Evening star., 1942-03-26
Virginia Group
Weighs Boost
In Milk Price
Producer Request
Seen Adding 2 Cents
A Quart in Summer
By = Staff Correspondent of The Star.

By = Staff Correspondent Of The Star.
ALEXANDRIA, Va, March 26.-
Evidence showing the price increase
asked by the Maryland Virginia
Milk Producers Association would
boost milk prices l cent quart over
current prices and 2 cents over
summer prices was being studied
today by the Virginia Milk Commits
sion.
B. B. Derrick, secretary-treasurer
of the producers association, yester-
day asked the commission to grant
farmers AZ cents a hundredweight
over the existing $3.50 rate, which is
scheduled to fall back to $3.17 be-
ginning May !.
At the request of producers sup
plying the Arlington Alexandria
area the commission last September
approved the increase to $3.50 until
May /.
Mr.. Derrick argued that farmers
are faced with a shortage of labor
and higher costs of food and equip
ment.
Michael H. Burchell, secretary
treasurer of the Alexandria Dairy
and Hazel's Dairy in Falls Church,
told the commission that if the pro-
ducerS' request were met fully, 1t
will be absolutely necessary to in
crease the consumer price by two
cents a quart"
Distributors Already Strained.
Mr.. Burchell said the two-cent in
crease would be over the Summer
price, there would be only one cent
increase over the Winter price.
THE reason why the distributors
do not want to impose higher prices"
he said, lis because the consuming
public will not stand for it. The dis
tributors have already strained to
absorb the increase granted the
producers in September, and we
can not absorb any more We do not
want to ALLEVIATE the confidence and
friendship of the consumers which
We have built up through the years"
Mr.. Burchell said the two firms he
represented were willing to have
the producer price scheduled to ex-
pire May ! continue throughout the
Summer.
Judge Harry R. Thomas, counsel
for the Arlington County Dairy,
supported the views of Mr.. Burchell,
except that he wanted the commits
sion order of September carried out
and the producer prices to fall to
the summer level after May r
OF the producers request Judge
Thomas commented:
More Cows Needed.
ANY such increase would ad-
versely affect all parties concerned.
The consumers prices in this area
are among the highest in the coun-
try. 1t is a sound policy to have
two prices for the summer and
winter months. If the retail price
is increased cents after May, it
will come at a time when produc-
ton is at a maximum, but would
reduce the consumption of milk"
Mr.. Derrick told the commission
the producers who supply the Alex
andria Arlington market must &C
quire 12,500 additional COWS and
other equipment, and dairy facilities
will involve a total outlay of ST.
825 900 to meet the demands of a
Is per cent population increase.
Il am instructed to say the pro-
ducers are willing to make addi-
tional investments providing they
can continue to make sufficient
money to permit them to live" Mr..
Derrick said.
The producers representative also
argued that feeding expenses are
not materially lower during the sum-
mer and hence the May reduction
should not be ordered.
Harold Serr, chairman Of the
Alexandria Arlington Milk Con-
sumers' Committee commended the
distributors for opposing further
price increases which would be
passed along to the consumer.
He made three requests Of the
commission: That it deny the pro-
ducers' higher prices; that the COM
mission withdraw its retail price
fixing powers from the market area,
and that the Arlington n-Alexandria
market area be permitted to join
the Washington market area.
Producer Franchise Created.
Mr.. Serr argued the commissions
retail price control plan limits the
geographical area of supply, and
that it serves no purpose other than
to exclude some producers at time
when the demand is increasing, thus
creating a franchise for The pro-
ducers already doing business in the
area.
Mrs. Marion George, dietitian Of
the Washington Elementary School
Parent Teacher Association of
Alexandria, said she was providing
free milk and lunches for needy
children at the school. If prices are
raised further, she said. she would
be forced to serve the children
SKINNED milk and use substitutes
for butter in their food.
Both sides were given Is days to
file supplementary statements and
the commissions decision probably
will be given before May l.