The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-04-26
TO REGULATE PRICE OF MILK
THE NEY-GENERAL URGES
DRASTIC LEGISL ALTON,
tie Funds Thaa IN THIS CIsS There d On
Effect CSn'baRAsI~a Whssn Vlxes the
Price at whlch the Proaseer d
Ohllged 20 sen Mulk IN Thla SamrL.s


ObIaSed 10 sen NWk IN Tas Markes
ALBANY. April -. ~ Drastic lsgisla ton is
recommended 60 regulate the price Of
milk in the report submitted to the I.sgis-
lature tonight by Attorney General I'd
ward r O'Mallsy a. q result 81 his inve~si
CATION Of the so-oalled milk trust operating
IN New York city.
The report Gala attention TO the
general subject % thu anti-nonopoly
i've To a great sxteG, thsse statutes
have not brought tho reNeS hoped for.
because they are evaded by sO-calIed
'Eentlemen's agresments
The Attorney General reOonmsnds the
Contlnuance OF the anti monopoly laws but
tsvs the State must now 20 further. 1t
must regulate the price. or at least the
ProHts, which middlemen and dealers
may charge for articles Of common ne-ss-
Uty Milk or any other article Of common
necessity can be handled at Ices exp~nse
IN large quantities.. This can only he
done by some kind Of organization or
community % effort. The evil therefore
- not % much the organization a. the
souses which this organization produces"
The Attorney General divides the ind-
inss and summarizes tho testimony to
support them under four headings. AZ
follows
That there exists in New York city
a condition which in effect ~ a combina-
ZION which hxss the price at which the
producer h obliged tn sell milk in the
metropolitan market and that the pro-
Queer has no voice in determining VIA,
tia, price h.
The report reviews the history Of the
litigation brought by the State in 1891
against the Mir Exchange. In which a
Judgment was entered in the county %
Broome in isss dissolving the corporation
and snnullinG Its charter on the ground
that II was a continuation 20 limit and
lss-en the supply 81 milk IN the State
q New York. This, six months later. after
trIs Judgment of dissolution had be~n
entered. the Consolidated Milk Exchan 70
was organized under che Laws q the
state ~ New Jersey and carried on a
similar business 20 that conducted by the
Milk Exchange formerly. and some vt
the original incorporators Of the Milk
Exchange were alsO the original incor-
porators 81 the Consolidated Milk Ex-
change That the latter company was
Permitted by the Secretcry % State to
conduct business in this State. which u
did az Harrison street the original
ofscs Of she Mia Exchange. That the
aid ConsoIida,ea Milk Exohanxe through
Iss COMMITTEES On values monthly fxed the
price or value which u would ray for
the sacoc eding month. that Borden
Condensed Milk Company. the largest
miRk dairy in New York city. every siH
months arbitrarily fixed the price n the
producer for the snsuinR six months
: nd that the Sheffield Fsrms-Sla wson-
Decker Company did the same thing |
That these prices On an average the wear
round wore substantially the same and |
that all the dealers in milk IN New York !
city bought milk a. these prices.
That thes" prices paid TO the pro
4 Icerp were unrsa soma HE and unprodt- |
cole
Tuce paid TO che producer for the years
- AhI wv N8H NNOtNt . III u NNbAN j
> quart and that the average cost Of pro-
dYcunn during the same period vas
: SIS cents q quart - the producer was
E~'unR about what IL cost him to pro
dIca He vas Obliged To accept Nhesa
p1css n he sold hia milk in the New York
market or else take the chance % send
nc his shipments to unknown and often
t,r~- irresponsible dealers. running the
chance ~ losing his whole shipment
A. result 81 this condition th~r- have
'.'.r many dairy farms abandoned IN
ne Stat" ~ New York.
That although there was no legal
+yid@nos adduced showing a combustion
~ agreement 60 advance the price % milk
M November I. Is@ some kind ~ an
, -rn ngemsnt. -geutlemen'a agreement
otherw'--. was made Ia a moral cur-
ta,n'v
The report shows that there had is~en
-"ms consultation among dealers a.
," the advisahiiity and necessary for
~ -'ng The price OF milk prior 10 Nov-m-
-"r 1919 hut ths witnesses and dealers
s.'~d denied that any agresment was
made The report points ont the difficulty
y proving tho existsnoe % an agreement
Under such circumstances. a. the only
ines who know Of II are the dealers them
selves. and tho impossibility OF proving
me -y.stsnce Of What 10 commonly called
the 'Rentlemen's agreement.
The report further shows that the eN-
pianatiOn made by the dealers that the
Zee in the price Of milk from 90 . cents
4 quart was necessary was not proven
o~cause Ia the producers were not in a I
'o-'ton TO demand . raise in the price