Evening star., 1946-07-25
Milk Producers
Await Virginia
Price Ruling
Adjustments Sought
Because of Loss of
Federal Subsidies
BY the Assoeiofed Press

At4S11no1NO, CuAy Go'- VA 6lAAAo
milk producers and distributors to-
day were awaiting a decision by the
State Milk Commission on recon-
mended adjustments of minimum
price schedules in ate-controlled
markets in view of discontinued
Federal subsidies and increases in
production and distribution costs.
At the conclusion of the two-day
hearing for the 81 markets under
commission control, DR.. Upton r.
Shavely, chairman of the regulatory
body, gave assurances that the
agency would lose no time in max
ing up its mind but that several
days may be required for prepara-
ton and distribution of orders
Representatives of dozen mar
kets appeared before the commits
sion yesterday in support of pro-
posed State adoption of increases
already put into effect, or contem-
plated, as minimum schedules in
their milksheds. Many producers
testified that increases in their
prices were essential if they were
to continue in business. Representa-
tives of several markets, including
Newport News, Norfolk Portsmouth
and Petersburg -Hopewell added as a
further argument for higher returns
the fact that they have to compete
in open markets" outside their local
areas for substantial part of their
milk volume.
Price Approval Urged.
Spokesmen for producers and dis
tributors in the Arlington -Alexan-
dria market recommended approval
as minimum increases already placed
in effect there providing a home de- |
livery retail price of 10 cents a quart
on grade A milk and a price to pro-
ducers of approximately SSH, in
cludlng premiums, for class l milk
and S4.74 on class milk. The new
producer prices represent an in
crease of 80 cents per hundred
weight on class l and 81 cents on
class 2 milk, the witnesses said.
Hugh F. Hall, representing the
Lucerne Milk Co. and Safeway
Stores, Inc, which sell approxi-
mately $500 quarts of milk daily in
27 stores in the Arlington-Alexan-
dria area, recommended that the
entire Metropolitan Area of WASH
1ngton be treated as single market
area by discontinuance of Virginia
Milk Commission control of prices
in the Arlington Alexandria area, or
by establishment by the commits
sion of minimum prices In the
Arlington Alexandria area lin con-
formity with the market in the
Metropolitan Washington area"
THE marketing of milk in the
Metropolitan Area of Washington"
Mr.. Hall said, ''is complicated by
the existence of a free market in
the District of Columbia and Mary
land, while the Arlington -Alexan-
dria area is subjected to price con-
troll. Competitive forces have pro-
duced lower price in the free mar
ket than in the controlled market
Controls Not Needed.
I'VE. have no facts showing the
need for continuance of price con-
troll in the ACKNOWLEDGEMENTS
area. Since producers are now pro-
tected as to minimum prices under
the Federal market order, this basic
reason no longer prevails"
Mr.. Hall said that Safeway, in
order to attain uniform prices for
milk sold out of stores, proposes to
offer milk in quart containers in
the Metropolitan Area, including
Arlington and Alexandria, at II
cents and two for 33 cents, on the |
basis of producer prices now pre-
vailing. Sideways present multiple
retail prices, he said, are two for 81 |
cents. He pointed out that the
State commission has recognized in
it's regulations for the Arlington
Alexandria area a differential be-
tween store distribution and home
delivery prices and urged that this
policy be continued.
B. B. Derrick, secretary-treasure |
of the Maryland-V Virginia Milk Pro-
ducers' Association; NJ H. Burchell
of Alexandria Dairy Products Co.,
M. B. Dawson of Chestnut Farms |
Dairy and other distributors ap-
peared in support of the requested
approval of existing prices on the
market, which all testified were pri-
marily the result of the elimination
of Federal subsidies. The area had |
a retail increase of cents a quart
within period of six weeks, includ-
ing 1-cent increase allowed by
OPA.