Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-08-29
Board Defends
Va. Milk Curbs
Controls Seen Bur
To Cutthrout Sales
BY MARY LOU WERNER
star Stan Correspondent

Star Stan Correspondent
RICHMOND, Aug. 29-With-
drawal of the Virginia State
Milk Commission from retail
price, fixing in the Northern
Virginia area would force
diaries into "cutthroat COMPETE
ton which would be destructive
and demoralizing to the whole
industry" a majority of the COM
mission declared today in a
statement explaining the recent
decision to hold on to all price
controls.
Chairman Mark Turner, the
producer representative on the
commission, and Clarence Flesh
man, who represents the dairy
industry, issued a five-page
statement telling why they voted
for retention of all milk price
controls on the Alexandria-Arl-
ington and Manassas markets.
The third commission member.
v. P. Randolph. jr., who is
the public representative. voted
against retention Of retail con-
trolls on the two markets. He
recalled that a majority of those
who appeared at the July hear!
ing in Alexandria urged the COM
mission to drop controls.
Differences Cited
Mr.. Turner and Mr.. Freshman
said they realized the price sit
uation was different in Northern
Virginia from the rest of the
State.
This Is true for several rea-
sons" they declared. But pri-
marty Is occasioned by the fact
that Highs Dairy Product Corp.
buys its milk for delivery at its
plant in the City of Washington.
outside the area controlled by
this commission. at a price of
approximately Is cents or IA
cents per gallon cheaper than its
competitors have to pay" They
continued:
"Most OF this milk comes from
outside the State of Virginia. To
meet this competition Lucerne
Milk Co. Operated by Safeway
Stores) has put out a new brand
of milk with reduction nj but
terfat and is selling the same
without any profit. This latter
firm, whose milk business consti-
tutes but 2 per cent of its sales
volume, insists upon the right to
sell its milk in a price fixed in
such a manner as is not author
lied under the ruling of the
Supreme Court Of appeals of Vir-
GINA in the recent Safeway case
as interpreted by the Attorney
General Of Virginia.
Should this commission with
draw from resale price fixing
in these markets alexandria
Arlington and Manassas, other
distributors who are primarily
engaged in the milk business
would be forced into cutthroat
competition which would be
destructive and demoralizing to
the whole industry. producers
and distributors alike. and
would be therefore detrimental
to the public interest"
Milk and Cream Act
The two commission members
said they considered these the
type of practices the General
Assembly had in mind when it
passed the Milk and Cream Act
to establish the milk commits
sion.
ut is therefore the considered
opinion of the majority of the
commission, Commissioner Ran
dolph dissenting. that to carry
out the intent and purposes Of
the Milk and Cream Act. to
safeguard and protect for the
public the normal supply, flow
and distribution Of pure whole
some milk in these areas. it is
to the best interest Of the pro-
ducers, distributors, consumers
and for the economy of the
Commonwealth to retain resale
price controls in these areas, un-
til conditions might prove to the
contrary" they added.
Highs Stores started selling
milk this summer for IA cents
a gallon. To meet the COMPETE
ton, Safeway put new brand
of milk on the market at 10
cents a quart. Several other
diaries followed suit, but planned
to drop the cheap milk this week
when producer prices 60 up.
The minimum in Virginia,
however, is 22.5 cents a quart,
beginning Thursday. Diaries can
sell milk above the minimum
but not below it. The maximum
is sos cents a quart. Highs
and Safeway asked the commits
sion to drop retail price controls
and retain control Of producer
prices only, allowing them to sell
milk as cheaply as possible.