Evening star., 1939-11-24

A plan for Federally supervised
firing OF prices to be paid pro-
ducers OF farm commodities pas
included in the Agricultural Ad-
Justment Act OF 1888 A price
firing agreement of this type ,Das
placed in effect for dairy farmers
in the Washington area in 1896,
but a District Court Judge held
it unconstitutional. The United
States Supreme Court since has
upheld Dalidity OF the scheme,
and no,O nelD agreement is
being sought.
If the price paid farmers supply
ing the Washington milk market is
made too attractive" the result will
be that everybody is going to bring
milk in" and the present law re-
stricting imports will be changed, j.
Edward Burroughs, jr., attorney for
the 10 dairies supplying the city, de-
clared today at the Agriculture De-
partment milk hearings.
Mr.. Burroughs made this predic-
ton in urging a reduction in the
price paid to producers which would
approximate i cent a quart by next
spring. This cut would be passed
along to the consumers. He made
his argument in support of the mar
keting agreement for the Washing
ton milkshed which the dairies are
proposing to the department.
The proposed order, he said, 'is
designed to and can correct a lot of
evils" The distributors, Mr.. Bur-
roughs insisted, are not trying to
run the Maryland and Virginia pro-
ducers into the ground" He added
"They have an excellent oppor-
tunity to keep the Washington mar
ket, but you make the price too
attractive, and you are going to
create situation whereby every
body is going to ship milk into
Washington. If this is against the
law then the law is going to be
changed. This is not a threat, but
conclusion from the evidence pre-
sented at these hearings"
Questioned About Former Cut.
B. B. Derrick, executive officer OF
the Maryland-Virginia Milk Pro.
ducers' Association asked the attor.
ney for the dairies how much of the
reduction in price to the producer:
placed in effect in 1896 had beer
passed along to the consumers. Mr.
Burroughs replied that it was his
understanding that all the reduc-
ton had been passed along excep
the necessary cost of labor, take!
and overhead.
rs it not true, Mr.. Derrick added
that a reduction of 81 cents {
hundredweight was not passed on?
IF that figure is correct" Mr.
Burroughs said, then that was the
amount needed to absorb the labor
cost, the pay roll taxes etc"
Mr.. Derrick pointed out that or
November l. 1886, under marketing
agreement, the producers supplying
the Washington market had thei
price lowered from $355 hundred
weight to $500 for all milk re-
tailed" He asked that if it was no
true that the distributors nettet
from u to 33 per cent profit on thi
price.
Mr.. Burroughs said he didn't know
but he recalled that Government
auditors had found that their ne
profits at one time were only from
one-fifth of per cent to l per cen
bottle
Glen J. Clifford, presiding at tn,
hearing, stopped this argument by
pointing out that the Secretary o.
Agriculture had no authority to cor,
rect any evils connected with retail
prices.
His only concern" the examine
explained, "is in determining wha
price the producers should get. HI
cannot correct marketing practices
To obtain that relief you must q
to some other Government agency
We don't have that power. Thos'
questions are as important, per
haps more important, than tn,
question at issue here, but we can
decide them"
Mr.. Burroughs said a congress
sional investigation last winter hat
shown that Western cream wa
being brought into the District
ostensibly for use only in ice cream
but actually for fluid This wa
estimated to cost the local pro-
ducers $1,000 day, he said IT.
still flowing in" the attorney added
Prompted by a question, he sale
this cream was "in illegal compe
tition" with the Virginia and Mary
land producers.
Mr.. Clifford set aside this after
noon to hear consumers and an,
representatives of their organiza
tions.
THE biggest problem facing pro
ducers and handlers in the Wash
ington market" said Mr.. Burroughs
sis the growing competition of evap
Grated milk, which sales in thi
market have increased, as shown b,
our survey, to alarming proportions
THE amendments which we hay
proposed Ito the marketing pac
proposed by the Maryland and Vir
ginia Milk Producers Association
are vitally necessary if the Wash
ington producers and handlers ar
to maintain a satisfactory marke
and If consumers are to maintain
and extend their purchases of fuit
milk and cream to promote optimun
standards of public health"