Evening star., 1933-11-15
HEARINGS ON MILK
RECESSED AFTER
/ DR.. KING TEST|F|ES
Surprise Witness Charges
Racketeering Among Wash
ington Companies.
DIRECTOR OF PRODUCER
GROUP ALSO ON. STAND
Former Arbitrator Asserts Bootleg
Product Is Being Sold in
District.

With testimony of one of the four
-key witnesses" in the milk investigation
completed, hearings before the Senate
District subcommittee were in recess
today until Saturday morning.
For four hours yesterday, DR.. Clyde
L. King, former arbitrator on the Wash
ington milk market and now dairy chief
Of the Agricultural Adjustment Admin
istration, told of his experiences here
In l928-29. He appeared as a surprise
witness and from his testimony the
subcommittee developed:
/. That the Chestnut Farms Dairy
'racketeered' in milk by bribing apart
fi1ent house janitors and hotel chefs
to exclude products of other dairies
2. That bootleg" milk was being
shipped into the city
3. That the Justice Department took
cognizance of price-fixing attempts and
warned that such action would consti-
tIte violation of Federal antitrust laws.
4. That DR. King accomplished moth
ing during his tenure as milk arbitrator
here.
5. That he was instrumental in the
formation Of the Eastern States Milk
Marketing Association, super-sales
d6C1Cys Will 4SdAC w. f1GdpS OI bdlIl-
more as its head, at salary of $4,000
q year.
Virginian Testifies.
II. T. Pancoast, Purcellville, Va, pro-
ducer and director of the Maryland
the Eastern States Milk Marketing
Association and the Dairy Council, was
the only other witness heard by the
subcommittee YESTERDAY.
He admitted that in determining
prices to be paid the producers for milk.
the association had only common
knowledge" of what the distributors
were charging consumers for the bottled
product. Questioned closely by Senator
McCarran OF Nevada, acting chairman
of the investigating committee, about
whether Heaps. whom Pancoast called
q "super-sales agent" had ever advised
the association as to retail milk prices.
the association director said:
Il don't know that We have ever
been told"
Then you go merely on common
knowledge and don't try TO ascertain
the facts?" McCarran asked.
efforts of the Board of directors are to to
get the maximum price for the pro-
ducer."
3 But Tn trying TO get the source of
already said your sales manager, Mr.
Heaps. does not inform you about retail
prices; so how do you get authentic
1nformation?"
From the newspapers and the dis
tributors-I don't believe the distrib-
utors could increase prices without our
knowing about It."
Citizens Obtained Reduction.
Pancoast then disclosed that the last
reduction in retail prices Of milk was
obtained through the efforts of the citi-
zen's associations of washington. Pleas
Of the organized citizeE came to the
association by personal communication
and through the press, Pancoast testi-
fed.
He admitted. under cross-examination
by Thomas L. Dawson, representing
protective committees Of the producers
organization, that the Eastern States
MlE Maraeting o ASSOCIATION ASS azSand does snS
Virginia group, except provide 1t with
a. super agent" Pancoast ad-
n1ittcd also that the association. when
asked by the distributors to reduce prices.
had never determined the profits being
made by the dairies. The association
had no figures on dairy profits until the
milk hearings began, he testified.
"And you think the Eastern States
Is essential to the Maryland & Virginia
Milk Producers Association" Dawson
asked.
Eyes. SIR" replied Pancoast.
"You are a director Of the Eastern
States. are you not?"
Yes. sir"
That's sli."
Attempt to Involve Seal.
While Pancoast was under direct ex-
animation of w. Gwynn Gardiner. at
torney for the Maryland and Virginia
association, an attempt was made to
show that Elwood H. Seal, Investigating
Committee counsel, had helped to or
ganize the protective committees which
are now fighting the management of
the association.
Gardner questioned PancoaSt about
the committee meetings and introduced
letter addressed, Dear member,
which he claimed had been sent to the
entire membership Of his organization.
Pancoast said he attended three meet
ings Of the committee in Loudoun
County, but denied Seal was present at
any of them.
GARDENERS line of questioning the pro-
ducers' attorney protested he intended
ko show the committee Seal was backing
the protective committee movement and
was attending meetings OF producers
throughout the Washington milk sneu.
A card, said TO have been mailed 10
all milk producers, urging them 10 snip
more cream into the city, was intro
duced in evidence in an effort 10 relule
testimony that bootleg cream was being
imported because the dairies were un-
able to obtain direct t-Shipped" cream
from the producers association. Nc
Carran admitted the card, but refused
TO allow 1t as a refutation, when it was
brought out the card was dated Sep
tember 10, 1888, and the testimony OF
James j. Ward Of Walker Hill Dairy
concerned shipments Of outside cream
prior to July Of this year.
King Admits Ignorance.
DR.. Kings admission, II know Moth
ing about the Washington market, %
came after Senator King of Utah, chair
man Of the District committee, con-
fronted him with evidence that an at
tempt had been made while he was
arbitrator here to FIX retail prices of
milk.
DIR. King first had denied attending
a meeting Of distributors at which price,
fixing was discussed. However, when
Senator King showed him photostatic
COPY Of letter from John Lord
O'Brian, then Assistant Attorney Gen
seral warning that the plan evolved ct
the meeting of distributors will con-
stitute violation of the Federal anti
trust laws If put into effect" the wit
ness said he had been acting under
the Capper- -Volstead act, as ! inter-
preted it."
Committee Counsel Seal then at