Evening star., 1941-08-25
Milk Price Rise
Wins Approval
Of Wickard
New Rute Would
Increase Retail
Cost by | Cent

Secretary of Agriculture Wickard
this afternoon announced tentative
approval of a proposal to increase
minimum producer prices for milk
under the Federal marketing order
regulating the handling of milk in
the Washington marketing area.
The proposal will be submitted
Immediately to the industry for ap-
proval, the Agriculture Department
said.
One Cent Rise Forecast.
officials of the major diaries serv-
ing the Washington area said. after
hearing of the tentatively approved
increase for producers, that the con-
sumner price would be raised one
cent per quart.
An official of a large dairy said
the price of cream also would go up
If the class Q increase is approved.
He predicted rise of one cent per
half pint for cream An official Of
another dairy said the increase in
cream prices may be as much as two
cents per half pint.
One dairy official. who declined to
be quoted, said he could see no alter
native for dairies but to pass the in
crease along to the consumers.
Tho y1our y1rnrooSol uypt,ld inCroo
the minimum Class l fluid milk
price 40 cents hundredweight and
the Glass fluid cream by 20 cents
hundredweight. The Glass price
would remain unchanged.
Proposed Increases.
Under terms of the amended or
der, the minimum price for milk de-
livered to handlers in the District
would be s357 hundredweight for
Glass l milk and S210 a hundred
pounds for Glass g. For milk deliv-
cred to handlers in nearby Mary
land, the Glass / price would be s311
a hundred pounds and the Glass 2
price $187.
Glass / milk used for relief also
would be advanced from the present
minimum price Of $780, to s2.391s
for deliveries either to District or
Maryland handlers. Presumably,
this would mean an increase in the
present 5-cents-per-quart price now
paid by persons on relief here, I'M
less some new plan is worked out.
The increases will become effective
if approved by two-thirds of the
producers voting in a special refer
endum and if the proposal is signed
by so per cent of the distributors.
However, if the handlers do not sign,
the proposal may be made effective
by order of the Secretary of Agri-
culture with approval of the Presi-
dent.
Approval Forecast.
Informed of the Agriculture De-
partment's tentative approval Of the
proposed increases and other sug-
gested amendments, B. B. Derrick,
secretary y-treasurer of the Maryland
Virginia Milk Producers Associa-
ton, predicted prompt approval BY
producers.
He said he would call meeting of
the board of the association to vote
on the plan as soon as he received
official notification of the Agricul-
ture Departments action. The
Maryland Virginia association repre-
sents more than 1900 producers
about "a per cent of the dairymen
serving the Washington milk mar
ket.
The referendum will be conducted
by c. I. Dunn, milk marketing ad-
ministrator, who will send ballots to
all producers supplying the Wash
ington area. At the same time, a
marketing agreement containing the
amendments will be submitted to
District and Maryland handlers.
Action Result of Hearing.
The long awaited action by Sec
retary Wickard came almost two
months to the day after completion
of a public hearing held by the de-
partment on proposals to increase
the procedure price. The price in
crease had been requested by the
Maryland Virginia Milk Producers
Association. The association, how
ever, had recommended a Accent
rise in the class L price. with no
change in the present class 2 and
class 3 prices.
In announcing tentative approval.
officials of the Agriculture Depart
ment said higher producer prices
will offset the mounting cost of feed,
labor and equipment, and should