The sun., 1916-10-22

ing to summarize the situation as we see it, il
not settled for all time, at least pushed well OF
figures we have published as to the fluid milk
branch that affects the New York consumer
and the only branch that is in competition
with the other New York distributors. are
correct, and we welcome the opportunity we
hope to have in the pending investigation now
being conducted by the Wickes Joint Legisla-
tive Committee to establish the accuracy Of
these statements. Perhaps the editorial writer
Of the evening paper will say: at makes no
enough to pay your dividends on that big
capital, the fact remains you make the money
or you couldn't pay it out" Our answer is:
Our big capital is necessary because OF our
big volume of business. Large volume means a
proportionately 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 dictated by the workings
OF nature. while the consumers steady all
year round requirements must be met ire
%spective of these production conditions. Milk
by it's nature forbids resorting to storage or
other like manipulation to meet such con-
ditions. That large capital is necessary is
further indicated by the fact that our net
profit from all branches of our business for
the last fiscal year was but about g. on the
volume of business done. That our stock issue
is not excessive and ha. real value behind it is
proven b. The fact tkat we have actual tanaibIe
INVESTMENT in cur Business largely in excess of
our tcteI stock issuc.' The profits from the
manufacturing branch of the business, which
is not involved in this controversy. were suf-
tcient to make up for the lack of an adequate
profit in the fluid milk branch and enabled US
to paw our dividends. To ask US to run one
important line Of business with no profit. or
an inadequate profit as Judged by ordinary
commercial standards, because we have made
a satisfactory profit in another line, is SO ur-
reasonable that We viii leave the verdict on
that point to the public.
Second. The consumer should inform him
self as to costs and profits in the producing
end OF the milk industry. Is the same economy
and efficiency p~ractised generally on the dairy
farms as VIC have been compelled to observe
in order to survive the competitive conditions
prevailing in the distributing end? We know
that some CT the dai-yren have adopted
modern d~airying methods, used commercially
productive cows only and prospered under the
prices paid for milk before the product was
taken cut of the competitive field BY the
Dairymen's League. Some have done reason
ably well, scme have lost money and done
badly. TheYe will always be some that do
badly. no matter what they receive for their
milk. there is a certain percentage OF fixtures
in every industry where the wits and zeal and
persistency q men are matched against each
other.
Forgetting, however. the individual dairy
man for the moment and looking at the situa-
ton from the broadcast aspect, it is vital from
the standpoint Of the people as a whole that
milk production ard milk distribution be
maintained on a plane OF quantity and quality
that will meet the demands cf the people.
The people must pay a price that will insure
production and distribution on this plane.
They should pay no more, and If they pay less
they threaten the life Of a great industry to
their own detrin,ent. This industry. however,
must be conducted as nearly as possible in
harmony with the ali-control!ing law of supply
and demand. Any artificial device, whether it
be a rlonopcly of production or z monopoly Of
distribution. should be resisted not only by
those directly engaged in the industry but by
the pubic. 1t was :his big ideal for which we
contended in the recent milk controversy. We
stood against monopclistic methods end we
stood for TIE principle of monthly prices 70
the producer and the consumer which would
reflect natural market conditions. Cur stand
brought us condemnation in many quarters,
but is already bringing Us communication from
other Quarters and even from many &C the
dsirymcn who ct first supposed that we
opposed them in their wish TO organize for
their own benefit. whereas our opposition was
directed against the methods adopted to attain
their objects and because We could secure no
consideration by their representatives of Geo.
romic p'incirles calculated to stabilize the
industry as { whole. We believe in the orcani-
zatior OF the dairy men, provided such organi-
zat'or is compelled BY law or public sentiment
or hetter still. ~ tie good business sense Of it's
members so avoid unjustirahie practices to the
same cEtCnt as we are compelled to ''play the
game according to accepted rules. We believe
organization and Of the distributors. We
believe that a law compelling ali milk producers
and milk distributors 80 keep accurate books
OF account shOWino detailed costs and DrOGtc