Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-07-11
TWO MILK PRICES
LAID TO DEALER
Assistant Corporation Coun-
sci to Produce Bills at
Senate Hearing.

Assistant Corporation Counsel Elwood
H. Seal said today he had confirmed
reports that one of Washington
diaries was selling milk to its retail
customers at varying prices He said
that when the Senate committee in
vestigating milk prices and casts here
holds its hearing he will be able to
produce bills showing that some re-
tail customers got the milk for II cents,
while others were paying 10.
The date for the hearing before the
committee will not be set until Senator
McCarran Of Nevada. committee men,
Der, returns to town some two weeks
hence Mr. Seal said that he was ready
to place before the committee material
as to the prices received by producers
for their milk. He was not yet ready.
he said. to 60 into detail as to the
profits of milk distributing companies
here.
One Case Completed
He said that hts accountants are at
work on the books of four companies
and in only one case has this work been
completed up to May. 1882. This re-
vealed a profit of 40 per cent to that
particular concern, and a considerable
increase over the rate Of profit since
1923, when it was II per cent.
Should the other diaries show similar
returns. they would do SO in the face
of declining milk prices since 1881.
Mr. Seal has figures to show that
shortly after another Senate committee
investigated food prices in Washington
in February and March. 1881. the retail
price of milk to the customer dropped
on April /, 1881, from Is cents to IA
cents per quart. although the price of
a pint remained stationary at 8 cents.
Again on May l, 1882, the price of a
quart was reduced from IA to Is cents
and of pint from to cents. This
is the present price.
During the time of these retail price
reductions, which amount to 8 cents a
gallon. the price paid to the producers
of milk has been cut cents gallon.
This started on April l, 1881. when the
per gallon price was reduced from 80 to
81 cents There was another cut Nav
another on May l of this year from q
to 26 cents.
Price System Changed.
Mr.. Seal said that on May Of this
year the system Of arranging prices
paid to producers for milk through the
Maryland. Virginia Milk Producers As
ISOLATION has been changed. Previously,
there were two prices. one for basic
milk and the other for surplus" milk.
The figures quoted above are the
prices on basic" milk. This was sup
posed to represent the amount of milk
necessary for fluid consumption and the
surplus" milk was that used for other
purposes.
Under the new system the producers
have basis milk and second and third
class milk. The second-class milk Is
that from which the milk distributor
takes cream and the third-class milk Is
surplus milk, which is sold for any pur-
pose and for any price which it will
command.
Mr.. Seal had before him today a
complaint from a member of the asso-
citation that this third-class milk was
being used as method for diff
Terminating among members Of that
association and that some Of them were
being unfairly charged up with larger
quantities of third-class milk than
should fall to their share. He has not
yet gone into this aspect of the situation,
however.