Evening star., 1933-11-14
TWO LOSE PERMITS
FOR MILK PRICE CUT.
Farm Administration Acts
Under Philadelphia Agree
ment-TeSt Likely.
BY the Associated Press.

BY the Associated Press.
Two milk dealers have until next
Monday to convince the administration
they should be allowed to continue SELL
ing milk in the Philadelphia area.
Their licenses, granted under the new
agricultural laws, have been ordered re-
voked on the ground they paid farmers
less and charged consumers less than
required by the Philadelphia milk mar
keting agreement
F.. S. Miley Of Ephrata, Pa. it was
said, paid Sl.40 hundredweight and
charged 8 cents a quart; Stanley r.
Mccoy. of Hagerstown, Md. the Farm
Administration asserted, paid ST SO and
charged cents. The agreement pro-
vides that producers are to be paid a
minimum of S2.42 a hundredweight.
fob. plants in Lancaster. Chester and
Berks Counties, Pa. and that the retail
price be IL cents a quart.
The two producers have until Novem-
Der 20 TO obtain reinstatement of IL
censes. The law provides a fine of
$1,000 for each days operation without
a license.
Others in Prospect.
Other revocations in the Chicago and
Philadelphia milksheds are in prospect.
While there have been previous cita-
tions, this was the first action taken
under the farm act to bar from business
concerns or individuals covered by a
marketing agreement VINO fail to OBJ
serve its provisions The Chicago cases
are expected to result in several revo-
cation orders within the next 10 days.
Revocation was the weapon the ad-
ministration was given to enforce hun
dreds Of agreements now in preparation
through which it intends to combat
prlce-cutting and to seek higher re-
turns for producers of farm commodi-
ties, principally milk, tobacco rice, vege-
tables. fruits and special crops
When an agreement goes into effect
under the farm act, it is credited with
having "the force and effect of law"
and minorities refusing to sign 1t be-
come subject to its provisions when
licensing provisions are ordered.
Tests Probable.
r. G. Tugwell, Assistant Secretary of
Agriculture. acting in the absence of
Secretary Wallace. signed the revoca-
tion orders. Out Of them some officials
expected to come test in the courts
of the licensing powers provided under
both the farm and industrial recovery
acts.
Miley, operating as the Fairview
Dairy. was notified September % to
show cause wny his license should not
le suspended or revoked after allega-
tions that he violated the Philadelphia
agreement had been listed.
His answer was held insufficient"
by the Farm Administration, and at
a hearing here October 16, a report of
the case was submitted to Wallace and
Tugwell.
Interstate Commerce Involved.
The revocation order held that 1.-The
marketing of milk produced in the
Philadelphia milk shed and the distri-
button of milk in the Philadelphia sales
area are both in the current of in
terstate commerce" The Farm Admin
istration makes the position that virtu-
ally all milk distribution involves in
ferstate commerce because of inter-rela-
tionships of prices.
Mccoy, operating as the peoples
favorite dairy, was notified September
% to show cause why his license should
not be suspended or revoked and hear
ings were held in his case here on Oc-
tober 20. Administrators said he ad-
mitted that he and his employees and
agents had, since August 25, distributed
milk at cents per quart in Hagers-
town and that during the same period
he had purchased milk from one pro-
ducer at IA cents a gallon or $1.63 per
hundred weight. Hagerstown IS listed
as part Of the Philadelphia milk shed.