Evening star., 1948-06-20
Price Of Cream
Raised by Son1e;;
Milk Unchanged
Dairy Wage Increases
Blamed for Boost of
One Cent q HuIf-Pint

Some Washington area dairies
yesterday announced an increase in
the price of cream and cottage
cheese to Offset a recent wage in
crease, but indicated there would be
no immediate rise in milk prices.
Chestnut Farms Chevy Chase
Dairy boosted the price on home de
livered single cream one cent half
pint and raised the price of one
pound packages Of cottage cheese
three cents. The new price of cream
Is 2112 cents half-pint and of
cottage cheese Is cents a pound.
Indications were that the new
rates would be fairly general among
the nine dairies that agreed on
June 7 to give more than 1900 en-
ployes wage increases of 812 cents
an hour.
Herman A. Schulteis, vice presi-
dent of Chestnut Farms, said some
adjustment was necessary in view
OF the wage increases, but that milk
prices were not elevated because of
the responsibility dairies felt to-
ward keeping prices down on so vital
a food.
Model Farms Lists Rises.
Because of the fluctuating
costs of producing cream and cot
tage cheese, his firm has adopted
a new policy of revising the retail
prices of these items more fire.
quently than in the past. Mr..
Schulteis said. Previously the prices
on these products have been raised
snd lowered with the trend of milk
prices.
Model Farms Dairy, Inc, an
nounced effective today the same
increases on cream and cottage
cheese. The price of double, or
whipping cream, also will be raised
2 cents half pint. The dairy's
new prices on half-pint of single
cream is 81 cents, on double cream
AZ cents and on a pound Of cottage
cheese Is cents.
Percy D. Gibson, vice president
of Model Farms, said the increase
was necessary and justified because
the dairies actually have received
only half-cent increase on milk
since 1910. During that time milk
prices rose from Is to 81 cents, but
3 cents of that was applied to offset
the loss of 3-cent Government
subsidy, and operating costs have
scared sharply, he said.
Three Others to Boost Prices.
Three other concerns, Thomson
Dairy, Embassy Dairy and the
Alexandria Dairy Products Col
probab bly, will raise cream and COT
tage cheese prices this week, 1t was
said .--..
Michael H. Burchell, president of
the Alexandria firm. said 1t was
positively necessary" to make some
upward adjustment to Offset the
wage increase He said his dairy's
increases might not be in the same
category as the others, but that
they definitely would not include
milk.
BY the middle of the week
Thompson Dairy will announce
prices approximately the same" as
other new figures, A. Lee Thompson,
president of the firm, said. Mr.
Thompson was firm in the belief
that milk prices should be held
down as long as possible.
James J. Ward, president of En-
bassy Dairy, saw the possibility of
a price revision sometime this week
to meet the scale of his competitors
Lucerne Plans No Changes.
Other dairy officials said their
auditors had been juggling figures
ever since the wage increase was
granted, and that an increase of
some kind was indicated
Dairymen by and large were not
SO optimistic about keeping milk
prices in check over a prolonged
period. One said much depended on
the grain crop. If the price of grain
goes up this fall milk will 60 up at
least penny, he said. If the crop
is good, milk prices may remain
static.
An exception to the upward trend
was Lucerne Dairy, which supplies
Safeway Stores.
Lucerne said it had contemplated
no changes in its dairy products
prices last week when it announced
a reduction in Grade A, per cent
butter fat milk. The Safeway stores
reduced this milk from 19 to 18
cents when purchased in four-quart