The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-05-24
Liberal Viewpoint
by DIR. HARRY ELMER BARNES

IN strained column on the way in which the
dairy holding companies skim off the cream OF
the profits, to the detriment Of the farmers, the
real distributors and the consuming public alike.
II was my contention that these dairy hold
ing companies render no substantial services in
the distribution of milk. If they were to go out
of existence, those operating companies which
actually assemble and distribute milk could make
higher profits, the farmers could receive higher
prices for their milk, and the consuming public
could obtain its milk at much lower prices than
are paid today in metropolitan centers.
Shortly after this column appeared, I received
letter from acquaintance of mine who is IN
the employ of the National Dairy Products Corp.
protesting the character Of my attack upon his
company and similar concerns:
Il happened to notice your article in the
World-Telegram and am sorry you have such
poor opinion Of our company.
Il have worked for National Dairy for more
than three years and must say think the COM
pany is performing an economic function and
doing its job efficiently, and is working for the
public interest in every respect
Il wish you would ring me on the phone
and arrange to have lunch with me some noon
know that one or more of our executives would
be very glad to join us and tell you more about
the milk business than can be cleaned from
reading the press releases on the Federal Trade
Commissions report.
TINE absolutely incorrect differences and in
Il nuendos in the press releases on this re-
port give an untruthful picture of what goes
on in the dairy industry.
Evidently some one has given you some mis-
information as far as our buying milk for 2
cents and selling it for II or Is cents is con-
cerned. We have never done that and don't
think any other responsible distributor ever
did"
In letter to the World-Telegram. George
L. Blake called attention to alleged construc-
tive achievements carried out by such dairy
holding companies as the Carnation Milk Co.
the Blackwell Cheese Corp. and the Kraft
Phoenix Corp. He implied that my letter was
characteristic alteration Of those who are
sympathetic with the Wheeler Rayburn bill.
I shall take advantage of my friends invi-
tatlon to discuss the dairy holding companies
personally though the subject of holding COM
panies in general, and Of dairy holding COM
panles. in particular, is one upon which I can
pretend to relatively precise and mature infor-
nation In the meantime, I am asking him and
other spokesman of the dairy holding companies
certain cogent questions which they may an
swer IN public as well as to me privately
In the first place, should like to know lust
exactly what would happen to the actual as
semohng and distribution of dairy products if
such great dairy holding companies as the Ma
tional Dairy Products Corp. the Borden Co. and
the ike dissolved and disappeared from the
CECOND, would like to be told lust exactly
~ what these companies do to move milk and
other dairy products which their subsidiary com
panies could not or do not do without the exist
ence of the holding companies
In the third place, I would like to see an
ltemlzed statement of the cost Of bottle of
GRACE milk in New York City iten1zed to
state clearly and unevasively the price paid to
the farmer. the actual cost of Transportation
the expense of any necessary processing. and the
real cost OF delivery to the consumer
And would wan all of these items clearly
separated from any overhead charges in no direct
or necessary way connected with the handling of
mix. An honest statement of these facts would
tell US approximately what the public has tn nav
as the result of exploitation by the parasitical
holding companies and their paper pyramids
AS TO the allegations that I have misstated
facts and am asserting that subsidiary of the
Natlonal Dairy Products Corp. purchased raw
milk in central New York from farmers for 2
cents quErt and sold it in New York for - to
10 cents quart. this is a matter of record and
not OF opinion
NY own brother sold milk to the Sheffield
Farms Co. in the summer Of 1893 for ST cents a
hunoreo pounds. which is actually less than one
ana one-hsh cents a quart AS for what II sold
ior IN the New York area let customers Of tho
Shefield Farms Co check over their old milk
DIS. am not implying Of course. that the Shelf
held Farms Co. demanded higher price than
Such competitors as the Borden Co.