Evening star., 1939-06-07
Dairy Net Profit
Cent a Quart,
Probers Told
Return of IS Per Cent
On Invested Capital
Is Reported
By JAMES E. CHINN.

4 on grade A seal Test milk deNV-
cred to the home, Norman E. Simp-
son of the United States General
Accounting Office today testified
before the House committee investi-
eating the District milk situation.
Mr.. Simpson, an accountant, was
loaned to the committee to check
up on the records of several Wash
ington dairies.
He told the committee the net
profit to the dairy in 1888 on all
grades of milk it sells was one-third
of a cent a quart. The company S
net profit in that year, he said,
amounted to s462 ,2O5O5, which rep
resented a return of 1853 per cent
on its invested capital.
100000 in Dividends.
Mr.. Simpson also testified the
dairy paid out $1,000 in dividends
in 1888 on its $4,000 shares of capt.
tai stock outstanding The salary
of its president, Edgar M Braw-
ner, he said, was $4,000 in that
year. In addition, Mr.. Brawner,
he explained, received 5000 as a
Christmas present.
Salaries of other officers of the
dairy likewise were given by Mr..
Simpson. One vice president, he
declared, received $4,000, 5000
Christmas present, as we'll as a
$4,000 bonus; another $4,000, and a
third, who serves as secretary,
$4,000. Taxes paid by the company
last year, he added. totaled 1888, 3,84l
= Norman E. Simpson of the United
States General Accounting Office
today poured into the record of the
House committee investigating the
District milk situation financial sta
tistlcs relating to the operations OF
the Model Farms and Chestnut
Farms-Chevy Chase dairies.
Loaned to the committee by the
General Accounting Office, Mr..
. Simpson went into detail to show
the total purchases and sales of the
two dairies, which, he said, he had
gathered from their books.
AS result of the threatened fisti-
cuffs late yesterday, Capitol police
man was stationed in the committee
room and took seat directly behind
Corporation Counsel ElWood H. Seal,
who three times during the investi-
CATION has clashed verbally with
Representative Schultz, Democrat,
Of Indiana.
Brings Oversize Gavel.
Representative Bates. Democrat,
of Kentucky, chairman of the Inves-
tigating Committee, arrived at the
hearing with an oversize gavel,
which he kept close beside a much
smaller gavel he has used during the
hearings to rap for order.
Estil w. Smith gave the committee
yesterday the result of his examlna-
ton of the books of the Maryland
Virginia Milk Producers Association
and the Embassy-FairfaX Dairy. In
the interim John F.. Hillyard, coun-
sci for the Wakefield Dairy, inserted
In the record statistics showing that
his firms highest bacteria count for
May, according to the records Of the
District Health Department, was
5000 bacteria per cubic centimeter.
Mr. Hillyard also explained the
highest bacteria count found in the
milk of the Wakefield Dairy in April
was 4,800.
Grand Jury Considers Evidence.
The District Court grand jury
=. was slated to continue today the
consideration of evidence revolving
around Whiting c. Faulkner post
master at Martinsburg w. Va, and
his testimony before the milk in
vestigation.
Assistant United States Attorney
John w. Fihelly, under the direction
of United States Attorney David A.
Pine, is presenting the evidence for
grand jury consideration.
Witnesses known to have had a
hand in the investigation were OBJ
served yesterday afternoon in the
antechamber adjoining the grand
jury room. These included J. Ed
ward Burroughs, jr, special counsel
for the Milk Investigating Commit
tee: Capt. Floyd Truscott and 1t
Earl P. Hartman Of the Metropoli-
tan Police Department; B. B. Der
rick. manager of the Maryland-Vir-
ginia Milk Producers Association
Inc; Adam Giebel, chief clerk in
the corporation counsels office, and
others. On the list, scheduled to teS-
tlfy before the grand jury also were
I. D. Van Meter of Martinsburg and
the Washington attorneys, John S
others.
Fisticuffs Threatened.
Yesterdays milk hearing was
brought to close by threatened fis-
ticuffs between Representative
Schultz, Democrat, of Indiana, and
Corporation Counsel Elwood H. Seal
There were threats, too of a fight
between Mr.. Derrick and C. V. Dye
an independent milk producer OF
Frederick, Md
Charges of liar and damned
liar" were hurled frequently before
the spacious House caucus room, in
which the milk hearings are being
held, was cleared of the witnesses
and spectators.
Heated verbal arguments have
punctuated previous hearings of the
milk committee, but the climax this
afternoon was the most riotous in
! the history of the milk investiga-
ton.
1t started when Mr.. Barbour,
counsel for the Maryland-V Virginia
Milk Producers Association, pro-
tested an earlier ruling of the COM
mittee that attorneys for various
groups would not be allowed to cross
examine witnesses unless they made
particular reference in the direct
testimony to the firms they repre-
sented.
Mr.. Barbour had objected to the
ruling, contending it was an unjust
infringement" on the rights of the
persons interested in the milk in
- vestigation.
Seal Also Objects.