New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-22

the management and operating personnel are differ
ent and separate books and records are kept inc
figures we have published to the fluid milk branch
Of our business which is the only branch that affects
the New York consumer and the only branch that
is in clifton with the other New York disrlbu-
tors are correct, and we welcome the opportunity
we hope to have in the pending investigation now
being conducted by the Wickes JOINT Legislative
Committee TO establish the accuracy of these state
ments Perhaps the editorial writer OF the evening
psper will saw: at makes difference to the pub
lie how you make money enough to pay your div
dends on that big capital the fact remains you make
the money or you couldn't pay 1t out Our answer
is: "Or big capital is necessary because OF our big
volume of business. Large volume means pro-
portionately greater plant equipment in the milk
business than in most others because In the milk
business the supply Of raw material is limited at
any given point is subject TO violent fluctuations die
ated by the workings of nature while the consurn-
ers steady all year round requirements must be met
irrespective Of these production conditions. Milk
by its nature forbds resortng to storage or other
like manipulation 10 meet such conditions. That
large capital is necessary further indicated by the
fact that our net profit from all branches of our bust
ness for the last fiscal year but about $50 on
the volume of business done. That our stock issue
is not excessive and has real value behind it is
proven by the fact that have actual tangible in
vesTnent in our business largely in excess of our
total stock issue" The profits from the nnanufact
urng branch of the business, which is not involved
in this controversy, were sufficient 70 make up for
the lack of an adequate profit in the fluid milk branch
and enabled us to pay dividends. 10 ask us to
run one important line of business with profit
an inadequate profit Judged by ordinary COM
mercal standards because have made salts
factory profit in another line is so unreasonable that
we will leave the verdict on that point to the public
Second The consumer should inform himself
to costs and profits in the producing end of the
milk industry. Is the same economy and efficiency
practised generally the dairy farms have
been compelled to observe in order TO survive the
competitive conditions prevailing in the distributing
end? We know that some of the dairymen have
adopted modern dairying methods, used COM
mercally productive COWS only and prospered under
the prices paid for milk before the product was
taken out Of the competitive field by the Danymens
League. Some have done reasonably well, some
have lost money and done badly There will always
be that do badly matter what they receive
for their milk There is a certain percentage Of fail
ures in every industry where the wits and zeal and
persstency OF men matched against each other.
Forgetting, however, the individual dairyman for
the moment and looking at the situation from the
broadest aspect, is vital from Inc standpoint of the
people as a whole that milk production and milk
distribution be maintained on plane of quantity and
quality that will meet the demands of the people
The people must pay price that will insure produc-
ton and distribution thi; plane. They should
pay no more and if they pay less they threaten the
life OF a great industry TO their detrment This
industry, however, must be conducted as nearly as
possible IN harmony with the all-controing law of
supply and demand. Any artificial device whether
it be monopoly Of production or MONOPOLY of
distribution, should be resisted not only by those
directly engaged in the industry but by the public
Ii was this big ideal for which we commended in the
recent milk controversy. We stood against monopo-
iIStic methods and stood for the principle of
monthly prices TO the producer and the consumer
which would reflect natural market conditions Our
stand brought condemnation in MANY quarters
but is already bringing us commentator from other
quarters and even from many of the dairymen who
at f1rst supposed that opposed them in their wish
to organize FOR their own benefit whereas our oppo-
sItlon was directed against the methods adopted TO
attain their objects and because we could secure no
consideration by their representatives of economic
principles calculated to stabilize the industry as a
whole. We believe in the organization of the darv
men, provided such organization is compelled bv
law or public sentiment or, better still, by the good
business sense or ITS members to avoid unjusti6able
practices to the extent we are compelled TO
play the game" according to accepted rules. We
believe in governmental regulation of the producers
organization and of the distributors We believe
that law compelling all milk producers and milk
distributors to keep accurate books Of account show
ing detailed costs and profits or losses such records
to be open to some public official such as the Depart