70 THE HIGH COST OF LIVING 



the consumer must pay. The sale of milk in New 

 York and other large cities is in the hands of a 

 virtual trust. The consumer must pay their price 

 or do without milk. Nor do the distributers guar- 

 antee quality to the consumer although they exact 

 it from the producer. The volume of milk produced 

 does not affect the price, as the dealers insist that it 

 does, for summer or winter the consumer pays the 

 same rates. The dealer owns the utilities of dis- 

 tribution — the cans, pasteurizers, and facilities of the 

 shipping and finishing stations. If one dealer re- 

 duces the price paid to the farmer the others follow. 

 This is harmful to the consumer also as it drives 

 many farmers out of business and reduces the sup- 

 ply. On the other hand, if one dealer raises the 

 price to the consumer all do the same. If a retail 

 dealer refuses to comply with the demand of the 

 trust his supply is cut off or delivered sour. The 

 dealer reserves to himself all the advantages of fa- 

 vorable market conditions in New York. 



The report of ex-Assistant District Attorney 

 O'Malley in 1910 of milk distribution in New York 

 showed a strong organization in restraint of trade 

 among the dealers. If a dealer ventured to sell 

 below the trust prices the '^dead" wagon was sent 

 over his route, selling milk to his customers at ruin- 

 ously low prices, till he was driven out of business. 

 If all else failed his horse was mysteriously poisoned. 

 Indictments were found against several of the deal- 



