The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-03-18
MILK MAY DROP
IN PRICE APRIL /
Troubled Waters of Producers
and Distributors Are
Gained.
GRADE r TO Re 13 1-2C.
Both Sides at Meeting Decide
to Ask Hoover to Continue
Commission.
GRADE B TO Re 13 1-2C.

There is every indication that the
Federal Milk Commission. whose tenure
Of office has become very uncertain, will
be allowed to continue on its milky way
fixing prices for the producers and con-
sumers, And unless the signs Of the
times are all wrong things are haping
up for drop in the price Of milk to the
consumer on April Fools day.
Indications last night were that pro-
ducers and distributors who have been
engaged In a tug OF war for several weeks
will get together on a proposition TO ask
Mr. Hoover to extend the life Of the COM
mission after April !. This will be ac-
complshed. II Is expected, under an
amendment to their original agreement,
which called for the appointment of the
commission with authority to fix prices
for period OF three months
The last obstacle in the way of an
amicablc agreement. 1t was said. was re-
moved yesterday. The Federal Milk
Commission met In the Hotel McAlpin
and so did the officers OF the Dair. :
mems League and representatives Of the
Milk Dealers Conference Board. The
producers and distributors had a series
Of conferences ind reported to the CON-
mission each time one or the other side
made a concession.
Trouble Probably E.ded.
When the commission adjourned to
meet again in the McAlpin at o'clock
tonight the belief was expressed that the
way will have been cleared to q settle
ment Of the difficulties II the programme
goes through the commission will receive
Joint agreement that will be forwarded
to Mr.. Hoover asking him to let the COM
mission remain on its job for certain
period OF time and the dairymen and
! distributors will patriotically abide by all
its rulings.
I One point had not been cleared up last
night. and that was the question as TO
what shall be done to get the condensed
milk companies which had kicked plumb
over the traces. to become parties to the
agreement. The condensories did not
take par, in the Hotel McAlpin delibera-
tions.
The big question that has stirred the
producers and distributors most in ar
riv4ng at basis for their agreement
has been the issue Of surplus milk. This
is the milk in excess Of the distributed
fluid milk that goes into the manufac-
ture of butter and cheese and IN the
making OF condensed milk.
1t Is understood that the farmers have
consented to accept $2.50 per 100 pounds
for 3 per cent. milk as the base price for
April, which is admitted to be sub
stantial reduction. The base price In
the country was fixed by the Federal
Milk Commission at $3.l0 per 100 pounds
for 3 per cent. milk for the month OF
March. To this. however. was added
twelve cents to recoup the farmer for
har h,o y ktyU
the price to the producer 1922. The
distributor also was allowed a recoup OF
twelve cents per 100 pounds.
1t Is also reported that the farmers,
although they were promised that the
recoup would be continued at the same
fixed rate during April. have suggested
their willingness to pass up the April
recoup.
They All Appear Happy.
None Of the farmers or the distributors
who attended yesterdays conferences
would talk about the events OF the day,
but 1t was apparent that both sides were
feeling In better spirits than they have
felt in q long time
In the past when the farmers in
creased the price Of milk one cent a
quart to the distributor the distributor
increased the price two cents to the
consumer Milk dealers have long In
sisted that 1t was absolutely necessary
for them to double any increase that
was made owing to the increased loss
by wastage OF a more expensive milk
and by other things.
II it so happens that the producer $
price for April Is reduced at the rate
OF la cents a quart 1t will undoubtedly
mean that the price TO the consumer
will go down. but how much nobody
dares to guess.
It is said that the distributors have
been arguing that there can be no re-
duction in the cost Of distribution. as
they are fixed by conditions. They have
been talking about a reduction Of ~
cents a quart to the consumer. making
grade B milk 1871 cents instead OF
l4is cents as at present.
The producers have been contending
that a greater decrease In price could
he made to the consumer and have nor
hesitated TO say that they do not think
1t fair that they alone should make all
the concessions. A decreased price
means increased consumption OF milk
and that Is what farmers and milk
dealers have been praying for.