Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-09-15
milk AGREEMENTS
TO Be GIVEN TRIAL
Marketing Pacts Will Be
Given 30.Day Test Before
Final Adoption.

BY the Associated PreSS.
Finding the going rough in admins
tering previous milk marketing agree
ments, the Agricultural Adjustment
Administration yesterday made an
about-face on its milk policy and an
nounced that henceforth milk market
ing agreements would be subjected to
30-day trial period before being
definitely established.
The action involves only the fixing
of minimum prices to producers and
maximum prices to consumers under
the new policy, with In the meantime
a thorough study of the books of the
distributors, dealers and stores to de-
termine price spreads
The milk marketing agreements al
ready approved, particularly that for
Philadelphia, have caused the Farm
Administration continuous trouble. The
farmers shouted they weren't getting
enough and the consumers yelled just
as vociferously they were being
gouged.
Agreement Reopened.
The Philadelphia agreement already
has been reopened and George N
Peek, farm administrator, who made
the announcement yesterday, said
pacts now in effect would be reviewed
also if that was found necessary.
In effect" he said the admins
ration is preparing to apply to all
pending agreements and licenses the
scrutiny now being given the Phlla-
delphia agreement"
Describing the policy as an "emer-
gency pian," Peek said its basic prin-
Ciples were:
Agreements, with schedules of farm
and retail prices, will be approved for
a period Of 80 days.
Licenses. which are more limited
in scope than the agreements, will be
issued to distributors, dealers and
stores. etc, for this 30-day period.
These licenses will require payments
to farmers of the agreement price on
the baSe-surplus plan OF prices.
Reports Will Be Required.
Distributors. dealers, stores, etc, will
be required. under the license, to make
reports within the 30-day trial period,
containing evidence as to the justifi-
cation of retail price schedules con-
tanned in the agreements. The admin
iStration will have full access to the
books of distributors, dealers and stores,
etc, to aid in its study Of the spread.
The temporary 30-day license will
not contain schedules Of retail prices.
but for protection of consumers during
this period a maximum retail price
will be provided.
If data collected on the final pro-
posed price schedules are satisfactory,
they will be put into effect. Otherwise
a hearing will be called to collect evil
dence on proper prices, but if it is I'M
able to make up its mind the admin
istration will let the maximum prices
for protective purposes stand.
Not Fair to Farmers.
Peek said he did not feel 1t was fair
10 the farmers to let them receive low
prices while retail price details were
being worked out.
The 30-day period will be tried out
first in the case of the Georgia agree
ment. which was sent to Atlanta Tues
days for signature.
That pact calls for a price to farm
ers of $3.50 for class l milk, except in
Augusta. where the price is 1882. For
class 2, the price is $3.50 and sl.86 in
Augusta. All prices are f. o. b. per
hundredweight.
The procedure also is to be applied,
Peek said, to other cities, where al
though an emergency situation exists"
agreements and licenses have not yet
been approved
He said cities in this class included
Baltimore, Evansville, Ind; Los Angeles,
San Diego and Oakland.
Other pacts which have progressed
through the formal hearing stage are
San Francisco, Knoxville, Tenn; Char
lotte, N. c.; Florida, New Orleans, Gin
cinnati, Providence. R. l.; Richmond,
Va; Wichita, Des MONIES. the Quad
Cities"-Moline, Rock Island East Mo-
ftne, H., and Davenport. Iowa-Bristol,
Tenn, and Chattanooga. Tenn.