The Washington times., 1933-11-14
'RACKETEER|NG'
BY JANITORS
DETAILED
Christmas Presents Brought
One Company Monopoly
In Apartments

Asserting that "there were so
many illegal practices" on the
Washington milk market when he
was arbiter here that he decided
to leave, DR.. Clyde L. King, ma.
tional milk arbiter for the Federal
AAA, today told the Senate Dis
trict Committee investigating the
local milk industry his whole
story" of activities on this market.
The arbiter, whose name has
been brought into the hearings
throughout the entire investiga-
ton, appeared nervous as he took
the stand, but apparently became
more assured as he continued.
He told the committee he was
brought to the Washington mar
ket in 1928 at the invitation OF
officials of the Maryland-Virginia
Milk Producers Association.
King Makes Denial
In reference to a meeting at
which it previously had been tes-
titled Charles N. Brawner, former
head of Chestnut Farms Dairy.
walked out when price fixing Of
milk on this market was suggest
ed, King declared that no one left
the meeting and that price fixing
was not discussed.
King told the committee that
when he was brought to this
market he agreed to serve only
if his pay was to come equally
from distributors and producers.
During the few months he served,
he said, he received $1OO q
month each from the producers
and distributors on the Washing
ton market. He said:
"ShortIy after I became arbi.
ter here, it became apparent
that there were a lot Of Illegal
trade practices going on"
JanitOrs Were Paid
He explained that these prac.
tices consisted of importations OF
bootleg milk and activities OF
janitors and chefs in apartments
and hotels paid by certain dairy
companies to distribute milk to
guests. He added:
"FinalIy told the cOmmfvUe=
that there were so many Illegal
practices here that it was no
place for q college professor
and that was going home"
He explained that two dA~
frihrtorS leo Compson and Ray
Wise, brought information to him
that the Chestnut Farms Dairy
was sponsoring this "racketeerlng
bv janitors." The two diStribu-
tors, he said, charged that
Brawner was giving the janitors
Christmas presents and other
gifts for their activities in aiding
his illegal practices. This made
it difficult, DR.. King said Tor
other dairies to get milk into
apartment houses and hotels.
Explaining that he took this
matter up with Brawner, KING
said the Chestnut Farms Dairy
head answered that such a prac-
tice was generally accepted IN
the milk trade here and that ne
had to meet market competl-
tion. Brawner added, King said
that he was mo more guilty
than others and that a lot OF
practices were going on that
should be cleaned up"
Declined to Take Action
Turing this time. DR.. King
testified, the National Dairy
Products Corporation had taken
over the Chestnut Farms Dairy
and he said he went to the Ma
tional Dairy heads in New York
with the charges. The Natlona!
Dairy heads, however, declined
to take any action.
DR.. King then told the COM
mittee that he suggested the
amalgamation of the coopera-
tive producer organizations on
the Baltimore and Washington
markets, and that after he sug-
gested this to the cooperative
groups the Eastern States Market
ing Association was formed. This
association is q SuPerOISdIIIG"
ton over the producer coopera-
tives in the Washington-Baltl
more markets.
The reason he suggested the
amalgamation, he said, was be-
cause he felt the position of the
farmers on both markets would be
strengthened, explaining that the
price of milk on one market al
fects the price on the other.
DR.. King told the committee
that while he was arbiter here nj
was continually seeking permission
of the distributors to examine
their records in the hope that NJ
would be able to learn the basl:
for some of the illegal trade prac'
tices. The National Dairy Product!
Corporation affiliates, he said
would not permit him to examine
their books. He said:
"The farmers were not get
ting all that was coming to
them, and since 1t was In their
interest that / was here, I want
! al tn examine their books"