Evening star., 1939-11-03
u. 5. Takes Step
To Regulate
Milk Supply
Hearings Are Set on
Proposed Marketing
Agreement

agreement
The Agriculture Department yes
terday took the first steps toward
the re-establishment of Federal SUI
pervision of the Washington milk
supply. It announced that hearings
will be held on November 20, 81 and
22 on a proposed marketing agree
ment and order to regulate the ham
ding of the milk for the Capital.
The chief feature of the agreement
would be a schedule of fixed prices
to be paid by the distributors to the
producers of milk for their product.
The agreement would set an espe-
cially low price for milk to be sold
to families on relief.
The Maryland and Virginia Milk
Producers Association, which repre-
sents over 80 per cent of the fluid
milk shippers of the Washington
market, presented the proposed
agreement to the Agriculture De-
partment's Division Of Marketing
and Marketing Agreements and re-
quested the hearings. B. B. Der
rick, secretary-manager of the as
sociation, commented that the agree
ment would increase the price to the
farmer slightly, but he said he
doubted that it would mean in in
crease for the city consumer.
The association was the chief
force behind the milk marketing
agreement and order which was put
into operation here in the autumn
of 1896. It was in effect only few
weeks when it was attacked success
fully in District Court before Justice
Oscar Luhring, who held it was un-
constitutional because, as he ruled,
it limited agricultural production.
Although the Court of Appeals over
ruled Justice Luhring, the agree
ment was never made operative be-
cause the farmers gained their end
increased prices-through private
bargaining with the distributors.
Stabilized Market Sought.
Mr.. Derrick's argument is that a
Federal order will put all distribu-
tors or an equal basis SO far as price
Is concerned The association farm
ers sell for a contract price which
is not exactly in line with the price
paid to other farmers who are not
members OF the association. The
proposed agreement puts the general
farmers price at the present associa-
ton price. |
The hearings will open each day
at 10 am. The first day they will be
held at the court house in Warren
ton, Va; the second day at the
Winchester Hall, Frederick, Md,
and the third day in the auditorium,
South Building, Agriculture Depart
ment, Washington. ~..
The Agriculture Departments in
terest in the matter is to stabilize
the milk market, which is unusually
variable. The proposed agreement
is similar to that in effect now in
other areas. The constitutionality
Of this sort Of undertaking no long
er is subject to attack. The Supreme
Court has agreed that control Of the
milk market through agreements
put into operation through afl order
from the Secretary of Agriculture
Is fully valid.
The proposed agreement under
takes to encourage the consumption
of milk among low-income families
by providing for special price of
s2.71 a hundredweight of milk to
the producer for Glass / milk sold
or disposed of under any program
which may be approved of by the
Secretary Of Agriculture for the sale
or disposal of milk to low-income
families. including persons on re-
lief.
Increased Demand Seen.
Glass milk is milk used for fluid
milk, chocolate milk or whole milk
drinks. The minimum price set in
the proposed agreement for Glass l
milk is $3.17 a hundredweight. The
proposed special lower price for milk
sold or disposed of to relief and
other low-income families is de-
signed to make greater supplies of
milk available to these people at a
price below the present retail level.
The low-price plan is expected to
increase the demand for milk, with
the result that surplus milk, which
otherwise would be used for some
thing else than fluid-milk purposes,
would be required to fill the ex-
panded demand. The effect of this
would be to increase the total re-
turn to the farmers, at the same
time making more milk available to
low-income families at lower prices.
The other classes of milk treated
In the proposed agreement are class
2, milk used for cream, cream but
termilk, cottage cheese and all milk
not used in class l or class 8; and
class 3, milk used for ice cream.
The minimum price to the pro-
ducer for class 2 is set at $198 a
hundredweight, and the minimum
for price 3 is to be determined by
formula based on the price of but
ter.
The price structure, complex at
best, is further complicated by a
schedule, of proposed differentials
which would be based on quality
premiums adjudged from the high
health ratings accorded barns and
cattle. The agreement proposes al
30 a deduction of As cents a
hundredweight on class l milk dis
posed Of by handler from plant
not having Health Department
permit to sell milk or cream in the
District.
Moreover the class I and class 2
prices would be subject to allow
ances for transportation and the
cost or savings in handling the milk
at . country station. The prices
would be subject, too, to a butterfat
differential of six cents for each
ana.faffh of ana raax. cos,t Of l,..4Aes