Evening star., 1951-09-28
Courts RuIinq
Fails 10 Affect
Milk Price Rise
Arlington Board
Loses PIeu to Upset
Higher Minimum

7t9ner MINIMUM
A ruling yesterday by a Rich.
mond court In an old milk price
case affecting Northern Virginia
will have no influence on a new
boost Of I cent a quart for the
Washington area, effective Mon
tday.
This was the consensus today
lof spokesmen for the Maryland
Virginia Milk Producers Associ-
alton and of milk distributors
here. The association said the
new increase is necessary at this
time because of higher produc.
Ition costs for dairy farmers.
Judge Harold F. Snead, in Rich
mond Circuit Court yesterday, up
held price-fixing order of the
Virginia State Milk Commission
affecting the Arlington -Alexandria
market. But he sent the case
back for taking further evidence
on whether interstate milk enters
the picture.
Shipments Switched to ID. C.
Meanwhile, A. Kenneth Wallace,
spokesman for the Maryland CO.
Operative Milk Producers Associ-
alton, said milk that formerly went
to Baltimore diaries is being sent
to Washington area because OF
higher prices. Mr.. Wallace ex-
planned last week his group lost
140 producers who had been ship
ping milk to Baltimore. Some OF
them transferred to the Maryland
Virginia Association because Of
better prices. he said, and some
of the milk Is being diverted to
Philadelphia.
Ohicers Of the Maryland CO.
Operative probably will get to-
gether shortly to consider raising
the price Of milk in Baltimore. Mr..
Wallace declared.
The Associated Press said Judge
Snead did not rule on a conten-
ton that the commission lacked
authority to regulate prices of
milk that moved in interstate
commerce. The jurist sent the
record back to the commission to
take further evidence on this
aspect of the fight.
Boost Held Unreasonable.
The Arlington County Board,
petitioner in the case. contended
the January 81 commission order
boosting minimum milk prices in
the area by one-half q cent q
quart was unreasonable and
Icapricious."
The board had contended the
commission lacked authority to
regulate the sale Of milk moving
directly from distributors in the
District to consumers doorsteps in
Arlington" But Judge Snead
pointed to the commissions con-
tention that there is no evidence
in the record this milk moves in
Interstate commerce. Hence. the
Judge said. the court had no fac
tual basis for considering this
question and declined to do so.
Herman A. Schulteis. vice-pres-
ident of Chestnut Farms-Chevy
Chase Dairy said Of the latest
price increase:
I'VE have petitioned the Virginia
State Milk Commission to review
the price situation. II the associ-
alton goes up, we will have no
alternative whatsoever but to
hike our price, then comply with
whatever the commission decides
when it does have a hearing.
Thompson's Dairy prices will 60
up one cent a quart Monday. Rob-
ert H. Rawlins, production mana
ger, said, but even at that the
firm will lose money, he asserted.
His firm has petitioned the Vir-
ginia Milk Commission to deter
mine whether the producers in
crease is justified, he said. The
increase to the distributors Of the
Washington area will be more
than one cent, Mr.. Rawlins con-
tended.
Outlines Situation.
Mr.. Rawlins outlined the situa-
ton thus:
THE statement that the price
to the distributors has gone up
only nine-tenths Of a cent is err
roneous. The farmers organiza-
ton has done two things-change
the butter fat basis on which we
have purchased for Is or 80 years.
They have lowered the tradi-
tional base from 4 per cent but
terfat to 3h per cent butter fat.
They have reduced it by half a
point and increased the differen-
tial from 6 cents to a formula
based on the Philadelphia cream
price, which is running around 81
cents for one-tenth of l per cent
butter fat in a hundredweight of
milk.
That in itself has increased the
price of per cent butter fat milk.
"On top Of that. they have in
cerased the price by IL cents a
hundredweight.
I'VE also face the additional
cost here Of the increased COM
mission to our route men. Each
time the price of milk goes up,
the commission also goes up.
1--WE are perturbed over the fact
that this base change and increase
will cut into our admittedly lowest
profit margin in the United States
by three to four cents per hun
dredweight. And as a consequence
we have petitioned the only milk
regulatory body in this area, the
Virginia Milk Commission for q
hearing. We have asked them
particularly to hear evidence to-
set a maximum price both to the
farmer and to the consumer.
Authority Cited.
1--WE know they have that power