Evening star., 1939-08-04
Milk Monopoly
Action Urged on
Commissioners
Schultz Proposes Free
Flow Into District,
Thus Lowering Price
BY JAMES E. CHINN.


crat. of Indiana today suggested
that the Commissioners take steps
to destroy the monopoly" he has
charged controls the District milk
supply, and pave the way for a re-
duction in the retail price of milk
before Congress returns in January.
He said, in effect, all the Com
missioners have to do to bring
about an immediate cut in milk
prices is to declare an emergency"
exists with respect to the present
milk supply, and then open the
doors to milk and cream produced
in areas beyond the restricted local
milkshed
Mr.. Schulte'S proposal was con-
tanned in flve-page letter to Com
missioner George E. Allen, in which
he declared: Il deem it expedient
that the Commissioners of the Dis
trict of Columbia take some actioz
to protect the people of the District
between now and the time Congress
meets again"
In the letter to Commissioner
Allen, Mr. Schultz briefly recounted
the action of the House District
Committee resulting from the re-
cent milk investigation. and said:
Il suggest that the Commission
ers recognize the real situation
which has been so ably reported
upon by the District Committee and
declare an emergency exists with
reference to the milk supply and
permit any of the distributors, upon
proper application, to bring milk
or cream into the District of Colum-
bia from other milksheds under
proper safeguards. There is no in
spection so safe and sound as the
inspection of the product itself
when it reaches its final destina-
ton. The Commissioners could pro-
vide:
THAT the milk that is to be
imported into the District of Colum-
bia should come from milk sheds
under United States Public Health
supervision.
Inspection on Arrival.
"2-They could provide for in
spection of the product upon its
arrival in the District of Columbia
to determine that it is in every way
a fine and wholesome product for
consumption by the people of the
District.
Since the milk investigation, Mr..
Schultz declared, the Maryland and
Virginia Milk Producers Associa-
tion, which furnishes Washington
with nearly 80 per cent of its milk
supply, has taken away from the
independent dairies the producers
who provide their supply, even
though the milk constituted a sur
plus.
Then, he said:
THE Maryland and Virginia Milk
Producers Association is using its
surplus funds and its control of
practically all of the Washington
milk supply to subsidize certain milk
distributors in Washington in order
that they may take business away
from these independent dairies and
further reduce them to bankruptcy.
The association is blatantly open in
this operation and seems to gloat
over the fact that no constituted
authority has the interest or the
stability to challenge their unlawful
practice.
"Of course it will sooner or later
be stopped when the slow processes
Of law get around to taking action,
and proper and severe penalties will
be duly imposed; however, in the
meantime, the last vestige of COM
petition of the monopoly will have
passed into oblivion and the people
of the District of Columbia will have
no champion of cheaper milk for
them delivered to their homes. This
subsidy started, as far as I am in
formed by this producers organiza-
ton giving to certain distributors
milk at II cents per gallon to bid
for the Welfare Recreational Associ-
alton business. This business was
enjoyed at the time by the Embassy
Dairy and the bid was confirmed as
of July l, 1889, to the Sylvan Seal
Co., who purchases from the Mary
land and Virginia Milk Producers
Association.
Il have now been informed that
this subsidy price is being offered
and accepted by several distributors
who deal with this producers organ
ization and for the purpose of COW
ering any bids, such as District bids,
Government bids, chain restaurants
bids, such as the Atlantic White
Towers, Childs Restaurants, etc.
While the subsidy price is II cents
per gallon, average, the regular price
is q cents per gallon, and the only
requirement to get this cheaper milk
for the above purposes is to take the
business from Embassy and Fairfax
Diaries"
Company Issues Denial.
Among the dairies named by Mr..
Schultz on the House floor yesterday
as getting the II cents gallon rate
from the association was the Wake
field Dairy, charge to which the
company issued an emphatic denial
today.
John F. Hillyard, attorney for the
dairy, declared: This dairy is pay
ing full price to the association and
is not receiving one gallon at the
price of II cents"
1T is quite evident" Mr.. Hillyard
said. that Representative Schultz
was not certain he was stating facts,
because he safeguarded himself
through his congressional immunity
when he uttered his slanderous re-
marks, by speaking from the floor of
the House"
The attorney said that in addi-
tion to paying full price for it's milk
the dairy provides milk to the pub
lie through grocery stores in stor0
deposit bottles at II cents a quart,
and also gives daily what milk it can
to charitable institutions.
Mr.. Hillyard said the dairv foyore