The Nonpartisan Leader Newspaper, November 15, 1917, Page 6

‘against the farmers, charging - Dairy Farmers Want Just They Don’t Want to Have State Price Fixing Bodies Play Them Against City Milk Consumers, and Gity Milk Distributors— Something About Milk Costs A scene on a Minnesota dairy farm. It is farms like these that are endangered by the senseless policy of regulating milk and dairy feed prices now being practiced. Commissions appointed by the states to fix prices are not only taking away farmers’ profi profit on feed that the dairy farmers must buy for their cows. BY E. B. FUSSELL ? HY doesn’'t the federal food administration take hold of L d milk prices® This is a ques- Iper2t tion being asked by several ‘%C-@J thousand milk producers of Minnesota, Wisconsin and 1llinois, particularly by the dairymen who pro- duce the city supplies for Chicago, Minneapolis and St. Paul. This is what the dairymen are fac- ing: State authorities are taking ac- tion to force down the price of milk to the producer, below the October level. In Minnesota the public safety commission has put the price of milk, delivered in the Twin Cities, which was $3.25 per 100 pounds in October, or a little more than 7 cents a quart, down to a flat 6 cents a quart, delivered to the distributor in the Twin Cities. The farmer pays the cost of hauling and express into Minne- apolis or St. Paul -out of his 6 cents, The distributor adds 4 cents, selling to the consumer at 10 cents per quart. In southern Wisconsin, which produces most of the Chicago milk supply, milk producers formed an association, taking .in also 1llinois milk producers. The association held a meeting in September, which considered cost of production figures from all points, and finally decided that $3.42 would be the cost of production for October, This agrees closely with the findings of agricultural -experts for that month. This price was generally put into effect and was paid by the distributors during October. TRY TO PROSECUTE THE DAIRY FARMERS This action of the milk pro- ducers ran up against two snags. First, the big distributors in Chi- cago declared they wouldn’t pay at this rate after October. Next the attorney general of Wisconsin brought injunction proceedings them with forming a trust in violation of the anti-trust laws. When November 1 rolled around the Chicago distributors refused flatly to contihue paying at the $3.42 rate. As a result the farmers didn't ship their milk. The milk receipts of the city of Chicago were cut down nearly 80 per cent on November 1. More prosecu- ticns of the farmers were threaten- ed. However, at the request of the farmers, the governor of Wisconsin appointed a committee, with' three farmers on it, to investigate and de- cide upon a fair price for milk. On November 2 this committee reported a price of $3.22 would be fair. This is a compromise between the $3.42 figure, which the farmers say repre- sents the cost of production, and the $3 figure, which was what the Chicago distributors wanted pay. The farmers believe that the $3.22 figure is less than the cost of produc- tion. However, in order that the city consumer shall not be deprived of his milk, and because these are war times, the milk producers have patriotically agreed to, accept this figure for the time being. Meanwhile they are ask- ing that Food Administrator Hoover take up the situation and fix a fair price within the next two months. FARMERS’' COSTS CONTINUE TO RISE - While state authorities are forcing the prices of the farmers’ product down, other influences are {forcing prices of the farmers' supplies up. Timothy hay is $23.50 at Minneapolis and alfalfa is $26. The prices are much higher in Wisconsin and are still go- ing up. It may be said that the government hasn’'t anything to do with hay prices. Here is another point to consider, however: Prices of mill feed—red dog, bran and Jmiddlings—have gone up steadily while the mills have been under the regulation of the food administration. Bran on October 1, a little more than a month ago, was quoted at $30 to $31 at Minneapolis. The same quality of bran was quoted at ts. but eating into the cost of production, while mills are making too much Minneapolis on November 3 at $31.50 to $32. In Wisconsin there has been even more variation. Harry E. Holmes, business agent of the Wisconsin Equi- ty, rays that on September 1 he was buying wheat bran for $29.50. Today he is paying $34.50 and can not get enough at that figure to supply the de- mands of the farmers. Why is it that $2.20 wheat, a lowered price, has meant an increased price in mill feed? The price of flour has not increased. It has been decreased. On October 1, for instance, when bran was quoted at $30 to $31, first patent flour at Minne- apolis was $11.20 to $11.60. On Novem- ber 3 flour quotations had lowered to $10.10 to $10.40, but bran had gone up to $31.50 and $32. ARE PLAYING PUBLIC AGAINST THE FARMER The answer apparently is this: The mills, {inder government regula- tion, are allowed to make a profit of 25 cents a barrel on flour and 50 cents a ton on feed. But there is no definite means of segregating the From all parts of the United States comes news about milk supply troubles. Farmers are being prosecuted or threatened with prosecution for alleged attempts to grab unjust profits on milk. sota to get a first hand report on conditions. He hasn’t found yet that any city milk distribution mon- opoly is being prosecuted. He finds farmers asking only the cost of production. He finds mills that sup- ply dairy feed, and the distributing trust, are playing the city milk consumer against the farmer, for the benefit of the distributing trust and the mills. You will be interested in this story whether you are a dairy farmer or not. PAGE SIX Mr. Fussell of the Leader staff has been through Wisconsin and Minne- profits, A ton of wheat will make, say, seven barrels of flour and 600 pounds of feed. On this’ the mill will be entitled to 25 cents profit on each barrel of flour, or $1.75, and 50 cents on each 2000 pounds of feed, or 15 cents, a total profit of $1.90. But there is nothing to prevent the mill from producing flour approximately at cost and sad- dling the entire $1.90 profit on the mill feed. With a great popular de- mand for cheaper bread it is evident that the flour mag- nates are taking advantage of the situation to lower the price on flour at the expense of the stock and dairymen who need cheap mill feed. - There is another element that helps to explain the increased prices on mill feeds. Recently the food administrator issued or= ice