Evening star., 1933-12-15
Charges Trades Present
Methods Have Destroyed
Confidence of Public.
PRODUCTION CONTROL
HELD BASIC PROBLEM
Annual Report Reviews Work of
A. A. A. in Effort to Better
Milk Situation.


shaken public confidence and that
neither producers nor consumers have
been treated fairly.
He said the department, through
powers granted in the agricultural ad-
Justment act, is desirous of assisting
the industry and to place the process
ing and distribution of its product on
q basis that will invite the full public
confidence.
The report devoted more than three
pages to the dairy industry and went
into the question of production control
in detail. Wallace said milk producers
have no alternative except to adjust
their production if they are to place
themselves in a position where prices
for dairy products will continue at rea-
sonably satisfactory levels"
Cites Trust Tactics.
Discussing dairy corporation tactics
and racketeering in milk, the Secretary
wrote:
Large dairy corporations have not
shared with the producers and con-
Sumers major advantages they have had
from large scale operation and resulting
lower operating cost. These advan-
tageS, instead, have been reflected in
large executive salaries and liberal stock
dividends on capitalizations that too
frequently do not rest upon the intrinsic
values in plant and equipment
Producers associations, particularly
In fluid milk markets. have frequently
sought market advantages for their
members by entering into agreement
With distributors on basis that re-
str1cted marketing opportunities to their
own members and protected distribu-
tors profits.
Such action results in higher prices
to consumers in these areas and in lin
tied opportunities for the remainder of
the dairy industry. If producers as
sociations are to retain full support of
their members, they will need to give
more attention to the opportunities that
exist for economies in distribution and
for adjustments in charges from the
farms of producers to the homes of
consumers.
Denies Racket Tactics
"The threat that faces new agencies
in many milk markets, the destruction
of dairy plants by bombs and other
means; the concessions that mus. be
made for selling milk in many apart
ment houses are all evidences of un-
desirable forces at work in the distri-
button of milk and its products.
More aggressive action is necessary
to rid the industry of these undesirable
elements. The Department of Agricul-
ture, through the new powers granted
it under the agricultural adjustment
act, is desirous of assisting the dairy
industry to adjust itself to new eco
nomic conditions and to place the proc
essing and distribution of its products
~>on basis that will invite the full con-
fidence of the general public
Three measures are being developed
under the farm adjustment act to i'm
prove conditions in the industry, Wal
lace said. They are Marketing or
trade agreements, purchasing opera
tions and production control"
Reviews A. A. A. Program.
The report reviewed activities of the
A. A. A. formulating milk marketing
agreements in various milk sheds
throughout the country, similar to the
one now under consideration by the
department for the Washington area.
Three proposed amendments to the
Baltimore milk marketing agreement,
submitted by the Independent Farmers
Protective Association, were under con-
olStCi oI1Ol1 CO0oy NY f4Qs
juStment Administration officials.
The changes in the code, which
recently was placed in effect on the
Baltimore market, are an outgrowth
OF hearings held in the Maryland city
a week ago under the Craftsmanship of
John Henry Levin, chief of the A. A. A,
license enforcement section. At those
hearings dairy farmers demanded
Accent per gallon increase in class
milk prices
The amendments included in a brief
submitted by W. L. K. Barrett, jr.,
attorney for the Protective Assecia-
ton, would change the present agree
ment to:
Three Amendments Proposed.
1. Put all milk producers on an equal
basis with respect to class l and 2
ALLEGATIONS.
2. Authorize the Independent Farm
ers' Protective Association to supplant
the Maryland Dairy Council as the
administrative agency for the inde-
Gil only its previous duties which affect
the whole dairy industry in Baltimore
3. Appoint Milk Industry Board of
five members to supplant the present
Adjustment Fund Committee, now COM
posed of George S. Jackson, vice presi-
dent of the National Dairy-owned Fair
field Western Maryland Dairy. and
Isaac w. Heaps, manager of the Mary
land State Dairymen's Association.
Capital Dairymen Disagree.
Washington milk shippers and dairy
owners are watching with interest the
fight being waged on the Baltimore
code. Two proposed agreements for the
local market are now pending before
the A. A. A., one of which is patterned
after the code promulgated for the Bal
timore milk shed. The other. submit
ted by the Independent Milk Distrib-
utors' Association, differs radically IN
that it proposes that the farmer be paid
one price for his milk, rather than
making three separate classif1cationS as
is now done. Hearings on a Washing
ton code are expected to start some time
next month.
Seek Milk Industry Board.
The Milk Industry Board, which the
association asks be substituted for the
Adjustment Fund Committee, would be
composed OF a representative OF the
M. S. D. A., one from the I. F. p. A.,
one from the distributors voting accord
ing to gallonage, one from the distribu-
tors voting according to number and a
fifth member unafhliated with the milk
industry.
Meanwhile, in Washington, Raymond
Davis, branch manager of the Breyer
Ice Cream Co., issued statement deny
ing charges OF Charles McCloskey, busi-
ness agent OF the Ice Cream workers
T~-l A14k h.