Evening star., 1936-10-28
14CENT MILK DUE
AS A. A. A. GRANTS.
PRODUCER RA|SE|
Diaries Declare Increased
Expense Must Be Passed
On to Customers.
D. c. COURT MAY BLOCK
FEDERAL CONTROL PLAN
Otherwise, Concession Granted to
Producers by A. A. A., Will Go
Into Effect November l.

Milk at IA cents quart for the next
seven months may become reality
within a week, for the producers sup
plying Washington have won their
tight for a 1-cent farm price increase
and most distributors still seem in
clined to make a corresponding in
crease in the retail price.
The only apparent obstacle to a
retail price rise. unless the handlers
have q change of mind, is the posi-
bility that District Court will grant an
injunction against the Federal order
controlling milk distribution here.
The producers four-month fight
for an increase in the price paid them
for their milk by handlers came to
a successful conclusion late yesterday,
when the Agricultural Adjustment
Administration accepted an amend
ment to the milk marketing order
guaranteeing producers a minimum
price of 1924 per hundred pounds of
class l milk from November to
May 30.
Although the fixed minimum rep
fesents an increase of AZ cents per
hundredweight over the prevailing
average of Al cents per hundred
weight additional because of pre-
miums paid them on their farm
scores.
Say Increase Necessary.
This means an increase in prices to
producers equivalent to cents gal
Ion or l cent a quart. In briefs filed
with the A. A. A. three major dairies
have stated that they cannot absorb
this added cost and must pass it on
to the consumer.
Some dairy executives were not
available for comment, but those who
were reiterated that they will be
obliged to boost the retail price. The
only exception was Highland Farms
Dairy. Through its attorney, Philip
Rosenfeld, this distributor stated that
1t will raise prices to producers but
continue to sell bottled milk through
Highs ice cream stores for 10 cents a
quart.
1T has always been the policy of
Highland Farms to pay its producers
the same for milk as they can get
elsewhere and in a majority of in
stances more than they can get else
where" Rosenfeld said.
I'VE will continue to pay our farm
ers at least the equivalent of what
the others get. No raise in the retail
price is contemplated. We expect to
be able to continue to make money
on l0-cent milk"
Buys from Independents.
Highland Farms buys from inde-
pendent producers who are not men,
bers Of the Maryland and Virginia
Milk Producers Association, author
OF the price increase demand. Its 10
cent price policy was at odds with the
order of the Virginia Milk Commits
sion forbidding the retail sale of
milk in the Arlington County-Alex
andria area at less than l3 cents a
quart. A Richmond judge yesterday
terminated a temporary injunction
which had authorized the commission
to restrain Highland Farms from SELL
ing milk at less than the established
price. The A. A. A. has no control
over retail prices in the District.
The price amendment accepted by
the A. A. A. yesterday was tentatively
approved by Acting Secretary of Agri-
Secretary Wallace, who was absent.
Gregg is chief of tine Weather Bureau
and ordinarily has no concern with
matters of agricultural economics.
The procedure was merely routine,
however, as it Is customary for the
executive in charge of the Agriculture
Department to accept the recommen-
dations of the dairy section in ques-
tions of this sort. An adviser to the
Secretary scrutinizes the document
before it Is submitted to a final au-
thority.
The tentatively approved amend
7nent has been submitted to distribu-
tors for signature, but it is not ex-
pected that any will sign because Of
their opposition to the producer price
increase. None signed the original
marketing agreement, although it pro-
vided no price adjustment.
All that is necessary for final ap-
proval of the amendment, however,
is the concurrence of two-thirds OF
the producers in this market. This
Is more or less of a formality, as
Bruce B. Derrick, secretary of the
Maryland and Virginia Association,
will sanction the amendment on be-
half of the 1,100 members of the as
sociation.
& Producers Bases Changed.
The amendment also provides that
producers bases for the rest of 1886
will be changed from rs per cent of
deliveries made during the period, Oc-
+ tober, November, December, 1885, to
4 DO per cent of the deliveries in those
81 months. The increased class price is
Il to be used as the minimum payment to
I farmers for base milk.
II Bases to be in effect next year will
he 80 per cent of deliveries made by
producers during October, Novem-
!, Der and December, 1856.
i' The A. A. A. explained that the
payment by handlers of the schedule
of premiums on farm scores of the
District Health Department Will be
required on the increased bases, re-
sulting in the AZ cents average price
+. per 100 pounds.
HI Donald E. Montgomery, A. A. A.
consumers counsel said the amend
nnent was so worded that it seemed
to meet the request of Thompson's
Dairy that the producer price in
crease be no more than cent a quart
on the average for all milk. A spokes-
man for the dairy indicated, however.
i that his company was dissatisfied
+ with the arrangement.
Montgomery, in an interview yes
! terday, made a comprehensive reply
to statements that the dairies cannot
ahsorb the price increase.
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