Evening star., 1933-12-19
MCCarran Warns Consumers
and Farmers Must Share
in Huge Profits.
TW0-CENT CUT IN PRICE
DEMANDED BY WOMAN
Representatives of 10000 Pur-
chasers Ask That Figure Be
Set at II Cents.

pary !.
The final hearing yesterday concluded
with warning from Vice Chairman
McCarran that the farmers and con-
sumerS are not going to stand much
longer for the dairy companies reap
ing huge profits without showing any
killingness to pass some of the benefits
pn to them.
McCarran'S warning came after teSti-
hony by John McGill. ir.. secretary
manager of the Maryland g. Virginia
Milk Producers Association, and ever
present witness during the hearings
that his organization could not afford
70 buck" Chestnut Farms Dairy for
fear the distributor would wreck the
Association.
Senator Attacks System.
"If this system goes on-the agrarian
population producing at loss and the
fcnsumers getting no benefit, but
man in swivel chair reaping huge
proflts-the N. r. A. or nothing else is
going to help matters" said Senator
- McCarran.
''They-the farmers and the con-
eumers-are not going to stand for it."
High spots in the days testimony
Included a demand by Representatives
of 10000 District consumers for d
2-cent-per- quart cut in milk prices, !
admission by DR.. Henry N Woolman,
director of National Dairy Products
Corporation, that he had consulted
frequently with DR.. Clyde L. King,
who resigned Saturday as chief of the
Dairy Division of the Agricultural Ad-
n nd ha
NAL by Thomas H. Mchnerney, presi-
dent of National Dairy, that his corpo-
ration is a rmilk trust"
The consumers demand for 11-cent
milk, coming on the heels of an an
nouncement of a movement designated
as National Milk Month" was pre-
sented by Mrs. John Boyle, jr., chair
man Of the Consumers Council Of the
District.
Urges Public Utility.
She read a statement pointing out
National Dairy Products Corporation
had effected great economies in milk
distribution here. but that none of the
savings had been passed on to the
consumer in the way of price reduc-
tions.
Personally" she said. 81 would favor
a monopoly in milk distribution. be-
cause it would enable maximum
amount of economy. But, of course,
the only reason for such economies
is that of the public interest which, in
this case, can be promoted only by re-
Guction in prices to the consumer.
She explained later that she meant
making milk a public utility when she
referred to a monopoly in milk distri-
button"
All Of the benefit from economies
affected in the two local National DAIRY
hfiliates-Chestnut Farms and Chevy
Chase-"has accrued to the handful OF
stockholders of National Dairy Products
CORPORATION, as was intended when IL
WAS organized" Mrs. Boyle said.
Quotes MOnsignor Ryan.
. She said her statement had been pre-
foared by AIsgr. John A. Ryan OF Cath
Glic University and Matthew Boyd, now
Sne Of the labor advisors to the N. H. A.
Ayho are vice chairmen Of her commit
Zee and experts on milk" She was
Eross-examined at length by Robert
E5ordon attorney for National Dairy,
Md admitted she knew little or nothing
rf the local milk situation or Wnetner
chestnut Farms and Chevy ChaSe
Sairies could stand a 2-cent per quart
red1Iction on the basis of the figures In
the record of the committee hearings.
Bovd. who was called to the stano
,ater bv Gordon, challenged the accu-
racy of the figures and said ne vas vas
mot certain" the two dairles hao
,,ronerlv allocated their costs, lntlmat-
mo that perhaps more OF the costs OF
oneration had been placed on bottled
mix than should have BEEN
The McGil-McCarran clash came at
the close of the hearings about pm; I'm;
The vice chairman drew from McUlil
an admission that the purpose OF Co
operative farm organization Is TO DIHie
at least cost of production to the
farmers.
Calls Cost UnimpOrtant.
low. Mr.. McGill, said McCarran, L
want you to stand on that answer ana
toll me why 1t is that twice before on
this witness stand you testified you
never made any effort to find out what
-the cost Of production ISL -.
Because the cost OF production mas
nothing to do with what you can get
for your milk" McGin answered You
must sell your milk at whatever you
can get fol- it, on the basis. OF the
market"
tion by Seton Darr, attorney for FAIR
fax Farms Dairy, testified the farmer
;e entitled to receive at least cost OF
1,roduction for milk. Then McGll was
recalled by Committee Counsel ElWooo
"A Seal. for questioning as to why MS
organization had not attempted to at
tain that goal. ..s
McInnerney also had testified the
,,roduces' association and not. the dis
fributor had set the price at which the
dairy companies buy milk. McGlll
denied this saying I'VE had to bargain
on prices"
Never Knew Cost Figure.
"Did you ever set a price that would
give the farmer the cost of production?"
Seal asked.
I'VE never knew the cost OF produc-
ton" McGill replied.
He then testified, under cross eXaml-
nation by 10 v. Morgan, attorney for
the protective committees of the Pro-
ducers' Association, that Chestnut Farms
could wreck the association If the
organization attempted to set produc-
tion cost figure for milk by contracting
independently with its members. He
admitted the association was mot
effective"
At the conclusion of the hearings
Chairman King praised the "painstak-
ing and tireless efforts" of the special
auditors, N E, Simpson Glen w. Rose