GENERAL FARM PROGRAM 1249 



what we can get margins down to. I know that if the cost of milk is 

 reduced 2 cents we will guarantee that the price to the consumer will 

 drop 2 cents, because there are elements in that market that would 

 have to react that way. I think that is true of most major milk 

 markets that I know of. 



Mr. Pace. This problem is immediately sprung on us by the illus- 

 tration of what has happened to wheat. During the last 12 months 

 the price of wheat has fallen off 20 or 25 percent. Yet, on the whole, 

 you are still paying the same price for a loaf of bread. There has 

 been no reduction in the price of bread following the reduction that 

 the farmer received for his wheat. Consequently, it has been brought 

 to our attention that a comparable thing could happen in milk or any 

 other commodity. You could reduce the farmer's return, paying him 

 part of it out of the Treasury, but the housewife would still pay the 

 same price. 



Mr. Parodneck. Mr. Chairman, that can only happen if the De- 

 partment of Agriculture decides to maintain class- 1 prices at their 

 present level, in other words, maintain consumer prices in effect at 

 the present level. 



Mr. Pace. I am quite sure the Department has nothing to do with 

 it. 



Mr. Parodneck. I am assuming that no such thing would happen. 



Mr. Murray. The Agriculture Department is just a referee. The 

 consumer and the producer have to agree to something, and the De- 

 partment only takes the role of a referee. 



Mr. Parodneck, Only the producers' cooperatives have to agree. 

 The farmer is not consulted in this. 



Mr. Murray. Do you want to get some cheaper milk in New York 

 City without all this conversation? 



Mr. Parodneck. We must get it. 



Mr. Murray. Are you talking for the consumer or the producer 

 today? 



Mr. Parodneck. They are both interested in the same thing. 



Mr. Murray. No; I do not think your producers are going to be 

 interested in my proposition. I will just talk about your consumers. 

 I will be glad to put enough milk up there to drown the Tammany 

 tiger for you, and I will take the contract right now at 13 cents a quart, 



Mr. Parodneck. No; Mr. Murray, you would not do that. 



Mr. Murray. Oh, yes; I would. Just give me a chance. 



Mr. Parodneck. I would be glad to. I do not think we can afford 

 to take the time at this moment, but at your leisure I would be glad 

 to go into that proposition, and you would change your mind. You 

 would withdraw the offer. 



Mr. Murray. I will tell you how to do it right here on the record 

 if you want me to. All you have to do is get some of this good Wis- 

 consin dehydrated whole milk selling at distress prices at the present 

 time, reconstitute it, and you would be unable to tell the difference 

 between that and homogenized milk. If you are interested in cheaper 

 milk and the consumer, that is what they had better be buying. 



Mr. Parodneck. They had better stop buying fluid milk then and 

 buy only milk products. 



Mr. Murray. You cannot be fish and fowl both. I want to know 

 which one you want to help. 



