Evening star., 1941-08-26
0ne.Cent Rise
In MiIkPrice
Seen as Certain
Wickurd Tentatively
Approves Boost in
Producer Minimum

A l-cent-per-Quart increase IN Cne
consumer price of milk here ap-
peared certain today as a result of
Secretary of Agriculture Wickard's S
tentative approval of a proposal to
boost the minimum producer prices
under the Federal marketing order
regulating the handling of milk 'in
the Washington marketing area.
c. I. Dunn, the milk marketing
administrator. today is sending bal
lots to the producers and handlers
supplying the Washington area to
determine their stand on the pro-
posed increase, and the results are
expected by the end of the week.
In some quarters there were pre-
dictions that the 1-cent increase
might be in effect by the 1st of
September.
Henderson Opposes Increases.
Opponents of the rise based their
hopes mainly on the fact that Fed
eral Price Administrator Leon Hen
derson is on record as opposing in
creases in milk prices in the District
If the higher cost would be passed
on to the consumer
1t was learned today that Mr..
Henderson's position. voiced in a
letter to Secretary Wickard in late
June, is unchanged At that time
he viewed with concern" the sug-
gested price boost unless it was found
necessary to maintain this areas milk
supply. He recommended that dairy
herds be enlarged to take fullest
advantage of relatively favorable"
wholesale prices.
Meanwhile Representative Schultz,
Democrat, of Indiana announced
that he will hold a public hearing
next week on his bill to permit i'm
portation of cream into the District
from outside the Washington milk
shed, provided it meets the pro-
visions of the United States Public
Health Service milk ordinance.
Commissioners Set Hearing.
This will be in advance of hear
ing on the same bill called by the
Commissioners for September %. In
announcing their hearing the city
heads said they wanted to hear
testimony regarding the health re-
quirements, inspection and suff-
cheney of supply under the existing
arrangements.
Representative Schultz declared
his bill is designed to break up the
monopoly which controls the Dis
trict milk supply.
The producer price increase. con-
tanned in, series of amendments
to the milk marketing order, can
be made effective if issuance of the
amended order Is favored by at
least two-thirds of the producers
who vote in the referendum and
If the agreement is signed by han
dlers of at least half the volume OF
milk handled in the marketing area.
Prompt approval of the increase
by producers was predicted by B. B.
Derrick, secretary treasurer OF the
Maryland-Virginia Milk Producers
Association, which represents more
than 1900 producers, or about "a
per cent of all who supply this area.
If handlers do not sign the agree
ment, but producers approve in the
the required majority, the amended
order can be issued by the Secre-
tary of Agriculture with the ap-
proval of the President.
Diaries Forecast Increase.
Shortly after the Agriculture De-
partment announced its approval
of the price increase and other
amendments, officials of the major
diaries here declared that the rise
in the price they must pay produc-
ers would necessitate an increase of
! cent per quart to consumers.
They indicated also that the con-
sumer price for cream would be
boosted. One dairy official said his
firm probably would jump the cream
price l cent per half pint, but an
other declared a 2-cent-per-half-
pint increase might be necessary.
The plan announced by Secretary
Wickard would increase the mini
mum producer price for class l
(f1uid milk by 40 cents per hun
dredWeight, and the class (f1uid
cream price by 20 cents. The class
3 price would remain unchanged.
This would place the minimum
prices for milk delivered to handlers
in the District at $3.57 a hundred
weight for class l milk and $210
a hundred pounds for class 2. For
milk delivered to handlers in near
by Maryland, the class price would
be $311 hundred pounds and the
class 2 price S187.
Affects Needy Families.
Glass 1 milk used for relief also
would be increased, advancing from
the present minimum price of
$780, to $780, for deliveries
either to District or Maryland
handlers. Presumably, this will
mean an increase in the present
price of 5-cent-per-quart paid by
needy families in the District, unless
some new arrangement can be
worked out by the District Govern
ment, the Agriculture Department
and the dairies handling the relief
milk.
The long-awaited decision by
Secretary Wickard came exactly
two months after completion of a
public hearing by the Agriculture
Department on the proposed in
crease and other suggested amend
ments. The Maryland Virginia
Milk Producers Association had re-
quested an increase of 46 cents in
the producer price for class l milk,
but had not sought any change in
the class 2 or class prices.
In announcing tentative approval,
Agriculture Department officials said
higher producer prices for milk will
Offset the mounting costs of feed,
labor and equipment and should
assure an adequate supply for the
Washington area. They said milk
consumption has been increasing
rapidly here in recent months.
Other amendments in the revised
milk marketing order would Cd
place all milk otherwise unaccount-
ed for in class l, instead of in class
2 as at present; 20 remove provi-
sions under the present order which
specify that new producers shall
receive the lowest class price for
all their roi1k for 1ipoito6 poriod.