Republican farmer., 1918-10-11
MILK PRICE FOR
 OCTOBER REDUCED . BY FOOD CONTROL
Request by Hoover Accept ed As An Order by Dairy
 mems League.

which will materially effect every dairyman in the country The Dairy mems League price for October milk of $S.65 per hundred has been re- duced by the United States Food Ad- ministration to $3.57 per hundred, and the new base price zone estab- lished by the league for October as 250 miles from New York has been changed back to 150 miles as 1t was before October.
 At special meeting of the League Board of Directors called at the re- quest of Herbert Hoover, United States Food Administrator in New York Oct. and 8, the directors were read a request which was practically ap ultimatum ordering them to accept the above price and conditions There being no choice in the matter, the di- rectors passed resolution advising it's members to comply with such request.
 The October price was not set arbi- trarily by the league but came as result of careful and scientific in- vestigation of a great amount of evil dence bearing on the costs of milk production. Dr. Warren of the Col lege of Agriculture at Ithaca and sev- eral other scientists of the country have found from many surveys on the costs of production and from evidence given before milk commissions, the quantities of the different factors such as feed, hay, labor, etc. which are required to produce 100. pounds ot milk. These amounts nave been as- sembled in a formula known in the trade as the Warren formula. To de-
 termine the price for any month by
 use of this formula, it is only neces-
 sary to substitute the values of each factor in the formula. This method of determining costs of production is conceded by the leading experts ot the country to be the most correct and
 scientific method in use of finding the
 cost of milk.
 Several conferences for the purpose
 of determining the price for October
 were held between the dealers and representatives of the league in Sep-
 tember and at many of these confer
 ences representatives of the Food Ad'
 ministration were present. The use or
 the formula was agreed to and an
 agreement for October milk, except
 the price of labor. The dealers claim ed that this should be under soc per
 hour, and the league maintained that it should be at least 35c. Because of the disagreement on this factor and
 also the fact that the dealers would not agree to extending the zone to 250 miles, no agreement was reached, and as the time for putting out the Octo- i. o+, 1aoi In league determined the October costs
 of milk by use of the Warren formula and announced the result which was $3.65 per 100.
 After the announcement Of the league price, contracts were put out and accepted by the dealers and the price was announced and posted at
 most stations in league territory. On Sept 2S, three days before the Octo- Der contracts was asked by Arthur | Williams, Federal Food Administrator for New York City to rescind its con-
 tracts and reduce the price for Octo' l Der on the ground that milk should not be sold in New York City for
 more than 15c a quart. The execu-
 tive committee replied to Mir Williams that they were unable to reduce the price because it only represented the costs of production to farmers and that in any case it was too late to change prices for October because contracts were closed and prices post ed It was also pointed out that to first determine a price that consumers should pay and from this allow the distributors their costs and profit, giving to the farmers what might be left is a method as fallacious as it is
 unjust. Following the conference
 with MT. Williams, a telegram was
 sent to MT. Hoover by the New York City food authorities, stating that the | league could not agree to modify it's prices after which MT. Hoover asked | the league to call special meeting of the Board of Directors and sent an | official representa- tive who brought a
 request from MT. Hoover which was
 interpreted by his representatives and 1 by the league directors as an ultima tum to arbitrarily reduce the October | price. MT. Hoover stated that the | acceptance of his request would be | material assistance to him in his war | efforts.
 The league believes that MT. Hoovet
 intends to be absolutely just, but that | he misunderstands the situation. MT.
 Hoover has announced that a con- ference will be called in the near fu- ] ture to determine prices and at such conference the league hopes to be able | to explain the farmers position.