Evening star., 1933-11-06
milk AGREEMENT
HELD BENEFICIAL
Secretary of Producers As
Sociation Cites Aids Before
Senate Committee.

/ SCitolC SOttHtukkSSs
John McGill, r., secretary and man.
ager of the Maryland and Virginia Milk
Producers Association, insisted today
that dairy farmers would beneflt under
the milk marketing agreement filed for
this area with the Agricultural Adjust
ment Association. although he could not
tell the Senate District Committee how
much the producer would get for his
milk.
McGill, recalled to the stand for
questioning concerning the effect Of the
code on milk prices, admitted the
basic" quotas Of producers would have
to be reduced under the code.
Reduction Not Determined.
Have you determined the amount OF
that reduction?" asked Elwood H. Seal,
the committees counsel.
NO"
McGill explained the dairy farmers
now are shipping more basic milk to
Washington distributors than can pos
ably be sold for fluid consumption and
that 1t was the intention Of the asso-
citation to reduce the amount of basic
milk to conform to distributors huic
sales. He explained that, in his opir-
ion. the scent increase in prices for
cream milk would more than make
up the difference" in the loss now be-
ing taken by the farmer on the exces-
sive amount of basic milk he claims
Is being shipped into the city.
Seal then asked him to explain ex-
actly how the dairy farmer could bene-
fit If there was no determination In ad-
vance as to the quota to be allotted the
producer for class l and sales.
For instance" Seal asked, suppose
a producer ships 100 gallons Of class !
milk, for which he Is now receiving 26
cents, and the price is raised to %
That makes $29, doesn't it?"
Eyes"
'Now, then, II you cut down his
basic amount of 80 per cent, that would
be 80 gallons, which at 20 cents would
be only s23.20. How do you figure the
farmer Is benefiting?"
McGill then attempted to show that
under the so-called adjustment fund,
through which distributors and pro-
ducers settle on quotas and prices, the
farmers are now being paid only for
the amount of basic milk being sold
for fluid consumption by the dairies.
He said that at present the consump-
ton of fluid milk Is less than the
amount of basic milk being shipped to
the diaries and that, therefore, under
the adjustment fund the producers are
taking loss on the amount which the
distributors must divert to third class,
the milk which is used for manufac-
turing.
Tells Of Permit Denial.
Testimony that an independent dairy
in Baltimore was refused a paSturiza-
ton permit by the Baltimore Health
Department because the National Dairy
Products Corporation would not approve
the application was introduced earlier
today.
Carroll w. sauter, the independent
dairyman, told the committee that he
had applied to DR.. Huntington Williams
Baltimore health officer. for q pasturiza-
he must have the approval Of George
g. jackson, president Of the Western
Maryland Fairfield Dairy, National
Dairy subsidiary. When jackson re-
fused to approve the application Will
liams declined to issue the pasturiza-
ton permit, Sauter said.
g. - Baked in Test Case.
II tried for while to make q test
case against williams and begged him
to arrest me-" Sauter said, explaining
he had continued to distribute milk in
Baltimors WITHOUT q permi9" sent
q aman down 10 See Williams and TO tell
him where + could be located, but VIII
lfafns refused to arrest me-" =" >"
Sauter's testimony followed the rev.
elatlon of intricate financial operations
OF the National Dairy in the Baltimore
and Washington markets. Albert Gra-
ham, chairman Of the board Of the First
National Bank of Baltimore, told of
the activities Of the late Charles Bow
man, former chairman of National
Dairy, in acquiring many large and
small dairies, both here and in the
Maryland city. Bowman, whose death
robbed the District Committee of one
OF Its star witnesses in the milk in
quiry, was the president of the Western
Maryland Fairfield Dairy and the presi-
dent OF the Chairman Co., a holding
company through which he bought
dairies to sell to National Dairy Prod
ucts Corporation.
Graham traced intricate operations of
Bowman and showed how he had
owned or controlled, at least one Balti-
more dairy which was advertised as
"Baltimore's Leading Independent
1<dIIy.
Seal explained to Chairman King
that he intended to show, through
the testimony of Graham and other
witnesses, that the National Dairy
Products Corporation exercised "monop-
olistic" control in Baltimore and Wash
mgton. Bowman had already been
revealed as the purchaser Of the CHEVY
Chase Dairy from Wise Bros. He later
combined with Chevy Chase q number
OF other small local distributors and re-
sold the combined companies to Ma
tional Dairy.
Irving B. Kemp president Of the
Cleveland Farm Dairy, admitted under
questioning by Seal, that the Baltimore
distributors fixed prices for milk. He
told the committee the distributors also
met with producers to determine prices
and that when no agreement could be
reached, DR.. Clyde L. King, now milk
arbitrator of the Agricultural Adjust
ment Administration, fixed the prices.
He admitted to Chairman King that DR..
King fixed both producer and consumer
prices. DR.. King then was milk arbi-
traitor on the Baltimore market and 1t
was his duty to arbitrate prices to be
paid the producers by the distributors.