Evening star., 1949-08-27
Producer Price
Boost Opposed
Al Milk Hearinq
D. c. Dairy Urges
Commission ia Deny
Latest Increase

koleSt increase
A Washington milk distributor
yesterday asked the Virginia Milk
Commission to disapprove higher
producer prices that became ef-
fective August l.
The commission held a hearing
at Alexandria 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 $6.06
in the price Of milk. The higher
producer prices resulted in 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's Dairy. He said he
doubted that the producers in
crease was justified. Total costs
in milk producing have dropped
81a per cent since last November.
when Washington area milk prices
were increased, he testified.
Milk producers said the increase
actually was a restoration OF
prices effective last March, before
there was q 50-cents-per-h hun
seasonal reduction In
milk prices.
Mistake, Derrick Says.
I'VE did not then believe there
was any economic justification for
a seasonal reduction; now We
know that it was 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 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 efiectuate
an immediate restoration of the
producer Class 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
.,@ ---
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
were 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.