The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1933-11-04
SEN. KING ASKS
SALARIES Be
STUDIED
Arlington Dairy Agent Admits
Making Error on Stand;
Denies Any Deception

Probing the accounts OF local
dairy companies to determine If
their books have been arranged in
such a way as to permit their
officers to evade income tax pay
ments doomed today as an out.
growth of the Senate District Com.
mittee's investigation into the To-
cal milk industry.
This came about when the com.
mittee was being given statistics
concerning the salaries of the Off.
GERS of the Arlington County
Dairy.
Senator King Inquiries
Senator Villa NH. King CD
of Utah, chairman of the commit.
tee, asked Norman E. Simpson,
who audited the dairys books:
did you look to see if the
arrangements on the books per-
tanning to salaries were made to
avoid income tax paymentS?"
Simpson answered that he had
not, and the chairman declared:
"That had better be looked
into"
Despite previous testimony to
the effect that Julius Marcy,
president of the Arlington County
Dairy, received weekly salary of
$50, Simpson testified that his
scrutiny of the books showed that
the salary of the Arlington County
Dairy president is fixed at $4,000
a year.
Similar discrepancies also were
claimed to exist in the salaries
which we're said by an Arlington
County Dairy Company official to
be fixed for the officers and those
which Simpson claimed the books
show they receive.
Said Salary Only $50
Frank S. Davis, fiscal agent for
the Arlington County cancern,
testified previously that Marcey's
salary was only $50 a week; that
the salary of Curtis Marcy, vice
president of the dairy, was $3.50
a week, and that the salary of
Harvey L. Marcy, secretary, was
$40 week.
Simpson today told of Julius
Marcey's $4,000 a year salary
and said the sayary of Curtis
Marcy is $500 a year, that of
Harvey Marcy $1,000 a year and
that Of Mrs. Eva Marcy, treas
urer of the concern, is $4,000 q
year.
Davis was then called to the
stand and asked why he had
given the lower figures as the sal
aries of the officers. He explained
that the salaries were not all paid
in cash each week but that the
officers were paid certain amounts
in cash each week and were given
the rest in bonds or cash as an &C
crued sum later.
He Misunderstood
Davis told the committee he evi.
IDENTIFY had misinterpreted the
question when he gave the lower
figures as the salaries of the Off
GERS. He said he understood that
the committee wanted the weekly
cash amount paid to each officer
as salary.
Senator King severely criticized
Davis for his assertions and e.
wood H. Seal committee counsel.
inquired:
"Were you trying to mislead
this committee in saying Marcy
draws only $50 a week."
Davis responded he was not
and that he evidently had not
understood the question, but ad-
mitted that Simpsons figures
were correct.
Ordered to Bring Books
Senator King demanded that
Davis bring all the books of the
company before the committee
on Monday.
Robert L. Haycock, assistant
superintendent Of schools, was
questioned concerning the ex.
cursions Of classes of school chill
dren to various diaries. He said
that they were made for the pur-
pose of familiarizing the children
with the production of milk. This
was done. he said, as a part Of
the health crusade which the
Washington Dairy Council in
augurated about 1927.
He added that the council spon.
Sors plays given in connection
with programs Of the Parent
Teacher Association.
Permission to give these plays
was granted, it was testified, by
DR.. Ballou, superintendent Of
schools.