Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-10-30
APPEAL ON MILK
RULING DECIDED,
PRICES MAY RISE
Producers Resolve to Act
Without Regard to
Agreement.
A. A. A. DETERMINES
IMMEDIATE STEP
Specialists, Lawyers and Farmers
at Meeting-Justice Department
Urged to Begin.
BY BLAIR BOLLES.

While producers resolved to de-
mand higher prices for their milk
marketing agreement or no marketing
agreement-the Agricultural Adjust
ment Administration today decided
to appeal at once from the District
Court ruling that the agreement,
which establishes Federal control over
the dairy business here, is uncon-
stitutional.
At the close of a 4-hour session
in the Office of the dairy section Of
the A. A. A. attended by dairy
specialists, lawyers and farmers, the
Department Of Justice was asked to
seek Immediately the right to move
that the District Court of Appeals
reverse the decision Of Justice Oscar
L. Luhring.
New High Price Demand.
Meanwhile, LOO Maryland and Vir-
ginia farmers demanded that the four
diaries buying their milk - Chevy
Chase, Embassy, Wakefield and
Thompson's-pay them, beginning Mo-
vember /, the new high price which
had been ordered for that date by
A. A. A. under the agreement. Diaries
here have announced that such an in
crease for the producer would mean a
1-cent-a-quart rise to the consumer.
However. opposition came from
Donald Montgomery, A. A. consumers
counsel, who issued figures to show
that under present conditions the
Washington milk dealer has a margin
of ga cents on every quart of milk he
sells for Is cents, since he pays the
farmer Sc cents.
The Richmond dealer, Montgomery
said, sells milk for Is cents, but pays
the farmer 78 cents, while the New
York dealer. whose store price is IS
cents, pays cents, and has a margin
of only 5 cents. The margin of the
Philadelphia dealer, whose sales price
is IL cents, is SIS cents. and of the
Boston dealer, also a 12-cent milk
city. Sc cents.
The associations contracts with
the four diaries, which expired when
the agreement became effective Sep
TENDER 81. gave the farmer an average
Of rs cents a gallon for his milk, ac-
cording to the association.
The amendment to the agreement
approved by A. A. A. two days before
Justice Luhring issued his preliminary
injunction against the agreement
establishes new price averaging q
little over 80 cents a gallon.
The District Court jurist granted a
preliminary injunction upholding the
contention of Is farmer plaintiffs that
the agreement has the invalid aim Of
regulating agricultural production and
impairs their contractural rights.
Until the justice enters his decree.
however, the A. A. A. said, there will be
doubt whether the injunction is sweep
ing or applies solely to the Is plaintiffs.
However, even if only the IS are af-
| fected, the A. A. A. may suspend the
agreement to prevent their having an
unfair advantage over the other ! 300
farmers supplying Washington's milk.
Justice Luhring said the marketing
agreement is invalid because its base
rating plan and price-flxing provisions
control, or attempt to control, pro-
duction of milk in Maryland and Vir-
| ginia." He added:
THE question here is not an open
one. 1t has been settled by the SUI
preme Court of the United States.
Congress may not under the COM
merce clause, regulate the produce
ton Of milk or any other farm prod
| uct."
The A. A. A. holds that the agree
ment regulates distribution. The plain
tiffs, IL of whom sell their milk
to Highland Farms Dairy and one to
Model Farms Dairy, held that the
(See MILK, Page A-2)