Evening star., 1936-10-16
A. A. A. Conference on Pro-
! ducers' Plea May Bring
+ Cent Raise.
ADDITIONAL EXPENSE
TO FARMERS STRESSED
If Adjustment Is Granted, Drop
May Again Result Next
Spring.

ington was In prospect today, as the
Agricultural Adjustment Administra-
tion prepared to open public hearings
Tuesday en- the request of producers
for higher prices for the milk they
supply to this area.
Producers ask the equivalent Of a
1-cent-a-quart increase. If this is
granted by the Government, leading
distributors said today, higher con-
sumner prices will result.
The A. A. A., while controlling
prices paid to producers in the Wash
ington area, has no control what
ever over store prices.
Might Drop in Spring.
How the hearing will result is con-
jectural. but the A. A. A. said pro-
ducers will offer evidence that feed
costs, pasture shortages, increased
farm, wages and other economic diff
culties warrant their being guaranteed
better returns.
The prospective retail price increase
probably would last at least until
May, for the producers propose that
distributors pay them cents
gallon more for six months IN order
that an adequate milk supply may
be assured the Capital throughout
the Winter and early Spring.
A. A. A. officials declared that an
increase In producers prices might
not necessarily entail a retail price
rise. They admitted, however, that
distributors generally increase prices
to consumers when they are obliged
to pay more to the farmers.
Distributors See Increase.
Presidents H. N. Brawner OF
Chestnut Farms Chevy Chase Dairy
and Robert L. Dickson of Fairfax
Farms Dairy, two of the large local
distributors, said they will be COM
pelled to raise retail prices il they
must increase payments to producers.
Brawner qualified his statement
with the assertion that he was not
familiar with the proposed price
amendments to the milk marketing
order which will be considered at the
hearing and could not discuss retail
price prospects until ] know what's
going to happen"
Dickson said:
1.-THE distributors can't assume the
Increased cost. Our contracts with
the dairymen are based on existing
producer prices. II these are raised,
all diaries will have to raise the re-
tail price also.
1--WE always try to sell milk as
eheaply as humanity possible, but we
don't want to ask the farmer to make
too great a sacrifice"
Efficiency Seen as Alternative.
Donald Montgomery, A. A. A. con-
sumer's counsel, suggested that dis
tributors might try to reduce their
the public more.
Montgomery said an analysis of milk
prices shows that the spread here
between prices paid to producers and
the current retail price was larger
than in other large Eastern cities,
such as Richmond, Philadelphia, New
York and Boston.
Dickson took issue with this state
rnent, saying he believed the spread
between producer and consumer prices
in Washington was "the lowest in
the United States" Producers supply
ing this area get more for their milk
and consumers are charged less, he
said, than in most cities IN this
section of the country.
Supply Held Already Short.
William B. Hooper of the Mary
land and Virginia Milk Producers
Association, author Of the request for
higher fixed prices to dairy farmers,
imperative if Washington is to escape
q milk shortage. The supply already
Is too close for safety" he said.
Hooper estimated daily deliveries by
association members were running
1000 gallons short Of an adequate
supply.
Richard D. Aplin, administrator of
the marketing order for A. A. A,
said the producers "have reasonable
grounds for asking for an increase,
although the fate of their request must
await findings based on testimony at
the public hearing. He said he would
not undertake to speak for the dealers
on what they will do about retail
prices if the producer price is raised.
Cites Boston Price Case.
Retail prices usually but not inva-
fiably" are boosted to correspond with
producer prices, Aplin said. While he
was. assistant administrator of the
Boston milk marketing agreement
however, he found that dealers mar
gins, during one period. were reduced
] cent a quart although there was nc
change in the price to producers.
Asked if an increase in retail prices
would result in any appreciable reduc.
tion In milk consumption, Aplin sale
he believed it would not.
eAn increase of cent quart doe
not usually change the volume Of con-
sumption more than or per cent,
he said.
The possibility of consumer pric'
increase was said by Paul L. Miller
chief economist of the A. A. A. dair!
section, to be related to the duration
of any increased producer price. Sine,
the proposed increase in the price dis
tributors must pay producers woult
be temporary, the tendency Of retail
prices to go up correspondingly woult
be less than if the producer pric'
increase was to be In effect over I
long period Of time, he said.
On the same day that the pric
hearing will be held Justice OSca
Luhring of District Court Is expecte
to make known his decision on whethe
the Washington milk marketing agree
ment Is helpful or harmful to. tn
dairymen supplying the Capital. H
has been asked by u farmers t
enjoin Secretary Wallace from en-
forcement of the order against tn
plaintiffs.