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...milk prices keep going up, U.S. housewives are beginning to rebel against these restrictive state controls. In Oregon, voters repealed the state law setting arbitrary prices at the doorstep and grocery counter, thereby sent prices down 2? a quart. Yet farmers are still collecting as much, or almost as much (10.9 to 10.2? a quart) as before, and consumption is headed up. In Florida, after voters failed to abolish their milk-control board, they brought pressure on the legislature for more consumer representatives on the board. In California, Safeway Stores, which preach firm prices for farmers and free competition among...

Author: /time Magazine | Title: Business: MILK PRICING | 12/13/1954 | See Source »

Milk controls were born during the Depression, when farmers were forced to sell milk for as little as 1? a quart. In all, 26 states passed laws to protect farmers and bottlers. Some later junked the laws, but 16 states still maintain strict controls. In addition, federal controls can be applied if a majority of the milk producers in an area petition for them. As a result, three of every four U.S. citizens drink price-controlled milk...

Author: /time Magazine | Title: Business: MILK PRICING | 12/13/1954 | See Source »

...patchwork of politics and protection for local milk producers. Alabama, for example, prohibits distributors from increasing out-of-state milk purchases except during a severe shortage, fixes the grocery price of milk 1?higher than the home-delivered price, even though it usually costs nearly 3? a quart less to sell through a grocery. Thus milk is 26? a quart in Birmingham, but in Chattanooga, a freely competitive market about four hours away by truck, milk is only 16? a quart. Wisconsin, because of highly efficient mass production and distribution methods, claims it could deliver fresh milk in Manhattan...

Author: /time Magazine | Title: Business: MILK PRICING | 12/13/1954 | See Source »

University of Illinois Agricultural Economist R. W. Bartlett surveyed milk-pricing in 50 U.S. cities last year, found that prices were invariably higher where state controls existed. In 17 cities with free-milk markets, grocery stores charged an average of 20. 1? quart, 3.1? less than the average home-delivered price. In 18 state-controlled markets, the grocery price averaged 23.6? a quart, only 2? less than the home-delivered price. Says Economist Bartlett: "Modified federal regulation is absolutely essential to [prevent] chaos in milk markets. [But] state control of consumer prices constitutes a legalized monopoly which is definitely against...

Author: /time Magazine | Title: Business: MILK PRICING | 12/13/1954 | See Source »

...health's sake, U.S. families are forced to buy milk, whatever the price. But consumers have demonstrated that they buy more milk when the price goes down. For example, when the price dropped as much as 3? a quart in Kansas City, Mo. last year, sales of milk promptly rose...

Author: /time Magazine | Title: Business: MILK PRICING | 12/13/1954 | See Source »

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