Evening star., 1933-08-27
MILK AGREEMENT
TO Be MADE OVER
Philadelphia Controversy
Causes Decision to Held
New Public Hearing.
BY the Associated Press.

By the Associated Press.
Farm administrators tonight decided
to reopen the Philadelphia milk agree
ment to make possible reconsideration
of all its provisions including a sched-
ule of prices to farmers and consumers,
and announced that public hearing
will be conducted In Philadelphia,
probably next week.
Their decision was in response to Sc
we're criticism by both consumers and
farmers. A group of dairy farmers Fri
day instituted legal action in the Dis
trict of Columbia Supreme Court chal-
lenging the constitutionality of the
agreement, which went into effect a.
the beginning of the day after being
signed Monday by Secretary Wallace.
The exact date for the public hearing
will be fixed by Cylde L. King, chief of
the dairy section of the Farm Admin
istration, which announced that farm
ers, consumers and others with an in
terest in the agreement will be given
''an ample opportunity"
1t is the second agreement covering
distribution of fluid milk and cream
approved by Wallace The first. COW
ering the Chicago milk shed. Is now
the subject of pending litigation chal-
lenging its constitutionality.
The Philadelphia agreement affects
dairy producers over a large area, in
Guiding farms which produce milk for
Philadelphia, its suburbs, adjacent
towns and cities in "a counties Of the
State, 8 counties in New Jersey, II in
Maryland, 5 in Delaware and 2 in
West Virginia.
1t fixes price scale for farmers,
wholesalers. retailers and consumers
and sets up code Of competition COW
ering the distribution industry aimed to
eliminate price cutting. Wallace pro-
vided that it should be enforced by
licensing all distributors.
Revocation Provided.
In event of non observance Of the
price schedule and code by distributors.
their license can be revoked under the
law. For each days operation without
a license the farm act provides that
a distributor covered by an agreement
is subject to a fine of $1,000.
New regulations for modifying the
license provisions also were issued last
night over the name Of Wallace. who
left for South Carolina to spend the
weekend with Senator Smith. chairman
of the Senate Agriculture Committee.
The new regulations permit the Sec
retary to institute, on his own motion
or on complaint from licensed individ-
uals or corporations, proceedings to
modify the terms of license.
1t also provides that modification OF
license provisions may be considered in
the course of any proceedings called for
of
Application to Modify.
1t specifies that any person who con-
siders himself aggrieved or his busi-
ness injured" by the terms of the Ii
cense may file an application for modi-
flying its terms with Wallace. It also
permits a person whose license has
been suspended or revoked the right
to continue to distribute milk If it is
shown that the violation which led to
suspension of the license was not the
result of bad faith on the part Of
the distributor. In those cases it will
be possible for the violator to obtain
new license and to provide a bond to
assure continued observance Of the
agreement
Complaints that distributing in the
Philadelphia milk shed in some in
stances are making excessive profits"
will be considered at the public hear
ing George N Peek, chief adminis-
I traitor, explained that the hearing will
cover not only differentials between
store and wagon prices, but also the
price schedule and other provisions Of
| the agreement and license"
The agreement provides that dis
tributors using stores may apply for
the right to sell milk there for lower
prices than those charged in wagon de-
livery. Complaints have been received
that the application for this should be
| unnecessary and that a separate price
schedule for stores should be immedi-
ately provided.