The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1925-04-23
TARIFF ON BUTTER
/ WILL BE INCREASED
REPRESENTATIVES OF DAIRY
INDUSTRY LAY CASE BE-
FORE COMMISSION
OPPOSITION IS STRONG
PRODUCTION COST MAKES CON-
PETITION WITH DENMARK
OUT OF QUESTION

Washington, April 22-Repre-
tatlves of the dairy industry, the
American Farm Bureau federation
and the ceneralized butter makers
appeared before the United States
Tariff commission today in support of
5O per cent increase in the present
tariff OF 8 cents pound ON butter.
Opposed to the increased protec-
ton, which was sought originally by
the Minnesota Cooperative Creamer-
les association, were Denmark and
the New York butter traders. The
hearings, it is expected, will be con-
Guided in two days.
Investigators for the Tariff COM
mission made studies of cost of pro-
ductlon of butter fat here and in
Denmark, declared to be the principal
country of competition, which showed
that costs here are much higher than.
abroad, the minimum difference be-
ing 11.90 cents whereas a 12-cent
duty is being sought. Denmark is
expected to attack the Danish butter
fat production cost figures given to
the commission.
Dairy industry spokesman present.
ed testimony to uphold the findings
of the commission experts and to
show added protection is needed to
safeguard the American dairy farm
er from imports from the southern
hemisphere. This phase of the case
was presented by Charles w. Holman.
secretary of the National Co-opera-
tive Milk Producers federation of
which the Minnesota organization is
a member. John Brandt, president of
the Minnesota Co-operatives, discus
/, sed. market conditions in this coun-
try. $685. j
Zone of the purposes of Organizing
the Minnesota Cooperative Creamer-
les association" Mr.. Brandt said "was
to have an agency for national dis
tribution of Northwestern Co-opera-
tive butter which would enable the
farmers to overcome the speculative
effect of butter trading in the great
centers based upon daily receipts at
those centers. To that end, therefore
the Minnesota organization has been
finding direct markets outside of the
centers. By keeping cooperative but
ter going through these new channels
it has lessened the receipts of high
grade buffers on the big markets and
| thus tended to raise the price, Of
buffers at those markets.
"The sporadic arrivals OF foreign
butter has in great degree offset
the cooperative effort. This was
illustrated in the spring of 1924 when
heavy arrivals of foreign butter de-
moralized our national markets al
though the quantities of this butter
which came in should not have af-
fected the price.
"Our Northwestern dairymen will
not be satisfied with less than a
cent raise in the present tariff on
BUTTER Mr.. Brandt said in con-
| clusion.
Mr.. Holman emphasized the pos
sibilities of future competition from
the southern hemisphere, particular
ly Australia, New Zealand and Ar
| gentina.
| Danish butter, Mr.. Holman said,
completes with the butter of Mime
sofa and other co-operatives which
department of agriculture figures
show to be only about Is per cent of
the total.
Mr.. Holman said that the. future
will not see butter production greatly
increased in Denmark whereas the
possibilities in the southern hemis-
phere virtually are unlimited.
The effect of foreign imports of
butter were summed up by Mr.. Hol-
man to be as follows:
To retard the movement of domes-
tic butter out of storage into con-
sumption.
To lessen the premium for go score
or better when such imports are of
high grade.
To narrow the spread in prices of
domestic butter by grades.
To lower the general price level.
To cause unnatural fluctuations in
the markets where imports are re-
cefved which is reflected in the price
paid for butter fat throughout the
country.
An increased tariff on butter, Mr..
Holman said, will protect the Ameri-
can dairy farmer against dumping
by foreign countries.
On behalf Of the American Farm
Bureau federation and the dairy in
terests of Ohio, Edwin B. Reid,
Washington representative, backed
up what Mr.. Holman said about fu-
ture competition from the southern
hemisphere.