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Austin's Milk Crisis & Utility Bill Hike

Tuesday, January 29, 1946 special called
  • Austin faced a critical milk shortage threat as local producers planned to halt deliveries unless federal price controls allowed an increase by February 1st.
  • The city council declared the potential milk "strike" a public health emergency, requiring immediate action to ensure residents' access to milk.
  • To prevent the strike, the council proposed a controversial plan: increasing water and electricity rates by 34% for most customers to subsidize milk producers.
  • An emergency ordinance was introduced, paving the way for the city to potentially take over milk procurement and distribution to protect public health if the strike occurred.

Full Transcript

167 167 CITY OF AUSTIN, TEXAS MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Special Meeting January 29, 1946 3:30 Ρ. Μ. Council Chamber, City Hall The meeting was called to order with Mayor Miller presiding. Present: Councilmen Alford, Bartholomew, Mayor Miller and Absent: Councilman Wolf Councilman Gillis Present also: Guiton Morgan, City Manager, W. T. Williams, City Attorn ey; Dr. Ben Primer, City Health Officer. The Mayor stated the purpose of the meeting was to discuss the milk problem that is confronting Austin and Travis County. The milk producers had stated that they intended to "strike" if the OPA didn't grant them an increase in the price of milk by February 1st. Mayor Miller stated that he had made every effort to get Mr. Orth, Regional Director of the OPA, at Dallas, to agree to grant the milk producers the increase they were asking, but Mr. Orth had told the Mayor that all he could do would be to recommend to the OPA in Washington and Washington would have to grant this increase. Mr. Orth had also said that he did not want to recommend an increase for one locality as he thought that would be discriminatory and he would have to recommend an increase for the whole state. The milk producers and the milk distributors had told the Mayor that they did not feel that they could afford to continue losing money in their business, and that unless an increase was granted by February 1st, they would have to strike, and by that they meant that they would have to ship their milk to Houston or some other locality where the OPA had allowed an increase in the price of milk. After a lengthy discussion about this milk price question, the Mayor stated that the Council had been studying the matter and had arrived at this conclusion: If a milk "strike" did occur the health of the citizens of Austin would be imperiled, therefore, it would be the duty of the Council to provide means to avert such a condition until the United States Government through the OPA could settle the increase in price of milk question. The Council had decided that the only way the City could provide the money to pay the increase the milk producers had asked for would be to increase the water and light rate 34% for all consumers whose monthly bills amounted to $1.00 and over, and such money to be used for this purpose. The Mayor stated that this might not be the solution but it seemed the only thing to do in the opinion of the Council, and the City Attorney had prepared an ordinance authorizing that this be done. Councilman Wolf introduced the following ordinance: 168 168 CITY OF AUSTIN, TEXAS AN ORDINANCE AMENDING AN ORDINANCE REGULATING THE SALE OF MILK AND MILK PRODUCTS IN THE CITY OF AUSTIN PASSED ON THE 1ST DAY OF JULY, 1937, AND RECORDED IN ORDINANCE BOOK "K", PAGES 201-215, AND AN AMENDMENT THERETO RECORDED IN ORDINANCE BOOK "L", PAGES 288-290, BY ADDING THERETO A SECTION TO BE NUMBERED SECTION 21-a, PROVIDING FOR THE PROCUREMENT AND DISTRIBUTION OF MILK AND MILK PRODUCTS WITHIN THE CITY OF AUSTIN; PROVIDING FOR THE EMPLOYMENT OF LABOR AND EQUIPMENT NECESSARY FOR THE PROCUREMENT AND DISTRIBUTION OF MILK AND MILK PRODUCTS AS A PROTECTION TO THE PUBLIC HEALTH AND GENERAL WELFARE OF THE PEOPLE; REPEALING ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT WITH THIS AMENDMENT, AND DECLARING AN EMERGENCY. The ordinance was read the first time and Councilman Wolfamoved that it be passed to the second reading. The motion prevailed by the following vote: Councilmen Alford, Bartholomew, Mayor Miller and Councilman Wolf Noes Ayes: Noes: Absent: Councilman Gillis There being no further business, upon motion seconded and carried, the meeting was recessed at 4:10 P. M., subject to call of the Mayor. APPROVED: Jom Milla. ATTEST: Acting City Clerk Mayor