Evening star., 1949-08-27
Producer Price
Boost Opposed
Al milk Hearing
D. c. Dairy Urges
Commission tu Deny
Latest Increase

A Washington milk distributor
yesterday asked the Virginia Milk
Commission to disapprove higher
producer prices that became eff
fective August /.
The commission held a hearing
at Alexandra yesterday on re-
quest of the Maryland and Vir-
ginia Milk Producers Association.
which seeks to have the commits
sion approve an increase from
$3.50 per hundredweight to S6.06
in the price of milk. The higher
producer prices resulted in a l.
cent-per-quart increase in retail
prices. The milk commission es-
tablishes minimum prices for milk
sold on the Virginia market and
sets the pattern for all Washing
ton area milk prices.
Disapproval of the higher milk
price was asked by Robert H.
Rawlins. production manager Of
Thompson Dairy. He said he
doubted that the producers in
crease was justified. Total costs
in milk producing have dropped
81 per cent since last November.
when Washington area milk prices
were increased, he testified.
Milk producers said the increase
actually was restoration OF
prices effective last March, before
there was 50-cents-per-hun-
dredweight seasonal reduction in
milk prices.
Mistake, Derrick Says.
I'VE did not then believe there
was any economic justification for
seasonal reduction: now we
know that it was a mistake" tes-
titled Bruce B. Derrick, secretary
treasurer of the milk producers
association.
He said many farms in the area
had been without rain 20 days
during July, causing serious
damage to pastures. AS a result.
he testified. dairymen had to use
up their fall reserve feed. They
now need the higher price to
build up feed reserves, he said.
"On July 49, Mr.. Derrick con-
tinued. "the board milk pro-
ducers) met in emergency session
and decided that the only
way to save the Washington mar
ket from a serious shortage
of milk this fall was to effectuate
an immediate restoration of the
producer Class I price to its March
level"
Mr.. Derrick also cited Agricul-
ture Department statistics to show
how prices of essential farm
materials have increased since
1910.
Rainfall Held Normal.
Mr.. Rawlins said the producer
price in this area now is higher
than that in Richmond. Balti-
more, Philadelphia, Pittsburgh
and New York. He said Weather
Bureau reports showed there was
a normal rainfall this year, and
that pasture conditions in Mary
land and Virginia were good to
excellent"
Producers who testified claimed
the high cost of labor was one of
their principal worries.
M. H. Burchell, for the Alex
andria Dairy, and Morris Dawson.
for the Chevy Chase Chestnut
Farms Dairy. said their firms al
ways opposed the idea of increas-
ing retail prices, but requested
that the commission approve the
1-cent retail increase, if it ap-
proves the producer increase.
j. w. Ingram appeared in be-
half of the Arlington Better Gov
ernment League to oppose the in.
crease. He cross-examined Mr..
Derrick to try to show that pro-
duction costs have continued to
decline since March. when lower
prices went into effect.
Others who appeared to ques-
ton the necessity of higher prices
we're Harley Williams of the Ar
lington Civic Federation and Rob-
ert w. Cox of the Columbia Pike
Citizens Association.
DR.. Upton r. Snavely. chair
man of the milk commission,
promised a decision as soon as
possible.