Evening star., 1933-11-03
RETAIL MILK RAISE
DEMANDED TO SAVE
SMALLER DIARIES

Continued From First Page.)
official admitted that it was in princi-
pie identical with the Baltimore code
recently promulgated by the A. A. A.
The "bootlegging" of milk into the
District by unlicensed farmers was
touched upon briefly by Seal McGill
admitted he had received reports" of
this practice and testified that the asso-
citation had field men and plant men
try TO catch any unlicensed milk coming
IN by watching for trucks" He said the
association also had employed the Burns
Detective Agency on two occasions and
repeatedly had asked the Health De-
partment to check up on reports Of
bootlegging
Two Unlicensed Cargoes.
Only twice to his knowledge. he said,
was any unlicensed milk shipped into
Washington and in neither case was
anything done about it. One was in
1925 or 1926 Then a quantity Of milk
was shipped to an ice cream plant in
Frederick and later reshipped to Wash
ington, McGill said The next case to
come to his attention was in April of
this year when. he said one of the as
sociation's agents saw a truck come
in" This was reported to the Health
Department, but no action was taken,
McGIll said.
The producers official was asked by
Seal whether he subscribed to the
theory that the farmer is entitled to
his cost Of production.
If the market will justify it." McGill
responded.
Only when the market justifes it?"
Seal asked.
He is entitled to it. but can't always
get it." McGill explained. He then
revealed that his production cost figure
of 2967 cents had been based on an
swers to several hundred questionnaires
distributed among producers, and on
which We're returned figures on cost of
feed. labor, interest on investments,
taxes and other general overhead items
w. Gwynn Gardiner, special counsel
for the association, interrupted the
examination of McGiu at this point
20 observe that the cost of produc-
ton is difficult TO arrive at, due to
side lines" raised on farms. He said
ne was milk producer himself: but
nay and corn, most Of which went into
the production of milk, but which at
McGin denied the distributors had
any advantage in price by having milk
shipped into receiving plants at Fred
erick and Walkerville. Nd. rather than
to the District. He said the difference
in price between the 1925 cents paid
for milk shipped into Washington and
the 2425 cents for milk shipped into
Frederick was made up by the fact the
producer had less hauling charges.
Fund Considered.
Delving into the operations of an
adjustment fund" used by the asso-
citation to take care Of the handling Of
surplus milk. Seal developed that for
five months ended September 80 the
fund had deficit of S59,364.7S. Small
dairies had been forced to contribute
to this fund due to their usage of class
3 milk fluid sales, McGills testimony
disclosed Class 3 milk, the So-called
surplus, is supposed to be used under
agreement between consumers and pro-
ducerS solely for manufacturing pur-
poses.
After McGin had testified that Chest
nut Farms Dairy had been paid out Of
the fund total of S76,88067, Seal
asked: Point out to US where there
the fund
McGill said the Chestnut Farms
Dairy, an affiliate of the National Dairy
Products Corporation, was one of the
only dairies to receive money out of
the fund, while the other dairies had
been paying in.
And at that rate your association
would not last very long, would it?"
Seal asked
1T would not" McGill admitted.