Evening star., 1934-02-04
SEAL TO REQUEST
KING TO REOPEN
D. c. MILK PROBE
Disclosure PreCedes Meet.
inn of Producer GroUn
Tomorrow.
SOURCE OF PROPAGANDA
TO BE INVESTIGATED
Wallace Acts Meanwhile to In
crease Chicago Farmers In
come by Dairy Licenses.


Authority to reopen the local milk
investigation will be requested tomor-
row of Senate District Committee
Chairman King. by Elwood H Seal,
night
The disclosure that Seal wished to
reopen the case came almost on the
eve of the annual meeting Of the
Maryland and Virginia Milk Produc-
ers' Association, which will hold its
lection of directors in the Silver
Spring Armory tomorrow
Meanwhile, Secretary of Agriculture
Wallace began the Government sec
ond effort to increase dairy farmers
incomes with the issuance of license
for milk distributors in the Chicago
area.
The license. first of series to b.
isued under the new policy of guarsn-
tecing only producers prices fXcs
must pay to farmers. establishes All
equalization pool to handle surplus
milk, and provides for Federal
market administrator who will super
wise enforcement on distributors.
Prices which will be paid. based on
a standard of 3.5 per cent butter fat
milk. are: Sl.75 per hundred pounds
for fluid milk. SIPS for milk sold as
cream and rate for surplus milk of
3is times the average wholesale price
per pound of 92-score butter on the
Chicago market.
Excessive Price Denied.
A denial that profits of milk c
tributors we're excessive was ma ,
meanwhile. by Charles F. Whitir-.
president of the International AssocI-
alton of Milk Dealers. in a letter to
Secretary Wallace in response to
charges made by the Secretary in a
speech Wednesday at Madison. WIS.
The Secretary made public report
of Government auditors who checked
books of distributors in ST Louis. Chi
cago, Philadelphia and Boston. and
declared that profits of companieS
ranged from IA to 80 per cent on their
net plant investment.
There are six important contention
which Seal said he wished to investi-
gate in the local situation. They arc:
l. Propaganda spread by the man
agement of the producers organize
ton that the MIX Inrcs i6ating Con-
mittee was prejudiced.
2. That the management OF the
Milk Producers Association has been
using county agents to perpetuate it.
self in Office and exercising undue
influence over dairy farmers in the
selection of directors of the associa-
ton.
3. That the management Of the
cooperative changed to the two-price
plan Of milk purchase from the farms
despite repeated contentious of officers
that the three price plan was the only
effective method Of controlling pro-
duction
4. Propaganda that Seal himself
has been prejudiced and that infor-
nation has been spread by the man
asement of the association to the
effect that it was not known whom he
represented-the committee or the
National Dairy Products Corporation
and that he has been trying to
break down the producers organiza-
ton.
Seal to Attend
S. Reports that the producers asso-
citation had not been given a fair
opportunity to state its case before
the committee, which concluded hear
ings in December
s. The Walker Hill milk price fight
AS the first step to obtain evidence
to lay before the committee" Seal
said, Il shall attend the annual meet
ing of the Maryland and Virginia
Milk Producers Association tomorrow
afford me the Iirst opportunity to see
large majority Of the producers at
one time
II intend to interview as many
| dairymen as possible: get their state
ments. names and addresses, so that
the committee may summon them as
witnesses.
IT regard statements of the man
agement of the producers association
that the committee is prejudiced as
a reflection on its members and l
shall exert every effort to sift these
charges to the bottom. Another mat
ter Of utmost importance. and one
that should be investigated thor
oughly, is the use by the management
of the cooperative of county agents
officials paid by the Federal Govern
ment and the State-to perpetuate
the management in office This. /
believe. is an unlawful use of the
county agent and certainly it is gross
ly unfair to the farmers generally for
the county agents to take one side or
the other in controversy which Is
confined solely within the associ-
alton"
A sharp tight is expected to de-
velop tomorrow at the Silver Spring
meeting over the selection of directors
to supervise the associations oper-
ations for the ensuing year The frst
task Of the new directors will be to
select officers. Frank S. Walker.
Orange. Va, banker, is now president
and John McGill, jr., holds the pos.
Of secretary manager. a position
which he has held for the past 10
years.
May Limit Terms.
Several influential members Of the
association believe that a SUFFICIENT
number Of directors to replace Walker
and McGill Immediately is lacking, but
they hope q definite time limit will be
placed on their tenure of ofilce.
The recent Senate milk investiga-
tion revealed McGill was ignorant of
the cost Of production OF. milk an6
the price dairy companies in WASH
ington receive for the product. An
ever-present witness during the in
quiry. he testified repeatedly he had
no idea Of what is cost the farmer
to produce milk, that he had made
M efforf Ia ind mt Kfaf n 0onf