New-York tribune., 1910-04-26
MOVE TO FIX PROFITS
o'MaIley Reports on Result of
Milk investigation.
WANTS INDUSTRIAL COURT
Attorney General Would Regu-
late Corporations Dealing in
Common Necessities.

GOWulOl NECSSSltleS.
Albany April = An industrial court 10
,,,euse corporntions traflckine or dealing IN
s-,l,,es OF common necessity. with general
,,ov,ers 20 investigate. regulate and control
s,.ch business. and with power 70 fix the
rr,ce or profits which may be charged over
sns above the price paid 20 the producer
torether with regulating tho price paid TO
,be producer is suggested by Attorney
General q Mallcy IN his report 20 the Legis-
,s,,ire tonight on tie result Of the investi-
.,st,or conducted under HIS jurisdiction into
,he methods OF the alleged milk combina-
,,on in New York City.
..rf she business of dealing IN articles OF
common necessity says Mr. O-Malley.
.csrnot be regulated in this or some other
,sv. then a new and powerful argument
Cor municipal ownership or interference VIII
NJ furnished. and demand win be made
,or legislative authority TO permit The state
o- municipalities 20 undertake the distri-
n.tion of articles OF necessity among their
citizens"
AFTER declaring that the investigation dis
closes that q wrong exists ard pointing out
,bs facts disclosed. the Attorney General
ssvs
The paramount duty OF the state Is 70
end a remedy. IL viii not CO for us TO say
there Is no remedy. Such a position would
Be q confession that our form Of govern
-1er, is q failure. and the people Of our
Great centres OF population viii become the
victims OF the greedy and ranacious who are
able. under present conditions. 10 prey upon
the producer and consumer with impunity." ."
The report. after calling attention 10 the
provisions OF the so-called anti-monopoly
Law. refers 20 the hearings held in New
York city and this city from De
oerlher G. 1879. 20 March 3. 1870 II
also commends the efficient work done by
she special Deputy Attorney General, John
. Coleman. and the referee. William Grant
Brown.
Attorney Generals Findings.
The Attorney General finds that from the
testimony the following facts were dis
closed:
:. That there exists in New York City
a conoi ition which in effect is q con7bina-
tion which fixes the price at which the
producer is obliged 20 sell milk in the
metropolitan market. and that The pro-
queer has no voice in determining what
that price is.
2 That these prices paid 20 the pro-
oucers were unreasonable anc UnprotIt-
able.
TITS shown in the report that the average
Price paid 20 the producer for the years
isE and 1919 was from l-8 TO 3iR cents
quart and that The average cost OF pro
euc;ion during the same period was 3.5l3
cents a quart. so the producer was getting
about what q cost him 10 produce He
was obliged 20 accept these prices il he
sold his milk in the New York market, OF
else take the chance Of sending his ship
ments TO unknown and oftentimes irrespon-
sihle dealers. running the chance of losing
his whole shipment. AS result Of this
condition there have been many dairy
farms abandoned in the State OF New York
8. Ttst although there was no legal
evidence adouced showing . combination
or agreement 20 advance the price Of
milk on November I. 1909, so-ae kind Of
arrangement, 'eentienen's agreement"
or otherwise, vas made, 20 moral GER
tsinty.
The report further shows that tie ex-
planation made by the dealers that the
Increase in the price OF milk from 10 S
cents a quart was necessary was not
proved. because (a) the producers were not
in a position TO demand an increase in the
price OF milk from the dealers. and (h)
criv one-fourth Of the cent increase was
paid 20 the farmer, the other three-fourths
a the cent raise being retained by the
dealers
Z. That the increase in the price &C
bottled milk from 8 TO 3 cents q quart
on November l, 1909, wss not justified.
The report says that while individual
small dealers DO not make eNorbitant prices
b. reason OF ;he increase the evidence
showed that two OF the corporations which
were the largest dealers n New York CITY
made enormous profits on the fluid Hli X
branch OF their business. According 10 Mr.
e-udder. the expert accountant. the Borden
Condensed Mix Company showed net prof
its on fluid milk for the nine months ended
September 90 Is28 % SIS. 4d7 -. an Increase
o. E40253 Il over the preceding year. The
capital stock OF this company was $25.0eO,0O9
of which SIS e00O00 was ISSUED for trade
marks. patents and goodwill A 6 per cent
dividend on the common stock OF this COM
psny has been paid nearly every year FOR
ten wears and al the same time a surplus
created Of about ss0O0.c6o. The Sheffield
Farms slawson-Decl1er Company was or
ganized about eight years ago, with a cap
ital stock II sSs0es0. OF which s2ooeD was
ISSUED for tangible assets and 10000 for
goodwill This eompany's net earnings Tor
the year ended February .. 1893. were
months ended October 81. 1898. were SZJ7.-
So e. This company has paid y per cent
dividends each year on its capital stock
and 2. per cent dividends FOR the year ended
December 81. 1853 with surplus now OF
ss6z.627O2
Remedies Suggested.
The report calls attention 20 the general
subject of the anti-monopoiy laws. To a
Freat extent these statutes have not
brought the relief hoped for because they
are evaded by so-called ''Pentlemen's agree
merits" OF understandings. which = Is prac-
ideally impossible 20 reach.
Tie Attorney General recommends The
continuance OF the anti-monopoly laws but
Esvs tie state must now go further. IL
must regulate the price, OF az least fhe
profits which rrliddlernen and dealers may
charge for articles of common necessity.
MIX or any other article Of common neoes-
Eity can be handled al less expense IN large
Quantities This can only be done by some
KIND q organization or community OF
effort. The evil. therefore. is not 50 much
TIE organization as the abuses which ihis
organization produces.
The report further SAYS that by legisla-
tive enactment an article like milk might
% declared 20 be one o. common Necessity /.
THAT commission OF an Industrial court OF
some kind could be- provided 10 license cor -
lofalOns tafhckinR or dealing IN sucn a. -
.--es With general powers - lnNtSls 80 4