Evening star., 1933-10-05
Distribution of Surplus to
Begin Next Week, H. L.
Hopkins Indicates.
CORPORATION CHARTER
is BEING SOUGHT NOW
Purchase of Products, Urged by
Crosby, Is Approved by
E. H. Seal.

Purchase of surplus milk and dairy
products for distribution to the needy
this Winter probably will begin early
next week, it was indicated today at
the Office of Federal Relief Administra-
tor Harry L. Hopkins. who has just
been named head of the new Federal
Surplus Relief Corporation, which will
do the Governments commodity buy
ing.
Hopkins said the purchase Of COM
moditieS would begin as soon as the
and organization details have been COM
pleted 1t was understood the corpora
tions charter was being sought in Del
aware today.
Will Depend on Needs.
Milk surpluses, like other surplus
farm products. will not be bought by
areas, but will be treated as a whole
and will depend upon the food needs
of families now on relief rolls.
Buying up of milk surpluses was
urged upon President Roosevelt yes
terday by Representative Charles M.
Crosby, Democrat of Pennsylvania,
| who said governmental purchase of this
commodity would break the strange
hold" of the national dairy trust, y"
which he said has piled up exorbitant
| profits by dishonest and tricky" de-
vices.
The plan received the hearty indorse
ment of ElWood H. Seal assistant cor
poration counsel and special milk in
vestigator for the Senate District Com
mittee.
The plan is an admirable one from
one standpoint in particular" salo
Seal. The milk trusts claim they
don't want surplus (third-grade) milk
and don't care TO what use it is put
or who gets it. Here is a chance tc
smoke them out and see If they are
sincere"
Representative Crosby charged a ma.
ticnal dairy trust has 'strangle- -holo
on the countrys milk industry and at
tributed its enormous profits" to the
dishonest and tricky device Of basic
price and surplus quota" His telegram
to President Roosevelt follows:
Suggest you set governmental ma.
chinery in motion at once to buy al
surplus milk under commodity surplu;
reduction program now in effect ir
wheat. cotton, pork and coal through.
out United States. Milk surplus should
be distributed to needy.
This step would go further to re.
store national dairy industry than any
measure yet contemplated. Price palC
to farmers and producers now is les:
than cost Of production. Dairy trust
has been exposed in current Senate
milk investigation as making unreason.
, able and eXorbitant profits and is driv.
ing producers to bankruptcy, foreclos-
ure and eviction.
These enormous profits are all made
by dishonest and tricky device of &
basic price and surplus quota. Pro.
ducers' basic price is not enough to pay
cost of milk sold to distributors under
basic price quota. leaving producer:
with surplus for which they must take
an even lower price
Lifting surplus restrictions will re.
store a fair price to producers anc
break the strangle hold of the nationa
dairy trust on the country's milk in.
| dustry. Milk powder. cream, ice cream
butter, cheese and all other dairy prod
! ucts are now being manufactured from
so-called surplus. System of monopoly
Of the national dairy trust enables il
to make its eXorbitant and enormou.
profits.
(Signed) CHARLES NJ. CROSBY"