Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-01-08
Independents Bid for Bust
ness of Milk Trust
Lively Fight on Between Big
Concerns Of New York.
Exposure Of the Trust May Cause
Breaking Up Of Combination.

Z, New York, Jan. THE combination
i of milk dealers is RAPIDLY breaking up
| under the strain of the revelations a.
| the investigation before Re1eree VII
| liam G. Brown. 1t was freely preulct-
ed yesterday among men IN the traue
that not only would the price CT mix
| be forced back to eight cents YER
| soon but that war to the knlle "oulu
follow in consequence of testimony
which has been adduced bearing out
in every particular the charges set
forth.
Two OF the largest milk dealing firms
in Brooklyn have already broken their
tacit agreement 10 have no competi-
tion. and one Of them has invaded the
| Manhattan territory, in dlstlnct Vlo-
lation of the trade understanding,
| which confined its operations 10
Rrooklyn. This company, whose pres
| ident is an enormously rich man and
- stakeholder in the Borden's Con-
densed Milk Co, has for years OBJ
served the rule which limited its trade
to Rroo,1lvn territory and it has also
| nhaved the distribution of the Brook
Ivn territory that gives so much to
| each of the larger companies.
confronted with the fact that their
trade is going to the few independent
dealers who still charge eight cehts'
and win the further situation, as adj
mittetk generally in the trade ana on
tba u.ftnass stand by dealers, that the
| milk market is over supplled ana the
nrices should be lowered instead OF
| raised. to conform with the laws OF
suppIv and demand, these two compa-
| MES have set out to steal away one
another's trade and get back some OF
the husiness they have lost since the
nrice of milk was raised on Nov. l.
The result is a trade war that VIII
undoubtedlv make for the beneht or
the consumer. The company previous
X excluded from Manhattan has sent
out every night this week two of its
largest wagons loaded with milk, ana
accompanied by four solicitors VINO
are offering every inducement to get
new consumers. Free milk for week
and an eight-cent price for bottled
milk, provided nothing is said about
the new price, are among the induce
ments. On the other hand, the COM
panv is paying it's solicitors 81 prem
ium for every new customer obtained
with an extra 80 cents if the customer
previously dealt with Borden's.
Milk dealers all over town We're shak-
ing their heads over the situation las
night. and muttering threats of VEN
geance should any of their trade drift
away to the Brooklyn company. Men
have been detailed to follow the Wag
ons and solicitors of this concern and
try to undo their work by Offering
stronger Inducements to the wavering
customers, especially to the store and
family trade.
Another thing that has unnerved
some of the larger dealers is the slight
but effective reference made at tht
Milk Trust hearings to the subject o.
railroad rebates. This does not in
clude the rebates on carloads of milk
which are legitimate. though they fav-
or the large dealer to the exclusion
Of the small one. 1t is the secret re-
bate which some of the richer dealers
have been getting from the railroads
that they do not want to have revealed
lest the long arm of the federal courts
gets after them.
Special Deputy Attorney General
Coleman has asked little or nothing or
this subject so far at the hearings. be-
cause he does not propose to extend tC
the dealers the immunity which is af-
forded them by the Donnelly anti
monopoly law, under which the inquiry
is being conducted. Mr.. Coleman is
well advised of the facts, and does
not need the testimony of the milk
dealers, who would thereby be relieved.
should they testify to the truth, of the
penalties attaching to the procuring of
secret rebates
At yesterdays hearing Henry Rauch
a Brooklyn dealer and member Of
the Consolidated Milk Exchange, but
not one of it's directors, testified that
he was still selling milk at eight cents
quart and found that he could do
so in the winter months and still make
a small profit.
Rauch said he knew nothing of any
agreement to raise the price of milk
in October, but that as soon as Bor-
den's had issued its nine cent decree
all the other dealers followed along
just naturally. AS to the values" of
milk fixed by the Exchange Rauch
said:
1t is sort of unwritten law to buy
on Exchange prices, but there is no
penalty if a dealer doesn't, so far as
| know"
Asked if ne had any statement he
wished to make, Rauch said that he
believed the carload freight rebate of
| l2'a per cent. allowed to the large
| shippers was very unfair to the small
shipper, who was in no position to
compete, and could not make the profit
| which Ihp LARGO 6aaIare ,,,alra
john T. Wierck, head of the Empire
| state Dairy Co. of Brooklyn, a
S35o,00O company that pays no divi-
| dends. though it is in very prosper
i Gus condition, was the last witness OF
4 the day. He is a director of the Con-
| solidated Milk Exchange, and admit
tee, after much hesitation and consul
tation with Alfred Ely, the exchange