A Review of a Milk Failure 
ANTICIPATED DIVIDEND.—The receiver of 
the Mutual McDermott Milk Company is fast closing 
up the affairs of the company, and will soon be able 
to get a fair estimate of the dividend that creditors 
may hope to receive. The indications now are that 
the dividends will exceed the low figure we first 
feared might be realized, but at that it will fall 
short of the sanguine expectations of some of the 
crwlitors. It is possible that farmers may realize a 
little better than fifty per cent of their claim.s. 
Among all the discouraging features of this failure 
there seems to be one and only one redeeming fea¬ 
ture. The receiver, Ceo. V. S. Williams, is a milk 
producer, and in so far as our observation and in¬ 
formation goes, he seems to have been actuated by 
a purpose to conserve the assets and to save for the 
creditors the greatest possible amount out of the 
wreckage. A\’ith the ordinary receiver one would 
not expect a very large return out of a failure of 
this kind. 
VEIiMONT-S PROTECTIVE LAW.—The Mutual 
McDermott Company had one shipping jdant in the 
b’tate of Vermont at Middlebury. The farmers there 
will probably get paid for their milk in full. Ver¬ 
mont has two laws to iirotect its milk shii»i)ers, and 
officials to enforce them. It reciuires milk buyers to 
put up a bond, and the officials see that it is put up. 
-Vnother law makes the farmor.s’ claims a lien on anv 
real estate owned by the company. Our information 
is that this lien comes as a first claim on the proie 
erty even ahead of a mortgage previously placed on 
the property. At all events the lien and the l)ond 
protected the A'ermont .producers and they will get 
paid in full. 
PREFERRED CLAIMS.—The banks that carried 
accommodations for the comi>any also seem to have 
the first lien on the deposits at the time of the fail¬ 
ure. One bank holding notes against the company 
simply turned $r!5,000 balance in against the note.s, 
and another bank turned .$28,000 in the same way. 
Of course, there is not-half as much reason for pre¬ 
ferred credit to a baidc which has been making 
I’loney out of the company as there is for a farmer 
to have a preferred claim for his milk, but the banks 
can be trusted to have the laws fixed to protect 
themselves. These preferred claims, of cour.se, re¬ 
duce the amount of the dividend to all the othens. 
UNCOLLEf’TED CHECKS.-The delay of farmers 
in making deposits of checks received cost them 
217.82. If the.se checks had been deposited in the 
bank promptly when received, this amount would 
have been saved to milk producers who were cred¬ 
itors of thi.s compan.v. The checks to this amount 
were not deposited, but held in the homes of the 
r-roducers, and as a result that much of a balance 
was left in the l)anks, and without losing any time 
the banks ])romptly took it over in payment of their 
own notes the da.v the receivership was appointed. 
Dne farmer at Cilboa, New York, had .$S00 of these 
checks uncollect(Hl. fi'he lesson is rather an expen¬ 
sive one, but it simply emphasizes the wisdom of 
always getting a check into the bank for collection 
tlio day it is i-eceived. 
REAL ESTATE AND EQUIPMENT.—The Mutual 
McDermott Company was organized .some two or 
three-years ago by a combination of the McDermott 
Company and the Mutual Milk Company. The new 
company bought some of the McDermott plants and 
real estate and took a lease on other plants. It is 
said that the McDermotts got some monej’ and con¬ 
siderable stock in the new comi»any. The receiver, 
of course, had nothing to do with the real e.state 
that remains the property of the old McDermott 
Company, e.xcept that the receiver came into posses¬ 
sion of the leases and the equipment owned by the 
Mutual McDermott Company in the leased plants. 
The Sheffield Farms Company has bought the fac¬ 
tories and equipment in the following plants: Low- 
ville, Dover Plains, Vi'ells Bridge, South Cilboa. 
Cliamplain, Glenfield and Martinsburg. They paid 
$42,000 for this equipment. The Sheffields also 
bought the Unadilla and Smyrna plants, paying 
$2.3,000, and the plants at Orson and Paynville and 
Preston I’ark, I*enn., and paid for these plants 
$8,500. For the good will and list of cus¬ 
tomers in the Borough of Manhattan the 
Sheffields paid $13,000, and for the good will 
and list of names in Brooklyn, where the company 
never made a dollar. Sheffields paid .$3,200. These 
prices for the good will of a defunct milk company 
indicate something of the value of a milk dis¬ 
tributing business. How much would anyone give 
for the good will of a farm trade after the farmer 
had been sold out by the sheriff? Sheffields also 
bought all the bottles and cases from the receiver for 
$17,000. The Borden’s Company bought the plant at 
Deposit for $9,000,. and another, plant at Stillwater 
■Uhe RURAL NEW-VORKER 
for $0,000. The farmers at New Milford bought 
that plant for $ 8 , 000 , and the farmers at Howell, 
N. Y., paid $12,000 for the plant there, and at De- 
la ncey the farmers paid $2..5(X) for the plant at that 
place. The farmers at Indian River have made a 
subsLintial offer for the plant at that place and 
they will jirobably get it. The fai’mers at Middle¬ 
bury, I’t.. have bought that plant for $ 1 . 5 , 000 . 
I ASTLT ItlZlNC PLANT.—The company yet owns 
a pasteurizing plant on East 22 d Street, Manhattan. 
This plant is well equipped and in good condition. 
It uas really considered one of the economic plants 
in the city. The only criticism of it is that like 
most of the other milk plants it is not convenient to 
the railroad. It is capable of handling .3,000 cans 
of milk a day, but it is said that the company has 
never handled in excess of lH»o cans at this jdant. 
A plant running at less than one-third of its ciipacity, 
ef course, is not an economic proposition and if all 
the rest of the business was run on the same ba.sis 
as it e\ idently Avas, the failure of the company was 
a natural conse(iuence. 
A NEW COMPANY.—R. D. Cooper, president of 
the Daii'ymen’s League, and his assoemtes have or¬ 
ganized a new milk business under the title of the 
( ountry Milk Couqtany. We Avere unable to get defi¬ 
nite information at the I.eague office about thi.s noAV' 
(ompan.A', but it is admitted that Mr. Cooper has 
bought for this comi)any the machinery and e(iuip- 
inent in the plant at Manhattan Street, AA’hich is in 
the upper part of Manhattan Island. The real estate 
of this plant is OAvned by the old McDermott Com¬ 
pany and Mr. Cooper’s company has .simply bought 
the pasteurizing machinery, bottling fixtures and 
other e(juii)nient, taking over the lease. For this 
he paid $10,000. He also bought the good will of the 
wholesale business and paid for this $ 9 . 40 <J. He 
bought some horses and Avagous for .$4,5.30. He 
bought all the milk cans, estimated at 20,000 at 
$2.30 each, Avhich Avill amount to nearly $.50,000 
for the cans, fi’his puts jVfr. Cooper and his asso¬ 
ciates into the distribution of milk as a busines.s. 
While he remains in the dual capacity of a milk 
dealer and president of the Dairymen’s League, the 
League can never be a militant force in the develop¬ 
ment of an economic system of milk distribution. 
To all intents and i)urposes IMr. Cooper's company 
will be a member of the milk trust. It Avill pay 
farmers the same price that othei- dealers pay. It 
will charge consumers tlie same price that other 
companies charge. It Avill be interested in keeping 
the cost of distribution high and thus reduce con¬ 
sumption and increase .suri)Ius. It Avill .sell the milk 
that it controls. Other milk aviU luiA'e second chance 
and when suri)lus appears tlris company Avill sell 
the f.ivored )idlk and other members of the T.eague 
AA-ill haA'e their milk on their hands unsold. 
This has alrcjidy occurred in .some instances and 
if the Board of Directors Inn'e the information it 
must be evident to the many good strong liead.s 
among them that the policy is likely to develop 
some serious con.sequences. 
239 
Edwin T. Cassler, iMerrifield. N. Y.; treasurer and 
manager, Frank Dorn. Boouville, N. Y.; secretary, 
C. E. Embree, Utica, N. Y. 
The association as represented at the Utica meet¬ 
ing made requisition for a large volume ot business 
to be deliA-ered during tlie next six months. At the 
presmit time there is difficulty in getting supplies, 
particularly of feed and flour, and, of course, this 
company will Inn-e the same difficulty with trans¬ 
portation deliveries that other companies experi¬ 
ence, but as the (toA'crnment begins to realize the 
imi>ortance of food production, and the necessities 
of material to l)egin the Avork. it is IioihmI to secure 
favorable comsideration for the movement of sup¬ 
plies ordered ,l)y this co-operative farm company. 
There are many local a.ssociations in the St.ite 
that are not yet members of this central companv 
l>ut others liave intimated their purpo.se to become 
members. The prospects are favoi-alile for increas¬ 
ing the co-operative work of the State through the 
facilities and encouragement afforded by this or¬ 
ganization. 
California Eggs at Auction 
The first auction sale of a carload of California 
eggs in New Y(»rk City Avas made on .lanuary 21. 
3 he .sale lasted just two minutes and the gross sales 
amounted to $10,942.35. 
The 15.000 dozen in the car netted back in Cali- 
ornia, after deducting all expenses including $ 1,100 
erpies.sage on car and .$55.95 war ta.x, was $9,445.2(5 
for the 15,000 dozen. The car Avas .sold the 21st and 
the growers in California receiAed their proceeds 
on the 22d. The car Avas graded 400 cases No 1 
W^stera, wliicl, sold at 701. cents ner dose,., .and 
110 cases pullets, which sold at CSVa cents per dozen. 
There were no allowances or deductions made bv 
breakage or other claims charged to the growers 
The eggs Avere .sold “as'is,” 
Tins’ certainly is an improA'emeut on the old 
method of one dealer selling to another dealer on 
the exchange. When supplies of food products are 
arge and steady so as to establish a regular 
ih^S’ improvement on 
the pnAate sale, secret price system of selling 
The School Law; A Reply to 
Mr. Hitchings 
A Federation of Co-operative Farm 
Organizations 
Last AA'eek at Syracuse an organization aauis per¬ 
fected to fe<lerate the local (o-oiierative farm asso¬ 
ciations throughout the State. About 15 associations 
Avere represented and be<*ame members. The name 
of the fedei’ated body is Farmers’ General Sales and 
Supply Company. The purpose is to do for the local 
associations what the local associations do for the 
individual farmer members. That is to say, it is 
for the purpose of concentrating all the business 
into one center. The sales c{>mpany Avill buy feed, 
flour, fertilizers, grain, insecticides, implements and 
other supplies as needed, and ship direct from the 
sources of supply to the local as.sociations. These 
local associations Avill make the division among the 
farm members. By buying in carload lots and in a 
large A’olume, the central organization will be able 
to furnish these .supplies at the minimum of cost. 
It Avill also have the prices, terms, etc., constantly 
on hand and Avill save the necessity of the local 
associations all duplicating clerical Avork. In other 
Avords, it Avill, Avhen thoroughly under Avay, be able 
to save money in buying, save cost of transportation 
and saA-e expense in handling the trade. The work 
has already begun and several carloads of supplies 
haA’e already been secured and distributed with con¬ 
siderable saving to members. 
The central organization Avill also have informa¬ 
tion on marketing and means for making sales, not 
only in the local markets throughout the State but 
also in the metropolitan markets. Several carloads 
of potatoes have already been handled. 
The officers elected are , as. folloAVS ; President, 
l.aw, but would like to r^eplv to^Mr ^HlfcKschool 
valuation of the taxable propertv ^of the totrf^ 
new .schoolhou.se, to choo.se the site to .s .end ’ 8 ^ 00 !* 
vdthont” schoolhou.se or bn all, and this 
wif over, „.,<l „,ertas..<l the teaehe.-.s »«l™; - I? ,h f 
trustoea "eie eleeted, and teaehcia. were hired without 
„nm "Zi Tinle^hltafter 
corner sdore or the country school is the'height of’sonie 
tapayers ambition, and the loss of control of 
the school, together AA-ith the advance in ta.xes is a 
for tlicm to sAvalloAV.” My per.sonal belief 
is if they belonged to this ambitious element thev Avould 
be represented on the school board, for it is inire no 
ics; they Avho seek will be more often elec ed than 
th^ who seek not. regardless of abilitv. 
Those VA^ho read the school law ar' not kicking like 
a Missouri mule at the board, but •.ather against the 
^ board has no poAver .0 amend. I do not 
think the taxpayers of the town ^ . Avhieh Mr. Hitching 
attends regularly t-. the board meeting.s. or 
^ ii-reg oarly attend board meet¬ 
ings. think that Ave are deliberately robbing them, but 
AnriD^'S to them last 
April, that if this hiAv is not repealed it is onlv a 
short time Avheii school taxes will far exceed every 
other ta.x levied, and this without any educational ad- 
A’antages 111 country schooLs. 
Mr. Hitchings thinks it is far more patriotic for the 
taxpayer to .stop his kicking and get behind the local 
ward. Ihis is the opinion of residents of villages Avho 
Ini' i-iHlueed. and of the members of 
the Stiite Board. Patriotism is a grand thing, and 
should be more general today, but we hear more about 
1 C tor the farmer than for any other cla.ss. lie should 
submit to every laAV enacted and be patriotic, be sub¬ 
missive to the powers that be, for this i.s all for Mr. 
Farmers good. While we are fighting for the rights 
cf mankind, for the rights of pure democracy, we should 
peacefully submit to be ruled by autocracy in our.school 
education. - ^ .-w- (Continued cm page ^ 3 .) 
