The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1934-03-08
IN. Y. State Board
WhiteWaSheS Big
Dairy Go. Profits
MOnOpOlies Show 80
Per Cent Profit; Rob
Farmers, Consumers
ESPECIAL to Daily WORKER

Waikiki, N. 4, Marcn I. -
The statement just issued by the
New York Milk Control Board that
the wide spread between prices
paid for milk by the consumers and
the net price received by the farm
ers is due to high costs rather than
to exorbitant profits" Is misleading,
said the New York State Farmers
Committee For Action in a state
ment yesterday.
The State Committee pointed out
that Dr.. Leland Spencer's report, on
which the Milk Control Boards
statement was based, was very In
complete; that DR.. Spencer admit
teddy had figures for only the small
distributors who are losing money
because Of competition with the
Dairymen's League, Bordens and
Sheffields, the subsidiary of the Ma
tional Dairy Products Corp. DR..
Spencer himself, shows that while
% Of the 80 New York City dealers
reporting showed a loss, only one
Of the five largest failed to make a
profit and while nine upstate COM
panies reported a loss, none of the
five largest showed any losses. Thus,
the big monopolies are showing big
profits.
MOnOpolieS Profit
Assuming that sheffields and Bor-
dens were among those who re-
ported, though it is possible that
they refused to show their books to
Spencer, neither company lost
money since they would be among
the four largest. BordenS Is both
an upstate and metropolitan dealer.
These companies handle the great
bulk Of milk in the state. DR.. Spen-
GERS report and the Milk Board
statement may be dismissed on this
point alone as deliberately mislead-
ing, as attempting to fool both
farmers and workers into believing
that the dealers are to be wept over
and aided.
1t is interesting to cite here the
A.A.A. figures, worked out for other
milk sheds by Federal accountants
who discounted bonuses, over capt.
talization and high salaries. Ir
Chicago, the companies which
handled 80 per cent Of the milk
made a net profit of 25.s per cen;
, In the years l929-33; in Philadei.
> phia. the companies handling IS
per cent Of the milk, made a net
profit Of 30.8 for the same wears
r Other big companies in other shed.
outside Of New York profited &C.
cordingly. It is ridiculous to SUD.
, pose that the New York milk shed
with consuming population Of
. over 10000, 900, was losing market
/ for the big companies during the
! same period Of time.
( A survey made by the Farmers
! National Committee for Action
showed that the profits Of a big
, dealer in the average milk shed
ranged from so to 8s per cent
! yearly net profit. These are re-
+ liable figures, based on govern
+ ment reports and first hand in
formation. DIR. Spencer and the
New York Milk Board to the con-
trary, the dealers are making
i money, the small farmers are not
t getting anywhere near cost Of
production while the workers are
paying extortionate prices in the
. cities.
The State Committee points out
in conclusion, that the reason fol
. the issuance Of the Milk Contro
= Boards statement at the present
time is the fact that the farmer.
have just been forced to take an.
other cut.
The State Committees program
: calls for five cents a quart for the
:. farmer, fob. the farm, and nine
! cents q quart for retail price. The
State Board however would like
), to see the retail price even higher
than the present eleven cents,
. doorstep delivery, and even lower
than the net two to two and
half cents to the farmers. That
is the difference between the two
programs.