Evening star., 1933-07-30
FIRST PACT UNDER
FARM ACT IS MADE
Milk and Cream Distribution
Agreement for Chicago
Area Approved.
Bv the Associated Press.

BY the Associated Press.
The first marketing agreement under
the farm act-covering the distribution
of fluid milk and cream in, the Chi
cago area-was approved yesterday by
Secretary of Agriculture Wallace.
1t becomes effective Tuesday noon
and represents another step in the ad-
ministration'S effort to improve and
stabilize farm prices.
Mere than 100 additional agreements
are expected by farm administrators to
be negotiated within the next six
months, affecting the distribution OF
milk, vegetables, fruits, eggs, poultry
and other important food products.
Fixes Minimum Prices.
The agreement establishes minimum
prices to be paid by consumers to pro-
ducers, wholesalers and retailers and
outlaws many competitive trade prac-
tices, including price-cutting by dis
tributors.
It is exempted from prohibitions OF
the antitrust laws unless Wallace says
otherwise.
All distributors will be automatically
licensed at the time it goes into effect
&c assure their observance CT its pro-
visions.
A minority of milk interests opsr-
fting in Chicago opposed many pro-
visions of the agreement, but they will
be required to abide by them as well as
members CT the majority group which
submitted the code of competition.
May Revoke Licenses.
Licenses of any individual or con-
Germ, including professors, wholesalers
and distributors, can be revoked at any
time that violation of the agreement Is
shown. Operation without license is
punishable by a fine of up to 81 900
daily.
Stores distributing milk in the Chicago
area will be licensed as well as regular
delivery agencies. None will be required
to obtain a documentary license, al
though these will be available at 81
each when licensing commissioner is
appointed at Chicago. This Is expected
soon.
The commissioner, whose salary and
expenses will be paid by the Department
of Agriculture, will investigate COM
plants from the industry of alleged
violations of the agreement and Is en-
powered TO order licenses revoked.
TO Prosecute Violat0rs.
In addition, he will gather evidence
for prosecutions in cases where, dis
tributorS refuse to discontinue VIOLA
tions Administrators said prosecutions
will be handled in the Federal courts
and will be directed by the office OF the
United States district attorney.
Increased price schedules which went
into effect in Chicago on May 16 were
ratified in the agreement, the prices
varying by classes and grades.
Administrators estimated the agree
ment will stabilize the income of about
$1,000 dairy farmers in Illinois, Indiana
and Wisconsin supplying milk for the
Chicago market. They said the May Is
price schedule increased the return to
producers an aggregate of about 10000
q day.
Twenty-Five practices were listed as
unfair. including misrepresentation Of
the article sold; payment of any rebate
or the making of special inducements
to customers to stimulate business; pay
ment Of premiums ~or allowances OF
discounts to new customers; offering
or giving of prizes to employees for OBJ
tanning new customers; the giving away
of goods without consideration; the hir-
ing of any person as an employe while
such person is in the employ OF an
other distributor; the making Of special
deliveries to retail customers.