Evening star., 1933-11-03
RAISE FOR RETAIL
MILK DEMANDED
Producers Association Aide
Says Increase Alone Can
Save Independents.

Milk prices to the Washington con-
sumer must advance under the pro-
posed milk marketing agreement for
this area or small independent diaries
will be forced out of business, John Nc
Gill, jr.. secretary of the Maryland and
Virginia Milk Producers Association
testified today when the Senate District
Committee resumed hearings in the
milk investigation.
McGill. the first witness, said the s.
cent increase in price to producers pro-
posed in the code submitted to the
Agricultural Adjustment Administration
would force a consumer-price rise OF
bankrupt small dairieS.
In answer to questions by Elwood H
Seal. special investigating counsel OF
the committee. McGill testified larger
dairies were IN better position to take
care Of the proposed increase In pro-
ducer prices because they are "operat-
ing on wider margin"
He disclosed the production cost OF
milk was 29.67 cents per gallon, where
as the highest price now being paid to
the dairy farmers is 28.25 cents. from
which is deducted a 1-cent brokerage
fee. This price Is only for class milk
and does not take into consideration
lower prices paid for class 2 and class
milk
The average prices paid in the last
five months to producers, according to
McGill'S testimony, ranged between
2259 cents in May, and 24.7 cents in
September of this year.
McGill was questioned closely by Seal
as to his production figures. The in
vestigator cited a speech made by Nc
Gill on October at Ashburn, Va, in
which the producers association Of
fetal declared an investigation had
showed production costs at about "a
cents. but that he had said at that time
I'VE feel this price is too low and would
be harmful to our chances to obtain an
increase in the milk-marketing agree
ment"
Explains Statement.
McGill admitted having made thu
statement, but explained he did no
have at that time complete informa.
ton as to production COSTS Unoel
questioning by Seal, however. he sait
that MONTGOMERY County producers hao
submitted a production cost OF apou'
~ CtllLo, Willie tllOcC AL W. oAaAu S'NA
aged about "a cents. He said that he
had not worked Up any figures OF M
own.
Under questioning by Chairman Kne
McGill asserted he did not believe milk
prices here are too high.
What about prices in Buffalo, fol
instance, and other cities?" asked Sen.
ator King.
But it is not the same quality milk, >
McGiu demurred.
THAT is simply a matter Of opinion,
King retorted.
Questioned further about the milk
marketing code, McGill testified he
drafted the agreement without con-
sultation with Government officials.
Were you bold enough to take the
code to the Agricultural Department
alone and without knowledge before
hand of Agricultural Adjustment Ad-
ministration approval?" Chairman King
asked.
"Yes."
"You did that because DR.. King
(Clyde L. King, milk arbitrator of the
Agricultural Adjustment Administra-
tion had approved it?"
Denies Code Identical.
"As matter of fact" Seal inter
jected, sit is identical with the Balti-
approved, is it not?"
TT is not"
Seal and McGill then argued the
point and finally the milk producers
Continued on Page 2, Column 81