Evening star., 1934-08-09
CONSUMERS CALL
FOR 11-CENT MILK
Demand Price Cut in Face
of Producers Request
for Increase.

Adopting the old principle Of fight
ing fire with fire, the Washington
Consumers Council has called upon
the N r. A. and A. A. A. to force a
reduction in the price Of milk here
rather than permit the proposed ad-
vance Of cents per gallon advocated
by the Maryland Virginia Milk Pro-
ducers' Association.
Meeting In the Ouray Building yes
terday, the council declared there is
no justification whatever for the pro-
posed higher price, and instead, de-
manded that the price be cut from Is
cents TO IL cents per quart, Q reduc-
ton Of, 8 cents per gallon.
The action was taken after Mrs.
John Boyle, jr., chairman, read let
ters from welfare workers in the Dis
triet who said any increase in the
price of milk would work additional
hardshipS on needy families, already
suffering from o lack Of sufficient
milk.
Street and Savin Write.
The letters came from Elwood
Street, director Of the Board of Public
Welfare, and William H. Savin, d.
rector of the Associated Charities.
Both asserted an increase in price
automatically would mean a decrease
In consumption.
MSgr. John A. Ryan, a member OF
the council, insisted if there is to be
a price increase the farmers must
show it is justified, just as other lines
of business are forced to justify higher
prices they may demand.
Mrs. Boyd stressed the fact that
WaShington's milk consumption is low
compared to other cities and that the
price paid here Is much higher than
the average for the country.
She was supported in her argu-
ments by Gardner Jackson, who rep
resented the Office of DR.. Frederic c.
Howe, consumers counsel of the Agri-
cultural Adjustment Administration.
Price Called Outrageous.
at is no secret" Jackson said,
here is outrageous.
council, asserted that on the basis of
figures revealed in the recent Senate
investigation of the milk situation
here, there is no justification for a
price increase and that the industry
could absorb a reduction of 2 cents
per quart without injury.
He pointed out that the local
subsidiaries of the National Dairy
Products Corp. admitted a profit of
$509, 900 in 1892, the figure arrived
at for income tax purposes.
Mrs. Boyle expressed the wish that
a reduced price could be effected here
by September /.
The council decided to ask the
A. A. A. to investigate the cost Of
production of milk in the Washington
area and to determine If a reduction
could not be forced IN the retail price
Would Split Increase.
Under the plan of the Maryland
Virginia Milk Producers Association,
the 2-cents-a-gsllon increase would
be absorbed half by the distributors
and half by the consumer.
This arrangement was met with the
argument by Mr.. Boyd that the con-
sumner probably would have to pay l
cent more per quart instead of l cent
per gallon. since the fraction in
crease could not be met without the
payment Of the whole cent.
After some discussion, Mrs. Boyle
called another meeting next Wednes-
day afternoon TO consider further ac-
ton to prevent the proposed increase
and. if possible, to force the suggested
decrease.
Meanwhile. the council will con-
ttnue to collect data on the cost of
production and distribution in the
Washington milkshed.