Evening star., 1934-04-09
REPORT milk QUIZ
BILL TOMORROW
Subcommittee Considers
McCarran Resolution for
National Probe.

The McCarran resolution seeking a
Nation n-wide milk investigation was
referred to a subcommittee by the
Senate Agricultural Committee today,
to be- studied and reported back to
the full committee for action tomor-
row morning. The subcommittee con-
sists of Senators McGill, Democrat, of
Kansas; Frazier. Republican. of North
Dakgta;.and Shipstead, Farmer-Labor-
lite, 0fTMinnesota.
Senator McCarran, Democrat, of
Nevada, outlined briefly the informa-
tiont developed during the local milk
inquiry by the Senate District Com
mitcse last year, pointing out that the
comxnittee recommended that there
be SMational investigation.
Assistant Corporation Counsel Ell
WOOD II, Seal, who directed the Dis
tricte investigation, also summarized
datSgAthered in that study, which he
cited In support of a broader investi-
gati6n throughout the country.
So Inquiry Opposed.
W. A. Wentworth, secretary of the
Dairy Industry Committee, took the
position that the proposed national
investigation is unnecessary. He
argued that the development of the
holding companies had taken place
undsE.fhe surveillance of the Depart
merIf-cf Justice. A. M. Loomis of the
AmeEcan Association of Creamery
Butter Manufacturers, asked the COM
mittee to eliminate from the resolu-
ton language which would cover other
dairy industries than milk.
Senator McCarran said the pro-
ducers of milk and other dairy prod
uctS are not receiving the cost Of
production, to which Senator Frazier
added.
And the consumers are paying
enough. to give the producers fair
profit"
Senator McCarran said the con-
sumers are not getting benefits COM
mensurate with the losses of pro-
ducers, but intermediate distributors
are making immense profits and pay
ing enormous salaries and bonuses to
executives"
Wallace Pledges Aid.
The committee had before 1t a
letter from Secretary Wallace, stat
ing in substance that thorough in
vestigation would be in the public
interest and the Agriculture Depart
ment would be glad to Cooperate.
The letter suggested the inquiry
might be conducted by the Federal
Trade Commission, because 1t has
staff Of accountants and others to go
into the technical phases of the SUBJ
ject.
Senator McCarran, however, ad-
hered to his belief it ought to be
Senate investigation, pointing out that
Senate Committees are always look
ing toward possible legislative rem
edies, while a Federal Trade Commis-
sion inquiry would concern itself
chiefly with statistics and a report.
Mr.. Seal suggested that If a Senate
investigation is authorized, the COM
mittee could obtain the assistance Of
various governmental agencies, as was
done in the case of the District milk
inquiry.
Monopoly Charged.
The McCarran resolution asserts
testimony brought out at the District
hearing "sustains the contention that
over period of years. the producers
of milk in the District of Columbia
milk shed have been receiving far less
than the cost of production due to at
tempts by large distributors to monop-
olize the milk market in the District
Of Columbia" and that the testimony
also tends to show that this condi-
ton is not confined to the District
of Columbia milk sheds, but likewise
exists in all the principal milk sheds
in the United States"
Senator McCarran also criticized
some Of the regulations and require
ments he said have been imposed on
dairy farmers in this area by health
authorities in connection with the de-
termination of dairy farm milk scores.