The sun., 1910-02-22
MILK FUND TOO AT ALBANY
ATTORNEY-GENERAL on TIE
TRAIL or INFLUENCES.

Another MlIk Concern CAuGht Making
Money and Then Making Less when
Competition COmpelIed,Et TO Put the
Price Back From Cents 60 =.
The officers OF the Mutual Milk and
Cream Company had the stand yesterday
at Deputy Attorney General John B.
Coleman's investi cation Of the milk trust
before Referee William q. Brown.
Stephen c. Millett. director Of the oom-
pany. said that he knew OF no combination
at any time in which his company was
concerned for the fixing Of prices. The
reason for the recent raise in the retail
price Of milk was necessity; there was no
profit at the old price. Mr.. Coleman
asked why they had subsequently gone
back to cents and 1t was explained that
the competitors OF the company had forced
them back by underselling and taking
away their trade.
Mr.. Millett said that his company. which
was capitalized at $1,000. 900. had about
thirty-five creameries in this State.
your company made more in 1909 after
the price had gone up than it did before.
isn't that so-1 asked Mr.. Coleman.
Mr.. Millett admitted that IL had made
more money. but explained that this was
due not 30 much to the advance in the
price as to various economies.
Referee Brown then asked the witness
IL It was true that most OF the milk oom-
panies waited to hear what Borden's 9
prices were going to be for a certain period
before they made their contracts. Mr..
Millett replied that there was no way Of
knowing positively but that It was pretty
well understood to be that way. He
knew of no dealer who had ever reduced
or raised the price ahead OF Borden.
Borden's price had a great influence.
James j. Kavanaugh, who rose from the
rank Of a driver to be president OF the
company, was next called. He said that
the company had three different prices
for the farmers at their thirty-five cream
cries The prices at about one-half OF
these creameries were controlled by
Borden: in six or eight more the prices OF
the Consolidated Milk Exchange con-
trolled, and I'M the remainder they had
independent prices fixed by themselves
on the basis or the butter and cheese mar
kets in those particular districts.
Mr.. Coleman asked IL IL was true that
small and large stockholders OF the COM
pany got milk FOR less than the price TO the
public. Mr., Kavanaugh replied that
some years ago they had got milk for five
cents wholesale and six cents retail, and
that more recently when the price was
eight cents the quart the rule had been
that the stockholders could get it for seven
CENTS. and when il went up to nine cents
7 thfy got it for eight cents.
Mr.. Coleman asked IL the Mutual Milk
and Cream Company was a member OF the
Milk Dealers Protective Association, a
seFpi-secret organization formed osten-
sibly for the collection Of lost milk cant
but believed to be the organ Of the trust
which looks out for legislative and genera
interests. Mr.. Kavanaugh replied thai
the company was not a member but had q
representative named Henry Arnstein
who was a member. This representative
paid $500 Of the company's money to thii
! association apparently as an assessment
! or insurance OF IS cents on a can to see thai
! tho can was not lost or stole n. MIR
! Kavanaugh said that he knew nothing
| about what use the money was actually
put to. but thought that there was an
effort to influence legislation. especially
in reference to the IL per cent. colds re
Quirement OF law, which was thought bl
milk dealers In general to be unfair. MIR
Arnstein will be asked to appear at sub
sequent hearing to testify as TO this.