The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1922-03-16

to work with producers to improve the
milk supply al its source and eommod-
ity specialists % supervise the proces-
sing. manufacture and handling ~
this milk. 30 that large volume u
the finest quality dairy products could
be turned out and offered Tor sale
believe that this is absolutely funda-
mental 70 the success Of any market
ing plan which may be devised.
Il was further proposed that the
federation would maintain a labora-
tory and sales Office in the market 70
make the necessary tests Of products
TO determine their quality and have
the sale Of these products supervised
II was also proposed that the fedora
ton would employ an accountant who
would supervise the accounting in
member plants and make audits from
time TO time, 80 that the local directors
could be at all times in close touch
with the business, and il was proposed
that member ereameries would buy
their supplies and equipment together
through the federation, thereby effect
ing a saving on quantity purchases.
think it was In the minds Of some OF
the originators Of this plan that the
organization would function in man
er similar to the creamery declarations
Of Denmark, which have made the but
ter produced in that country famous
in the markets Of the world, and sim
liar to the California Fruit Growers
Exchange, which has made available in
our eastern markets graded oranges
at all seasons Of the year. Like these
organizations, the federation was de-
signed as a service organization TO en-
able producers to assemble, grade and
pack their products, so that they would
become articles Of commerce passing
easily and quickly through the chan
rels Of trade and so that the merchan-
dising processes would be carried on
as cheaply and as efficiently as possible
under the supervision of experts.
So far only five creameries have
joined the federation, and only por-
ton Of the activities planned have
been undertaken. Whether or not the
federation will be strengthened and
will function as designed will probably
depend upon whether or not such plan
is found by experience to be sound
one in solving our marketing problem.
There has been a widespread feeling
in many Of the states that the cooper
alive creameries Of Vermont have been
responsible for about all the troubles
in the milk business during this period
OF defiation. / hold no brief to speak
for these creameries and ! have moth
ing to do with their selling policies,
but perhaps il may be permissible for
me to offer a word Of explanation o.
their position.
In 1916, shortly after the Interstate
Commerce Commission rendered the
decision that opened up the channels
Of transportation for Vermont milk,
he producers supplying the large
dealers, formed collective bargaining
organization, so that they could more
effectively bargain with these dealers
for a price for their product. In 1917,
the United States Food Administrs-
ton, upon agreement OF the dealers
and the producers organizations, APP
pointed a commission known as the
New England Milk Commission, and
under authority Of the Food Control
Act, gave this commission instructions
to fix the price OF fluid milk on the
basis OF cost production to the produc-
en- and on the basis Of cost plus
reasonable profit 10 the dealer who
distributed the milk. Nothing was
said in the warrant creating the COM
mission about surplus, but the commis-
sion soon found that its price could not
be maintained unless this was taken
into account and a surplus plan very
similar to the one now in force was
adopted by the commission. When the
Food Administration relinquished con
troll Of milk prices at the close OF the
war, the producers association ac-
cording TO my information, continued
TO compute the price Of fluid milk SOLD
as such on the basis Of cost plus
reasonable profit and asked the dealers
% pay the price 50 computed with
surplus plan to take care Of the sur
plus.
This plan worked measurably wei
as long as the price Of by-produets
held up. so that the price asked for
fluid milk did not greatly exceed the
value FOR manufacture, but with the
almost total collapse Of the condensed
milk market and the partial collapse
Of the butter and cheese markets the
sn~ead between fluid milk prices and