Evening star., 1942-02-20
Milk Data Studied
For Decision on
Price Increase
Five-Doy Hearing Ends
On Petition Involving
Higher Consumer Cost

A mass of evidence and testimony
presented in the five-day Agricul-
ture Department hearing on the
Maryland and Virginia Milk Pro-
ducers' Association proposal to raise
the price of milk in the Washing
ton area was being studied today
by experts of the Surplus Market
ing Administration following the
close of the hearing at the United
States Chamber of Commerce yes
terday.
Secretary of Agriculture Wickard
is expected to act soon on the petit
ton, which, if granted, is expected
to result in 2 cents per quart Inv
crease in the price of retail milk
and similar rise in cream per half
pint.
Milk here now retaiis at about
Is cents q quart. Should the in
crease be allowed, milk would be
the highest here since 1921, accord
ing to figures submitted earlier in
the hearing.
Diaries Join Opposition.
Five leading dairies here, numer-
GUS consumer interest groups and
organized medicine have joined in
opposing the rise since the hearing
opened February IL. Dairy spokes-
men have admitted any increase
they will pay milk producers will
have to be passed on to the consumer
sumner.
Support of the co-operative's petit
ton came from several nearby Vir-
ginia dairy farmers near the close
of yesterdays hearing, who repeated
earlier testimony of producers that
rising farm costs ad lack of farm
labor make an increase imperative.
Mason F. Smith, Herndon (VaD
rising farm costs and lack of farm
costs and milk sales for January,
1941, and last month, indicating he
had operated his dairy farm at
loss last month. He commented
he had either to receive more for
his milk or be forced to sell his
cows.
A similar stand was taken by j.
j. Ramey, dairy farmer of Vienna,
Va, who pointed out that the pro-
longed dry spell of last fall had
killed off his pasture land, and that
he did not know where he was 60
ing to get hay to feed cattle. The
hearing ended with testimony of
John j. O'Neal of 4420 Fourteenth
street NV, retired farmer. He
said he was in favor of an increase,
as farmers were not receiving parity
prices for their products.
emi-Monthly Payments Opposed.
The fifth local dairy to register
opposition to the rise was Model
Farms, represented by Percy Glib
son, its president. Mr.. Gibson also
testified in opposition to a proposal
of the association to require milk
handlers to pay producers twice a
month instead of monthly. He said
1t would require collectors to make
additional trips and would be a
wear on tires.
Mr.. Gibson also objected to a
proposed new skim milk differential,
which, he said, would channel all
skim milk into one processing plant.
Other dairy interests have charged
the cooperative with attempting
to create a monopoly on the product,
which has increased in value because
of new uses for milk by-products.
Earlier in the day Bruce B. Der
rick, manager of the association,
returned to the stand to explain to-
department experts the complicated
structure under which producers
supply this market. The base-sur-
plus plan tends to discourage pro-
duction if there is a surplus on
the market, it was pointed out, and
encourages production when there
Is lack Of supply here.
Supporters of the new proposals
have claimed there is little surplus
in the milkshed at this time, but
that before farmers could raise their
production they would be forced to
go to additional expenses in sup
plying more milk.
Mr.. Derrick announced that an
adjustment committee of the asso-
citation expected to announce at the
end of this month revised percent
age quotas to permit farmers to
increase overall production.
Glen j. Clifford, attorney in the
departments solicitors office, pre-
sided at the closing session.