Evening star., 1933-05-15
MILK PRICE PACT
SOUGHT At PAR[EY
Discussion May Bring First
Tangible Result From
New Farm Law.
BY the Associated Press.

In what may lead to the first tangible
result of the new farm law. representa-
tiveS of producers and professors of
fluid milk who supply the Chicago
metropolitan area today sought to COM
plete trade agreement to bring about
better and more stable price to both
producers and dealers.
They were instructed by George N.
Peek. chief administrator Of the farm
act. Ito agree among themselves" and
submit the result to him.
II Peek and Secretary Of Agriculture
Wallace find the agreement satisfactory,
they have power under the. act to
legalize 1t and require its observance.
Meanwhile, Peek conferred informally
with several representatives Of the cot
ton industry regarding the possibilities
Of working out q plan to improve the
price and position Of the crop this year.
No formal action will be taken until
after a commodity council for cotton
has been established.
Thousands Of Queries Received.
Those attending today's conference
included Or. TAFT Butler. Raleigh, N.
c., and L. H. Duncan, Auburn. Ala,
State director of extension, who may be
appointed chief administrator for Ala
bama.
The main approach to improvement
Of conditions In the dairy industry will
be through trade agreements, It was
explained at the Department of Agri-
culture as thousands Of queries from
dairy farmers and others were received
asking for the program on various COM
modities.
The exact plan to help the dairy in
dustry will not be known for some time.
First a commodity council covering that
product must be set up and the unusual
conditions in the dairy industry ex-
amined and the possibilities of aid
methods thoroughly explored.
The industry operates In two princi-
pal ways. It supplies nearby markets
with fluid products and it offers fin
ished products such as butter and
cheese on q national market.
Free From Trust Law Attacks.
The department feels that agreements
covering local situations may be drawn
and put into effect particularly COW
ering fluid products. milk and cream,
and that the more general or national
problems of the industry can be handled
in similar way, but less promptly.
These agreements can cover any num-
bef Of subjects and are free from al
ldCA lAlC nAIl-lA uOt laws. OAlCl
them, for instance, producers and pro-
cessors of milk for q given area could
unite on q minimum price to be paid
for raw milk and for bottled products
as delivered to the consumer
The agreements also could divide up
the territory Of competing dealers to
prevent overlapping Of their delivery
systems. Economies which would re-
suit theoretically could be reflected In
better price to producers and dealers
The agreements also could cover
scales of wages to be paid and hours OF
employment. But before they may be-
come effective they must have the ap-
proval Of Peek and Wallace or men
delegated by them to execute agree
ments. If these approve an agreement
opposed by q minority of professors
they have power under the act to i'm
pose licenses on all professors and deal
ers, refusing them to those who did not
observe the agreement. For each days
operating without permit they would
be subject to q fine of $1,000.