Evening star., 1940-02-01
BACKGROUND

BACKGROUND
Federal control OF the Wash
ington milk market became
effective last midnight through
Secretary Walldce's order firing
minimum prices to be paid by
milk distributors to dairy farm
ers for milk and dairy products
sold in Washington and neigh
boring Maryland The Star here
presents an analysis of the
orders meaning. prepared by an
expert. The observation is in
terestinq in that a result of the
order may be q louertng OF the
retail milk price.
Federal regulation of the handing
Of milk in the Washington market
ing area establishes UNIFORM plan
under which distributors buy their
milk and pay dairy farmers. That,
according to c. I. Dunn, market
administrator, is simple explana-
ton of the program which went into
effect today under an order ap-
proved by producers and issued by
Secretary of Agriculture Wallace.
only the transaction between
the distributor, or handler, in buy
ing milk from the producer comes
under the program" Mr.. Dunn ex-
planned. THE program has no
jurisdiction over the sale of milk
to consumers. The price at which
milk is sold by distributors and
storekeepers is left to the forces
of competition.
Operated Dairy Farm.
Mr.. Dunn, native of Maryland
and resident of Alexandria, Va, was
named by Secretary Wallace to ad-
minister the Federal order for the
Washington milk marketing area.
Since the fall of 1884, Mr.. Dunn has
been a member of the staff of the
Department of Agriculture Dairy
Section. Previously, he owned and
operated a 383-acre dairy farm in
Baltimore County, Maryland. In
1922 he received a B. S. degree in
agriculture from the University of
Toronto.
AS market administrator, Mr..
Dunn's job is to see that all ham
dlers in the Washington marketing
area buy their milk and pay pro-
ducers in accordance with the terms
specified in the Federal order. The
marketing area under the regula-
ton includes the District of Colum-
bia and adjacent territory in Mary
land, including such towns as Cap
itol Heights, Bladensburg. Hyatts-
vile, College Park, Takoma Park,
Silver Spring, Kensington, Bethesda
and Chevy Chase.
The Federal order in the Wash
ington milk marketing area can do
no more than provide the machinery
through which the mechanics of
\ pricing milk and paying producers
are carried out on an equitable
basis,"' Mr.. Dunn stated. THE
program makes it possible for each
handler in the market to buy his
milk at the same price as that paid
by any other handler for the same
kind and use of milk in the market
ing area. This places all OF the
handlers at the same competitive
starting point. From there, 1t is
each handlers own job to sell his
milk so that it reaches the con-
sumer with the greatest amount
of efficiency at the lowest price
possible.
Invites Greater Efficiency.
1.-THE stability which this type OF
regulatory program is able to en-
courage in milk market affords
those in the market with a better
opportunity in which to develop
greater efficiency in the distribution
of their products. This is some
thing which the industry-milk
handlers and dairy farmers-must
work out for itself. The program
provides the basis for the necessary
cooperation among producers and
handlers" Mr.. Dunn said.
That the Federal milk market
i regulatory programs are encourag'
ing greater efhciencies in milk dis.
tribution with savings passed on tt
consumers is indicated by develop
ments in some of the leading
markets in which these measure!
are in effect. In the New York
Chicago and st. Louis markets
milk distributors have introduced
new methods Of handling milk sinc'
they began operating under Fedora
regulation. The changes involved
the use Of two-quart paper con-
tainers, two-quart bottles, and four.
quart jugs with reductions in thu
number of deliveries, and savings ir
various handling costs. These have
made possible prices to consumer
which are from IL to 3 cents pei
quart lower than those which hav'
prevailed for single quart deliveries
| Need for improvements ant
greater efficiency in the distribution
of milk in the District area has beer
recognized for some time by con
sumers and other groups. Con
sumers have contended they shoult
not be required to nay for service