1909. 
THEO RURAL NEW-YORKER 
1091 
AFTER THE MILK COMBINATION 
Attorney-General O'Malley, of New York, 
is after the milk monopolists. On his pe¬ 
tition Justice Scabury lias appointed a ref¬ 
eree. IV. G. Brown, to hear testimony. The 
charge is that the so-called “Milk Exchange” 
has conspired to force up retail prices for 
milk when there was no reason for such 
increase. The officers and directors of the 
Consolidated Milk Exchange, the Borden 
Condensed Milk Company, the Sheffield 
Earms-Slawson-Deeker Company, the Mutual 
Milk & Cream Company, and the Dairy¬ 
men's Manufacturing Company are all or¬ 
dered to appear and testify if needed. 
It is charged that members of the milk 
combination agreed among themselves not 
to buy milk from the producers at a greater 
price than that fixed by the “Exchange,” 
and that such agreement is illegal because 
it creates a monopoly and prevents fair 
competition. By means of this monopoly 
this "combine" controls 80 per cent of New 
York’s market milk, and while controlling 
the price paid to farmers and keeping it 
as low as possible they have already in¬ 
creased the price to the consumers, and 
would like, if they dated, to push it still 
higher. The reason for this increase is to 
"arbitrarily provide additional profits to the 
individuals and additional dividends upon 
the stock of the corporation on account of 
the monopoly in the control of the milk 
supply which they exercised.” 
They were able to hold up the producers 
by refusing to take the milk except at their 
own price, and thus pick the farmers’ pock¬ 
ets, and then hold up the consumer and 
make him fill their own pockets! This 
creates a monopoly, and is illegal. The 
Attorney-General claims that he has the 
facts to prove these charges. A few years 
ago the old Milk Exchange was proved 
guilty of almost the same crime and was 
dissolved. It went into New Jersey and re¬ 
organized under a new name, and continued 
to do business as before. Nothing will be 
accomplished if it is found guilty again 
and "dissolved” once more. In such event, 
the dealers would probably not dare to 
increase the retail price of milk, but the 
farmers would not be any better off. Some¬ 
thing besides "dissolving” must be done to 
the dealers who are responsible for this milk 
monopoly. Get at the individuals and treat 
them like ordinary criminals ! 
EVENTS OF THE WEEK. 
Domestic. —The strike of switchmen on 
the Northern transcontinental lines be¬ 
tween St. l’aul and the Pacific Coast has 
tied up freight traffic. In Minneapolis 
twenty-five Hour mills closed down Decem¬ 
ber 1. because they could not receive grain 
or ship flour. This throws more than .’1.000 
men out of employment. At St. Cloud the 
Great Northern closed its shops, putting out 
500 men. At Superior, Wis., the Great 
Northern closed its shops and docks, crowd¬ 
ing out 350 men. -At St. Cloud in the 
granite works 500 men were thrown out of 
employment. From Wilmar, Fargo, Grand 
Forks. Jamestown. Devil’s Bake, Minot, 
Billings, Livingston, Butte and Helena 105 
engine crews have been called off. All the 
2,300 switchmen employed by thirteen rail¬ 
roads operating between the head of the 
Great Lakes and the North Pacific Coast 
were ordered to strike for an increase of 
6 cents an hour and revised working con¬ 
ditions. 
Fines aggregating $45,000 were paid in 
the Federal Court at Portland, Ore.. Decem¬ 
ber 2 by 35 leading citizens of Umatilla 
county, who had pleaded guilty to defraud¬ 
ing the Government of part of the public 
domain. Col. J. II. Raley, an attorney. 
paid $10,000, the heaviest line. The others 
were stockmen, ranchers, business men and 
professional men. 
Testimony introduced at the coroner's 
inquest on the Cherry, Ill., mine disaster 
December 4, tended to show that the fire 
was started by Mat Francisco. 15 years old, 
who, it is alleged, was working in the mine 
in violation of the child labor law. Fran¬ 
cisco worked under Itosenjack, the eager, 
who disappeared the day following the dis¬ 
aster, the boy's work being to push empty 
cars from the main shaft in the second 
vein over to the cage running to the third 
vein. The Francisco boy said under oath 
that he had pushed a loaded car of hay 
over to the elevator shaft leading to the 
third vein and left it standing close up 
to the blazing torch which ignited it. 
Wallace B. llopkius, former broker and 
promoter, was found guilty of using the 
mails to defraud his customers by a jury 
in Judge Landis' court at Chicago, Decem¬ 
ber 4. Four and one-half years in the 
penitentiary and a fine is the maximum 
penalty. Hopkins was arrested in Scattlo 
several months after his failure at Chicago 
in April, 1S)08. He was brought back for 
trial and scores of customers testified, 
against him. More than half a million dol¬ 
lars is said to have been taken from cus¬ 
tomers by Hopkins. An effort to float the 
$20,000,000 Consolidated Zinc Company was 
the cause of his tumble. His brokerage 
house was short 189,000 shares of different 
stocks when he failed. 
A fire that started in the general store 
of John M. Allen, Peapack, N. .1., December 
5, destroyed two other stores and two resi¬ 
dences before it was stopped, entailing a 
property loss of $50,000. 
The United States Supreme Court De¬ 
cember 6 declined to review in a certiorari 
proceeding the judgment of the Federal 
courts at New York sentencing Charles W. 
Morse to 15 years’ imprisonment for mis¬ 
applying the funds of the National Bank 
of North America and of making false re¬ 
ports of the bank’s condition. The court 
handed down no written opinion. Unless 
the United States Circuit Court here grants 
the motion of Martin W. Littleton asking 
for a new trial for Morse, he must go to 
the Federal Prison at Atlanta, Ga., within 
10 days to serve the 15 years’ sentence 
imposed upon him by Judge Hough after 
his conviction more than a year ago. 
New matter was introduced December 6 
by the Government in the trial in the 
United States Circuit Court of James F. 
Bendernagel, Oliver Spitzer and the four 
former checkers of the Havemeyers & Elder 
refinery in Williamsburg by the testimony 
of two Government laborers about an elec¬ 
tric light signal system used to warn the 
checkers on the docks of the approach of 
Government agents and inspectors. The 
two witnesses were Frederick B. Sanders, 
colored, and John Rochefort, both of whom 
were employed as laborers by the Govern¬ 
ment and assigned frequently to work on 
the Williamsburg docks. Sanders testified 
that there was an electric light in each of 
the 17 scale houses in which the Govern¬ 
ment weighers worked. He bad frequently 
seen these lights flash after becoming dim 
as though about to go out. He noticed that 
after such a flash somebody connected with 
the Government appeared on the dock with¬ 
in a very short time. He noticed, too, he 
said, that when the flashes were given the 
sugar company's checkers hastened to bal¬ 
ance the scales so that by the time the 
Government people had appeared everything 
would be in apple-pie order. 
Investigation into the affairs of the Phe- 
nix Insurance Company of New York shows 
gross irregularities on the part of the de¬ 
posed president, George P. Sheldon, who 
is said to have lost $1,000,000 in specula¬ 
tive ventures. The disclosures made by 
State Superintendent of Insurance William 
II. Hotchkiss in reference to the Phenix 
Insurance Company are only part of the 
evidence that the new superintendent has 
collected of conditions that existed in the 
department under the old rule. Governor 
Hughes' fight against Superintendent Otto 
Kelsey, in which the Senate beat the Gov¬ 
ernor twice, hinged on the fact that the 
superintendent had retained Isaac Vander- 
poel as chief examiner and Robert II. Hun¬ 
ter. Lou l’ayn's lieutenant, as chief as¬ 
sistant in the department after (lie Arm¬ 
strong committee disclosures of life insur¬ 
ance conditions. Governor Hughes then had 
only the department's previously published 
record to rely upon, but Hotchkiss has fur¬ 
nished more material as to the loans of 
insurance money made to these officials, and 
there is reason to believe that he has un¬ 
covered the footprints of old department 
employees in other quarters than the Phenix. 
Farm and Garden. —Masten & Nichols, 
counsel for Borden's Condensed Milk Com¬ 
pany, have sent a letter to John B. Cole¬ 
man, of 32 Nassau street, recently appointed 
special attorney-general to investigate the 
alleged combination to raise the price of 
milk in this city, offering him all facilities 
to examine the books and records of the 
milk company's offices, and the help of the 
officers of the company. 
The continued rise in the price of butter 
is causing the manufacturers and dealers 
in oleomargarine to rejoice. The State au¬ 
thorities are receiving many applications for 
permits to dealers to sell the product. Its 
retail price is 25 cents or less a pound and 
the best butter costs about 40 cents. The 
chief collector of internal revenue of the 
Eastern section, John E. Byrne, said that 
more than 50 applications for permission 
to sell oleomargarine had been made in the 
last month. Assistant Commissioner of Ag¬ 
riculture Kraeke is busy trying to keep 
dealers here from breaking the regulations. 
A decision of the Supreme Court allows the 
sale of the uncolored article provided that 
it is properly packed and labelled. This 
uncolored article is subject to a Federal 
tax of one-fourth of a cent a pound, besides 
which the manufacturers must pay an an¬ 
nual tax of $600; wholesale dealers, $180. 
and retail dealers $6 to the Internal Revenue 
Department for the right to deal in the 
oleo. Two arrests were made in Brooklyn 
December 1 for peddling oleo as (lie "best 
dairy butter.” Frank Jones was in charge 
of a wagon containing several hundred 
pounds of the substitute done up in pound 
prints. Charles Burns, of Brooklyn, was 
working for him on a commission. It is 
charged that they were peddling the oleo 
from door to door representing it to be the 
best butter and charging 30 cents a pound. 
The packages in the wagon were properly 
marked as oleomargarine, but before the 
men went into the houses, it is charged, 
they tore off that part of the label. The 
two were later arraigned before Magistrate 
Naumer, who held them in $300 bail. Com¬ 
missioner Kraeke then notified the Federal 
authorities, and .Tones was arraigned be¬ 
fore Commissioner Benedict and held in 
$1,000 bail for the Grand Jury. 
The Buffalo Live Stock Association is r 
framing a bill for introduction in Congress 
to provide Government compensation for 
cattle men in cases where cattle are con¬ 
demned by Government inspectors and 
killed. Under existing conditions in all 
such cases the losses fall entirely upon the 
cattle owners, many of whom have bought, 
cattle in good faith, believing that the ani¬ 
mals were healthy In every respect and fit 
for food consumption or dairy purposes. It 
is said that the association’s determina¬ 
tion to have a national law of the character 
mentioned was inspired partly by the new 
law, which gefes into effect in this State 
December 6, providing for a State tuber¬ 
culin test of all cattle shipped into this 
State for use here. 
Papers in the first action ever brought 
by the State of New York to recover pen¬ 
alties for a violation of the law regulating 
the size of barrels in which fruit is packed 
were served on ex-Senator A. I’. Jones, of 
Catskill, December 4 to recover penalties 
aggregating over $12,000. Jones, who is 
one of the most prominent fruit raisers in 
Greene county, is also the manufacturer of 
barrels on a large scale, and it is alleged 
that he has for several years made and 
sold barrels to packers that were not 
stamped “short barrels” in one and one- 
half inch letters on both ends and on the 
sides, as required by the law, for the pro¬ 
tection of purchasers of fruit in barrels. 
The short barrel contains from one peck 
to a half bushel less (ban the legal re¬ 
quirements, so they are in demand by dis¬ 
honest dealers. The greater part of the 
fruit thus bought has been apples, which 
have been shipped to dealers in New York 
and Brooklyn. 
The thirty-fifth annual meeting of the 
Ayrshire Breeders’ Association was held at 
the New Bingham Hotel, Philadelphia, Pa., 
on Thursday. December 16. The members 
of the association were invited to remain 
after the meeting and dine together at the 
expense of the association. E. J. Fletcher, 
president; C. M. Winslow, secretary. 
The President’s Message. —The first an¬ 
nual message of President Taft to Congress, 
transmitted to the Senate and House of 
Representatives December 7, contains op¬ 
position to an investigation of the sugar 
import frauds in the New York Custom 
House, while prosecutions are pending ; also 
to any further revision of (he tariff at this 
time, or until the new tariff board shall 
have collected data on the relative cos! of 
producing dutiable articles in this country 
and abroad. It recommends the establish¬ 
ment of postal savings banks, without wait¬ 
ing for currency legislation based on (he 
report of the Monetary Commission ; also 
legislation to limit the issuance of injunc¬ 
tions in labor controversies, in accordance 
with the pledges of the Republican platform 
of 1908. The Nicaraguan question, con¬ 
servation of the nation’s natural resources, 
needed amendments to the Anti-Trust and 
Interstate Commerce acts, and the con¬ 
templated revision of the Federal statutes 
governing the organization of the armed 
forces of the nation in time of war are 
reserved for treatment later in special mes¬ 
sages. The message briefly recounts what 
has been done to meet the situation in 
Nicaragua, and speaks of “the sad tale of 
unspeakable barbarities and oppression al¬ 
leged to have committed by the Zelaya 
government.” Other things recommended by 
the President are: A fund of $50,000 to 
aid in suppressing the “white slave" trade. 
A higher rate of postage on periodicals and 
magazines. A ship subsidy to encourage 
American shipping. Civil pensions. Pub¬ 
licity of political contributions in elections 
of members of Congress. A commission to 
evolve a plan to expedite legal procedure 
and mitigate the “law’s delays.” (’oustruc¬ 
tion of an artificial island and fortification 
in the entrance to Chesapeake Bay, two 
battleships and one repair ship for the navy 
and the establishment of an extensive naval 
base at Pearl Island, Hawaii. A national 
bureau of health. Statehood for New Mex¬ 
ico and Arizona and an appointive Governor 
and Executive Council for Alaska. Civil 
control of the Lighthouse Board and sep¬ 
aration of the national astronomical ob¬ 
servatory from naval control, with a dis¬ 
tinguished astronomer at the head. Con¬ 
solidation of the Bureaus of Manufactures 
and Statistics in the Department of Com¬ 
merce and Labor. Celebration in 1913 of 
the semi-centennial of negro emancipation. 
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SAVES YOU 
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665 Calloway Station, Waterloo, la. 
Name. 
Town.State. 
I Promise 
You— 
Th 
me y 
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Sell Your 
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THE WILLIAM CALLOWAY OOMPANY, OF AMERICA 
Capital 93,500,000.00 
665 Calloway Station, Waterloo, Iowa 
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62 Goraley St., Forest, Ohio 
GREEN MOUNTAIN 
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