Evening star., 1933-11-05

(COntlnueQ from flleI Z deS.l
increasing prices to consumers and tnat
he and other members OF the assocla-
ton had said so to John McGlll, Jr,
secretary and manager of the Produc-
ers' Association, after he testified Fri
day that unless consumer prices are
raised under the milk code. the smaller
independent dairies would be torceo
out Of business.
McGill Asks Correction.
McGill asked newspapermen to cor
rect the "misinterpretatlon OF ms re-
marks at the committee hearings. he
denied that he had SAID consunaet me
prices had to be raised, insisting tha'
he had meant retail prices"-prices
paid by stores, restaurants, etc.
When told the official transcript OF
the stenographer at the hearings
showed the word consumer, McGli
said he meant retail.
Bristow expressed the hope the nlar@
keting agreement could be amended at
hearings before the Agricultural ADJUST
dairy farmers at least the cost OF pro
duction, McGill testified Friday that
this was 2e.67 cents a gallon, whereas
22.5e and PAT cents as an average for
all three classes.
y was greatly surprised at Mr. NC
ellis testimony before the committee,
and told him So Bristow said. II
also said so to Mr.. Walker Drank
Walker, president of the association. l..
I have never considered it necessary to
increase consumer prices.
Denies Distributors Lose.
THE distributors have sacrificed abb
solutelv nothing. and in fact the test1-
mony of National Dairy Product Cor
poration witnesses at the hearings IN
August showed their profits have been
greater since the reduction in pro-
ducers' prices effected by the three
class plan
If the distributors were mace to
sacrifice part of their orOtts, just as
the producers have been forced to make
sacrifices, there would be no need Wnat-
soever to raise the price OF milk 10
consumers"
Bristow also attacked McGill's testi-
mony that Chestnut Farms Dairy, sub
sidiary of National Dairy Products Cor
poration. docs not want" third-elaSs
milk-the so-called surplus. The for
mer Senator pointed out thai the great
est profits amessed by the milk COM
bine are from the sale of dairy prod
ucts manufactured from the third-class
milk.
ALLEGATION Attacked.
Brlstow also attacked as unfair the
! ALLEGATION of basic" quotas among
members of the association. President
Walker, for instance, testified that OF
the ITO gallons he produces day, 13O
gallons are in class l, % gallons In
class and 12 gallons in class 3. BITE
tow said some producers are allotted
| more second class than first. W..lle
| others are allowed to sell their entire
! production as first-class milk. and still
others are able to market only go per
cent of their production in the basic"
| class.
| McGill said last night he intended to
ask the commission for permission Ito
correct my statement in the record so
that it will conform to the prices in
, the code as presented by the association
| to the A. A. A."
The order of Chairman King direct
| ing submission OF Arlington County
! Dairy books followed refutation by Nor
man E. Simpson, committee accountant,
of statements by Frank Davis, fiscal
] officers are not over $50 week. Simp-
son testified his examination of the
company's books showed salaries to OH
GERS ranging between $4,000 and $4,000
! annuallv