166 CONFERENCE ON MILK PROBLEMS 



books into court and they took their figures from their books. 

 They were men who were farming and producing milk on a 

 scientific basis. They were men who told us every item that 

 went into the cost of production, the amount it cost them 

 during the preceding year, and the amount that they realized. 

 Their testimony was uniform that the producer to-day is 

 producing milk and selling it at about the cost of production. 

 I do not want to overstep my time if it is possible not to. 

 Let us see for a moment what this combine does to the pro- 

 ducer. Many years ago, in this State there was a milk ex- 

 change. I think it was called the Milk Exchange, Ltd. It 

 transgressed the laws of this State in reference to forming 

 combinations in restraint of trade, because it fixed the price 

 that its members would pay to the producers. That milk 

 exchange and its acts were declared illegal by the Court of 

 Appeals of this State, and they were driven out of the State. 

 They betook themselves to New Jersey, and there they re- 

 organized, and when the clamor had died out, which had arisen 

 as a result of their case in this State, they sneaked back into 

 New York City and kept on doing the same acts that had 

 been declared illegal by the Court of Appeals. They kept on 

 performing those acts right up to the time of the investiga- 

 tion, and at the beginning of the investigation they attempted 

 to brazen the matter through, saying that it was an outrage 

 that substantial business men, as they were, should be investi- 

 gated. But after a short time, they saw the light, and the 

 investigation became a little warmer, and their courage wilted, 

 and they sneaked back to New Jersey, and there, I am in- 

 formed, they are performing the same acts that the Court 

 of Appeals in this State said were illegal. Those acts con- 

 sist in meeting every month and fixing the price that the 

 dealers will pay to the producers for milk. So much for this 

 combine, as to the producers' end of it. Let us look for a 

 moment at the consumers' end. In November, 1909, on the 

 first day of November, I believe it was, practically every milk 

 dealer in New York City raised the price of bottled milk from 

 eight to nine cents. Of course, they had no understanding 

 that they were all to raise it. They simply all came to the 

 same conclusion at the same time, that they were not real- 

 izing a sufficient profit from the sale of their milk. It was 



