Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1916-11-09
DENY HUGE EARNINGS
Milk Distributors Say Quart
Profit Is 2H Mills.
show Selling Cost--Facc Daily Loss nj
Thousands OF Dollars If Prices
Arc Not Increased, They
Assert.

Officials of milk companies have en-
phatically denied published statements
that their profits we're so large that they
could afford to pay farmers the one cent
quart increase won in their recent strike
and still make profit, says the New York
Times.
President Lotion Horton Of the Sheffield
Farms. Slawson-Decker company. said
that with the increase his company faced
a loss of $4,000 between now and next
January. The published statements Of
the profits of the milk Coin.-nies tending
TO show enormous profits, Mr. Horton
said. were based upon an estimate OF a
profit of two and one-half cents a quorc
instead Of two and one-half mills. He said
that the figure SOS or s.O26 had been In
correctly used for s0025 or s,0o26.
Just to show you where our company
gets off," said Mr.. Horton, "let me remind
yon that we sell about 100000 quarts Of
milk day. The profit on the old basiu
for our company was quarter of a cent
a quart. That's $1,000 a day. Now. sup.
pose we pay the farmers a cent more q
quart, that's 1900 a day II The prica
isn't raised l lose 5000 day. | think
that's clear enough. In addition there are
other new expenses, more money for driv~
ers. for instance. and learned to-day tho t
for next year the paper caps for bottles
will cost my company just $4,000 moro
than two years ago There is a leakage
and depreciation charge of three per cent.
that the expert figures have not taken in
to account"
Poor's manual shows that the Shef-
field Farms, Slawson-Decker company.
has paid since 1905 from II to IA par
cent. setting aside surplus each year
about equal to the amount paid in div-
nil hot
sented only about four per cent. on the
total investment. considering assets ,,
100000 and a surplus of $500 900. The
capital stock of the company outstanding
is Sl.O00,ooo common and 81 800 900 preferred
stock. fiat rate of six per cent is paid
on the preferred stock. and the 1915 div
dend rate OF ~ per cent. was paid on the
81 100000 common stock.
This puts a different aspect on the
thing" said Mr.. Horton. "1f we made
four per cent. on 1900 a day theoretical
profit. where would we get of with about
500 loss?"
showed gross sales of 81, COG, 20 net earn
ings, SS.77o; depreciation, $3.50, Isl; divI-
dends, $139, Us: surplus. sl91.oi1.
It was figured in published estimates
that Borden's made s2o,s0o profit daily IN
der the old price paid the farmers a I'd
therefore could pay the cent a quart adj.
vance on the 100000 quarts the company
distributed daily. The company asserts
1T makes OBS of a cent on each quart of
milk sold From this il was erroneously
calculated that the company made a prom
of so0.S00 daily. President S. Frederic Tay.
| Tor said that this should be $1,000 prom:
profit "A day, and that if the company had
to paw 5000 a day more to the farmer
had to receive more money It was said
that the advance on grade and pints
a short time ago would not meet this adj
vance in production cost
| Poor's manual says that since 1874 Bor-
dens has paid dividend Of eight per
cent, with several extra dividends. Mr.
! Taylor said that no true conclusions could
be obtained by calculating upon the dis
tribution of milk in New York, as tina
! formed only about one-third of the CON-
pany's total business, and that there
might be profits or losses in other branch
es which would tell a different story OF
the Companys earnings.
! In a statement sent to the newspaper e
by the farm products branch of the Bor-
den company for publication as an adver.
/ tisement this morning, the following fiS-
urcs are submitted for the milk bushes:
before the advance to the farmers. as ve-,
flied by Haskins & Sells, public account
ants:
Cost
Paid for milk Observation-Disclosures. so H69
/ Factory expense. freight, sell
/ ing and delivery expense,
general expense .............. 040S