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MICHIGAN the NEWS on News Interesting to a Progressive Newspaper Farmers Through the for Michigan Farm Farm News FARM Homes a Newspaper for Michigan Farmers

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MICHIGAN the NEWS on News Interesting to a Progressive Newspaper Farmers Through the for Michigan Farm Farm News FARM Homes a Newspaper for Michigan Farmers KEEP UP MICHIGAN THE NEWS On News Interesting to A Progressive Newspaper Farmers Through the for Michigan Farm Farm News FARM Homes A Newspaper For Michigan Farmers ONE DOLLAR FIVE CENTS Vol. IX, No. 16. PER YEAR SATURDAY, AUGUST 22, 1931 PER COPY Issued Semi-Monthly FARM NEWS PRESENTS MILK INQUIRY TESTIMONY IN FULL \ PRODUCERS TESTIFY PRODUCTION COST j POTATO EXCHANGE PRESIDES DISTRIBUTORS SAY DISTRIBUTION COST RUNS FROM 5C TO 7C PER QT.; URGE jl TO GIVE CONSUMER ALONE IS 4* TO 7C PER QUART; BOARD 50-50 SPLIT OF CONSUMER'S DOLLAR WHAT HE WANTS PROBES CHARGES BY PRODUCERS Pledges Quality; Asks Halt Barnard Denies Surplus Exists; Attacks Dealers, On Truckers Dumping Commission Finds Price Wars; Dealers Say Sur- Producers Ass'n; Commission Questions Low Grades. plus Increases; Consumption Down 20%; Him At Length; Farmers' Company BUSSEY IS PRESIDENT Explain Sales of All Milk; Few Paying Dividends. Says Milk Profits Narrow. Table Stock Men Advised to Use Certified Seed Lansing—The State Commission of Inquiry into the Cost Lansing—Milk producers and producer-distributors testi- Group. fying before the State Commission of Inquiry into the Cost of Milk has taken hundreds of thousands of words of testi- Cadillac—Michigan potato growers mony from producers and distributors since August 5, ex- of Milk here Aug. 10 for the purpose of establishing the cost are out to strengthen their hold on of milk production on the farm included: the potato markets by providing con- tending through all the ramifications of Michigan's milk in- Mr. W. J. Barnard of Paw Paw, attorney, milk producer, and sumers with the kind of potatoes they dustry, to find out what it costs to produce milk, to distribute president of the Southwestern Milk Producers Ass'n, and the Otsego want. Sanitary Milk Products Co., organizations embracing several hun- milk, what the consumers actually pay, how it is divided, and dred farmers, selling- fluid milk in Kalamazoo, cream in Chicago, and This was the outstanding point manufactured milk products. MR. PAUL EGER throughout the thirteenth annual con- what, if any, changes should be recommended. Mr. H. Chris Hansen, manager of the co-operative, farmer-owned vention of the Michigan Potato Grow- Lansing Dairy Company, distributors of fluid milk, manufacturers Mr. Eger, ass't attorney general, is Producers have testified they are not making money; that of butter, ice cream mix and other milk products except powdered representing Attorney General Paul ers Exchange, at Cadillac. Wednes- milk. Mr. Hansen is also a milk producer. Vorhies on the Commission of In- day and Thursday, August 19 and 20. COMMISSIONER H. E. POWELL it costs them from 5 to 7 cents to produce a quart of milk, and Mr. Wm. H. McCloud, of Grand Blanc, producer, and distributor A very lean year, In 1930, for the of milk as the Rosedale Farms Dairy Co. quiry into the Cost of Milk. Mi*. Eger Mr. Powell, Commissioner of Agri- at an average of 52 cents per cwt., another 1.18 cents per qt. Mr. Albert Brittson, milk producer living near Owosso. has been charged with questioning Michigan producers, with a short crop culture, has been presiding at the ses- Mr. H. E. Helms, of Flint, Genesee county large scale milk pro- the witnesses and generally conduct- and slightly inferior quality of tubers, sions of the Commission of Inquiry in- to deliver it to Detroit. ducer ami distributor of fluid milk. ing the examination. made it possible for growers of other to the Cost of Milk, and has taken an Surplus Pulls Average Down states to step in and pick off con- active part in the proceedings. Production Costs—Surplus siderable trade during the past year At $2.01 per cwt. for base milk they have been getting 4^ Cost of producing 100 lbs. of milk at the farm were given on the markets to which Michigan cents per quart, less the above hauling charge (June 3 to h 'NEAL REOPENS ordinarily supplies. With prospects as $2.63 per cwt. by Mr. Barnard, as $3.24 for 5% milk by of a fair crop of potatoes this season, JUDGE OBJECTS Aug. 1). Mr. McCloud and as $3.23 per cwt. for 3.4% milk by Mr. the Exchange sees the need of bolster- DEMAND FOR THE ing up every available force within At $2.50, effective August 16, they will get 54 cents per Helms, who based his figures on cows averaging 1 2,000 lbs. the ranks of its individual member- TO CONFIDENTIAL quart for base, less the hauling charge. production on his farm. These estimates figure 5.7c to 7c EQUALIZATION FEE ship as well as its membership of co-operative units to regain for the MILK TESTIMONY The percentage of surplus milk they may send in above per quart. Michigan growers a position of leader- requirements for fluid milk sales brings a much larger price Declares Need for Control Mr. Barnard declared there is no surplus of milk, advocated ship on the big city markets. Says Profits and Losses of and pulls the average down, sometimes to as low as 2i cents a flat rate for buying milk. Of Agricultural The Michigan Potato Growers Ex- Distributors Should Be Surpluses. change, last year, with all that the per quart for all delivered. Mr. McCloud declared that the surplus is not as large as crop was not the most satisfactory, Made Public. Distributors dealing with the Milk Producers agree to take represented, that in his opinion adequate information on the placed Michigan spuds on markets in NOT IN MARKETING ACT nine states, it was shown in the an- all milk delivered. They manufacture the surplus for what subject is lacking for want of sufficient checking on distribu- nual report given by Fred Hibst, POWELL NOT CONVINCED it will bring, they have testified. tors, declared large distributors are using the surplus to choke manager of the exchange. Says California Co-operatives In his report he calleu attention to Reporter Charges Big Firms Detroit distributors testified that milk at 10 cents per quart off independent milk distributors. Use Equalization Fee the move on the part of the Idaho pro- Bribe Business From to the consumer ($2.01 to the farmer) is unprofitable and Mr. Hansen said that long study had convinced him that In Principle. ducers wherein they have ridden in on the reputation established for Little Fellows. will force numbers of them out of business; that 1 1 cent milk the base and surplus plan is the only fair way for both farmer Reopening by the American Farm their "Idaho Bakers", their select, may break even and that 12 cent milk can be profitable. premium grade potato. Their stock Detroit—Judge Ira Jayne of De- and distributor. Bureau of the fight for legislation em- troit, member of the Commission of bodying the equalization fee principle run tubers are not of the same quality Cost of Distribution presented by the witnesses summoned. Urge 50-50 Split Inquiry into the Cost of Milk, toss- Distributors in Detroit and else- surplus of milk. He quoted U. S. for control of agricultural surpluses as "Idaho Bakers", but the Idaho ed high explosives into the proceed- August 5-6-7 producers were ex- Witnesses Barnard, McCloud and was announced at two Michigan meet- producers have gained a strong foot- where were loath to state publicly to amined at Lansing, which was report- Helms stated that they believe dis- census figures for 1920 and 1930 to ings of the Commission Thursday, the Commission the cost of processing show a decrease of 50,000 cows in the ings this week by Edward A. O'Neal, hold on markets of the east and mid- August 20, when, taking his seat ed in the August 8 FARM NEWS. tributors can and should pay the pro- west for the. bulk of their crop, Mr. and delivering a quart of milk, hold- ducer at least 50% of the price paid Detroit area and an increase of 32% president of the American Farm Bu- after an illness, informed Commis- Production costs given there are sum- in Michigan's population. reau Federation. Hibst stated. sioner Powell that in his opinion ing such information of value to their marized at the beginning of this by the consumer for bottled milk. competitors. Opinion was expressed that the pro- Commissioner Powell asked Mr. Mr. O'Neal spoke before Farm Bu- Michigan growers must top the acceptance of confidential informa- article. August 10 producers and pro- Barnard if he knew that the 1930 U. reau members of Ionia and adjoining market, he said, with a high quality tion from distributors was illegal All preferred to submit that in- ducer-distributors testified at Lan- ducer should get more than the sur- formation in writing, confidentially, plus price for surplus milk going in- S. census of dairy cows deducted all counties and other farmers at the product which will aid in the dis- and not in the public interest. sing, reported in another article in females under three years of age, Farmers' Day program at the Ionia posal of the entire Michigan crop. Judge Jayne held that all dis- except two. W. J. Kennedy of the W. this edition. August 11 and 12 the to butter or ice cream mix. J. Kennedy Dairy Co., Detroit, testi- Mr. Hansen explained that while and that the Michigan census shows Free Fair, Friday, Aug. 21, and be- More of Michigan's certified seed tributors' figures having to do with Commission went to Detroit where 30 Lansing Dairy Co. producers are not the number of cows in the area to be fore Farm Bureau members of Mason potatoes should be retained for the profits, losses, operating expenses fied that it costs 5 cents per quart to distributors in that market were in- paid a specific higher price for sur- the same? Mr.
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