. no
elected on lira-dun lint the'"Tfttlt" chem
agamstitbe. distributors. although the proceeding
3;: originallrinsflgated as a result-of a bizarre“
[the . , stilt? party.
.mlhalbfievlsetfieehflmm by»
But
The Milk Question Is Not
A
-&t;‘--‘»-A
Public interest in the milk controversy, as recently evidenced by headlines taking precedence over war news and the Presidential demon. i! “P" flPldly Wlmnfi With the 350311930“ 0‘ the 301"
W_W99l!n Any ld'ilnecs in the retail price to the Consumer may be relented, and this may give occasion for further popular abuse of the distributors,_but any real public interest. in .“Fer’
timing the canoes behind the re cent and costly milk war, the nature of the issues involved and the discovery of remedies which are calculated to prevent its recprrenee is already diminishing.
The consumer is tired of the subject,——oll he wants is good milk. good service and a low price. The dairyman i5 rejoicing It his “‘1er 0V“ the “W“! Twit. but 15 being warned by Commis-
sioner Dillon that “this is only the beginning of a great fight, and we must go out for more whit: belongs to us.” Both consumer and producer are content to go on blaming the dealer.——the one
will continue toufer to the dealers as the “Opmssor” of the farmer in the country and of
the poor and an: in the city. Like all other mythical “Trusts," the distributor will be old responsible for an the ills. imaginary or real. suflered *7 be public. But while the subject «will has
f“ charging too much for the milk and the other for not paying enough for it. Sam. of the news
some chance of holding a glimmer'of public interest, and at the risk of making our story too long ford“ Pom
r use,“ are going to summarise the situation as we see it, in the hope that an
intelligent interest can be maintained until the “milk question” as distinguished from the “milk strike" is, if not settled for all time, at least. pushed well on toward a settlement satisfactory to all.
First, as to some side issues which invariably
crop upun tunes like the recent period of stress
and which trecloud the main issues. As one of
the largest dealers, we are made the victim 0!
the popular dislike visited on the “middle-
man. in the future we ask the fair-minded
newspaper editor and the fair-minded man in
the street to make some distinction between
the middleman who has invested no money,
or very little, in his business. who makes no con.
tubutvon to a legitimate enterprise with which,
more or less as a parasite,he is connected and whose
only reason for existence is his ability to stand be-
tween producer and consumer for his personal
Lcncfit, and the middleman, who, like our Company.
has an $1,090,000 cash investment in the Eastern
branch of its fluid milk business alone and which.
gin?“ particularhbranch, employs thousands of men
' women wit an aggregate earl a oroll of
nbout:$a,5oo,ooo. and which employs sycolfels, of vet-
erinaries and inspectors to guard the health of its
customers and which deals with a perishable food
product under the strict regulations of the Health
Department from the moment it is received from
the darryman at upward of 130 different bottling
plants and receiving stations throughout New
York and adjoining states until it is delivered a fit
food for the people of this city and its environs. We
have heard of no substitute for this kind of a mid-
dleman that ofi‘ers any hope of bettering the exist-
ing method of rcilk collection, care and distribution
short of State of Municipal ownership. The Stat- or
City would be the only competitor with whom
we could not hold our own, for the reason that its
losses would be merely an item that would go to
swell the tax budget. But if the State or City takes
' '" of"? it 'v‘" have to take the next step also
and go into the business of producing milk as well.
Otherwise it my find itself in the same position
unhappily, occupied by the dealers during the re-
cent milk strike. If the people want this solution
they will have it. It will not be the first time pri-
vate rights and ownership, acquired and encourag-
ed wrth public approval. have been annulled "for
the'good of the community as a whole, but before
radical action of this kind is attempted it would be
well to know what, if any, are the evils in the
present system, an 2, if evils are found, whether rm-
nrhilation of an esist’ng industry is necessary to
correct them an!‘ whether the suggested subatitute
wtll .reallv operate” to the advantage of the corn-
mumty as a whole.
ls the present method of milk distribution inef-
ficient and une:0no'nical either absolutely or rela-
tively, as compared with any substitute method
that can lawfully be devised? If the present method
cannot stand this test “hen fairly made, it will
suffer the fate, and rightly ao.-of hand labor, for
example, when put -'n competition with machinery.
We believe that no food product is handled so di-
rectly, efficiently and cheaply as milk, and, further
we believe that under existing laws against com:
brnatrons no sustitute me hod can be devised that
\hlll offer any hope of actual improvement to the
community as a whole. The great incentive to
’l
- economy, and efficiency that is found in the compe-
tition between 450 milk distributors, each fighting
the other for the favor of the public as to service
quality and price, would be lost when the State or
the City became not an imaginary "Trust" but an
actual monopoly.
Second as one of the largest distributors, ave
come in for our full share of the opprobriurn that
18 popularly supposed to attach to a 'Tru:t.“ A:
a matter of act. if there were a better foundation
$0? the charge an immediate advantage would 3:-
crue toxboth producer and distributor ii the
economies of lC’SSEZ‘XL’" costs and increased volume
of hcsmes: conducted by the larger units. Govern-
ment‘regulations and continued competition among
a few big concerns would afford the necessarypro-
tection to the producer and consumer. If any such'
combination.wants our fluid milk business at
. a
cost of the cash we have invested in it, we will be
: glad to retire from this branch of our business.
However. in the face of existing laws.and..perhaps
of public sentiment, a combination of dealers in not
practicable, and we will therefore meet this sci-call-
:erl “Trust" charge'by saying that We welcome the
opportunity of having it thoroughly investigated so
far as» our Commie concerned irr'tbe ‘ee'din
now pending beloruReferee Dykmanp‘dgcby til:
Wicks: Committee, or .in any" other inquiry that
“maydvc‘iasflnnea. ‘In the pméeefiinqg‘wm mgr.-
emee .Dylnasn.~vbe . Attorney-General for masons
which appear :to' him to be sound'has
W’s Leanne was the
‘of the dairymen to ship milk until the owners oi
over 200,000 cows had their full demands accepted
not as individuals but as an organization in control
01 the greatest part of New York's milk supply.
On this point we invite the public to observe the
attitude of the parties in the proceeding before
Referee Dykman, and to draw their own conclu-
sions from Such observation. As evidence'that there
is a conspiracy among the milk dealers of New
York, Commissioner Dillon makes quite a point
that these dealers own practically all of the pas-
teurizing plants available for this district, and
therefore the producers must patronize them or
forego the New York market. It will doubtless im-
press many as not unusual that all of the milk
dealers have equipped themselves with pasteurizing
plants in view of the regulations of the Board of
Health on that subject, though it may come as a
shock to some that most, if not all, of the dealers
own milk wagons, horses, milk bottles and other
paraphernalia necessary to their business, and.
what is still more sinister, very few people outside
of the milk business have any of these things in
quantities sufficient to supply satisfactorily New
York’s milk requirements.
Havincr mentioned the prejudice against the
“middleman" without attempting to distinguish
between the middleman who readers a stone-aw
servicc at a fair profit and the middleman who
rendu‘s no service or exacts an exorbitant profit,
and having mentioned the “Milk Trust" Ibogy. we
would now ac'r comideration of the more serious
aspefls of the situation.
First. is milk distributed as, cheaply in New York
as possible. having regard for qualityand service?
Thi': involves two main points as far as the dis-
tributor i: concerned,~ccsts and profits. Eyersince
we have been in business we have been subject
to the keenest competition. and in spit: of all our
efforts our costs have constantly inch‘ed and to
a greater extent'tban the advances in the retail sell-
ing price, with the result that there has been a
gr aduai reduction in our profit from this branch
of our bus‘rcss. We will be zladto naive and'
adopt any reasonable suggestion that will cut
down our cost", but most suggestions made thus
f-r involve trade n':rcc“'~nts or understandi‘ws
“Elli our competito: which are not allowed under
Hosting Anti-Tm" l"‘-'.'" ‘l'c bcve already Du"-
lisl‘c'l n"r profitn for the vewr c vied Tune 30. 1916.
U'p briefly In“... " :. re-f‘ “A ‘ -es-u-Jusa‘tc- 0‘
one cent noon cs‘“ «Hart 0‘ “ii". h‘ndled during
lll’” v..-,.. gr '3"! " or “0' or v 7: . ' r‘hrr"! 0‘ aka-it
30$ cf 9"? Eros: b‘i"'-’~‘d~"*‘ or out it a third
way rho-W "' c- .-.- '1"'-t"°'tt 3" this
brnnfli of t‘“ busincsrt. In other words. if our
s'Otklinldcrs lw‘ ‘W‘ *‘1'1 i‘~'c~t~'~n‘ ’or example
t'w" cc-vld lime avoided
the risk whith in ic‘3r‘eat to -.... cn"“er‘lal N'-
te-hrioc. curl nc't'c'dnrl" M :. “‘3: case of a busi-
nrM which h‘ndlvr a rerislwblc food product. and
it Aflaln.‘n‘-nn~l~ ',~u,1c~
-s=-ill have b-cv‘ bow" o‘l'. “’"r ”"0 "War the ‘iy-
nrcs nltnwi-mgrh‘t hem-n1“ of the rli'l‘e-MM be.
tween our aversive. selling mice "firinlrnrt 1911 the
mice ncid tb" doirv‘r'on. Th-ce-fimirec have been
certified to by l-laskins & Sells. Certified Public
Acro'irtants'
On .«11 the milk curt‘hased by our Farm
Products Division from producers dur-
inc the last fiscal year and-sold to the
....i ‘-‘~ eith-r as fluid milk. cream or in
the fw- of ‘v-“cr‘ or chccre. we realized
an average selling price per quart of
...m. at ...... , ......................... s .0303
("‘qu . , '
Psi»! {0' Milt ............ $ .036
T1.» nr—‘-‘ r '
palliati-
li“"l‘nr and -
n-mh miller (lurinc
S"l" "pvipfl Von-n as rnl'n-v-fi‘
Fanny Pygmy s .orofi
Frei'rbt 33.373
Sellfrv‘r arrl Delivery
. Expense. .0201 ‘
General Expense .ooog
-—- .o408 -
Total 86st 3 .0777
Thc net proiit‘new nuartof such mil‘cdnr-
inc said period was (approximately: -
only-£41m“ Scots
Percentageef Profit‘onNethsles . , 3.25%‘
We are told by m—n» nf‘a‘rui’r’fififlt that wilt“;
they relieve‘the truth offline figures. most people
discount then nosmfinw‘fm‘n__mvfiel'e~urfe and,
we read in yum-critter m“m editorial a.
which flu! writer‘i‘i’ererfiillwmml‘e short and
velvvordv’m "n' “1'16! the rectum»...- ems .. .
prefers-ed central may .or mm...“ m 'Msficwag
W Gan-"M 8'" m m Manama-mu; u1awfii§v
M .W 8". 0‘ 00¢“qu ml HM! gh- some“...
we nude as to our wo‘lh is not“ he My“
lend-inc the ”War-e “who N
W
.1» a
branches are as sewate and distinct as if they
were owned and operated'by separate corporations.
The markets are different, the problems are differ-
ent, the channels and processes of distribution are
different,'the management and operating personnel
are different, and separate books and records are
kept. The figures we have published as to the
fluid milk branch of our business, which is the
only branch that affects the New York consumer
and the only brar-ch that is in competition with the
other New York distributors. are correct, and we
welcome the opportunity we hope to have in the
pending investigation now being conducted by the
Wickes Joint Legislative Committee to establish
the accuracy of these statements. Perhaps the edi-
torial writer of the evening paper will say: "It
makes no difference to the public how you make
money enough to pay your dividends on that big
capital. the fact remains you make the money :r
you couldn't pay it out.” Our answer is: “Our big
capital is necessary because of our big volume of
business. Large volume means a proportionately
greater plant equipment in the milk business than
in most others because in the milk business the sup-
ply of'raw material is limited at any given point.
is subject to violent fluctuations dictat:d by the
«workings of nature, while the consumers' study
all year round requirements must be met irrespec»
tive of these production conditions. Milk by its na-
ture forbids resorting to storage or other like
manipulation to meet such conditions. That large
capital is necessary is further indicated by the fact
that our net profit from all branches of our busi-
ness for the last fiscal year was but about 66: on
the volume of business done. That our stock issue
is not excessive and has real value behind it is
.proyen bythe fact that we have actual tangible in-
vestment in our business largely in excess of our
total stock issue." The profits from the manufac-
twrivw bmnch'of the business. which is not involved
in this cn~troversv, were sufficient to make up for
"’tll- lack of on nde‘ruate profit in the fluid milk
brooch and enable-l u" M my our dividends. 'l‘o ’
ask us to run or:- important line of business with
r0 *2th as. iudrzrd by ordinary conmercial stand—
nvvlc becc-vc- we have made a satisfrztory profit
in another line. is so unreasonable that we will
leave the verdict on that point to the public.
Second. The consumer should inform himself as
to costs and profits ln‘the producing and of the
milk industry. 7" 'h- c- eoconomy and'officiancy
practiced amt-elf" on :the-dnirvzflrrfol as we "have
born councils-i .. ohm in ionder to sunlve the
competitive conditions smiling in the distribut-
inc' end? ""e know orbit some of :the dalryvnen
_ have‘ adopted modem dairyineumothoda. used com-
mcriallv firoductlw cow". only and prenatal ‘un-
dnr tho n‘icesnnid for milk'befnee the nmrlu~t was
,xakrn out of the commitive ~field by “the Dal!"-
vren's Leanne. Some have done reasonably well.
acme have lost money ctd‘done badly. Thereiwill
aim-um be some that Ida bully. 3101-111"!!! “What
the" receive for their mllk' There lea wmin per-J
ammo:- of failures in every industry when the
wt» «id sealer"! oedeflncy'ofmn are matzhed
against eacb‘uther. .
Forgetting, however, tirelndwidu'al dairyman for
' the'momsnt and. looking.“ the situation from the
broadestmspeet, it. is vial afrom tlveatan'rlpoint of
thepeopleasne'whole'thatimilk productiontand milk
distribution be mahits'inedon atplane/ofquanflt‘y
and quality that. will meet the demands of the
magic. The peoplelruust pay, a .price that will
insure production «and distribution on this plane.
They should pay no moremnd if they pay less they
rlrre‘atcn-‘vthe'life of a '"great industry to their own
detriment. This industry. however, must be com
' ducted as nearly as possible in harmony with the
all-controllingdaw of sunplyand demand. :Any ar-
lificial device; whether it be»_a monopoly of pro-
duction orsra mnopolv’of distribution. should be
sedated not only, by those directlyrena'aged in the
industry. but-by the public. .vlt. was this big'deal
“for which We contended in the reCr-nr milk con-
trov'ers. «We stood against monopolistic methods
and we stood ‘for’the principle of monthly prices
to "the producer and the consumer, which would "
reflect‘matural market seditious. - Our stand
brought us condemnation in many quarters, gbut
«lulu-already bringing us‘yccmnendation about other
. .gturtersaand: eventuaimafly‘btdbedriirymen one
at first-supposed rfiflmwfiem in“~th_elr
wish to organise for~ theirzown benefit, whereas
our opposition my 'd‘vmdeanh‘tf fire mltbods
adonted toattain their obiects and because We
moulds-acute no .:oonlideration ~by 1heir TeM'
uremic scoauniesr‘bniplesuacaleaed to stillili‘le
the industry as a M
"macaw mamas”. ......
ell: , Wm 'c . , ms
' zmM than! misnom- miners _.
We believe in thctmwnig ‘
accurate books of account showing detailed costs
and profits or losses, such records to be open to
someptiblicofficialsuchasthe‘nepartmen, tof
Agriculture. and requiring the filing of periodic
reports, would benefit the whole industry and re-
move the suspicion and distrust which now char-
acterize the relations between producer and con-
sumer. Even with our close acquaintance with the
industry as a whole we have positive knowledge
of our own business only and know very little of
the real conditions which confront the dairyman.
From this limited knowledge we believe that he
was justified in demanding more for his milk. We
know his costs have increased and we believe
his profit has been inadequate. We blame ourselves
for not keeping ih closer touch with his problems
and letting him know ours and acquainting him
with the costs and profits of distribution, and above
all, urging him to consider how vitally his interests
are concerned in keeping down retail .prices to
the consumer in order that milk consumption may
be increased rather than reduced and that milk
may continue to hold its. enviable position of fur-
nishing more “food value" for the money than
any other food product.
But even had there been established a com-
plete understanding between us and our dairy pa-
trons. that would not have resulted in a lasting set-
tlement of the “milk question,“ for the concumor’s
viewpoint would have been left out of the reckon-
ing. Therefore, we assert that some such law as
we havesuggestod is desirable and all the facts in
the situation should be made a matter of public
record to the end that the interests of all may be
protected.
Third, we suggest that the public give some
thought as to whether its interests are not injured
by acquiescing in the notion so alluring to certain
types of politicians to make the “milk question
an instrument whereby their political ambitions
may: be furthered. In some years this tendency
is more in evidence than others. but hardly, a year
passes that the atte. t is not made by someone
to create political capital out of the “null: ques-
tion." These efforts always result in injecting add-
:3 bitterness, suspicion and distrust into the rela—
tinna bemn those directly and indirectly affect-
cd, but Walther accomplish nothing or accom-
plish something for the particular interests intend-
ed toheLfavored toehe detriment of the interests-of
those whose support is~not needed.
The people should also consider whether it is
wise to permit a public officer acting under a law ‘
which is intended to reduce the cost of living and
which defines the measures he may lawfully adopt
to coco-polish this our-nose to so identify his of-
ficial position with the interests of one group that
he ignores the interests of a larger group. The
fact that the recent controversvvbemeen producer
and dealer reached such an acute-stage was large-
lv due to the manner in which the producer’s in-
temts were represented by the Commissioner of
Foods and Markets. who at all times obstinately
imrerl the broader responsibilities which the law
imposed upon him. When the settlement «was
finally made with the Commissioner’s approval.
it differed from the settlement made some three
days earlier by President Brill of the Dairvmen’s .
League only to the extent of leaving unsettled the
disposition of seasonal surplus milk production.
and of eliminating from the Committee which will
arbitrate prices‘ for lanuarv.tFel-.maryand *Mnrch
those members who under the-Brill . plan of settle-
ment would have been appointed by any. Whit-
man. Mayor Mitchel and "Health Commissioner
Emerson. the Merchants‘ Alsocintion and others.
Snchmomintees would have had in mind "theim
threats of. the ncoole as a whole and a finding by
such a Committee would have carried more weicrht
as cominc..from a more representative body. "than
like Committeedirectlv and exclusively representing '
Nwlucecsond distributors. The loss to the sure-
rlncer. distributor and consumer was prolonetd by ‘
the Commissioner’s activities for three. unnecessary
‘, days. with the only result that 1it! trained for 5him-
self in sonselinuareers the credit Which otlsmwise
“mum have-cone to a dairvrnan who‘had publicly
criticized Shim. , -' ’ -
In conclusion we urye the elimination from the
’ 'WlilkOueation” of innocence, maul-bur comnhte:
of falseand hoary issues. of unlitiesiandnnemmal
ombinonand‘dte‘mbstitnmn‘thmfon (if frostin-
uedasublic“-atmumi‘cnum m1 iss'tés: on news-
moor-Went of'ihn‘th nmdncer and distributor:
"tl‘c'vt'ntrt‘oq of 1m fowl-n benefit of the consumer
‘9'", V""‘ 'ipdmttm 21': ‘9! “Janka, romiifinnr s1", miklic'
"Mr'fi‘m jfifltnrlach nr'h‘pgfm refine-«Anni?!
"A dwlqvhu—o chamkklhfitnc ;; ,4... "1.," q;
”'M‘H‘“tl*es for‘Wh ’lnwirm.r and' 'a-llirm' th-
lfimlflnw’wth‘ 9‘10. "Mdnce-e and.rllct-i‘-'-‘"n
“Mm-“ass auu‘M-nnh-w so" “at Canons-n: of ‘Fn’ks'lf. .
rv-m «tug il‘aqtlfl'u; hula-ow. New? in :f-J-fli'ro'l 95A,
‘l‘mfiw‘ n— M out“. ‘GWOf'V' fine: “intro! vn‘n‘lfl‘. ‘
WWW producer. .distrfiutor and con-
Norwalk Chronicler