326 IOWA DEPARTMENT OF AGRICULTURE 
"The investigation shows that the co-operative creamery yields the 
largest returns to the farmer for his butter-fat. The individual and com- 
bination creameries usually being located in close competition with the 
co-operative creameries, pay very nearly as much. The centralizers, 
where they have gained a monopoly, pay as little as the farmer will 
accept. Reports for July, 1907, show that in Kansas and Nebraska, where 
the monopoly appears to be complete, the farmers received only 17 to 18 
cents a pound for their butter-fat, while in northern Iowa, Minnesota, 
Wisconsin and Illinois, where the co-operative creameries have the field, 
the prices were from 25 to 26 cents. 
The system of killing the small creameries has been carried on to the 
fullest extent in southern Iowa, Missouri, Kansas and Nebraska. Taking 
Kansas as an illustration, it is found that the number of creameries de- 
clined from 133 in 1900 to 67 in 1905, while in Minnesota in the same 
period there was an increase from 5S2 to 905. 
There can be no doubt that the tendency of the centralizing system is 
bad for the farmer and the public. The effect is to exact high prices from 
the consumer and to pay low prices to the farmer, the profits going to the 
large operator who control the situation. The small local co-operative 
creameries should be encouraged." 
Realizing that at least not only was dairying not increasing in the 
territory covered by the centralizers and that they were losing money 
by the low rates, the railroads adopted a new schedule of rates consider- 
ably higher than the ones so long in force, but before the time set for 
their collection the centralizers appealed to Judge Kohlsaat of the United 
States Circuit Court for an injunction restraining the roads from enforc- 
ing the new rate until such time as the Interstate Commerce Commission 
could hear the case; the injunction was granted. 
On July 30, 1907, a call was issued by Mr. Fred Seeber, of Waterloo, 
Wisconsin, for a meeting at Watertown, at which time some of the above 
related facts were set forth and the creamery men present decided that 
is was essential to their continued welfare that something should be 
done and the Wisconsin Dairy Manufacturers and Milk Producers Pro- 
tective Association was the result. 
In our ignorance of what was needed some of us attended the hearing 
before Judge Kohlsaat, but learned that in order to have any opportunity 
of presenting our side of the case it would be necessary to be made par- 
ties to Xhe suit and employ an attorney to represent us. This we decided 
to do and our attorney, Mr. John Barnes, former chairman of the Wiscon- 
sin Railroad Commission, filed an intervening petition with the Interstate 
Commerce Commission at Washington, setting forth our interest in the 
matter and which was accepted, making us parties to the suit. 
Previous to the hearings in Chicago, the Wisconsin Railroad Commis- 
sion, said to be the best railroad commission in the United States, of its 
own motion decided to investigate the rate on milk and cream, and at the 
hearing November 5, 1907, the Wisconsin Protective Association had a 
chance to show what it was worth and it was no doubt the able presenta- 
tion of our side of the case by Judge Barnes that led the commission to 
make a favorable decision, separating for the first time milk and cream 
