Evening star., 1939-05-21
Milk Situation
Here a Racket
Bates Asserts
Distribution Setup
Would OutcIuss
Al Copone,' He Says
By JAMES E. CHINN.

Control and distribution of Wash
ingtons milk supply is racket"
that would make Al Capone envi-
Gus, it was charged last night by
Chairman Bates of the House Com
mittee investigating the milk Situ-
alton.
Representative Bates, q Kentucky
Democrat, said he had drawn this
conclusion. although the inquiry has
been going on only three weeks.
His statement came as sequel
to charges made on the House floor
Thursday by Representative Schultz,
Democrat, of Indiana, a member of
the Milk Investigating Committee,
that giant monopoly" exists on
the Washington milk market.
Distributors Blamed.
Instead of a monopoly, it's a
racket" declared Mr.. Bates. 1T
may have monopolistic tendencies,
but the racket end of it would out
class AL Capone when he was at
his peak
IF there are any monopolistic
tendencies, they are with the dis
tributors and not the association of
farmers who produce the milk"
AS one illustration, Mr.. Bates
said, District official whose name
he did not reveal wrote him let
ter In which he said Baltimore
distributor who recently invaded the
local market was not given a per-
NIT until he made an "oral agree
ment" not to undersell other dis
tributors.
If that is true he declared. sit
clearly indicates that the Health
Department, or some one connect
ed with it, is dominated by the
distributors.
Chinese Wall Seen.
Mr.. Schultz, who is fighting to
have the Washington milk market
open to distributors in Indiana and
other Midwestern States. also had
told the House a determined effort
Is being made to put a Chinese
wall around the city to keep out
dairy products not produced by the
1900 farmers who make up the
Maryland-V Virginia Milk Producers
Association.
This organiza ton, whose men,
bers now provide nearly 30 per
cent Of the Districts milk supply,
Mr.. Schultz declared, is working,
hand in glove" with the National
Dairy Products Corp, whose subsidi-
aries include the Chestnut Farms
Chevy Chase Dairy, and the South
ern Diaries, which manufactures ice
cream. The Chestnut Farms Chevy
Chase Dairy, he said. earned net
profit Of $400,000 in the depression
year" of 1898.
Mr.. Schultz has a bill pending in
the House District Committee which
would amend the 1925 District Milk
Control Act to permit milk and
cream from outside the so-called
Washington milkshed to be shipped
into Washington under proper reg
ulation. He said he would seek
full committee approval of that
measure tomorrow and not wait for
completion of the milk investiga-
ton.
Another Bill Sponsored.
The committee also has before it
another bill designed to accomplish
the same purpose. sponsored by Rep
resentative Bolles, Republican, of
Wisconsin.
Favorable committee action on
either Of these bills probably would
result in an abrupt halt in the milk
investigation. since one of the prin-
cipal issues has been whether the
Washington milk market should be
opened wide to producers outside the
local milkshed
Regardless of the full committees
action tomorrow on either the Bolles
or Schultz bills, Mr.. Bates said he
would resume the investiga ton
Tuesday at 1890 am. B. B. Derrick,
secretary treasurer of the Maryland
Virginia Milk Producers Association,
Is scheduled to be the first witness
Some sensational developments are
expected while he Is on the witness
stand.