The Bridgeport evening farmer., 1910-02-08
MILK TRUST STOCK
 CONTAINS WATER
Producers Have Not Been Dealt With Squarely By
 Big Dealers
Facts Brought Out at Inves- tigatiOn Show Borden Go. Pays Double Dividends at Farmers Expense.


 CFrom the New England sHomestead)
 The New England Homestead has been urging right along that there is altogether too much margin between what the milk producers receive for their product and what consumers pay. Year after year milk dealers figure on taking 40 to 60 per cent of the money that the consumer pays for the milk and leave the farmer the balance. Whenever the price of milk to the consumer has advanced, the dealer has taken two-thirds or more of it; yet it is the producer who ought to have the advance, inasmuch as it is the cost of production more than the cost of peddlir.% that has increased. All of this injustice is re- ments Of the milk situation in New York City. The attorneo-general of New York is causing thorough in- vestigat ton of the manner in which the big milk companies milk the milk producer and the cit7 consumer. An exrert accountant appointed by the court for the purpose mas just re- ported and gives specific figures showing the enormous profits that have gone to the milk con panies. On testimony of MT. ScudGer. the expert. 1t has been shown that tI,e $20,000,00O of stock in the Borden milk company only represents a cash value of about S5 000, ,000 leaving the $15.000,000 as pure water. This is how milk dealers make water and milk mix Not only this but the double dividends that have been paid on this stock have come out of the farmers pockets. Note that the farmer is the loser more than +Lo fo, 41,1 Lot ', onfyr- ally gotten his his moneys worth, as the price of milk has net been too hieh. New England da:rymen are wOnderine if a similar condition does not prevail in the markets where their product is consur' ed. Especially are those interested who ship milk to Bos- ton. It may be Boston milk 'contrac- tors turn next. MT. Scudder in his testimony stated that the total capi- talizo tion of the Borden company is S9n 0c0 coo. and on it's list of assets there still appears the old familiar good will item of more than $5O00,O 900. This information was obtained on au- thority of the attorney-general of New York. who had complete access to all books and records of the Borden cnm- pany, and confirmed by Gladding, treasurer of the Borden company.
 Figures were produced showing that during the nine months of this year, ending September 30, the Borden's con- densed milk company made a clear profit on the sale of it's fluid milk and cream in New York equivalent to six per cent on it's issue of preferred stock. and 10 per cent on its issue of cormon stock, with a surplus of over $S.000 900. When asted how the sur plus arose. MT. Scudder stated that it came out of the profits that had not yet been distributed in dividends. And the same conditions obtains with the other companies. The Sheffield Farms, Slawson-Dect CT company, oreanized with a capital stock of $500,000 is shown on examination by MT. Scudder to consist of s2O2 436 in good will and less than s700000 in actual in vestment. MT. Scudder stated that in 1908 the total dividends paid by this were 15 per cent and in 1909 to the end of September 2 per cent was paid. And more than three-fifths of the stock memerly water! On Oct. 21. 1909. according to the accountant, this company had s962 672 as surplus. ThiEk of it! A surplus nearly twice as great as the entire capitaliZ7 tion of the stock even though -ffths of the stock Is water! In reference to the Alexander Campbell milk company Mr. Scudder testified that the com pany's gross earnings in 1908 were $d52.786 on which tEe net profit for the year was s44,Oo6 :For the six months of 1909 ending June 30." he testified, ''the gross earnings were $766.435. on which a net profit of $49,SS0 was made or more than 20 per cent profit on sales" Tn making his calculations Mr. Scudder testified that in arriving at his figures of net profits he had al- lowed for every item of expense, in- cluding interest. taxes, depreciation and items of operation. These figures tell their own story. They show be- yond a shadow of doubt that the l milk companies have not been playing | fair and square with the d3iry produc- CTS. The milk dealers should be allies | If the dairy producers and not of the 1 milk consumers. The market for milk i exists, a days time if dairy farmers i SO decide. the supply of milk can be 1 entirely destroyed.