The news-democrat. (Providence, R.I.) 1906-1909, 1907-12-06
MILK COMBINE CAN MAKE
MONEY Ar 8-CENT RATE

why does tho so-called Milk Trust
charge nine cents a quart for milk?
This question is being asked in New
York by persons who are Obliged to sub
NIT to the price which the monopolists of
the milk business have been demanding
since Nov. /.
The companies connected with the
trust" embrace the largest concerns in
the city. with the exception OF the Mu-
tual MIX and Cream company. The
trust" is made up OF individual concerns
and they have nothing I'm common except
ing a tentative agreement TO regulate the
price of milk. as they handle Il them
selves. There is no other connection pc
tween them
While the combination charges nine
cents to its trade, embracing. ~ is csthna-
ted, more than seven-tenths o fthe bust
ness of the city, the Mutual and a great
number OF small dealers ask but eight
cents.
The army OF customers OF the comoina-
tion are asking why, IL the small dealers
can sell milk at cents and make a profit,
cannot the larger companies. backed by
greater capital and having the advantage
OF more extensive trade, Afford to do the
same?
The situation is one that is most seri-
GUS to the poorer families OF the city. The
wagons OF the firms In the combination go
to every part of the city, and because OF
the inability of the smaller dealers to sup
ply the great demand for Scent milk. the
monopolists are enabled To continue arbi-
trariy charging the higher price.
Those familiar with the milk trade de-
clare that there is a good profit In eight
cent milk. The dealers all admit II. with
the exception OF those making up the
combine.
II pay cents a quart to the farmer.
which is the price all dealers paw" said
one dealer. "Freightage 90 the city costs
about two-thirds OF "A cent for each quart.
Handling II from tho freight yards here
and distribution costs about "A cent and a
third. The rest Is profit, When the COM
bine says 1t can't make anything out Of
milk at 5 cents a quart I'd like TO know
how they figure it,"
Many of the small dealers who are sell
ing at the eight-cent rate receive their
milk I'm cans from the farmer. and this
makes slight difference i'm tho cost OF
getting the milk TO tho city. MIX Is ship
ped from the farmer both in l0.quart cans
and in quart bottles. The railroads charge
freight rate OF % Gents for each i0-quart
can OF milk. while the rate for the bot
ties IS I cent "A quart
The trust" claims that because of In,
extra cost in handling milk 10y the bottl,
il has not been able TO make money at IN,
eight-cent rate.
President James y Hannahs. of IN,
Mutual. said that, while he did not wisl
TO contradict any statement emanatlnG
from the combine he could see that thcr,
was n reasonable profit i'm bottled milk al
eight cents a quart.
Right now it does cost more for mill
than IL did last summer" he said. "bu
when a dealer figures on the profit he 4
able TO make In the summer and winter
both, Il seems reasonable TO assume thai
eight cents n quart Is enough TO charg'
the year round The Mutual company has
been In the retail field nearly a year. and
we have found that eight cents quart Il
sufficient We have our pasteurizinE
plants In the city and are able 10 save by
bringing our milk here I'm cans. But tho
expenses Of our plants are great and
doubt II there is any considerable diffcr-