The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1908-08-22
FARMERS Will
find INTEREST
In Extract From the Report OF the
Chief OF the Bureau Of Animal
Industry for 1907.

A special investigation has been made
of economic and commercial conditions
in the creamery business and informa-
ton has been secured showing that
there is practically monopoly of this
industry in some sections, while in 9TH
ers the business is largely conducted on
cooperative basis or there is fair
competition, the result being that un-
der the latter conditions the farmers
are receiving from 6 to cents pound
more. for their butter fat than in terri
tory controlled by the monopoly. This
difference is due partly to the. methods
of the so-called ''centralizers" and
partly to the inferior quality of the
butter produced by those concerns, be-
cause the cream is collected over wide
territory and much of it is received in a
stale condition.
That a very large percentage of the
butter found in the market is below
grade, selling for less than market
prices for fine butter, and that the
farmers in very large area of butter
producing territory receive much less
tian fair price for their product, are
both matters of record. That the loss
es from these sources amount to mil
lions Of dollars annually to the farmers
of the country is easily demonstrated.
For convenience in designation, the
creameries are divided into four class
es. Cooperative creameries are owned
and operated by the patrons that is,
the persons who supply the cream-and
the entire receipts, less actual running
expenses and sinking fund, are divided
among the farmers in proportion to the
amount of butter fat delivered by each.
Individual creameries are those owned
and operated by private interest and
doing local business. When three or
more individual creameries are owned
or controlled by the same interests,
they are designated as combination
creameries, The fourth class cent
ralizers"-is composed of creameries
that receive cream from greater dis
tances than il can be hauled in by wag-
ons, the distances extending up to 400
or 500 miles. The plants are usually
large, and an extensive system of
agencies for the purchase of cream is
maintained.
The investigations show that the CO.
operative creamery yields the largest
returns to the farmer for his butter
fat. The individual and combination
creameries, usually being located in
close competition with the cooperative
creameries, pay very nearly as much.
The centralizers, where they have
gained a monopoly, pay as little as the
farmer will accept. Reports for July,
1907, show that in Kansas and Nebras-
ka, where the monopoly appears to be
complete, the farmers received only II
to 18 cents pound for their butter
fat, while in northern Iowa, Minnesota,
Wisconsin and Illinois, where the coop.
erative creameries have the field, the
prices were from Is to 26 cents.
The methods of the centralizers are
sometimes very reprehensible. Where
these concerns have come into COMPETE
ton with small creameries, they have
raised their prices to point that made
1t impossible for the small firms to con-
tinue, and have thus forced the latter
out of business. Competition having
Teen destroyed and monopoly secured,
the prices paid to the farmers were
lowered. The large concerns operating
over great territory, with here and
there competitor whom they wished
to put out of business, could in one To-
cality raise the price paid above that
possible to pay with profit, and at 9TH
er places decrease the price SO little as
not to be apparent and more than Off
set the loss. This ability to destroy
competition without infiicting self-in-
jury has been used effectively in many
localities.
Perhaps the most potent factor, how
ever, in restricting the business of the
small creamery has been the special
low rates reported to be granted by the
railroads to the big creameries. These
rates were understood to be much low
er than for any similar commodity, be-
ing only about one-third Of the rate on
butter. In Nebraska, in the best terri
tory, the gross earnings for hauling
cream were but 13 cents per car mile,
while the settling basis between rail-
roads for hauling empty cars was Is
cents per car mile.
The system of killing the small