Imperial Valley press., 1919-07-17
CHAIRMAN STATE DAIRY BUREAU
DOUBTS THE HONESTY OF
PURPOSE OF BAY ASSOCIATION
MR.. A. R. BATES UNDER DATE OF JUNE
%, 1919, SAYS IN THE SAN FRANClSCO
BULLETIN:

faction on the part of members is
already very great-suppressed be-
cause they feared retaliation. My
statement that the dairymen did not
know what he was getting into and
that he wouldn't join if he did has
been proved by the failure of the as
sociatio-- to get new members in
many of the most important dairy
sections Of the state.
NV prediction that this ATTEMPT to
corner the milk market and manipu-
late prices to the public above a le-
gitimate figure would only react on
the dairymen in the end has come
true, as shown by the action Of the
San Francisco Grand Jury in indict-
ing the officers of the San Francisco
"association' and the unnatural con-
ditions existing in San Francisco
TODAY where milk that would usually
go to that city is being diverted to
keep up the price, and in order to
supply the city, milk is being
brought in from distant points.
My prediction that there was no
protection given the dairymens'
money, that the directors OF this
"association' could do as they please
and involve the dairymen to any, eX-
tent that hey saw fit, has been
proved by the action of the north
ern California Milk Producers AS
socitaon in issuing first mortgage
notes on the plant in Sacramento
bought with the dairymen's money.
Sacramento Members are Already in
$500 Cow
1t was many times carefully stated
to the dairymen that with the SO a
COW, tha is, the $3.50 after the pro-
motion expense was paid, the plants
would be able to handle the dairy
mems product. This was the basis Of
the whole scheme, this $3.50. But you
will note that after the dairymen in
the Sacramento Valley paid up $3.50
or $4,000, which only paid half of
the cost ofsthe plant in the city of
Sacramento, that then they put this
mortgage note issue out for 10000
and as it is based on the property
acquired with the dairymen's 100000
and each and everyone Of them is in
dividually responsible for his proper
tion of it these owners OF the COWS
in the Sacramento Valley have al
ready paid up So 90 or assumed the
responsibility for 5000 a COW, not
$3.50. They are paying 6 per cent
on 100000 and per cent interest on
100000.
My prediction that the dairymen
would lose control of their own prop
erty is fulfilled by the fact that these
mortgage notes are being sold on the
open market. They can be bought by
anyone and everyone and it would be
the easiest thing in the world for the
plant to be run SO that these ouslde
bondhoders could secure enlre pos
session. Even if this was not dCne
deliberately this is the danger that
the dairymen run, exactly as point
ed out in the beginning.
| AS my predictions have been full
| filled one after the other, | am more
than ever convinced that this scheme
! is not for the best interest Of the
dairymen and the creation of this
middeman between the producer anc
the consumer whose boast is that ht
was raising prices has proved a LAC
| thing fer the consumer. Even II
there was no fnancil Juggling, ne
"melons to be cut" if it was not cost
ing the dairvman an enormous sun
each month, for the dairymens owl
sake. | would still be opposed to any
artificial, illegitimate raising o.
prices. For in the end this will re
act on the dairymen in cwo ways
first by cutting down the consump
tion of dairy products and sec>nd, IN
creasing the use of limitations.
The foregoing by the chairman o
the State Dairy Bureau coupled will
the warning of the State Market In
spector Weinstock, who is promoting
the Bay Association Milk combin
martialed into line by Mr.. Hender
son and his seven wise lawyers ant
the fact that Mr.. Henderson SAID a
Merced July 27, 1918:
1T is my pleasure to saY to