Evening star., 1940-02-01

through streets to summon
firemen from station a block
away. Star Staff Photos.
worked out with District officials
will return the farmer 5 cents per
quart.
For each quart of District inspect
ed milk used by handlers for cream
and other class 2 purposes, the
producer receives nearly 4.8 cents.
Milk used for class purposes which
is not District inspected returns the
producer of that milk about 4.3
cents per quart. 1t takes about five
quarts of milk to make quart of
light cream.
Mr.. Dunn explained that the gen.
eral level of producer prices estab-
lished by the Federal order is about
in line with that which has pre-
vailed in this area during the last
year. However, the prices estab-
lished by the order are not as high
as those originally proposed by the
producer sponsors of the plan, nor
do they follow the recommendations
of the distributors. The schedule
of producer prices is designed to en-
courage greater stability in the
marketing area, and to assure the
market of an adequate milk supply
without handlers having to raise
the general level of prices to con-
sumers. Mr.. Dunn said that the
order imposes no restrictions on
sources of supply and it has nothing
to do with enforcing health regu-
lations on milk.
Handlers to File Reports.
Handlers of milk sold in the mar
keting area are required by the or
der to file with the market ad-
ministrator monthly reports which,
in addition to other information,
show their receipts of milk from
producers and the use made of this
milk. From these reports, the mar
ket administrator computes every
month for each handler the value
Of the milk used in each Of the
three classes and the blended
price to be paid producers. This
method of paying producers is known
as the 'individual-handler pool
since all producers delivering milk
to the same handler receive the
same price, according to that han
dler's use of the milk. If handle,
has a high volume of class l, OF
fluid, milk sales in relation to the
total amount of milk which he re-
ceived, his blended price" to be
paid producers will be closer to the
class price fixed by the order.
The Federal order is based on the
record of series of public hearings
held during the latter part of
November at Warrenton, Va; Fred.
erick, Md, and Washington. The
hearings were requested by the
Maryland and Virginia Milk Pro.
ducers' Association, a cooperative
organization representing approx.
mately 80 per cent of the farmers
who produce the milk that. is SOLD
in tie market. Following the hear
ings,. the record of the testimony
and evidence presented by pro-
ducer, consumer and handler rep
resentatives was studied by experts
in the Department of Agriculture s
dairy section and the program was
drafted on the basis of their find
ings.
Other Cities Have System.
Similar plans for establishing
minimum prices to milk producers
under Federal orders are in force
in more than IS other marketing
areas in various sections of the
country. These include New Yorl
City, which is the worlds largest
milk market; Boston, Chicago, Gin.
cinnati, St. Louis and New orleans
During the last year the farm value
Of milk sold by producers tt
handlers operating under the term.
of these Federal milk market reg.
ulatory programs approximate
$50, ,000,0 900. The programs are au'
thorized by the Agricultural Mar.
keting Agreement Act of 1897 ane
their validity was upheld last Jun,
by the United State Supreme Court
Approximately 1,400 dairy farmer'
located in Maryland, Virginia
Pennsylvania and West Virgini,
produce the Washington marketin,
areas fluid milk supply. Most o
these producers are members of tn
Maryland and Virginia Milk Pro
ducers' Association, which sells tn
milk to handlers. OF the tota
amount Of milk required for tn
market, it is estimated that owe
Is per cent is produced on farm
located within so miles of Washing
ton. The farms on which the mill
is produced are larger than other
and average over 80 cows per farm
Most of the milk in the Washington
marketing area is handled by abou
IA handlers, who buy from the Co
operative association or direct from
nr0dIIcerS