Evening star., 1934-01-19
J. H. Mason, New Division
Chief, Would Insure Pro-
duCerS' Prices.
MOVE WOULD HALT SALE
OF SURPLUS IN BOTTLES
Official Asserts Success of Scheme
to Buy Independent Plant De.
pends on Backers.

The Agricultural Adjustment Admin
istration has offered to make a month
to-month audit of Washington dairy
company books to prevent distributors
from selling surplus milk in bottles. j.
H. Mason. new chief of the dairy divi-
sion, announced today.
Mason, in his first conference with
the local press, said such an audit
would be an insurance to the producers
on this market that they are being paid
the correct amounts for their milk and
that the product is being used in the
same classification as it is sold
There are three uses to which milk
Is put by dairies-fuid milk, fluid
cream and milk for manufacturing pur-
poses. Up until January l. three sep
arate prices were paid for all milk. al
though Health Department regulations
required that it be of the same high
quality.
Surplus Sold As Fluid Milk.
Testimony before the Senate Milk
Investigating Committee showed that
thousands of gallons of so-called sur
plus, for which the farmers were being
paid about 10 cents a gallon. were being
put into bottles and sold as fluid milk.
for which the farmer should receive
between 26 and 20 cents per gallon.
The month-to-month audit plan
would be incorporated in milk mar
keting agreement for this territory ac-
oording to Mason, former Iowa CO.
operative head who succeeded Dr. Clyde
L. King, who resigned from the A. A. A.
under fire of the Senate Investigating
Committee.
Under the new policy of the Adjust
ment Administration, however, no in
creases over present local farm prices
would be provided in the code, however.
Neither would there be any limitations
on the territory embraced by the Wash
ington milk producing area, as was
provided in marketing agreements pro-
mulgated by the A. A. A. under the
King regime.
Favors competitive Angle"
Mason, who admitted he had made
no study of local marketing conditions.
said that if a code was approved for
this area, it would be based on 'the
competitive angle and past history"
Cost of production is not factor,
he said The Senate Committee was
presented with evidence showing that
the cost of production in this area Is
approximately 80 cents a gallon, where
as the weighted average price for the
various classifications of milk is only
about % to "a cents gallon.
With respect to a proposal that the
Maryland and Virginia Milk Producers
Association buy a local independent
dairy company and manufacture its
own market surplus. Mason said such
plant had been operated successfully
in Des Moines. In that city, however,
there is a far greater surplus than
h. q
Depends on Cooperative.
Operation of such plant in this
territory depends on the strength of
the cooperative and the amount of
milk on the market" Mason said,
adding that he did not have sufi-
cient information to arrive at definite
Discussing the audit plan, Mason
said he had told leaders of the pro-
ducers' association that what they
needed lis somebody to 60 in an audit
the books Of the distributors and find
out how the distributors are using the
milk and see to it that the farmers
are paid for the proper amount in
the proper classif1cations
IF the farmers don't want a code or
q license, they don't have to have one" :"
he asserted. 1T is entirely a voluntary
matter"
Change in Store February 1.
However, with the junking by Febru-
ary l of all marketing agreements now
in force and the establishment of
processing taxes, only producers on
markets where there are codes will be
permitted to share in the benefits of
the levieS, Mason pointed out. The
new policy provides for every farmer to
be given an individual production quota,
beyond which he cannot go if he de-
sires to receive his proportion of the
processing tax.
Meanwhile, in Frederick, Md, E. C..
Speaks. first vice president of the as
sociation and staunch supporter of
the present management, has been re-
moved from the co-operative's board of
directors, effective the first week in
February
Removal Of Speaks was voted by
Frederick County members of the asso-
citation at meeting in Frederick yes
terday. At the same time, the Mary
land dairymen reelected two other
members who are avowed opponents of
the management, giving the "insur-
gents" or anti-management faction
three of the five Frederick County di-
rectors.
McCardell Is Chosen.
Albert N. McCardell of Frederick was
chosen to replace Speaks. He will take
Office at the annual meeting next
month at Silver Spring. E. G. Biser of
Adamstown and William j. Welcome of
New Market are the other two in
surgent directors.
At Fairfax County meeting in the
Court House last night, former Senator
Joseph L. BristoW, also prominently
identified with the anti-management
{ faction, was reelected as a director
without opposition. He pledged him.
self In an acceptance speech to con-
tinue to fight for reforms within the
organization.
Insurgents Expect Recruits.
: Two other Fairfax County directors
: will be chosen today, one at meeting
( this afternoon at Herndon, and the
: other tonight at Groveton. Both meet
ings are expected to elect men who
will join Bristow in the fight for re-
organization of the association.
Should Fairfax County select an en-
z tire slate opposed to the McGill- Walker
management, the total number of di-
rectors on the anti side will be nine,
divided as follows: Three from Fred
erick County, Md; three from Fairfax
County, Va; one from Loudoun County,
: va, and two from Fauquier County,
Va.