Evening star., 1933-10-22
PRODUCERS BACK
MAJOR POINTS IN
MILK AGREEMENT
Association Decides to Keep
"Basic Price and Surplus
Quota" Method.
MOVE FOR ONLY TWO
CLASSIFICATIONS FAILS
House Member Presses Formation
of Association to Defend In
dependents Rights.

After heated debate, majority of
the Maryland and Virginia Milk Pro-
ducers' Association yesterday approved
major points in the proposed milk
marketing agreement for the Washing
ton area
Meeting at the Lee House in an all
day session, the association decided to
retain the basic price and surplus
quota" method Of milk purchase by the
diaries. a system which has been criti-
clzed by congressional leaders and in
dependent producers as unfair to the
farmers.
Under the marketing agreement,
which will be changed slightly by the
associations Executive Committee, 20
cents will be paid the producers for
Glass l milk and % cents for Glass 2
However, no definite price is established
in advance for Glass g. the surplus"
allegedly used for cream and dairy
products.
Close Vote Beats Plan.
The association acted only on the
producers section of the CODE no
agreement having been reached by the
distributors.
An attempt to establish only two
surplus" brought on bitter debate,
which was stopped only when the
chairman called for vote on the pro-
posal. 1t was defeated by a close vote
Proposals for a single price also were
rejected.
p Final drafting of the code before its
presentation to the Agricultural Ad-
lustment Administration will be under
taken by the Executive Committee. 1t
then will be approved by the full asso-
citation If the directors feel this step is
af xxyhi xxri11 cub,
mitted to the distributors and then
turned over to the A. A. A.
That the code will be opposed by
both the independent producers and
independent distributors is a foregone
conclusion. Both already have indi-
Gated they would either draft a substi-
tute or seek to amend it at hearings
before the A. A. A. 1t is agreed by
he independents that a single price is
the only fair and equitable method of
milk purchase.
Raps Basic Surplus" Method.
Representative Crosby, Democrat, Of
Pennsylvania, himself a dairy farmer.
has contended the basic surplus"
method is device on the part of the
National Dairy Trust" to buy milk at
less than cost of production so as to
increase its profits. He already has
conferred with representatives Of the
a. A A. and is engaged now in an ef-
lort TO organize Nationwide asso-
clatlon to defend the rights OF the in
dependent producers.
Last night the PENNSYLVANIA dis
patched telegrams to the Governors of
dairy farming States and the mayors of
IL OF the larger cities asking co-opera-
tion. He wired:
Local probe by United States SEN
ate Milk Committee shows National
Dairy trust gets spread Of 6 to IL cents
per quart in Philadelphia, Pittsburgh,
Chicago, Baltimore and Washington
areas.
Milk producers bankrupt and con-
suner demand low due to high profit
taken by National Dairy trust. Tricky
and dishonest basic price and surplus
former National Dairy trust employees
in A. A. A. and other Federal recovery
agencies keeps eXorbitant price gouge
for National Dairy trust benefit.
General Code Sought.
Producers and consumers rights nei-
ther respected nor protected in National
Dairy trust codes. Association now be-
ing formed to defend their rights by
demand for general milk code for en-
tire country for benefit of producers
and consumers as follows:
First, abolition of basic price and
surplus quota system. Second, produc-
ton control according to average an
nual production per herd. Third, Fed
eral readjustment Of milk and dairy
products standards. Fourth, Federal
health inspection by Federal personnel
in all areas. Fifth, minimum price to
producer of cents per quart with re-
gional variations. Sixth, maximum
price to consumer of 8 cents per quart.
Seventh, emergency relief milk of s
cents per quart for relief of needy.
Chicago Mayor and City Council
Join demand for general milk code for
entire country and United States Sem
ate probe of National Dairy trust.
Your help needed in this emergency for
constructive program to correct abuses.
Please reply by wire.
(Signed) CHARLES N. CROSBY"
Crosby sent the wire to the Cover
sin, Iowa, Pennsylvania, Ohio. Michi-
gan, Missouri, Kansas, Illinois and Ne
braska the mayors of New York. De-
troit, Cincinnati, Cleveland Buffalo,
Pittsburgh, Baltimore, Syracuse, Los
Angeles, San Francisco Salt Lake City
and New Haven, and to Senator Arthur
Capper, Republican, of Kansas; Speaker
Henry T. Rainey and William Ran
dolph Heerst.
PRICE INCREASE FEARED.