Evening star., 1934-10-14
PRODUCERS GROUP
PLANS TEN-CENT|
MILK IN CAPITAL
New Association of Farmers
Also Asks Right to Supply
Relief Needs.
GARDINER HOLDS VIEW
PRESENT SYSTEM BAD
Limited Quotas on Output Keep
Dairymen Poor, Letter
Declares.
Milk to be sold in Washington at

Milk to be sold in Washington at
10 cents a quarts cents lower than
the prevailing retail LEVELS the OBJ
jective of an independent organiza-
ton of milk producers now in process
of formation, according to informa-
ton sent to the District Commissioners
yesterday.
w. Gwynn Gardiner, lawyer, farm
operator and former District Commits
Sioner, in a letter to Commissioner
George E. Allen. suggested that a con-
ference be held Immediately on the
Districts plan to buy large guam
tity of milk daily for Washington's
poor.
Gardiner declared he believed the
sale price of milk sold to the con-
sumner is "too high" He said he was
convinced milk could be sold here re-
tail at a profit at 10 cents a quart,
including allowance for the cost of
distribution.
Could Organize Quickly.
Gardiner informed Allen that the
new body could be formed promptly
if a contract could be obtained from
the District for furnishing milk to the
relief families. A much better price
than any that has been mentioned
heretofore could be made for the milk
for these families, he predicted.
The lowest estimate of the cost of
milk that might be bought by the
District for relief families was between
and cents a quart
In the absence from the city of
Commissioner Allen there was no
official comment on the letter.
Latest official reports are that the
farmers are paid 26 cents for basic"
milk, plus premiums running 81 or 8
cents gallon; while the price paid
farmers for surplus" milk is but 16
cents gallon.
Survey Cost BOIL Cents.
Frank S. Walker, president of the
Maryland-Virginia Milk Producers
Association, recently submitted to the
commissioners report showing that
during the year ending August, 1888
the cost of production of milk in this
area was BOIL cents per gallon. This
Is something more htan l cent per
gallon more than the total paid to
farmers by the distributors for basic"
milk, including premiums, and COM
pareS with the Is cent per gallon
price paid them for surplus" milk
Gardiner states, in part, in his let
ter:
Il am rather large producer of
milk. I ship about 135 gallons a day
to the Washington market. I could
very easily ship 200 gallons daily.
yNrip Af oil fIoo IL hi,
ped to the Washington market from
my farm for the last year has been
16 cents gallon, l cent of which
goes to the Maryland Virginia Milk
Producers Association, leaving a net
amount paid to me of Is cents per
gallon. have all of the figures and
would be glad to submit the state
ment for a full and complete year, or
longer, if you wish.
Thinks Success Assured.
'"There is in process of formation
another association. I have been
asked to join a group with view of
selling milk on the Washington
market, through an association to be
formed, at 10 cents a quart, selling
only the milk produced by members
of the association. I am confident
that can be done with profit to
the farmer, including the cost of dis
tribution in Washington.
Il requested to withdraw from the
present association few months ago,
but I was advised that my contract
does not expire until March
"At meeting last night October
12) OF some Of the gentlemen inter-
eSted in the new project, the question
OF the interest of the District govern
ment in the distribution of milk to
the poor and needy came up. 1t was
then suggested that if the District
would now contract to purchase a cer-
tain quantity of milk and would con-
tract with this new association, about
to be formed, to pasteurize the same,
I believe that we would give you a
much better price than anything that
has been mentioned so far in the pa
pers.
1T was not our intention to start
until the Spring, but if a contract
can be made now, 1 believe we can
get the organization together in a
very short time.
Might Double Sales.
1T have come to the conclusion that
the trouble with the Washington
market is that the sale price to the
consumer is too high. If the price
of milk on the Washington market
was reduced to 10 cents a quart, the
quantity sold would be doubled. If
the quantity sold was doubled, then,
while. the distributor would get less
profit per quart, he would get as great
or perhaps a greater profit by reason
of the volume sold.
Following out the same reasoning,
1t is perfectly apparent from my
monthly statements coming from the
dairy to whom deliver that Is cents
a gallon for the milk produced by me
the year around is not a living price
to the producer, whereas if the
producer could get 25 cents, or even
% cents, a gallon for all the milk he
produces he could maintain his farm
organization.
This talk about what the farmer
gets for his milk is all bunk. You are
getting the price of the basic guam
tity, and the basic quantity of milk
has been cut down so much to each
farmer, and the production of milk
sold by each farmer as basic, or fluid,
milk is so small compared with his
production that the price on the
whole has been reduced below the
cCst of production.
"If this continues, then there will
be so many farmers put out of busi-
ness that the whole production of
milk will be in the hands of q few
large farmers. Fortunately, 1 do not
have to depend on the price I get
for my milk for a living, and there
fore it does not disturb me greatly.
but we must look to the interest of all
the farmers as class, and not an in
dividual situated like mySelf,"