Evening star., 1933-09-23
UNIVERSITY REGENT
TO Be QUESTIONED
IN MILK PRICE QUIZ
Samuel N. Shoemaker Listed
as Big Stakeholder in
Dairy Firm.
MARYLAND MAN BACKED
DIR. KING FOR ARBITRATOR
Seal, Committee Counsel, Will Also
Question Two School Officials
About Shares.

Samuel NJ Shoemaker, chairman OF
the Board of Regents of the University
of Maryland, will be called as a special
witness before the Milk Investigating
Committee of the Senate when hear
ings are resumed early next month, it
was announced today by Efwood H.
Seal, committee counsel.
Decision to subpoena Shoemaker was
reached late yesterday after Seal dis
covered Shoemaker was a large stock
holder in the National Dairy Products
Corporation, and that on June 16 he
received dividends on a holding of 1898
shares of common stock in that Or
ganiZation.
The disclosure was made as Seal be-
gan checking of list of $4,000 names
Of stockholders n the National Dairy
Products Corp, which had been sub
mitted to him. upon request, by the
dairy firm. which has extensive hold
ings in Washington and Baltimore, as
well as other sections of the country.
Baked Milk Arbitrator.
terest- Shoemaker has in the National
Diary Products Corp, Seal reported
the fact to Chairman King of the
Senate District Comittee. which in
stituted investigation of milk prices
and the control of the local milk in
dustry some month ago.
Senator King and Seal Immediately
determined to question Shoemaker, and
decided the hearings would be resumed
early in October.
Previous sessions Of the Senate in
vestigating group brought out Shoe
maker had sponsored selection of DR..
Clyde L. King in 1929 as milk price
arbitrator for the Washington area, a
Baltimore for a number of years. Seal
said Shoemaker would be questioned
about this matter.
Dr.. King now is milk adviser to the
Agricultural Adjustment Administration
in the Department of Agriculture. which
is considering proposed milk marketing
agreements for various sections of the
country. During recent hearings held
by the Senate Committee. Independent
milk distributors charged DR.. King had
attempted to fix prices in the Washing
ton milk shed while he was arbitrator
for milk interests in this region.
Ballou Is Shareholder.
While studying the list of stockhold-
ers of the National Dairy Products
Corporation this morning. Seal came
across the names Of Dr.. Frank W. Ballou,
superintendent of schools. and Robert
L. Haycock, assistant superintendent.
The books show DR.. Ballou owns 80
shares Of the corporations stock. on
which he recently received a quarterly
dividend of So The record showed
Haycock holds 20 shares and that he
recently received quarterly dividend
of Sc.
Seal emphasized that he recognizes
the right of any individual, including
school officials, to have personal in
veStmentS in such a commercial en-
terprise. Because of other informa-
tion at hand, however. he called DR..
Ballou and arranged for a conference
Monday morning.
The other information is that the
Washington Dairy Council, an organi-
zation for promotion of the use of milk
as a healthy food. recently reported
it had distributed nearly 100000
pamphlets stressing the value Of milk
as a food. This report showed 864
such information, largely in story and
pictorial form.
Seal also was informed that the
work of the Dairy Council is financed
by group of local dairy concerns in
cluding National Dairy Products Cor
poration, the Thompson Dairy and
the Marcy Bros. Co., as well as by
the Maryland-Virginia Milk Producers
Association on pro rata basis.
Seal pointed out also that for years
children of school age have been given
literature Illustrating the value CT
milk as food. An official of the Dairy
Council told him today that none
of this material sent to teachers or
other persons carried the names of
the dairy concerns.
Seal wishes to talk to DR.. Ballou
and Haycock to determine how it came
about that the material of the Wash
ington Dairy Council was first made
available to school officials.
DR.. Ballou said he bought the stock
several years ago as an investment,
and had no knowledge of the purpose
of Mr.. Seals conference with him.
Now Ill At Home.
During the milk hearings recently,
John McGill secretary treasurer of the
Maryland Virginia Milk Producers AS
sociation, told the Senate committee
the appointment of DR.. King as the
Washington arbitrator had been sug-
gested by Shoemaker.
Shoemaker, who lives at Eccleston, In
the Green Spring Valley section near
Baltimore, has been i'll in recent weeks.
Seal said today if he is unable to appear
before the Senate committee he will
ask authority to go to Eccleston to take
a deposition from Shoemaker.
The investigation has brought out
that the National Dairy Products
Corporation controls 60 per cent of the
Washington milk distribution and 80
per cent of the milk distributed to the
20 rbot Of he n,
of the Senate investigation has been
to determine if there has been a vir-
tual monopoly in the milk industry
here and in Baltimore
Shoemaker, in addition to his posi-
ton with the University of Maryland,
is a member of the Maryland State
Board of Agriculture, and formerly was .
president of the Maryland Agricultural
College before it was merged with the
University of Maryland.