NEW YORK MILK COMMITTEE 167 



simply a curious coincidence that every milk dealer, practically, 

 in the City, should raise the price of milk an exact amount 

 on the same day. 



The investigation was inaugurated in the latter part of 

 the same month. The investigation became more thorough as 

 time went on, and in February of 1910, every milk dealer in 

 New York City dropped back to the eight cent price, with one 

 exception. In February, a winter month, a month during 

 which the cows cannot feed on the grass that is growing in 

 the fields, they made this reduction in the price. The reason 

 that they gave for lowering the price of milk at that time 

 was that there was a superabundance of milk in the market. 

 They continued at that price until the investigation closed up. 

 The legislature continued unusually long in session last year, 

 and they had an extra session towards the latter part of June. 

 July came along and legislature adjourned. There was no 

 fear of hostile legislation then, at least for another year, and 

 the price of milk, in the middle of July, a summer month, when 

 you and I should think that milk should be more abundant 

 than in February, and be cheaper, was raised again to nine 

 cents, and that is where it is now in New York City. 



Now, it may be that in all of those cases there was no 

 agreement among the dealers, but I doubt it. The reason 

 given for the raise in the price of milk on these various oc- 

 casions was that the milk dealer was not realizing sufficient 

 profit from the milk business to enable him to sell it at eight 

 cents a quart. We had Marvin Scudder, an expert account- 

 ant, and a man of great reputation in that line, examine 

 the books of the milk dealers, principally the larger ones. I 

 will take the two largest milk dealers whose books he examined, 

 and give you the figures that he gave on the stand and swore 

 to. Those figures were not contradicted by the dealers whose 

 books he had examined. 



Borden's Condensed Milk Company was organized about 

 ten years ago. Twenty-five million dollars was the capital 

 stock, during the year of 1909, of which $15,428,000 was is- 

 sued for trade marks, patents and good will. This, as Mr. 

 Scudder testified on the stand, was merely a balancing entry. 

 You and I would call it water. 



During the year ending September 30th, 1909, before the 



