Evening star., 1933-11-14
Asserts Janitors and Chefs
Received Gifts for Handling
Dairy Products.
URGES C0-0PERATIVES
TO HELP PRODUCERS
Arbitrator Tells of Alleged Efforts
to Control Washington
Market.

Ndileu 10 the stand as a surprise wit
ness, Dr. Clyde l.. King. milk arbitrator
of the Agricultural Adjustment Admin
istration, today told the Senate Dis
trict Milk Investigating Committee an
amazing tale of alleged unethicaI trade
practices, which, he said, had been re-
ported to him as being engaged In by
the National Dairy Products Corpora
ton affiliate here at the time he was
arbitrator Of this milk market, in
192s-29.
DR.. King, the first witness called by
the Maryland and Virginia Milk Pro-
ducers' Association, testified the Chest
nut Farms Dairy had given Christmas
presents to apartment house janitors
and hotel chefs for the exclusive dis
tribution of its milk in their buildings.
A short while after he came here, in
the Fall of 1923, he said, ct became
apparent to me that lot of illegal
trade practices were going on-rackets
by janitors and chefs"
Convinced of Bootlegging.
'I became convinced also that there
was bootlegging of milk, contrary to
regulations of the Health Department"
DR.. King testified 'I finally became
convinced this was no place for a uni
versity professor. so said was going
home"
When he took the stand DR.. King
explained he had been connected with
the University of Pennsylvania since
1910 and he now was professor Of public
finance In the Wharton School OF
Finance of the university.
Before a crowded committee room
packed by at least 800 producers and
distributors, the Agricultural Adjust
ment Administration official told how
he came to Washington as milk arbi-
traitor at the request Of the late DR..
Samuel M. Shoemaker, then chair
man Of the board of regents Of the
University of Maryland
Denies Talk of Price Fixing.
He described the first meeting he
had with producers end distributors
was any talk Of price hxinE, as charged
IN previous testimony at the hearing.
Discussing the alleged "racketeer-
Ing" DR.. King testified the "illegal
trade practices first were brought to
my attention by Lee Thompson
(Thompson's Dairy and Raymond
Wis (then head Of the Chevy Chase
Dairy.
He said negotiations then were
under way for the purchase of Chevy
Chase by Charles Bowman, head of
the Western Maryland Dairy. and one
OF the organizers of the National
Dairy Products Corporation.
Mr.. Thompson and Mr.. Wise told
me that Christmas presents were being
given to janitors and chefs for the ex-
elusive distribution of Chevy Chase
milk in apartment houses and hotels"
King testified. II found there was
only one city In the country where
worse practices were going on-De-
troit, which finally had to be cleaned
up.
Discussed Situation.
AT my request. Mr.. Thompson, Mr..
Wise and Mr.. Brawner (EIenry N.
Brawner, tr., president of Chestnut
Farms) met at the Cosmos Club and
discussed the situation. Mr.. Brawner
took the position it was a generally
accepted factor in the market and he
had TO go along to meet competition"
Was any written evidence intro
duced?" asked w. Gwynn Gardiner, at
torney for the Maryland and Virginia
Milk Producers Association.
There were statements only" King
answered.
The A. A. A. official then told of a
meeting IN New York at which he ''pre-
Sented the facts to the officers of the
National Dairy Products Corporation"
Among those present, he said, were
Thomas H. McInnerney, president of
National Dairy; Brawner, Thompson,
Wise and himself. He said the meet
ing was held about the middle of 1929
In the National Dairy Offices.
Says Nothing Happened.
"Mr. Thompson and Mr.. Wise pre-
sented their evidence and the matter
was discussed as to its accuracy" DR..
King testified.
What happened?" Gardiner asked.
Nothing happened"
Or. King explained Brawner had said
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