The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1922-05-16
MILK PRODUCERS HAVE.
REORGANIZATION MEET
Review of Cooperative
Plan of Marketing Pre-
scented at Gathering.

A review of the cooperative plan
of marketing. recommended by the
committee of nine. at the milk pro-
ducers' reorganization meeting in
Chicago, last week. IS as follows:
Fifty per cent Of the price the
consumer pays for milk should go to
the man who milks the COW and pro-
ducers should market their milk CO.
operatively IN order To secure this
share Of the consumers dollar. ac-
coIding to the report OF the commit
tee of nine, recently appointed BY
the American Farm Bureau Fedora
ton to study the milk marketing
situation in the Chicago district
This $3.50 division ct the price the
consumer pays viii, the committee
believes. appeal TO everyone as fair
and reasonable. IN many other
cities the producer is getting half
the price the consumer pays as he
did in Chicago before the war. At
the present time the man who milks
cows in the Chicago district gets
only 80 per cent. OF the retail price
while the other 20 per cent. goes
lor distribution costs and profits.
After a thorough study of the sit
uation the committee decided that
the interests of the milk producers
in the district would be best served
by working with tho present com
pany which IS now handling about 10
per cent OF the milk of the district
and which owns milk plants valued
at 100000.
The committee retained Aaron Sap
iro, famous cooperative attorney. 10
help draft a producers contract and
plan OF operation. The committee
Of nine will continue IN effect for sew
eraI months to have general super
vision Of the campaign to secure
signatures to the new contract and
TO put other features OF its plan In
to effect. It hopes 70 have Mr.. Sa-
piro address a number of meetings
in the dairy district some time in
June.
The new contract Will become ef-
fective September | II 5000 have
been signed by that time. They
may be put into force sooner If the
required number Of signatures Is
secured.
The new contract, which Mr.. Sa-
piro says IS the best milk contract
in the United States, provided, for
pooling receipts from milk and 9TH
er dairy products in four separate
divisions, as follows:
l. Fluid milk fund.
2. Condensed milk fund.
g. Cheese fund.
4 Butter fund
The net average price received in
each division for any given month
for milk or other products reduced
TO a milk basis will constitute the
basic pooled price in that division
The first payment in all divisions.
TO be made between the 2lst and the
S0th OF the following month. will
be the basic pooled price in the low
est priced division.
A month later each producer will
receive a second payment made up
as follows:
l. Two thirds Of the amount by
which the basic pooled price in his
division exceeds the basic pooled
price in the lowest division.
2. The other one third will go in
to a general fund which will be dis
tributed pro-rata to all producers.
Pro-rata deductions will be made
for overhead expenses. and three
per cent. deduction viii also be
made from each producers check for
an insurance and working capital
fund. After this fund reaches
specified size. Further deductions
will be used to pay back the pro-
ducers who first contributed to 1t.