Evening star., 1933-12-06
WALLACE TERMS
MILK MARKETING
AcCORDS FUTILE
Decides Not to Force Agree
ment Upon Washington Mart
if Farmers Object.
ALTERNATIVE CONTROL
SYSTEM TO BE DEVISED
Plea for Higher Prices Is Made
by Head of Maryland and
Eastern States Groups.

Agricultural Adjustment Administra-
ton milk marketing agreements have
failed to accomplish desired results,
Secretary Wallace admitted today, in
announcing he would not force an
agreement on the Washington market
If the dairy farmers did not desire one.
Wallace's announcement came during
his regular semi-weekly press confer
ence when it was brought out by news
paper men that there is considerable
agitation against promulgation OF
marketing agreement in this area.
when dealing with the fundamental
problems of supply and demand" the
secretary said, you wonder whether
the agreements are accomplishing any
thing.
More Goes to Butter.
"The agreements have done some
good to farmers, but on the whole they
have not accomplished as much as was
very real effect on farmers prices, in
creasing the price at least 40 cents a
hundredweight. But the net result has
been to force more fluid milk into
butter"
As an alternative proposal, Wallace
said q production control system would
have to be devised that meets the
market"
Meanwhile, Isaac w. Heaps, EN-.
battled "czar" of the Washington
Baltimore milk markets, pleaded for
increased prices for the distressed dairy
farmers who threaten to depose him as
head of the Maryland State Dairymen's
Association and the Eastern States Milk
Marketing Association.
Appearing at hearings In Baltimore.
aII in, 10
producers and consumers under the
milk marketing agreement recently
placed in effect in the Baltimore milk
shed. The hearings are being conduct
ed by the Agricultural Adjustment Ad-
ministration and are presided over by
John Henry Levin.
The proceedings have an important
bearing on the Washington market, in
asmuch as the producers code for this
area. recently submitted to the A. A. A..
is patterned after the Baltimore agree
ment. and Heaps occupies a prominent
position in this market.
Heaps was questioned closely by
Levin. B. B. Derrick. principal econo-
mist of the A. A. A. dairy division:
John S. L. Yost. chief attorney of the
A. A. A. legal division. and Leroy Peter
son of the A. A. A. consumers counsel
The officials were particularly anxious
to learn full details of Heaps activities
in the Baltimore market and to deter
mine the obligations of members of the
Maryland State Dairymens Association.
Farmers Demand Raise.
The hearings we're called on . pro-
posed amendment to the milk code,
calling for a Accent per gallon in
crease in Glass / milk prices, raising
the farmers price from 22la to 261.
cents. The price boost was demanded
by the dairy farmers, who contend they
are not making cost of production. and
who charge Heaps with being derelict
in his duty to protect the interest of
the farmers
More than 500 persons, mostly farm
ers, were present when the hearings
opened yesterday and the hotel room
was packed again today as the pro-
ceedings entered the second day.
Meanwhile, In Washington, the Ma
tional Cooperative Milk Producers Fed
Grafton announced it had submitted to
Secretary Wallace a comprehensive
eight-point plan for protecting dairy
farmers and controlling national pro-
duction of milk and its products
Leon A. Chaplin. North Bangor. N. Y,
chairman of the Federation's Produc-
ton Control Committee. and Charles
w. Holman, 1e0eratlon secretary, pre-
sented the plan to Wallace
Virtual exclusion of foreign dairy
products Is demanded in the fedora
tons plan. which islands squarely upon
the historic position of the federation as
demanding the home market for agri-
cultural products" Drastic limitation
of imports of competitive animal, vege-
table and fish oils and fats. and raw
materials from which such oils and fats
are extracted, is called for in the plan.
Production of oleomargarine also
would be limited during the depression,
as also would the cultivation of pro-
duction-control acreage in dairy feed
crops. Other points include Elimina-
tion of tubercular and other diseased
dairy cows; far-reaching program in
volving land classification and the tax
ing of marginal and submarginal land
out CT cultivation and restoring 1t to
the public domain; Endorsement of
Dairy Marketing Corporation activities
in disposing of surplus stocks, and the
utilization Of acreage-reducticn or some
other control program to curtail pro-
duction.
The plan proposed processing tax
on butterfat content of all dairy pro-
ducts to defray expenses OF production
control and losses in the marketing OF
surplus dairy products. Limitation OF
the tax to not more than per cent
ad valorem was suggested.
JnN It'd AnTTT0N