Evening journal., 1921-07-14
DENIES TRUST
IN MILK TRADE
w. L. Rickard Says Pro-
ducers and Dairymen
Fix Local Prices
DECLARES CHARGE
is FOOLISHNESS

". L. Richards. manager Of the
Clover Dairy Company. brands as
foolish the charges made by a Will
mington business man that a COM
bine regulates local milk prices and
gouees the farms. The statement
alleged to have been made by the
local business man was that Dairy
Interests in Philadelphia set the
prices paid to the producer for
milk. These prices are adopted
by all dealers throughout this Sec
ton and they must be accepted by
he producer or ne will not be able
to sell his milk at ALL" He added
that the dairies are affiliated in a
combine which is virtually a trust.
In replying to these charges Mr..
Richards said that the prices paid
milk producers are arranged by the
producers through their associations.
and the dairymen jointly and fiatly
denied that there exists any price
regulatip combination OF dairy in
terests.
"The local producer. who desired
that his name be withheld from pub
iication," said Mr.. Richards,
declared that the prices re-
ceived by producers range between
a minimum average Of slightly over
three cents a quart to about five
cents He attacked the fairness OF
the present scale Of prices and the
method of determining the price.
declaring both 10 have been estab-
lished by a combine which holds
producers firmly in its grip.
He said that with the first price
of milk at little more than three
cents a quart there is no reason
either for the present price of ice
cream or the existing retail price
OF milk. which. he said. is thirteen
cents a quart. He did MOI attack
the fairness OF the prices. however.
but said that the producer should
receive half the amount brought by
his products at retail prices.
His chief complaint was against
the alleged gouging OF farmers by
what he termed "the milk trust"
The milk prices set are so small that
they are not even sufficient to pay
overhead expenses in most cases. ac-
cording to his assertions. During
one month this year. according to
hgures he showed. his overhead ex-
penses were more than double the
revenue he received for his milk.
which he supplies TO the Supplee.
wills. Jones Company, OF Philadel-
rhia-
The complaining producer said
that in the month of May, this year
he received from the Philadelphia
concern S20l.45 for 1881 pounds OF
milk. making the average price per
guar, 3.4S cents For the same
quantity Of milk for the month OF
June. at new rates which went into
effect May Is, he woulc receive. n,
said. only SOB cents a quart o.
t17e.44.
"A rather IMPLICATED system
used in deciding the price paid mill
producers The aat,ments yester
day Of bott sides 10 this contro
versy agreed thar tns method is a
follows:
First. milk is paid for according
10 its quality, the prico ranging ac
cording to the grade. The produc
tion of each farmer during tn
months OF October. November an,
December. is annually averaged an,
this is used as the basic quantity
per month. a certain price pc
hundred pounds is paid for thi
basic quantity after which all ad
diuonal milk purchased is paid 10
on a basin arranged according {,
prevailing New York butter IA
prices
This is unjust according TO tn
Wilmington producer. and Is fai
arrangement, according to Nj
Richards.
According to the former the basi
quantity price paid by Supples
Wills Jones Company for 100 pound
was S2.7s until May IS, when a r.
ductson brought it down 81 cents t
Sl.97 for milk OF 1925 per Ger
quality"
Mr. Richards said his compan
had rdeuced its price to producer
x cents per quart. bringing N
present price Of 100 pounds (whic
equals As quarts) to s229 for mil
Of the quality referred to by the pr,
ducer.
This is a poor grade OF milk an
we do not want to buy IT," Mr.. Ricl
ards said adding that for each ].
OF per cent variance in the mi
there is a dinferential Of 4 cents
the price paid, so that per Gel
milk would bring s2.59 a hundr,
pounds. He said the Glover Dali
pays the same net price as the Phll
delphia concern, but that there is
deduction OF cents a hundrs
pounds to cover freight charges Z,
each ten miles distance between DR.
ducer and purchaser. The reta
price OF milk is now IL cents. !
said.
It is absolutely untrue that the
Is any combine OF dealers which Sc
milk prices" Mr.. Richards sal
There is a strict agreement betwes
dealers and producers all along u
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