MILK SURVEY OF THE CITY OF ROCHESTER 225 



In three cities in America the milk industry has been tacitly per- 

 mitted to adopt centralization to such an extent that monopolies are prac- 

 tically in existence. These cities are : Calgary, Canada ; Ottawa, Canada, 

 and Milwaukee, Wisconsin. An examination of the conditions in these 

 cities shows clearly that these milk monopolies have not takeji undue 

 advantage of their power, but have, as a matter of fact, rendered to the 

 cities named a service unequaled by the milk industries "of any other cities 

 on this continent. In these three cities the cost of milk has been kept at 

 the lowest point, and the dealers' spread, or share of the milk price, has 

 been lower than in any other cities. 



Consequently, in the City of Rochester, before proceeding to estab- 

 lish a monopoly under municipal auspices, it would seem to be more 

 consistent with purely American policies to permit the milk industry 

 itself to apply the principle of centralization to the business of milk 

 distribution, and to make a demonstration to the citizens of Rochester 

 of the efficiency of the service which it can render under such central- 

 ization. 



The business of milk distribution is highly specialized. Public 

 ownership would furnish no guarantee of efficient service unless it could 

 guarantee the same high degree of specialization which has already been 

 developed in the present industry. Public ownership should be held in 

 the background as a last resort. It should be applied only in the event 

 that the industry itself proves incompetent to render efficient service. 



The proposition recently made by the executive officer of the largest 

 milk company in the City of New York to the city authorities is one which 

 deserves serious consideration by that city and by all other cities. This 

 proposition is that a milk monopoly be organized by the milk distributers, 

 but that the board of directors of such monopoly should include repre- 

 sentatives of milk consumers and milk producers, and that a limitation of 

 profits should be established, and that the books of the monopoly should 

 be open to the public. This proposition has many features which would 

 contribute to a satisfactory solution of the problem of milk distribution, 

 and is a remedy which, in the opinion of the director of this survey, 

 should be tried in advance of the application of municipal ownership. 



The milk monopoly, under private ownership, would be in the public 

 interests only provided the public were properly safeguarded against the 

 abuse of the additional power which the milk industry would thus secure. 

 The only way in which such a power can be properly counterbalanced 

 would be through the securing of such additional legal powers by the 

 city itself that the city can at any time control such monopoly and take 

 over the business of milk distribution under its own auspices. 



Therefore, the director of this survey, recommends that these two 

 movements be inaugurated hand in hand. On the one hand the estab- 



