Evening star., 1940-01-18
Cheaper Milk
For Poor Urged
In Agreement
U. S. to Submit New
Pact to Handlers
And Producers

"A provision designed 10 encourage
consumption of fluid milk among
Washington's low-income families
was included today in a milk mar.
keting agreement drawn up by the
Department of Agriculture, subject
to approval by the producers and
marketers in the Capital area.
At the same time, officials said
that producers referendum on the
issuance of a Federal order, en-
bodying terms of the agreement.
would take place within the next
Is days.
The provision in the program, ap-
proved by Secretary Wallace, stipu-
lates a special producer price of
81 .995 per hundredweight for class /
milk sold or disposed of to low-in-
come groups, including persons on
relief, under any program which
may be developed and approved.
1t was estimated unoficiaily by
b. B. Derrick of the Maryland and
Virginia Milk Producers Association
that this would mean a retail price
OF cents quart, as compared to
the regular price of IA cents.
To make the order effective an.
proval of three-fourths of the pro.
ducers who vote in the referen.
dunn is required, together with sig.
nature of the marketing agreement
by handlers representing 50 per
cent of the market milk by volume.
Outgrowth of Hearings.
The agreement drawn up by the
division of marketing and marketing
agreements of the department Is an
outgrowth of hearings in nearby
Maryland and Virginia last Novem-
Der. A program proposed by the
Maryland and Virginia Milk Pro-
ducers' Association served as a basis
for the hearings.
officials said the ballots probably
would be mailed late today or to-
morrow to dairymen in MARYLAND.
Virginia, West Virginia and Penn
sylvania.
If the required number of han.
dlers do not sign the marketing
agreement, the department an
nounced, Secretary Wallace, with
the approval of President Roosevelt
and the producers, may issue the
order which would be binding on
handlers.
The tentatively approved agree
ment provides for classification of
milk into three classes according to
use, payment by handlers of speci-
fled minimum prices for milk in
each class, distribution OF money
which handlers are required to pay
producers for milk on an individual
handler pool basis, and other stand.
ard provisions 80
Retail Prices Not Fixed.
The agreement follows other Fed.
eral milk marketing programs in
that 1t does not establish prices
which consumers are to pay for
milk.
The minimum class prices to be
paid to handlers are as follows:
Glass l (fluid milk, S317 per
hundredweight for District inspected
milk, and $217 for milk disposed
of in portions of the marketing
area outside the District by q
handler not having a Health De-
partment permit to sell fluid milk
or fluid cream in Washington.
Glass 2 milk used for chocolate
milk and whole milk drinks, fluid
cream, creamed buttermilk, cottage
cheese and milk not used in class l
or class 3-$1 80 per hundred
weight for District-inspected milk
and $1.67 for otherwise.
Glass 3 (milk, the cream of which
is used to produce ice cream or ice
cream mix, under certain specified
conditions)-a price determined by
formula based on approved sweet
cream prices at designated points in
nearby markets.
Would Name Administrator.
Under terms of the agreement, q
market administrator. appointed by
Secretary Wallace, would verify
monthly reports that would be re-
quired OF handlers, and would com.
pute and announce prices to be
paid producers by handlers.
Proceeds from the sale of milk
would be prorated to producers
through the individual handler
pools, under which each handler
would pay his producers according
to the handlers use of the milk.
Handlers would pay up to cents
per hundredweight of class l and
class 2 milk as their pro-rata share
OF expense of administration.