Evening star., 1933-07-21
Evidence to Date Shows
Such Condition, Says
Investigator Seal.
NATIONAL CONCERN OWNS
STOCK OF TWO DIARIES
Handle approximately 65 Per Cent
Of All Sold in District,
Study Indicates.

Assistant Corporation Counsel Elwood
II. Seal, who is investigating Washing
ton milk prices for the Senate District
Committee, declared today he was con-
vinced from evidence gathered to date
there was at least partial monopoly of
milk distribution here.
He reported that the investigation,
being conducted with the assistance of
a corps of accountants, who are check
ing records of dairy concerns, shows
that the National Dairy Products Cor
poratton, huge concern with head
quarters in New York, owns all the
stock of the Chestnut Farms and Chevy
Chase Diaries of this city.
Seal pointed out that a study by the
accountants under his direction has re-
vealed that these two concerns handle
approximately -65 per cent of the milk
sold to washington consumers.
Study National Concern.
The relationship between National
Dairy Products Corporation and Chest
nut Farms and Chevy Chase Diaries
was revealed in connection with gen
eral study of who owns or controls all
Washington dairy concerns.
Seal also revealed today that his ac-
countants will look into new phase Of
the milk distribution and price situa-
tion here, that being the relation be-
tween high salaries paid to dairy execu-
tives to the cost of retail distribution.
He had before him this morning copy
of testimony given before an invest1-
eating committee Of the Senate in 1881
by the head of one local dairy who re-
ported he received a salary of 1000
year.
Seal also has directed one Of his ac-
countants to check report that
Thomas H. McInnerney. president OF
National Dairy Products Corporation.
had received salary of $4,000 per
year, for his services to the National
concern. Seal said he now had no rec
ords to substantiate this report.
Dairy Spokesman Protests.
The milk investigator also revealed
today that a spokesman for one WASH
ington dairy had protested because Seal
had revealed that his accountant had
discovered that this concern during the
past five years made profits on invested
capital ranging between and 40 per
cent. The dairy spokesman declared
such information should not be made
public prior to the hearings planned by
the Senate Committee. Seal said that
officials of one dairy had admitted to
him that they are selling milk to some
customers at the rate of IL cents a
quart, whereas most Of their customers
are charged 13 cents.
Assistant Corporation Counsel Seal
today received copies of hearings held
by the House of Commons of the Ca
madam Parliament on the milk prom
lens Of the Dominion and announced
he planned to study this record for sug-
gestions which might help him in car
rying forward the milk inquiry here.
Ohicials of the Department of Agri-
culture this afternoon brought to
close q two-day hearing en- proposed
and vicinity, under the new farm relief
act. which seeks to increase agricultural
purchasing power.
Oficials Of the department said no
proposed agreements for the District
Of Columbia have been submitted thus
far. They explained that the depart
ment does not draw up agreements but
waits until the producers and distrlbu-
tors In a given area present proposed
codes and then conducts hearings to
adjust differences.
After the various organized groups
had presented their views regarding the
UIUOOoS0 A&ICc1uCutS 4OL tA1C ooAtAAoAS
area, q number of individuals were
heard, and it was announced that a
week, starting tomorrow, would be al
lowed for the filing Of additional state
ments.
Long Probe Likely.
Several weeks probably will be re-
quired for gathering further information
by Senate subcommittee investigators
before hearings are held on the local
milk situation, it appeared today.
Seal Is keeping in touch with the
work of the group of accountants as
signed to study the books Of .distribu-
tors and producers. He also is looking
into questions being brought to his at
tention by formers in the producing
area.
The subcommittee counsel also stated
today that he has been receiving some
anonymous communications from farm
ers He pointed out that he could not
do much toward looking into these COM
plants unless he knows the writer's. Mr.
Seal said that If these persons would
communicate with him he would treat
their names conf1dentially.