The Penn's Grove record., 1899-11-17
qHE BIG MILK COMBINE.
New Company Expects to Have Mon
opoIy Of Supply in Several States
CONTRACTS WITH PRODUCERS

The incorporation of the MILK Trust in
Delaware-Has a Capital Stock of $780,
OOO, OOo-Price of the Fluid Has Been
Raised Gradually and May BE In
cr~eased-Causes Given by Dealers.
New YORK CITY Especially. -Householders
and consu ners OF milk in general were not
encouraged by the announcement from
Wilmington, Del, OF the incorporation tn
that State of a gigantic milk trust, the
capital stock OF which Is $50, 900 900. This
action indicates that the price OF milk in
New York City and vicinity is to go to even
a higher price than at present-Sl.61 per
can OF forty quarts-and that there Is a
strong probability that the increased figure
will be maintained.
Steps to form an organization to control
the price Of milk we're taken last spring,
but nothing definite was decided upon I'M
til several months ago. Efforts had preyi-
ously been made to interest capital in tho
undertaking, and two years ago 1t was
said that English capital was to be in
vested in the scheme. Nothing practical
was accomplished in this direction.
The project was not abandoned, how
ever, but men OF means and large whole
sale dealers in milk in New York, New
Jersey and Connecticut decided to under
take the work OF controlling the output OF
milk in these States. The Consolidated
Milk Exchange OF this city was the prime
mover In the plan, and it was chiefly
through the members of the E1change
that the trust was incorporate ed in Della
ware under the name of the Pure MIX
Company.
A meeting was held at Sidney, N. Y,
early In October, BY the Five States Milk
Drndtanrat TTntan af Nphtah n VIVA nm.
nounced that the plan to form a trust was
well under way. 1t was said that con-
tracts were about to be made whereby the
supply OF milk for the next five years had
been obtained. The contracts were to go
into effect en- November /, 1899, and the
price agreed upon was two and a half
cents per quart. The producers were to
agree to accept preferred stock 10 the COM
pany, which was to be worcestershire, to
the amount of ten cents per can for two
years. Certificates were to be issued for
every 80 SO earned. The sum OF 50, $780,
900, it was said, had been set aside for that
purpose. This arrangement, or one very
similar TO it, was evidently concluded, aud
The incorporation of the Pure Milk Com
pany followed.
1t is asserted by the organizers and mem
bers of the Trust that the price OF milk has
gone up because of the drought which
existed last summer and the consequent
decrease In the milk supply, and because
the milk producers have been making
more cheese and butter han before, owing
to increased demand for those articles.
They say that If the farmers can get more
for butter and cheese than for milk they
are not going to sell milk and lose a larger
profit.
While the small dealers admit that there
is some truth in the argument about the
drought having made milk more scarce
during the summer, they thrert that the
alleged increase , sasssisaand for butter and
cheese exist hSe Minds Of the
eus6 for increasing the price OF milk TO
dealers.
The increase in the price of milk during
the summer and the fall has been gradual.
The tact that the Trust was about to be
brought into existence was kept as quiet as
possible. The price was only 1921 per can
of forty quarts In August. On September
/ 1t was increased to s1.s1 per can. Then,
on October |, there was another raise to
s1.4I.
There was another increase OF ten cents
per can on October 20, and on October 81
the price went to s1.61 cents, which is the
present rate. 1t is expected that the price
will be Bill before Christmas.