New-York tribune., 1906-07-29
FOSTERED BY CANADA.
Butter and Cheese Industry Built
Up by Government Control.

The success which has attended the development
Of the export trade OF the Dominion of Canada in
butter and cheese is due largely the encourage
ment which the government has given this branch
of trade. As far back as 1897 the Dominion De-
partIhent Of Agriculture undertook the management
of creameries in Alberta Previous to that year
creameries had been established in Calgary, Ed.
monitor, Innisfail and Red Deer, but owing to some
undisclosed cause these creameries were not Op-
Grated successfully.
The management was assumed by the govern
ment because It was considered necessary to nurse
them for the first few years of their existence, to
tide them over that difficult period Of small output
and consequent excessive cost OF manufacture due
TO sparse settlement and the difficulty of carrying
on the Nvork in a newly settled country
The government operation at once established con-
fdenee in the business and insured the support
and cooperation Of the farmers in the districts
number OF the creameries received financial aid to
enable them TO purchase the best and most i'm
proved machinery and equipment. This money was
repaid to the department by assessment Of per
cent the value Of butter manufactured from year
TO year.
The government management OF these creameries
was continued much longer than was originally In
tended by the ministry It was contended that the
withdrawal Of government management would
mean the ruin Of many promising organizations. be-
cause the confidence which had been created by
government control and supervision would be with
drawn. To-day, the result Of the governments
policy section Of Canada has a better organ
lzeds oetUer equipped or more promising industry
than the creamery interests OF the Northwest.
which have been moulded out OF what were in 1891
and 1898 few practically bankrupt businesses
In the operation of these creameries the govern
ment assumed complete control. engaging the but
giving PERSONAL attehtion to the WORKING 81 the
business and assuming all responsibility for the
quality of the butter produced and for its market
ing keeping the factory books and fixing the divi-
The usual charge Vas @ made for m ma3g6aGtuEs the
their own expense and receiving the butter at the
rate OF four cents pound. When provincial govern
ment was granted 10 Alberta and Saskatchewan
the Dominion governpent could not consistently
continue to manage the creamery interests. but at
a meeting held in Edmonton February 20 last.
eminent. All the money lent by the Dominion gov
eminent has been practically repaid. and the
successful business. They have been great fac
tor in filing up supporting and making the new
The law of 1886 under which government manage
renu was extended TO the creameries OF the North
by the Minister Of Agriculture. Joint companies
authorize 10 organize. which, II they provided
6ndinss bei1g erected and eoHipped according to
plans furnished by the Department OF Agriculture.
not less than four hundred cows was 20 be guaran-
teed.
OF the creameT1es to make loans for equipment and
TO Manufacture the butter at the rate Of four cents
to the patrons at the end OF every month. Of such
sums as the department should estimate TO De two
piled for manufacture into butter. One addironaI
cent pound was charged as reserve I tSo L0T 1Is
and an additional two cents q pound for any debts
OF the plant az the time the government took
The government agreed 90 manage the business
@ toP AZ d iei ssncs VAS psd before that time ana to
pay annually for rents and the use ot the premises
When the loan or advance was repaid the creamery
became the absolute property OF the joint stock
company. and passed from the direct control OF the
government.