Evening star., 1934-01-08
SUPPORT OF MILK
BOARD PLAN GIVEN
BY TWO SENATORS
District Committee Members
Favor Seal Control Rec
ommendation.
WALLACE ANNOUNCES
GUARANTEE POLICY
Cost of Production Plus Fair Profit
Would Feature Committee
Counsel's Proposal.

Two of the three members of the
Senate District Milk Investigation Com
n1ittee today had announced their sup
port for creation of milk control
board to regulate the production, trans
portation and distribution of milk In
the Capital, as recommended by Com
mittee Counsel Elwood H. Seal.
The two are Senators Warren X
Austin, Republican, Of Vermont, ana
Pat McCarran. Democrat, of Nevada
Senator William H. King, Democrat, OF
Utah. committee chairman, said he had
not had time yet to give attention to
the recommendation, due to the Dis
trict liquor hearings, and declined 10
comment.
McCarran announced his support
Saturday night, when he said he was
absolutely in favor" of such board
to regulate the dairy industry here.
Senator Austin said he had not yet
read the report, but that he favored
the general idea" and would support
it. He expressed deep concern over
the local milk market.
Wallace Boosts Plan.
ADDOlIllIlCllU
given an added boost this afternoon by
Secretary of Agriculture Wallace, who
announced a new policy with respect
to lk-marketing agreements, proVld-
ing for guaranteed higher prices Tor
producers, but with no prices set for
the consumer. However. the Agrlcui-
tural Adjustment Administration re-
served the right to step in and nx
maximum consumer price in markets
where 1t feels the consumers interests
are not being protected. -,
Under the new policy, Wallace SAID
local control boards would be appointed
to administer the marketing agree
ments. All codes now in effect Will De
changed and those pending before the
A. A. A. will be revised to conform to
the new policy
Pennsylvania Example.
Seal recommended a control board
patterned after the one which was
ordered established in Pennsylvania
January 2, when Gov. Pinchot signed
a bill authorizing appointment of
board of three members to serve at
salary of $4,000 a year to regulate the
production, transportation and distrl-
button of milk within the State. There
are similar boards in New York and
New Jersey, both of which are under
stood to be operating satisfactorily.
The Washington board, as recon-
mended by Seal, would be empowered
to limit the number of milk producers
on this market to those who may be
shipping at the time the board begins
operations. No new shippers would be
permitted to come into the market
unless a shortage develops, and then
only on d certificate OF necessity.
These certificates presumably would be
limited to the length Of time there Is
a shortage and would be reSclnded
when the normal flow OF milk Is re-
stored.
The board would set farm prices to
guarantee the producer the cost Of pro-
duction plus a reasonably fair profit
and would set retail prices to guar
antee the distributor the cost OF pro-
duction plus reasonable profit. Under
this set-up Seal said he believed a
single price could be set for milk, in
stead of the old three-price system,
which recently was changed to two
prices for a 60-day trial period as a
result of threatened price war with
the Walker Hill Dairy.
Necessity of Control.
agency that can control the production
and at the same time have the power
to set the prices to the producer, the
convinced that the situation in this
milk shed will not be materially cor
rected," Seal wrote to the members Of
the Investigating Committee.
Support for Seals recommendation
for control board also was forthcom-
ing Immediately from Seton Darr, at
torney for the Fairfax Farms Dairy
and the Independent Milk Distributors.
Its just what We want" said Darr.
I'VE recommended similar board in
the milk-marketing agreement we pro-
posed to the Agricultural Adjustment
Administration.
Along with the board. however, we
want an administrator for this market,
a man who will devote his entire time
to the situation. but whose decisions and
actions will be subject to review by a
board of three members.
THE dairy industry in Washington
needs a man who will have his hands
on the throttle all the time, some one
who will assume direct responsibility.
With only a board to regulate condi-
tions, the actual administration would
fall upon a clerk or a secretary, instead
OF trained dairyman.
Ex-officio Supervision.
"Also, we want the Secretary of
Agriculture to have eX-off1cio super
vision of the entire situation. Appeals
from decisions of the administrator and
the board could be taken to him."
John McGill, jr., secretary manager
of the Maryland & Virginia Milk Pro-
ducers' Association, made the following
statement with respect to the proposed
milk control board:
Il am in favor of any method or
plan which will enable the association
to get for our producers the cost Of pro-
duction plus a reasonable profit, but
which under present conditions of cut
throat competition and no legal market
control has been well nigh impossible.
LAS to whether this can best be ac-
complished by a milk control board,
or a trade agreement enforced by the
Department of Agriculture, or by some
other method, is quite question. AS
understand it, milk control board,
or any other market control, to be
effective, would have to have legal au-
thority, which would necesSitate, for the
District of Columbia part of the mar
ket, congressional action, and similar
action by the Legislatures of Maryland
and of Virginia. to cover the parts of
the market outside Of the District Of
Columbia, whereas the trade agreement
that we have now filed with the De-
partment of Agriculture and which 1t
ought to be possible to get into effect
in much less time than to get the
aforementioned legislation. already
carries the legal authority for the Dis
trict Of Columbia and both the States,
and if properly inforced, ought to bring
about the desired result and do it far
more quickly.
ut is true, I understand, that in
practice some of these trade agree
nents have not worked perfectly. 1t
is also true. I understand, that milk
control boards have not all worked
perfectly