, using feed
as part OF their yearround cost though
it is only needed for seven months. The
dealer also ridiculed the claim of the
dalrymen that they pay $4.52 for farm
laborers
"Mr. Levy said" declared Mr.. Tallev.
that the real cause for the high price
of milk in this city is the fact that
the farmers require the New York dis
trlbutors to take their entire output
and the excess milk which they must
take they put into cheese, losing
money on its manufacture and sale.
and are forced to charge this loss up
against the milk consumer"
I'D. e. Austin was questioned about
the meetings of the Conference Com
mittee and says that since last April
he has only attended one meeting;
that they never discussed the price Of
milk to the consumer in New York;
the only subject that they discussed
was the price which the dairymen were
to charge
"Aftcr listening to the milk distrib-
uters marvel that any of them con-
tinue in business and only a deep seat
ed feeling Of philanthropy and duty to
the public could possibly induce these
dealers to keep their capital invested
in such an Improbable and hazardous
enterprise"