New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-11-07
ORGANIZING A MILK TRUST,
a SYNDICATE TO CONTROL THE ENTIRE
SUPPLY OF THE GREATER CITY.

TO Buy OUTRIGHT THE BUSINESS OF EVERY
DEALER IN THE TERRlTORY-MANY OPTIONS
OBTAINED ECONOMY IN DISTRIBUTION
WILL. IT Is AyERRED. PRE-
VENT ANY INCREASE II THE
rrIcE OF MILK
The formation Of what practically amounts to a
milk trust in the greater city OF NewY ork. con-
cernng which project The Tribune has from time
TO time printed information. seems likely to be
come an assured fact within the next few weeks;
and ii Is possible 10 give fairly detailed ac-
count of the plans and estimates OF the promoters
OF the enterprise
The movement for the purchase and consoida-
ton of the interests Of all the milk dealers In and
around this city originated with John ID Glmor.
who successfully organized n few years ago the
Ncw-York Biscuit Company the plant of which Is
In Tcnth-ave.. extending from Flfteenth-st to SIX
feminist Mr. Gmor. who has bakery AT NO.
@5 Greenwich-st.. with offices upstairs. lives AT
Meadowbrook. y. Y. near Cornwall and owns
the noted Meadowbrook Farm. lie has there
dairy which supplies certain New-Yorl' bakeries
with milk. but he cannot strictly he said TO be In
the milk business. although through the manage
mcnt OF his dairy he has certain degree OF
familiarity with IT,
Mr.. Gilmors plan is briefly the buying outright
by a syndicate OF the business Of every milk
dealer in the territory mentioned payment to be
pany which will soon BE- incorporated in New
Jersey which VIII control the milk distribution
here Mr.. Gilmor has himself been actively az
work the sch me since last summer. ana mas
been aided IN the securing OF options chiefly by
John H. KimDer formerly proprietor or editor OF
''The MIX Reporter" Nr Kimber's work has
been mainly among the smaller dealers, many OF
whoo good at writing or reading. ana
whom he assists in alling out their option blanks.
Large dealers and small alike have come In"
nearly every ono; and. while some OF them are
willing to talk freely about the scheme, they are
exceedingly avcrse TO having their names mon
toned one Of the large dealers yesterday showed
a Tribune porter his copy OF the option agree
ment. By It's terms the dealer agrees to sell to
trustee named I'm the instrument MS complete
plant consisting u all his real estate. cr"anerieS
ico-houses cans and long LIST Of other essentials
TO the conduct ~ a milk business or creamery; as
well as the goodwill Of tho business, the shares
/ owned by the seller In the Consolidated MIX TX
/ change OF New-Jcrsoy (Which now controls the
price ~ milk to IN" farmer, but which VIII thus
I be absorbed by the new corpornton). guaranteed
book accounts ana cash on hand. and stock. both
manufactured and manufactured.
The optiou further provides: I'VE and each % ia
also agree that. IN the oyent OF such purchase by
yop or your assigns. viii not directly or In
directly engage in the sale OF milk or milk
| products OF any kind whatsoever. except IN the
capacity Of your agents or employees. or as your
I assigns. within IFo nNnGTfI .ill'S OF INV 'iio W
Ncw-York y y for period of twenty years
/ from date We Will. II desired. remain In the
employ Of yourself of your assigns for a period
Of three years at salary 20 be mutually agreed
upon"
Then follows a guaranteed statement OF The
average annual net earnings for the last three
! years Il description o.. the property TO be turned
| over 10 the trustee and an estimate OF the value
~ ,h. bualness a. a going concern" with state
men: OF the amount OF the weekly payroll ana the
annual sales and a promise to assign 10 th' d"''''
tho vendors PREMISE II not owned IN 70" smp'e
The dealer who gave IN" reporter uHi7 'I''o"
blank also showed him form Of agreement pro-
,ld,ug that II ne shall sell hts milk business Tor
securities or cash o. both he Will pay 10 John
u Gllnor -, Der cent ln Kind of the gross amount
received by him from such ~al" In 'he Pi'"'''
/ form Mr. GilmoF's commission was ofs'iaI.S
| placed AZ = per cent. hut 80 many Ini"h"I,s
rrnders ob'oc:cd that the percentage "d' ~
one Of ihc main reasons why milk dealers gen
orally favored The trust Ir0Jc.t Sain 0'', 90 ~ ,a'
repo rtcrs irformants WAS That u mig II w. Wy
Distinctive OF profits. Mauy grocerics ht con.
tinued displayed placards oncrlng milk AZ cents
a olitrt or two quarts Tor ! cents hgui, b',C%
thc cost Price to ,hS sro'f&Ty & ii' rom wagon to
househodcrs at . cents quart ne doesn max naA.
exactly the present cost Of milk d"'N't"h I" '"'
John B b Gm2r Rr sSn coa'a w ' T Gmor confirmed
the rumors and statements concerning the pro
Said in substance. but a corporation az ana ~, IN"
dralers themselves viii have voice in ls man
agcrncnt II Will beneh. both the dealers ana N"
farmers. The daily consumption of mix IN tht
on n'1rged CITY Of New York averaged In September
I nearly 9jOOOO quarts. so you see that ms ~ a
vast business not speak % the sales OF cream
Tho distribution Of this milk supply has empi,oy,d
I 4 uJJ wagons many of them old ana diriy-lookinE
The new company. by arranging that no Two
wagons shall serve the same route. Will he abl'
/ 10 ecOnOm.Ze largely on expenses Tor wagon
horses and drivers We expect to do All the WORK
with about 300 wagons. a.l neat and atiractiyc
and furnished with rHbber ures-so thAt ~ ine
4 unasDhalied streets the present nuisance OF th'
! eep-destroying mlkcart rattle and roar Will b."
done away with. These and other economies pos
siblc with concentration of tn" business OF mix
distribution viii probably enable ~ to lower ihc
| retail price Of milk which viii thus follow m"
| course of such commodities az supar ana oil. Inc
| urlCc will not bo increased. has been alleged
| Tho syndicate which Is 10 bay tn" property OF the
dealers represents both American and English cap
| ital The options expire at various times but any
| OF them may be renewed. We aim to include both
! the small dealers and the large ones I'm the pan,
/ and almost all have consented. The COMPANY j..
| not yet incorporated. and there IL great deal OF
/ work still o be done in valuing ana paying t3r
/ The many properties to be purchased but ample
capital Is at hand and expect TO be running our
| NO JauiIdrV ]