Quad Cities Milk 



Li 



icense 



AAA Finally Acts After 

 Months of Delay 



THE retail price of milk at the 

 Quad Cities was raised from 

 six to nine cents June 1 when 

 the new marketing agreement went 

 into effect. Under the new plan farm- 

 ers are being paid $1.60 per cwt. for 

 3.5 per cent base or fluid milk. Class 

 II used for fluid cream will bring ap- 

 proximately $1.25 with 92 score but- 

 ter selling at 25c wholesale Chicago. 

 Class III, condensed, will bring the 

 price established by the evaporated 

 milk code or not less than 3.5 times 

 92 score butter plus 20% plus 10c per 

 cwt. Class IV 3.5 times 92 score butter 

 plus 10%. Dealers may not charge 

 less than 7.5 cents for milk of 3.9 per 

 cent butterfat content or less and not 

 less than 8c for 4% milk. The going 

 price was established at 9c. 



The licensing of dealers and inau- 

 guration of the milk marketing agree- 

 ment is the result of more than a 

 year's effort by the Quality Milk As- 

 sociation and Illinois Agricultural As- 

 sociation to stabilize the market and 

 secure a higher return for the pro- 

 ducer. For about a year milk has 

 been retailing at six cents a quart 

 and farmers have been netting around 

 85 to 90 cents per cwt. 



Delayed Plan 



Milton Hult, one of the milk deal- 

 ers, and Ned Curtis, president of the 

 Illinois-Iowa Milk Producers Associa- 

 tion which Hult and other dealers 

 fostered, are reported to have used 

 their influence, making many trips to 

 Washington, to delay the initiation of 

 a marketing plan. 



Quality Milk took the position that 

 all fluid milk producers who have 

 regularly supplied the market should 

 be placed on the same basis and each 

 be compelled to bear a proportionate 

 share of the surplus. The I. & I. 

 group which includes mostly former 

 sour cream prol icers wanted to keep 

 the advantage it had through selling 

 a larger percentage in the fluid class 

 to certain dealers. 



Frank C. Baker, market adminis- 

 trator at Chicago, is in charge of the 

 Quad City market for the AAA. The 

 new price schedule gives the distribu- 

 tors with large fluid outlets a very 

 favorable margin of profit and will 

 increase returns to producers around 

 80 to 40 per cent. 



The marketing agreement has 

 standard provisions and compels the 



distributor to deduct a check-off of 

 two cents per cwt. from all producers, 

 supplying the market, to defray oper- 

 ating expenses of the administrator. 



In addition the distributor must 

 deduct an additional 4c per cwt. — 

 total 6c — from milk delivered by non- 

 members. The Quality Milk Associa- 

 tion by agreement with distributors it 

 supplies, receives a check-off of 4c 

 per cwt. for operating expenses on 

 milk delivered by its members. The 

 administrator will use the additional 

 4c contributed by non-members to em- 

 ploy testing and checking service for 

 their benefit and protection. 



An application for licensing of deal- 

 ers and a marketing agreement has 

 been filed for the Peoria market by 

 the legal department of the Illinois 

 Agricultural Association. 



Ask Cut in Auto License 



And State Gas Tax 



Rockford Milk Producers 

 Get $ 1 .85 For Class I 



The Mid-West Dairymen's Company 

 representing some 700 producers 

 around Rockford was successful re- 

 cently in getting the Class I price of 

 milk raised from $1.50 to $1.85 per 

 cwt. 



As a result of the serious drouth 

 situation in northern Illinois a mass 

 meeting of milk producers was called 

 for June 6, reports Manager Wilkie 

 Lee. About 600 attended. The con- 

 sensus of opinion was that $1.85 per 

 cwt. for Class I would be the least 

 that could be accepted considering the 

 sharp increase in cost of production 

 resulti g from the forced purchase of 

 high-priced feed. The dealers realized 

 the serious situation and agreed to 

 meet the producers' demands without 

 a further confer nee. 



Class I is the only classification of 

 milk sold to 11 of the 12 dealers buy- 

 ing from the Association. They pay 

 the CL ss I price for milk irrespective 

 of its use. One dealer buys Class II 

 milk at the condensery price, now 

 $1.25 a hundred, for ice cream mix. 

 The association purchased 13 carloads 

 of alfalfa hay for their members 

 which was delivered at approximately 

 $19.25 per ton. 



As we go to press Pure Milk As- 

 sociation is preparing to ask for an 

 advance in the present base price of 

 $2.00 per cwt. 



Editor, I. A. A. RECORD: 



''Thoughts on the New Deal" is 

 about as good an article on the sub- 

 ject as I have read. Keep up the good 

 work.— E. M. *Tarmer" Miller, Mc- 

 Henry county, 111. 



At a recent meeting in Chicago, 

 steps were taken toward starting a 

 campaign to cut state motor license 

 fees on automobiles and trucks to $3 

 and to reduce the state gas tax to two 

 cents. 



At the June meeting of the I. A. A. 

 board it was agreed that this proposal 

 should be carefully studied before any 

 action or policy is announced. The 

 problem that immediately presents it- 

 self is "will such reductions leave 

 sufficient revenue to pay the interest 

 and principal still due on the $160,- 

 000,000 of state hard road bonds voted 

 a number of years ago?" If such re- 

 ductions are voted will property be 

 taxed additionally to make up any 

 shortage of funds needed to pay in- 

 terest and principal on outstanding 

 bonds and on emergency relief loans 

 against which gas tax revenue has 

 been pledged? 



John C. Watson, director of taxa- 

 tion, is engaged in working up data 

 to be submitted at a future meeting 

 of the I. A. A. Board. 



inois Grain Corp. 



Adds New Members 



The Milledgeville 

 Company, Carroll 

 Burt and Richmond 

 well county recently 



162 



of the state re- 

 gional up to 162 elevators and coun- 

 ty grain associations. 



As a result of the poor small grain 

 crop of last year and the corn seal- 

 ing program, elevator handlings of 

 grain this year are considerably be- 

 low those of 1933. 



Farmers Elevator 

 county, and the 

 elevators in Taze- 

 joined the Illinois 

 Grain Corpora- 

 tion. These addi- 

 tions bring the 

 total membership 



"There isn't any evidence that the 

 trade (dealers and processors) is pay- 

 ing any of the processing taxes — ex- 

 cept possibly for brief periods the 

 tax on hogs," says Dr. Frederic C. 

 Howe, consumers* counsel. "All the 

 facts we have been able to collect in- 

 dicate that processors generally, and 

 this includes millers, have increased 

 their margins between what they pay 

 for their raw materials and what they 

 charge for their products, enough to 

 cover fully the taxes. 



"Millers have passed the taxes on 

 to the bakers but the bakers in turn 

 have raised the price of bread." Pack- 

 ers have been passing the hog proc- 

 essing tax on to the producer. 



18 



I. A. A. RECORD 



