January, 1933 



THE I. A. A. RECORD 



Page Seventeen 



Chicago Milk Price Cut 

 Consumption Increases 



The retail price of a quart of milk 

 In Chicago dropped from 11 to nine 

 cents on December 1 following a 

 conference between officials of the 

 Pure Milk Association and the or- 

 ganized milk distributors. The cut 

 applies also to the suburbs of Chi- 

 cago and to such cities as Wauke- 

 gan and others. 



The new prices are nine cents per 

 quarter for milk instead of 11, a 

 return to the 1917 level; six cents 

 per pint instead of seven; half pints 

 of cream 15 cents, a drop of one 

 cent; and nine cents for buttermilk. 



The milk wagon drivers' union 

 the previous week had accepted the 

 $5 wage cut to $40 a week, and the 

 producers were asked to take a cut 

 of 40 cents per cwt. for base milk. 



Thus farmers assumed a reduc- 

 tion of about one cent per quart, 

 drivers about five -eighths of one 

 cent, and the dealers the balance. 



"Members of the Pure Milk Asso- 

 ciation," declared W. C. McQueen, 

 president and Don Geyer, manager, 

 "have accepted a cut in their milk 

 price which, in our opinion, is all 

 out of proportion to our direct re- 

 sponsibility to the consumers of 

 milk in Chicago. This reduction of 

 40 cents per cwt. added to the re- 

 ductions already accepted by the 

 association, equals 50 per cent of 

 the 1929 price as against 20 per cent 

 reduction for labor and a total re- 

 duction of approximately 35 per 

 cent in the price to the consumer. 



"Dairy farmers are accepting this 

 reduction only under extreme pro- 

 test. At the new price farmers will 

 receive about three cents per quart 

 of the nine cents paid by the con- 

 sumer. They have a right to expect 

 a more equitable distribution." 



During the series of conferences 

 between dealers and producers it 

 was reported that in 1912 farmers 

 were getting $1.90 per cwt. for 3.5 

 per cent milk, the price to the con- 

 sumer was eight cents a quart, and 

 milk wagon drivers were paid $19 a 

 week. At that time there were ap- 

 proximately 1,600 milk dealers in 

 Chicago, today there are 131. 



Following the reduction in price, 

 consumption of bottled milk in- 

 creased noticeably, according to 

 Chicago newspaper reports. The 

 new price to producers in the Chi- 

 cago area will be $1.45 per cwt. for 

 base milk and flat 92 score butter 

 price for surplus. 



Several of the larger distributors 

 since the cut have advertised a 

 city-wide campaign calling atten- 

 tion to the food value of milk and 

 the new reduced price. Since the 

 other dealers reduced to nine cents 

 the Meadowmoor Dairies, Inc., 

 which refuse to buy milk from the 

 Pure Milk Association, announced 

 an eight-cent price. 



smsfsm 



teis-Utifities 



Continuation of the hearing be- 

 fore the Interstate Commerce Com- 

 mission involving extension of tran- 

 sit privileges in change of owner- 

 ship of livestock at various western 

 markets was set for January 5 at 

 Excelsior Springs, Missouri. Prom 

 there the hearing will be trans- 

 ferred and continued at Chicago, 

 January 1 16, 



L. J. Quasey, director of trans- 

 portation for the I. A. A. has been 

 attending the hearing in an effort 

 to secure a long-haul rate from the 

 western cattle ranges to corn-belt 

 feed lots via the terminal markets 

 even though there is a change of 

 ownership at such markets. Such a 

 transit privilege is now accorded 

 livestock shipped to country points 

 for resale to corn-belt feeders. 



The co-operatives as well as in- 

 dividuals make considerable use of 

 the latter privilege. But those who 

 buy their feeder cattle and lambs at 

 the terminal markets have had to 

 pay two rates, one from the range 

 country to the market, and another 

 short-haul rate from the market to 

 the feed lot. 



The Illinois farmer at the pres- 

 ent time is unable to buy Texas cat- 

 tle at the Kansas City market for 

 example and obtain the full billing 

 from original point of origin be- 

 cause that constitutes a change of 

 ownership. 



Shippers now have such a priv- 

 ilege at Denver and interests at 

 Chicago, East St. Louis, St. Paul, 

 Fort Worth and all Missouri River 

 markets are asking for a like priv- 

 ilege. 



As an example, on a carload of 

 cattle moving from Alpine, Texas 

 to Kansas City for re -sale and later 

 shipment to a feeder in Illinois in- 

 termediate to Chicago, a local rate 

 of 60 cents applies to Kansas City 

 plus the local rate from Kansas City 

 to Chicago, or 40 cents, making a 

 through rate of $1, while the 

 through rate from Alpine, Texas to 

 Chicago is 77 cents, or a difference 

 of 23 cents which the shippers are 

 now penalized if they stop at Kan- 

 sas City on a change of ownership 

 basis. In this particular instance, it 

 would cost a shipper $50.60 to buy 

 on the itansas City market. The 

 figures as given are based on final 

 movement to Chicago on a feed in 

 transit privilege on which the 

 through rate to Chicago has been 

 figured and the local rate to in- 

 dividual feeding point. 



The contention is that these mar- 

 kets are deprived of the privilege 

 of trading in feeder stock; that it 

 has a tendency of keeping feeder 

 cattle out of the markets. 



Dividend News 

 (Continued from page 16) 



Shippers' Association a cash divi- 

 dend totaling $300. 



Kendall Farmers' Oil Company 

 announces a 10 per cent cash divi- 

 dend on fuel oils, 20 per cent on 

 lubricating oil. 



Robinson and Oblong units of 

 Crawford County Produce Associa- 

 tion recently distributed cash divi- 

 dends of 1.5 to two cents per pound 

 on butterfat totaling $1,047.73 an- 

 nounces the Farm Bureau. Craw- 

 ford-Jasper county members re- 

 ceived $2,516.87 in dividends from 

 Rich -Law Service Company; live- 

 stock growers received 25 per cent 

 of commissions on sales to India- 

 napolis Producers. 



McLean County Service Company 

 announces cash dividends of 18 per 

 cent on sales of gasoline and kero- 

 sene, 23 per cent on oil and grease, 

 30 per cent on paint, and 5. to 17 

 per cent on other items, a total dis- 

 tribution of $43,958.93 to Farm Bu- 

 reau members in good standing. 



Jersey County Farm Supply Com- 

 pany declared a 22.5 per cent divi- 

 dend on fuel oils and 10 cents a gal- 

 lon on lubricants, total refund $12,- 

 880. The County Produce Associa- 

 tion returned $890.91 in cash to 

 members. 



Ford County Dairy Marketing As- 

 sociation refunded 1.25 cents per lb. 

 on butterfat, total $588.05; Gibson 

 City Farmers' Cream Station re- 

 funded one cent per pound on 

 butterfat, total $203.85. 



Lake County Farm Supply Com- 

 pany announces a 10 per cent divi- 

 dend on petroleum products, total 

 $9,000; four per cent on feed, seed, 

 fertilizer, etc., estimated at $2,500, 

 or a total of $11,500 to Farm Bu- 

 reau members. 



Wabash Valley Service Company 

 announces a seven per cent cash 

 dividend to consumer stockholders 

 totaling $12,066.55; the Albion- 

 Browns and West Salem units of 

 Edwards County Produce Associa- 

 tion refunded $987.12 to patrons. 



Montgomery County Farmers Oil 

 Co. declared a 10 per cent cash re- 

 fund totaling $2,688.17; Shelby-Ef- 

 fingham Service Company a 10 per 

 cent refund, total $4,372.63; Shelby 

 County Livestock Marketing Asso- 

 ciation refunded 4% cents per cwt., 

 total $565.27. 



Scott Co. Division Morgan Farm- 

 ers' Oil Co. cash fefund 10 per cent, 

 total $1,079. 



