Evening star., 1946-07-02
3-Cenfs-a-Quart
milk Price Boost
due Tomorrow
Producers Announce
Increase to Make Up
For Loss of Subsidy

A 3-cents-a- quart increase in
the price of milk for consumers
in the Washington area was in
dicated by local distributors to-
day when the Maryland and Vir-
ginia Milk Producers Associa-
ton, Inc, announced that effec-
tive tomorrow it would raise the
price Of milk the amount of the
consumer subsidy" which ended
with OPA.
Several of the larger distributors
here said they were awaiting official
of the higher price.
They believe that it will necessitate
an increase from l6 to 10 cents a
quart in the delivery price of milk
and a 10-centS-a- quart increase in
the price of cream, now 56 cents.
This was the first major break
reported in prices here during the
first two days since termination of
OPA. 1t resulted, dairy officials de-
clared, solely from discontinuance
OF the Federal consumer subsidy on
milk and is part of a general milk
price movement throughout the en-
tire East and the South as far west
as Texas.
More Meat in Prospect.
The first improvement in the
local meat supply prospect was re-
ported this afternoon. An official
of the Southern Hotel Supply Co.
said he had received assurance
from Chicago that substantial guam
titles of pork and a considerable
amount of beef as we'll as other
meat items would start rolling into
Washington" perhaps by Friday or
Saturday.
These anticipated supplies will be
the first large deliveries of their kind
in almost two weeks. he said.
Detailed information about the
scheduled milk price increase was
not available from the Maryland
and Virginia Milk Producers As
ISOLATION Office at 1855 K street NV.
where it was said that Manager
Bruce B. Derrick was out of town
today Individual dairy company
officials here also were unwilling to
elaborate on the announcement but
they verified calculations that the
delivery price would 60 up cents
tomorrow or within day or two at
the latest One distributor declared
that the 3 cents increase is jutifled
IN view of discontinuance Of the
Federal subsidy and that the higher
price still would not meet additional
labor and operational cost of dairies.
Same Returns to Farmers.
The Milk Producers Association
statement declared:
"On July !, 1916, the Federal con-
sumner subsidy on milk was abruptly
terminated by the discontinuance of
OPA. Local dairy farmers were
therefore faced with an immediate
and substantial decrease in their
incomes. To offset this reduction
the Maryland and Virginia Milk
Producers Association, Inc, effec-
tive July 3. raised the price of milk
the amount of the consumer sub
sidy. All dairies in Washington have
been notified by letter to this effect.
Local dairy farmers will thus con-
tinue to receive the same total re-
turns from their milk as they did
before cancellation of consumer
subsidies and the OPA.'
In other price fields, public off,
cials and business associations still
awaited wider evidence of reported
price jumps on some restaurant and
store items.
Vincent A. Holmes, District OPA
administrator, said he has received
no conclusive reports of a great
change in the general price situation
or in the willingness of most mer-
chants to hold the price line.
Some Higher Prices.
There were scattered indications
that butter. chickens and oranges
were being offered for sale at sub
Stantially higher prices, but an Of
fetal of the Restaurant Association
OF Washington denied any break
down in restaurant price ceilings
here. A spokesman for the Wash
ington Hotel Association said he be-
Ieved hotel stewards will have to
pay at least IS cents a pound for
butter and about 80 cents a pound
for chicken.
There is no reason why retail
fruit prices, except for large Or
anges. should be higher than CELL
ings. an official OF the Nationa
League of Fruit and Vegetable Dis
tributors declared today. He sale
that at the wholesale level. the cur.
rent prices on fruit and vegetables
in most instances are lower thar
ceilings.
Prices on large oranges increased
approximately IS cents yesterday
from the previous ceiling of s6.6(
per 100 pounds. The wholesale price
on small oranges dropped from s6.6l
to about $3.50 when OPA expired.
| Unofficial reports received by the
| Washington Board of Trade fail te
indicate a price raising move BY
Washington business establish.
ments. Executive Secretary William
H. Press said he doubted any appre.
ciable move of that kind for severa
days, if at all.
/ No Complaints Received.
/ The Better Business Bureau O
Washington reported it has received
no complaints that department
stores, speciality shops and simila
establishments have raised price
since termination of OPA. Although
It's work is not directly related T.
ceiling price problems, an officia
said, the bureau occasionally re
Il tSee CEILINGS, Page A-3J
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