Evening star., 1933-12-23
Schedule Provides 26 Cents
for Class | Product and
16 Cents for Class 2.
HIGHER BRACKET MEN
WILL BE HIT BY CHANGE
Wallace Reveals Plan to Ask Con-
gress for $500, 100000 to Aid
Dairy Industry.

IA vi ooSAS SAAoAA6C AZ ldIul piICco lOI
milk, the most important outgrowth of
the recent Senate investigation insofar
as the producers are concerned, was
ordered today by the Maryland & Vir-
ginia Milk Producers Association.
Prices will be &c cents for class 1
(fluid bottled milk and 16 cents for
class (used for cream and manufac-
turing purposes). There will be no
third class.
Announcement of the price change
was made by Frank Walker, president Of
the Milk Producers Association, shortly
after Secretary Of Agriculture Wallace
revealed plan to ask Congress for at
least s2OO,OO0OOO to aid the dairy and
beef cattle industry.
Walker said satisfactory arrange
mentS" were being worked out with the
local dairy companies to effect the
change in prices and that letters of ex-
PLANTATION were being sent to all pro-
ducer members of the association.
High Bracket Men Hit.
The association is taking care of low
bracket men in this change" Walker
said, "and naturally it is going to hit
the high bracket men little
BY low bracket men, Walker meant
the dairy farmers whose basic" allo-
cations are low; that is, those producers
who ship more second and third class
milk than first class. In re-allocating
the basic quotas, the producers who
now have high quantities OF class one
milk are bound to suffer, but at the
Senate committee hearings 1t was
shown that a number of farmers ship
almost their entire production of milk
in the basic class, for which the most
money is paid.
Substitution Of a two-class plan for
the present three-ClaSS plan does not
affect the price Of class one milk. but
represents consolidation of the present
class two and class three milk. Glass
two milk now sells for 20 cents gal
lon and class three for as low as 10
cents BY setting a l6-cent rate for
the consolidated surplus, the producers
association is benedting the farmers.
Plan to Be Given Test.
The two-price plan will be in effect
for go days as an experiment pending
adoption of milk marketing agreement
for the Washington milkshed
The announcement OF the price
change came almost simultaneously with
a statement by the Walker Hill Dairy
that it intended to contract for its milk
independent of the Milk Producers AS.
sociation. The independent distributor
will continue buying from members of
the association, however. but will have
no further dealings with the farmers
cooperative organization.
In consolidating classes 2 and
under one price. the dairy famer will
benefit considerably due to the fact
there is a large percentage of class
or surplus" milk on the market. The
consolidation will force the Chestnut
Farm Dairy, a subsidiary of the Ma
tional Dairy Products Corporation, to
pay a greater price for class 3 milk,
which is used for manufacturing pur-
poses
Testimony in the Senate milk in
vestigation showed some dairy farmers
ship as much as half their total milk
production as third-class milk. Under
the two-price plan. and with a reallo-
cation of basic quotas, those farmers
with high third-class allotments figure
to benefit considerably.
Direct OutgroWth of Protest.
Walker said surplus prices on this
milk shed are influenced too much"
by butter prices and that the price
change was decided upon by directors
of the association in order that local
milk prices would not be affected by
the butter market.
The price change was direct out
growth of the protest of Walker Hill
Dairy that 1t was being Disseminated
against by the producers association,
in that Chestnut Farms, Chevy Chase
and Thompson's Diaries are able to buy
milk, especially for cream purposes, at
four cents less per gallon.
Adoption of a resolution requesting
the $200,000,000 fund followed an all
day conference on possible amendments
to the farm adjustment act and center
ing on the dairy and beef cattle situa-
ton. Secretary Wallace earlier in the
day proposed use of such fund in
remedying an acute" milk and beef
situation, and in kilograms asked for
comment from members of Congress
and Governors of States primarily in
terested.
The farm leaders drafted recommen-
dations on amendments to the farm
act which will be presented to Wallace
for possible forwarding to Congress.
Their nature was not disclosed.
Presentation of the dairy relief plan
forestalled discussion of the admin
lStration's previous efforts to assist
dairymen of the country.
Wallace described the conference as'I
thoughtful'' and said he believed it had
made progress in furthering the admin
lstration's plans for agriculture.
The Secretary told the conference he
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