Evening star., 1933-12-07
$4,000 RESERVE
OF DIARIES Barred
Heaps Reveals Fund Has
Been Built Up While Farm
ers Were Losing Money.
By Stan Correspondent of The Star.

By Stan Correspondent Of The Star.
BALTIMORE, December 7.-While
dairy farmers have been losing money
steadily the Maryland State Dairymen's
Association has been piling up an $780,
600 reserve fund Isaac w. Heaps, its
secretary-treasurer, revealed today at
hearings here before Agricultural Ad-
justment Administration officials.
Heaps, who Is the guiding hand in
the Washington Baltimore milk market,
was questioned closely concerning the
financial set-up Of the dairymen's asso-
citation as the hearings entered the
third day before John Henry Levin.
He disclosed that the 100000 fund
had been increased by 100000 since
the depression and since milk prices
to the producer had declined. The
fund is managed by trusteeship and
is held in the Fidelity Trust Co. of
Baltimore, Heaps said.
Doesn't Control Fund.
"And you have nothing to say about
how that money is to be spent?" asked
John S. L. Yost, attorney for the
A. A. A.
Il have nothing to do with It," Heaps
replied.
Heaps said the trusteeship had been
formed by order of the board of di-
rectors Of the association. He said the
fund had been established from dues"
OF one cent gallon which the farmers
paid into the association. He described
the fund as guarantee to carry out
'our obligations" but did not amplify
this when questioned more closely about
the obligations
Most Of the fund Is invested in bonds,
Heaps said, upon which the association
has taken a 80 per cent loss since the
depression.
He traced the history of the associa-
ton from its organization in 1908. with
only 400 members, to its present day
supremacy with more than 2,700 men,
Der dairy farmers.
Since 1918, when he said the asso-
ciation was revitalized, the dairy farmer
has not lost "a single penny" due to
any failure OF distributors to pay for
milk delivered. Prior to that time, he
said. the farmer would ship his milk
without knowing whether he would
ever get dime for it."
Forced to Can Hearing.
The hearings, being held in the Lord
Baltimore Hotel, were called to consider
amendments to the recently promul-
gated Baltimore milk-marketing agree
ment. calling for increases in price to
the producers and higher prices to the
consumers. Heaps, who recently denied
having anything to do with the milk
code, was forced by members of his as
sociation to request Secretary of Agri-
culture Wallace to call the hearings to
consider the farmers demand for a
4-cent-per gallon increase in class !,
or basic milk.
Under the code, as placed in effect
by the Agricultural Adjustment Admin
istration, the farmer was given a slight
increase in price, and the consumer
forced to pay an additional cent pc.
quart. 1t Is expected that. with an
additional 4-cent raise, if approved BY
the A. A. A.. Baltimoreans viii pay an
additional cent a quart
The Baltimore code is much like the
one Heaps and officials of the Mary
land and Virginia Milk Producers AS
sociation have drafted for the Wash
ington milk shed. and which is now
pending approval by the Agricultural
Adjustment Administration The Wash
ins ION code would provide Scent in
crease for the farmers, but with no
additional cost to the consumer.