The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1917-06-01
CeIlfralizers "a Cancer
Vork ing Against Farmers

The discrimination in price is a
well-known fact, made possible on ac-
count Of the immense territory from
which; to- draw from. Thus they are
able to raise the price in a locality
where there Is q local creamery, and
lower it in "a locality where there Is
no honest competition. In the case
where they raise the. prices higher
than the Elgin market, they must he
buying at a loss, not only. are
they paying more than they receive
for the butter. but to this cost is ad-
ded the agents commission Of two to
four cents per pound butterfat and
the express on the cream that is ship
ped to the cities. Immediately the
question arises, How can they afford
it? ..sl5 s$.s s.;.- s 4; 4 T<s.5s M $.%
Simply by lowering prices where
there is no creamery. Depend on it,
that it does not come out Of their own
pockets. Furthermore, you rarely:
see cream stations for different centra-
lizers fighting each other in the same
locality, for. that would not be pay.
ing proposition. They evidently get
together in the cities and agree to pay
the same in that community. They
have a monopoly on the business and
as long as there is local competition
they can get together and dictate the
price. ~ s: }f IT. ;.$St ;s..1 w & i
Let us see what happens to the
creamery in the locality where these
inflated prices are paid. The cream
cry is forced to meet the, price paid
by the cream station in order, to re-
tain the patronage. and, not having a
large enough territory to draw from
SO that they can equalize their prices
In order to meet this outside .compe.
tition, they consequently manufacture
their butter at a loss. Their surplus
capital is soon exhausted and the
creamery declared bankrupt. s4.s 5.- s-s
Then what happens The centra-
lizer combine gets, together, drops the
price, and dictates it thereafter. for
local tition has been eliminated,
This IS undoubtedly the reason for
the hard struggle for existance Of
practically all North Dakota cream
'eries; and the extinction Of large
number Of other such Organizations.
# The discriminate of express rates
is a little harder to: make plain, for
the centralizefs combine in co-opera-
ton with the railroads has apparently
by devious technicalities regarding
the rates, tariffs, distances and other
conditions make it a complex prob
lem to deal with and a still more diff
ficult one to: explain to the satisfac-
ton Of all. Suffice It to- say it Is TO
their mutual benefit to have the cream
shipped to the cities. and when two
such great organigat atoms want some
thing, they usually n have the money
and ingenuity to get it. VI 1.$
The third and last reason is the
lack sof foresight on the part OF the
farmers. Let us take a concrete ex,
ample .s's /. 81
a number Of the farmers organize
"a creamery. are soon doing business
and are undoubtedly receiving bet
| ter price for their cream than they
lever did before. The cream station
Imam reports the situation to head.
quarters and eceiye orders to raise
the price Of butterfat three cents per
fpound ssi
Here is what the farmer. will do
I!nine times out Of: ten; !; he viii desert
his own ton, the creamery
THAT he Invested his money in and
tpledged his word to stick to, and sell
his cream to the cream station agent
for three cents higher than his own
creamery Of any ether creamery coul,l
1.afford to pay. s:s5
As the writer heard It aptly$ put
lrecently That ffarmer's 4 price was
ljust three cents for that was what he
was bouEh Tor He does not stop to
Think That he sis breaking his word
land the trust the at her men have plac
1lsed "a him that his neighbor twenty
Rthirty orE nifty mil los away from there