New-York tribune., 1920-06-07
Dairymen Run
Own Plants to
Reduce Price
State League Plans Elimina-
tiosA of Middlemen by
Direct Handling of Milk
From Farm to Consumer
Aim to Control Output
Organization Will Try to
Receive the Entire Pro-
ductiOn of Its Members
Special Dispatch to The Tribune


WATERFOWL, N. Y, June 6.-The
Dairymen's League Of New York State
has made a substantial start in its
move to handle milk from farm to con-
sumer and reduce costs to users by
eliminating middlemen. It is operat-
ing twelve milk manufacturing plants
and has plans for fifteen others.
Within few weeks 15 per cent Of
the 82,628 members Of the league, who
own 879,565 Of the dairy cows of the
state, will be delivering their milk at
league plants. say officials Of the or:
ganization.
Fourteen months ago the plan for a
Dairyman's League Cooperative Asso-
citation was put forward at the annual
meeting in Utica. The farmers were
told that by furnishing the capital them
selves they could have milk manufac-
communities and have their milk mar
keted without its going through the
middlemen, the earnings Of the plants
to be proportionstcly divided among
those who own stock in 1t and deliver
their milk to Il.
While the earnings Of some Of tho
plants have not been up to league
prices in some instances, this Is due
60 market and other unusual condi-
tions, it is said, and will be overcome
soon.
Already Dsirymens League brand Of
condensed milk, butter, powdered milk,
milk and cream has q wide distribu-
tion in score of cities. Within the
year it Is planned to have the canned
goods available all through the state
and fluid milk stations in several
places.
League plans call for the establish
ment Of q sufficient number of plants
so that it can receive the entire pro-
duction Of its members. There is
nothing apparent now to indicate that
its hopes will not be realized, for
farmers are coming forward with
money in all parts of the state to pro-
a nearly complete control Of the pro-
duction end membership movement
is being carried on along the northern
border Of the state to enroll farmers
who sell their milk on this side of
the boundary line.
The league claims these two pur-
poses in building the plants:
/. To assure the farmer a better
price for his product by providing a
means Of manufacturing and distribut-
ing both under normal and flush pro-
duction conditions and system of
marketing direct to retailers or con-
sumers and thus getting a part of the
money which now goes to middlemen.
2. Cheaper milk to consumers by
elimination Of middlemen, making it
possible to sell milk and its by-prod-
ucts cheaper than at present and still
give the farmer a cost of production
price plus fair profit.
Consumers generally accept the
theory as one that promises to do
something to beat the high cost of liv-
ing and concede that middlemen in
the milk industry a. well as dealers, in
other commodities are responsible for
large percentage Of the high prices.
Objections are raised, however, in
some quarters that when the leagues
ambitions are realized and 1t not only
controls production but manufacture
and distribution also It will be able
to raise prices st any time and as high
az It wishes.
League members answer this objec-
tion with tho statement that even If
tho league does attain a position where
it can dominate the industry 1t would
not dare seek exorbitant prices, as to
do so would bring it within the scope
Of antitrust laws and leave 1t open to
investigation and prosecution.