Evening star., 1936-10-21
MILK PRICE RAISE
WE|GHEDBY A. A. A.
0NPRODUCER DATA.
Possibility of Clash With
Court Order, Due Soon,
. Is Seen.
AUTHORITY CHALLENGED
IN PLEA NOW PENDING
Restaurant and Hotel Men Mean
while Probe Feasibility Of
Operating Own Plant.

Specialists of the Agricultural Ad-
lustment Administration today weighed
the problem of whether to increase
the minimum price received by dairy
men who supply Washington diStrib-
utors with milk.
Meanwhile the organized owners OF
300 Washington restaurants consld-
cred setting up their own pasteuriz-
ing plant, following the lead of Chi
cago restaurant owners. r. S. Scott,
an agent of the Washington Hotel
and Restaurant Owners Association,
announced he is surveying the prae-
ticability of the plan, which would
mean to distributors the loss Of $2,-
SOC, 1000 worth of business annually.
The A. A. A. officials had before
them testimony indicating that any
increase to the farmer would result
Immediately in an increase in the
price of milk to the consumer. Fear
ing this eventuality. Matthew Boyd
of the Washington Consumers Coun-
Gil, suggested that the Government
lend the farmers feed money in lieu
of raising the price.
The farmers forecast a milk short
age unless they get more money. which
they are demanding on these grounds:
/. The drought reduced feed pro-
duction, and the cost Of store feed Is
up As per cent.
2. The cost of cows is so great that
few farmers can buy them to step up
production to meet the needs of WASH
ington.
3. The cost of labor is up at least
25 per cent.
The proposed increase would come
through an amendment to the WASH
ington milk marketing agreement
and order, which has been in effect
since September 81 and which faces
partial and temporary suspension
through requested injunction.
Justice Oscar Luhring of District
Court is expected daily to rule for or
against an injunction.
The agreement at present calls for
the payment of s2.82 hundred
weight for all milk sold as fluid milk
or cream (known as Glass ] milk
and $500 a hundredweight for all
Glass milk which is basic milk"
classification affording the farmer
special price for a percentage of his
output.
Milk sold for manufacture as ice
cream Is Glass II milk, and the
farmers divide through a pool what
ever money the distributor receives
for this milk.
Would Add About 50 Cents.
The new proposal would add At
cents to the $3.50, or raise the price
of Glass I milk to 1929. The special
basic price would be done away with,
but the percentage of base" would be
increased.
The result, it was said informally
by Richard Aplin, administrator Of
the agreement, would be an increase
for the farmer of So cents a hundred
weight rather than Of Al cents.
The hearing produced bitter
argument on the problem of bases.
with Coleman Gore, a farmer of LOU
doun County, Va, who acts as milk
broker for Fairfax Farms Dairy.
advocating their elimination.
why have a percentage base?"
Gore asked. "All the milk We put out
Is being sold. Why should We take
surplus prlces?" CThe surplus price
Is the Glass II price.)
IF you will stop making a political
speech" suggested Richard Sadler
of the A. A. A. dairy section, who was
one of the presiding officers.
Right to Talk Defended.
''He's got a right to talk" inter-
jected Louis I. Obergh, lawyer who
aided in bringing the Injunction suit
against the agreement. If he can't
talk here, he'll talk in District
Court
Gore smiled at Sadler and con-
tinued his exposition of why the
farmer should receive more money.
Like B. B. Derrick, secretary Of the
Maryland and Virginia Producers As
sociation, who spoke earlier, Gore
pictured supply of milk inadequate
for Washington's needs unless prices
are raised.
"The farmers aren't going to turn
the milk out" he said. 1T costs them
too much. The farmer says to him.
self: I won't buy feed at $45. !
won't buy COWS at SITS. I'll just feed
them ragweed and take what milk
they put OUT"