Evening star., 1934-09-05
Seal Proposes U. S. Buy
Excess to Sell Needy
at 7 to 9 Cents.
BENEFITS FOR FARMER
AND DISTRIBUTOR SEEN
Independents Say System Will
Show Overproduction Is
Only Myth.

A plan to take the surplus milk off
the Washington market, aid the con-
sumer the farmer and the dis
tributor was evolved today at a
meeting between the District Commits
Sioners and DR.. Frederic C. Howe,
consumers counsel of the Agricultural
Adjustment Administration.
Under the plan all the surplus
would be bought by the Government
and distributed to relief families at
less than the price now being paid for
relief milk. The Government would
guarantee the farmer the cost of pro-
duction for this milk, would bottle it
at cost and distribute it to the needy
families and undernourished school
children at between 7 and 9 cents per
quart. Milk for relief purposes now
is being bought by the District at IL
cents per quart.
The plan was presented by Assistant
Corporation Counsel Elwood H. Seal,
who conducted the recent Senate in
vestigation into the dairy industry
here. During hearings in that in
vestigation, officials of the National
Dairy Products Co., owners of the
Chestnut Farms Chevy Chase Dairy,
testified they had no use for the sur
plus milk and bought it from the
farmers simply to relieve them of the
excess.
Two-Price Plan In Effect.
Dairy farmers now are selling milk
to distributors under two-price plan
about % cents a gallon for milk
which goes into bottles and 16 cents
for milk used as cream and for manu-
featuring purposes.
Testimony before the Senate Milk
Investigating Committee placed the
cost of production at % to "a cents a
gallon. If these figures are used, the
Government could buy the surplus at
5 or 6 cents quart bottle, and dis
tribute it at from Z to Q cents quart.
Commissioner Allen, who called the
conference, said he thought the plan
would work out admirably.
There Is a great need for more
milk among the relief families" he
said. They are not getting enough
milk now, but under this plan we
could give them enough at less than
the price we are now paying and in
addition could take care of the chill
dren's school lunches. The needy fam
lilies are undernourished and If this
plan works out as we expect 1t to
do, we will help build stronger, health
ier children"
Would Test Milk Surplus.
Such an arrangement. in the opin-
ion of independent dairy companies,
would prove quickly there is. in fact,
no surplus on this market and that
the so-called trust" dairy is using
the alleged surplus as a club to beat
down farm prices of milk. Fluid milk
for home consumption in bottles now
sells for about % cents gallon with
the so-called surplus, which is used
for manufacturing, being bought from
the farmers at 16 cents.
BY buying milk at the 16-cent price,
or cents a quart, some dairy COM
pany officials believe processing, bot
ting and distribution costs would not
exceed cents per quart, thereby CIV
ing families on relief rolls milk at Z
cents a quart The present price for
this milk is IL cents, cents less per
quart than regular retail prices.
There has been much talk particu-
larly among welfare people that chill
dren of relief families are not OBJ
tanning sufficient milk. If the plan
proposed by Seal is placed in opera
tion each family with children could
be given three quarts of milk at less
than the present cost for two quarts.
Attending the conference in Aliens
Office were Commissioners Hazen and
Sultan, DR.. Howe, Seal, and two
other men believed to be connected
with the Agricultural Adjustment Ad-
miniStration.
Under plans for the Maryland and
Virginia Milk Producers Association,
farm prices for milk would be ad-
vanced 4 cents a gallon for Glass
(fluid) and cents gallon for the
surplus These increases would take
effect October !.