The Washington times., 1933-10-17
3-CENT BOOST.
| IN PRICE MAY
. SNAG ISSUE.
Basic Surplus" Plan Meets
Favor, But Local Firms
Oppose Increase

Oppose Increase
Approval and enforcement of
milk agreement for the Washing
ton area may depend largely upon
the attitude of the National Dairy
Products Corporation, it was un-
officially stated today by repre-
sentatives of the Agricultural Ad-
justment Administration.
The statement was based on the
fact that the big dairy corpora
ton controls the larger part of
milk distribution here, and in all
codes so far put into operation
the farm unit has been guided to
q great extent by the wishes of a
majority of the producers and dis
tributors in the territory affected.
No favoritism or especial inter-
est in the national dairy combine
is reflected in the announcement,
it was carefully pointed out. Mat
terS would stand the same if it
was independent farmers, or any
other factor in a local milk situa-
ton, who formed the majority
group, it was explained.
Since the largest single factor
IN the dairy industry here happens
to be the distributors controlled
by National Diaries, it is that con-
Germ which must assent to any
code proposed for this territory,
officials declared.
Hearings Slated
However, even if the gigantic
corporation did not place its seal
Of approval on contemplated
Washington agreement, it might
be forced to do so by pressure of
public opinion, it was said. Pub
lie hearings on code might bring
out facts that would compel the
corporation to agree, officials said,
again pointing out that this would
be the situation no matter what
concern or organization held the
controlling interest locally.
Possibility that a Washington
code might contain tn, "basic
surplus" plan, favored by certain
large operators here but de-
nounced recently by Representa-
tive Charles N. Crosby, of Penn
Sylvania, also arose as a result of
the statement from the farm Of
ficialS.
Pointing out that milk codes are
not only PARTLY based on majority
rule but also on the type of agree
ment best suited to the particular
locality affected, officials disclosed
that in pacts concluded to date
the ratio of those containing the
"basic surplus" scheme is about
5 to 7.
Plan Likely Here
With the Maryland-V Virginia
Milk Producers Association and
the National Dairy Products Cor
poration as the leading factors in
the Washington milk industry to-
day, it was declared that there
was strong probability that the
"basic surplus" plan might be
adopted here.
This assertion was based on the
policy of the Agricultural Adjust
ment Administration of hearing
all sides in any controversy, and
basing conclusions on the strength
of evidence presented at public
hearings.
No fear need be felt that a
Washington code will have ill ef-
fects on any person. firm or group
in the milk industry here, how
ever, as it must first be put on
trial for 80 days, officials added.
After the trial period more pub
lie hearings are held, and on the
basis of the practically and fair
ness of the provisions as actually
put into operation, a permanent
code would be formed.
Scent Boost Opposed
Developments in the milk situa-
tion here yesterday included the
announcement that distributors
will not accept a proposal of the
Maryland-Virginia Milk Producers
Association for boost of cents
q gallon in the price of basic and
surplus milk.
This disclosure came from
Roger j. Whiteford, attorney for
the Chestnut Farms-Chevy Chase
Diaries, who said that if the farm
ers persist in their demand the
distributors may submit an alter
nate proposal to the Agricultural
Adjustment Administration.
Various independent producers
here are also opposed to the
Maryland-Virginia plan, and ask
for one-price system rather than
the three-price scheme suggested
by the organized producers. Sew
eral of the independents yester-
day walked out of a meeting with
other farmers and distributors in
protest against the plan.