The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-11-19
FATE OF MANY
CREAMERIES
lSAT STAKE
COnstituticnality of Law Reg
ulating Buying of Cream
to BE Tested

The fate of small North Dakota
creamcricS. financed and operated bv
local persons, is at stake in the court
action brought recently against the
North American Creamery company
in the Stark county district court.
State Dairy Commissioner John HUSKY
said here today.
The case involves criminal charge
against the North American company
for unfair tactics in its competition
with a small, independent creamery
at Dickinson, HUSKY said.
"Ihe ISSUE is whether or not the
state law designed to protect small
crcamcrlcs and other business enter
prises financed on Il small scale by
North Dakota people from unfair COM
petition by larger and powerful con-
Germs is constitutional and if so
whether it shall be enforced" said
HUSKY. ave believe that it is con-
stitutional and we intend to enforce it
to the letter to protect home indus
tries. Otherwise they will be crowded
out by the cut-throat tactics Of f.
nancially powerful concerns"
Must Be Prevailing Price.
The state law stipulatcs that cream
shall be purchased by cream station
operators at the prevailing price
which the company is paying, plus
the express charges to the creamery
for which it is bought.
In the Stark county case, HUSKY
said, the North American company
was paying "A cents IA pound for but
tcrfat at Dickinson on July II last
At a point six miles away it was pay
ing AZ cents and at another point II
mrlcs away it was paying 3S cents
The express rate for cream is the
same from all three points to the
plant of the defendant at Oakes, the
express being fixed on "A zone basis
The truth of the matter, HUSKY said
is the North American company is
trying to force its small competitors
out of business by paying such high
prices for cream in the vicinity Of
the small plants, that cream pro.
ducers ship their product to the big
competitors. thereby forcing the small
creamery into Improbable undcrpro-
ducton or forcing it to buy its cream
on terms which are ruinous to the
small enterprise. At the same time,
HUSKY said. the North American COM
pany has forced down the price to
farmers in vicinities where there are
no local creameries. At one time,
HUSKY said the evidence introduced
at the trial showed, there was a spread
of IL cents IA pound in the amounts
being paid by the North American
company at various points in the
state. only SMALL part of which
could be justified on the basis of
higher express charges.
1t was the understanding when the
case was filed. HUSKY said, that the
facts in the case were admitted and
that the trial was merely to deter
mine the cOnstitutionality Of the
state law. Instead, he alleges, the
company denied all the material facts
in the case and fought bitterly at
every turn.
May Cause Setback
Domination of the creamery busi-
ness in the state by few large con-
Germs, HUSKY said. will result in a
severe setback to the dairy business
and the cause of diversified agricul-
turc. With small competitors out of
the way, he points out, the big con-
Germs could fix whatever price they
pleased and with no other market
available the farmers with cream to
sell would be forced to accept their
terms.
The North American company has
been the worst violator of the state
law passed last winter, HUSKY said
and for that reason it was made the
defendant in the action, which is Of
"A criminal nature. Most other large
dairy concerns. he said, have shown a
disposition to obey the law and not re.
sort to unfair tactics although some
of these have millions Of dollars in
capital.