South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-09-04
MILK PRICE FALLS
ASFACTIONS WAGE
WAR In THE CITY
Oversupply of Milk Given as
Reason for Sudden Size
ing of Price.


That an oversuppIy OF milk - re-
sponab.e for the sudden slashing
En- the retail price ~ south Bend
90 and cents quart from y
cents is the consensus OF opinion
W those who know the situation in
south Bend and view 20 impartiauy.
Eespite charges and counter char
ees of competitive underselhng. the
fact remains that the drop has bene1
fitted the consumer
Tn published statements the re-
taiiers have been charged with
breaking faith with the Farmers
Cooperative association, while the
dealers charge the association with
the responsibility for the milk war.
stockholders Of the Cooperative
association Saturday met with the
directors and officers and decided 10
continue supplying milk through
the association. r /. Hawthorne
manager Of the cooperative assO-
citation said Saturday that consider
able misunderstanding had arisen
concerning the milk war and that
various agencies and factors had
been blamed which either directly
or indirectly were not 20 blame.
Buy Milk Direct.
Heretofore all milk sold in the
South Bend district has been han
died through the association. Dis
tributors are now buying their milk
direct from the producer.
Paul Dewitt. farmer living at
Portage Prairie declared the over
head IN handling milk through the
association caused the producers to
become dissatisfied and led 90 IN his
neighborhoOd 10 deal directly with
the distributors.
G. w. Honer. manager OF the
South Bend Creamery Co. speaking
from the standpoint OF the dealers.
declared Saturday night that the
dealers who are now distributing
milk, are really standing between
the public and an effort to mono
pOliZe the business for which the
public would be ultimately called
upon TO pay.
eve had a contract with the as
ISOLATION 10y which we paid for our
supply through that organization.
The association brought an over
supply to this city and the conse-
quent losses to the producers caused
many Of them to quit the associa-
ton. and offer us the milk direct.
Still others went out into the retail
ield' ne said.
Says Farmers Withdraw.
They went out and sold stock to
farmers were producing milk and
selling elsewhere and influenced
them TO sell to the association or TO
themselves at South Bend with the
promise that they could handle his
milk at smaller cost to farmers
than anyone else, making it impos-
sible for any dealer to buy milk ex-
cept through the association. As a
result several thousand gallons OF
milk that heretofore never came
into South Bend was turned this
way.
some farmers withdrew from the
+ association and individually began
retailing milk in South Bend at loo
per quart. Up TO this time the deal
ers were still loyal to their agree
ment, but this individual competi-
tive price made the farmers who
withdrew from the association
aroused the dealers. Then the ex-
plosion took place. The Chicago
market price dropped and farmers
rushed away from the association
and ran 10 every dealer TO try TO
place their milk with him at zoe
over Chicago market with a definite
request that they get pay directly
from the dealers, consequently re-
lieving them Of the association s
overhead expenses. Therefor
cheaper milk came to South Bend