Evening star., 1933-08-22
KING CRITICIZES
MILK COMPANIES
FOR BIG PROFITS
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are to the retail trade. Elwood H. Seal,
special committee investigator, who Is
endeavoring to determine why the IN.
dependent dairies follow the prices OF
the so-called trust dairies, asked Dick
son why his firm retailS milk at 13
cents a quart.
1--WE know what the product costs as
we'll as the distributing costs" he re-
piled, "and find that 13 cents allows
small margin Of profit"
Seal introduced a. an exhibit copy
of an affidavit Dtckson made In Oc-
tober, 1929 charging the Maryland
Virginia Milk Producers Association
with diverting his milk supplies. De-
pattment Of Justice action followed.
Dickson made the afhdavit, he said
after attempts had been made By Dr..
Clyde NJ. King, formerly An erhitratof
fd Me mink producers sssoeiseion. who
i how Employed q the Department
U Agriculture, to fdFce him 70 JON IN
q price-n program to which he
objected.
At that time, Ddckson said, d. King
threAtened 10 forcs Inn t1to The pf1ee-
fixing program BY divsrting bis milk
supplies, Which was done unt1 the
Department Of Justice stepped into the
case at his request.
Seal came to the hoAxfnG today with
Detective Lester A. Howard q the
fourth precinct, who Il acting - his
bodyguafd during the hearings. Howard
was assigned to accompany Seal BE-
cause officials In the corporation coun-
sePs Office thought he needed protec-
ton. Seal. however. sid he had not
been intimidated or threatened.
Howard has been on duty in the once
of Corporation Counsel Bride fer more
than six months as special investigator
and subpoena server.
Frank Davis, representing Marcy
Va, and Thompson, president Of
Thompson's dairy, Inc were among
the witnesses examined during the
afternoon session yesterday.
Davis said Marcy Brothers sell about
40 per cent of their supply IN WASH
ington, but had made no attempt to
enter into an agreement with other
distributors to fix the price OF milk.
Like other independent firms, he ex-
planned, the concern keeps no records
to show the profit on bottled milk. He
said the firm sells milk wholesale from
38 to A cents gallon and retail from
ii to 10 cents a quart. Bottle con-
sllmers who take large quantities pay
II cents.
AS soon as Thompson took the stand,
Senator King questioned him as to the
history of milk consumption in the
District and prices since the beginning
of the World War.
IT want to show" said Senator King,
"that your business has been enor-
mousIy increased and profits have been
enormously increased within the past
few years"
~ 1,rIt ch0nk
his head in vigorous disagreement.
Thompson was questioned by Seal as
to a statement attributed to him that
''it would take brave man to undersel
milk in Washington He admitted
having made such statement.
The witness testified that during 1882,
II his dairy had sold milk at l cent
a quart less than the price charged,
the profits would have entirely disap-
peared. His profits were listed at $118,-
300, exclusive of sale of butter, eggs and
other dairy products.
Thompson was questioned by MEM
bers of the committee concerning
valuation Of 100000 placed upon his
plant when it was reincorporated last
year and especially concerning an item
of s32s.00 carried as goodwill. The
valuations in both cases, he testified,
were fixed on the basis OF the average
daily sales. which Appropriated 5000
gallons of milk
Thompson expressed the belief that
milk producers in the Washington mar
ket area are relatively we'll off," The
local milk producer, he said. comes
nearer to making profit than any other
producer of basic farm commodities"
He suggested that in the past Wash
ington distributors may have paid too
much for milk" leading to overpro-
duction and the necessity for present
reductions in price and consequent loss
of profits to the farmer"