Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-11-01
Housewives Find All Diaries
But One Are Charging
More Now.
CONGRESSIONAL INQUIRY
DEMAND is INDICATED
Dealers Say Pressure From Pro-
ducers, in Turn Beset by Rising
Costs, Forces Move.
BY BLAIR BOLLES.

May /, 1882. The new price will re-
main in effect for an indeterminate
period. Half pints of cream 60 from
II to 10 cents, pints from 80 to "a
cents. Butter, sold on national mar
ket, is unchanged.
The increase, threatened since July,
results from the high cost OF buying
feed for dairy stock, the destruction
by drought during the Summer of
much growing hay and pasture, and
the natural inability of the COW to
produce large quantities Of milk during
Autumn and Winter months.
Organized farmers, producing "a per
cent of the milk sold here, cited these
factors in q demand Of the diaries
for money for their output beginning
today, and all but one of the eight
Capital dealers accordingly hoisted
the consumer price.
Capitol Inquiry Hinted.
The retail boost is unnecessary and
could have been absorbed by the larg-
er dealers, Mrs. John Boyle, jr, chair
man Of the Washington Consumers
Council, said. She added that she
would seek congressional investiga-
ton Of the factors leading to the
change.
The farm-price increase was to have
been ordered for this date by the
Agricultural Adjustment Administra-
ton and enforced by the milk-mar-
keting agreement. When the agree
ment was temporarily junked by an
Injunction holding it was unconstitu-
tional, the organized farmers de-
nanded the raise willy nilly.
II you do not pay we will not de-
liver the milk, letter from the Mary
land and Virginia Milk Producers
Association yesterday announced in
effect to the five diaries buying the
associations daily average output of
$1,000 gallons. This group asked the
increase three months ago, during the
preliminary hearings on the marke-
ing agreement, but the A. A. A. at
that time refused to countenance it.
Diaries Capitulate.
1.-The farmers had a knife at Our
necks," Henry Brawner, head Of the
Chestnut Farms Chevy Chase Dairy,
said. I'VE could not do anything but
agree to meet their demand. And to
make money ourselves, we have to
charge the consumer another cent"
Chestnut Farms Chevy Chase han
dies 10000 gallons a day. almost half
the entire Washington market. This
dairy announced its increase few
hours after Embassy Dairy, which
buys from $500 to 5000 gallons daily
from the association. The other as
ISOLATION purchasers in step are
Thompson's, Wakefield and Arlington
Farms.
Highland Farms Dairy, which buys
about $500 gallons a day from indie
pendent producers and sells on
cash-and-carry basis in its own stores,
will keep its price at 10 cents, with
q scent bottle deposit. This dairy
is raising its farmer price by ! cent
. gallon.
Fairfax Dairy and Model Farms
Dairy, both of which buy from indie
pendent farmers, announced they were
following the other diaries in the gen.
eral increase.
No Time Limit on New Price.
The farmer raise ordered by the
imperative marketing agreement
would have come to an end April /,
when cows begin to give great guam
titles Of milk as result of Spring
calving and fresh pastures. The as
sociation, however, set no limitation
on the length Of time the high price
was to be in effect.
While the Washington retail milk
price has been steady at Is cents Stree
May /. 1882, the IL years previous to
that date witnessed frequent fiuctua-
tons. as follows:
October l, 1920, 10 cents; January
!, 1921, II cents: May /, 1921, IA
cents: October l, 1921, Is cents: Janu-
airy l, 1922. IA cents; April l, 1922, 10
cents; October l. 1922, IA cents; No
vember l, 1928, Is cents; May /, 1924,
IA cents: October /, 1925, Is cents;
May l. 1926. IA cents: October 1. 1926,
is cents; November l, 1881, IA cents,
and May /, 1882, IS cents.
The question Of the relation of the
price Of milk to consumption has been
the subject Of at least two reports by
Q Department of Agriculture market
ing expert, H. A. Ross.
Demand Found to Change Little.
Referring to his studies, the Mary
land and Virginia Association told
the Agricultural Adjustment Admins
tration last Summer:
Statistical investigations have in
general indicated that the demand for
fluid milk by consumers is very elas-
tic; that Is, that the change in guam
titles OF milk taken, following in
ereases or decreases in price, is rela-
lively very small.
1.-TWO published studies for the Chi
cago and New York markets indicate
that, during the period covered by the
studies, when consumers recognized
the necessity for changes in the retail
price Of milk, 1-cent change In the
retail price of milk had very slight
immediate effect on sales and this eff
feet was considerably diminished
after i've or six weeks"
Department OF Justice lawyers To-
morrow viii appear in District Court
to arrange the legal steps they hope
viii save the marketing agreement
from permanent oblivion. They win
note an appeal to the District Court
Of Appeals from the Injunction hand
ed down by Justice Oscar L. Luhring.
who held that the agreement consti-
tuted control Of agricultural produce
ton, and as such had been held In.
valid by the Supreme Court In the
Hoosac Mills case.