330 GENERAL FARM PROGRAM 



this milk in the consumer's hands more cheaply without any subsidy 

 any time they want to raise the artificial trade barrier. 



I realize that we have to have the health regulations, of course. I 

 was home last week, and out of grade A milk they are making manu- 

 factured dairy products. 



That has come as a result of the kick-back in the consumption 

 of fluid milk in the places where they were selling their milk. Times 

 are getting a little tougher in the cities, and the people are not buying 

 as much. 



That milk is bringing 6 to 7 cents a quart. There is only one 

 city in the United States where we have anything to say about it and 

 that is Washington. 



In the rest of the cities they run their own show. One could not 

 bring any of that from Indiana or any other State into this city 

 because they have an artificial trade barrier in the city of Washington. 

 I think there is an approach without taking any money out of the 

 Federal Treasury to support that 15-cent milk. 



I think it can be done solely by the agencies already producing- 

 milk. If we could just get rid of the artificial trade barriers, I think 

 the consumer could get milk considerably cheaper than he is getting 

 it at the present time. Perhaps some people would not like it, such 

 as the people delivering the milk, but rather than taking the subsidy 

 route as a way of achieving it, I am sure it can be done without costing 

 many millions of dollars in order to put it into operation. 



Secretary Brannan. Mr. Murray, I know you do not believe that 

 we have represented the program could be a cure-all for all the 

 difficulties in agriculture. 



What we undertook to do at the beginning was to discuss the 

 price-support mechanisms and laws and make recommendations 

 with respect to them and touch upon all the important aspects. I 

 realize that there are marketing problems and opportunities for us to* 

 increase efficiency in marketing. 



Mr. Murray. I do not know that that is your responsibility. I 

 do not think anyone should criticize you because these cities want to- 

 get milk cheaper. That is not your fault, is it? 



Secretary Brannan. No, not at all. I beg Mr. Poage's pardon for 

 using "efficiency" so often here. 



The Chairman. Can you answer Mr. Murray's question, sir? 



Secretary Brannan. I did, sir. 



Mr. Murray. I did not like one write-up very well, but I noticed 

 in that dairy farmers were to get $4.22 per hundredweight for the 

 milk on a national average. Over one-half of the dairy farmers are 

 going to get 67 cents a pound for fat. I knew very well that Wiscon- 

 sin would be in that 67-cent class because they have been in that low 

 class so long that it is a caste system. 



I just wondered what there was to that. 



Secretary Brannan. I am not sure I am in a position to say. 



Mr. Murray. The announcement I saw in the paper gave a figure 

 of $4.22 for bottled milk. They said the manufactured milk would 

 have a floor of 67 cents. 



Secretary Brannan. I am sorry I cannot verify or disagree with 

 those figiu'es. 



Mr. Murray. What is the formula you propose on milk? Is it 

 $4.22 right straight across the board? 



