Evening star., 1936-07-21
PRODUCERS INSIST
INCREASE IN PRICE
| WILL Be REQUIRED
Independent Operator of
Fairfax County Cites
Danger to Farmers.
ASSOCIATION OFFICIAL
WOULD END 'CHISELINC'
Declares Agreement Needed to
Check Activities of Distrib-
utors Paying Less.
BY BLAIR BOLLES.

DAf1An DOLAkLSs
Donald Montgomery, consumers
counsel Of the Agricultural Adjustment
Administration, today said he would
oppose governmental control of the
milk producers supplying Washington
II it meant elimination of the source
Of low-cost milk.
Montgomery stated his opposition
when B. B. Derrick, Maryland and
Virginia Milk Producers Association
treasurer, who earlier predicted a price
rise, declared at the hearing on the
control agreement that the regulation
would end the activities Of two "chis-
cling" distributors who pay "a cents a
gallon for their milk
Derrick said the price demanded for
the LOO members Of the association is
26.5 cents, and that because of the
drought and consequent increase in
feed costs the figure will be 30.5 cents
before the month is out.
Its a matter of great concern to
the consumer to have continuation OF
the low-priced milk" Montgomery said.
at this point, but any hope that he
would get his wish was dashed by F.
w. Huddleson, treasurer of Fairfax
County and an independent producer
Of $1,000 gallons Of milk annually.
Higher Price Held Necessary.
"UnleSs We get relief by a higher
price" Huddleson told the farmers and
A. A. A. officials in the Department of
Agriculture auditorium, "the farmers
are going to go like firecrackers-snap,
snap, snap!"
"A number of dairymen in my
county are on the verge of bankruptcy.
Some of them haven't paid their 1884
taxes. Many of them have so per cent
farm loans and rs per cent commission
loans. Many of them are at the point
where their credit is practically ex-
hausted at the bank. We've got to
have change"
Derrick said this to excuse his move
for price rise:
We've got to do it. You can't
pump milk from a dry COW. The feed
situation is becoming more critical
every day. Hay has gone from $l6 to
s24 a ton, and there's scarcely any
body will sell it to you. All our corns
about burned out. If we don't raise
the price. therell be a scarcity. II
the COW doesn't feed. it doesn't milk"
Price Rise Would Raise Supply.
Price increase would bring more
producers into the market and thus
Offset the decreasing volume from the
farmers now supplying the District
with its needed $1,000 gallons daily.
when the drought is over we'll talk
something else" Derrick said in
answer to a question as to whether
the increase would be permanent.
Present retail cost of milk here is 13
cents a quart, compared with a Ma
tion-wide average of IA cents.
j. B. Nichols, from Purcellville.
Loudoun County. Va. told this story
to strengthen Derrick's stand:
I've lived on my land go years.
I've been q dairyman IS years. And
this Is the worst I've ever known.
I've got Just one-third of a crop of
alfalfa. II it doesn't rain in three or
four days I'll lose so per cent of my
corn"
Derrick and his associates are ready
to establish his new price through
either of two methods:
l. Set the minimum In the pro-
posed marketing agreement, the con-
troll instrument, at $355 a hundred
pounds, instead of the $3.08 now rec
commended for the agreement and in
force for the association.
2. Failing immediate adoption Of
the agreement, or in case Of its rejec-
ton, the association will reach q new
| agreement with the distributors ham
ding the milk of its members to raise
the average price from 26.5 cents a
gallon to 30.5 cents.
Walker Pleads for Agreement.
Frank s. Walker, president of the
association, pleaded earnestly yester-
day for the adoption Of the agree
ment toward the close of the first
days hearing in the Department of
| Agriculture auditorium.
IF we don't have this agreement"
he said, we're going to have competi-
tive production, throw plenty Of pro-
ducers out of business and take away
from the consumer the stabilized
market.
IF you don't approve this agree
ment you may have a milk war and
q nasty situation in the market"
Walker added reasons why q price
rise Is inescapable.
Bran is up from $25 to $3e ton,"
he said. "You have to buy hay In
Wisconsin and Michigan. and you
can't get much of that. This is far
different from 1894. There was
drought in the West then, but We
had our own corn and our own hay.
But now we are short even on oats