The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1933-11-02
DISTRICT USERS
SEEN LIKELY
To BENEFIT
Distributors Profits Face Cut
to Aid Producers; Code
Hearings Wait

pL1CC0 w NC PdlO
by the public at approximately
their present levels, and at the
same time increasing prices to be
paid to farmers, the proposed milk
marketing agreement for the
Washington area would cut down
the margins of distributors.
This was revealed today by
officials of the Agricultural Ad-
juStment Administration to whom
the tentative code has been SUBJ
mitted under the signature of
John McGill, secretary of the
ACKNOWLEDGEMENTS Milk Producers
Association.
Retail Price Fixing
Scrutiny of the pact has re-
vealed that it provides for definite
retail price-fiXing. For example
milk with about 4 per cent but
terfat content, would be pegged at
13 cents a quart; certified milk
with 4 per cent or more butter
fat content, 80 cents a quart;
table cream, "a cents a pint; and
heavy cream, IS cents a pint.
No differential is provided be-
tween milk delivered by wagon,
and milk sold in retail stores.
Prices to be paid to farmers
are fixed for two classes of milk,
but not for the third or surplus"
class. Class I is pegged at 20
cents a gallon for milk of 4 per
cent butterfat content, an in
crease of cents over present
prices.
Premiums Provided
Premiums ranging from to 4
cents a gallon are also provided,
being based on the health rating
Of the farm producing the food.
Glass II milk would be sold
at % cents a gallon, also boost
of 3 cents from existing levels,
but differential of Z cents a
hundredweight is provided for
each one-tenth of / per cent
variation in the butterfat content
above or below 4 per cent.
The increase in prices paid to
farmers, it is claimed by indie
pendent distributors opposing the
plan, would ruin their business
unless advances could be made in
prices charged the public, which
are specifically forbidden under
the code as it now stands.
Sales Area Set
@ her important provisions of
the proposed pact are:
l. Setting up of "sales
area" roughly bounded by Fair
fax and Occoquan, Va, and
Galesville and Gaithersburg,
Md, within which no milk may
be bought by distributors ex-
cept from farmers residing with
in the production area except
under certain conditions.
2. A production area" CORE
spending roughly to lines drawn
between Harpers Ferry to
Myersville, Md, to MonroVia, to
Ashton, to Laurel. Md, to Mar
shall Hall, to Quantico, Va, to
Fredericksburg, to the Blue
Ridge Mountains at Huntley,
Va, back to Harpers Ferry.
For Dairy Council
8. Creation of a Washington
Dairy Council for handling
marketing, and Milk Industry
Board to police the code, levy
taxes for expenses from all pro-
ducers and distributors regard
less of their original views on
the pact, and to adjust disputes.
The latter board would consist
Of two representatives of sigma
tory producers, two from the
distributors, and one consumer.
4. Distributors would be IL
censed by the Secretary of Agri-
culture to obey the agreement.
S. Books of both producers
and distributors would be open
to inspection by the Agricul-
tural Adjustment Administra-
ton.
Indications were today that the
agreement stands a good chance
Of being adopted almost as it
stands.
Some Urge One Class
It's phraseology is almost word
for word that of a model" pact
prepared by the farm agency.
and to be approved it needs but
the assent of 10 per cent of pro-
ducers and TO per cent of dis
tributors.
Since the Maryland-Virginia
group numbers farmers producing
about 80 per cent of milk sold
here, approval seems certain if
the plan is acceded to by the Ma
tional Dairy Products Corpora
ton, whose subsidiaries here con-
troll IS per cent of distribution.
The proposed pact is now in
the "code control section of the
agricultural agency, and no dates
for public hearings have been set.
Opposition to certain of its pro-
visions has been voiced by in
dependent farmers, who desire a
one-price system in place of the
three-class plan, and even by
members of the OBSERVATION-DISCLOSURES
body.
kihIunII'e Nnpkn+a Inn