Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-09-26
Milk Price Cut
Fight Revived
Chain Seeks Writ,
Attacks Controls

Safeway Stores today renewed
Its fight against Virginia milk
price regulations. charging that
controls have cost Alexandra
and Arlington customers an
extra $65.351 during the last
year.
In a suit fled In Arlington Cir
cult Court Safeway asks an in
junction To- prevent the Virginia
Milk Commission from enforcing
its new minimum retail prices in
the Alexandfia- Arlington market.
The suit also asks the court to
make the commission revise its
method Of fixing minimurn
prices.
The current miiimum price
for i standard quart Or milk In
the alexandra Arlington market
Is 22.5 cents. Safeway Stores
asked the commission for q 81
cent minimum. It sells Lucerne
milk in its Washington and
Maryland stores at present for.
2l.5 cents q quart.
It was an earlier suit by Safe
way Stores that resulted in q
Virginia Supreme Court decision
compelling the milk commission
TO alter its price-fixing policies
this summer. The Supreme Court
upheld Sideways contention that
the commission should not set
separate minimum prices for
milk sold in stores and home-de-
liyered milk. The court also
ruled that the commission must
set maximum as well as mini
mum prices.
Board Held Hearings
The milk commission held q
series of hearings throughout
the State to decide what the
new minimum should be. At the
Arlington alexandria hearing,
sSafeway and Highs asked the
commission to withdraw its
regulations from this area. Safe
way further argued that If the
commission held on to retail
price controls, the Supreme
Court decision meant they had
10 be fixed on the basis Of the
most economical tyne of opera
ton.
Alexandra Dairy, however,
argued that the commission
should Ak a representative
minimum price. taking into ac-
count the expenses of all types
Of dairy observation-disclosures that
deal In me-delivered milk and
those that do not, like Safeway.
Safeway Attorney Arthur b.
Hanson charges in the new suit
that the commission has not fixed
the new minimum price in ac-I
cordance with the Supreme Court
decision In the earlier SafewayI
case. According to Mr.. Hanson.
the new price minimum repre-
sents q "median" or average"
price considering operation costs
Of all types of diaries.
Charges Discrimination
"Safeway could not see them
and cannot see now, any reason
as to why 1t should be compelled
10 charge higher prices for milk
and milk products sold to its
Virginia customers than for the
same products sold to the citizens
IN nearby Maryland and Wash
lngton," the suit states.
"The fragrant failure by the
commission to carry out the clear
dictates Of the mandate Of the
Supreme Court of Appeals of
Virginia will result not only In a
continuing loss Of business to the
complainant. but will continue
the intolerable situation which
last year caused the complain-
ants customers In the Airing
ton-Alexandria market to pay
$65,36l more for the same milk
and milk products bought from
compliments stores under con-
troll by the commission than III
would have cost them to pnr-I
chase those same products in
Nike amounts from compliments
stores in nearby Maryland and
Washington"
Highs also has gone to court
TO upset the commissions new
price minimums. Highs has ap-l
pealed to the Richmond Circuit
Court to upset the recent price
ruling.