CHICAGO’S MILK WAR

Stratford Evening Post, Volume II, Issue 342, 28 August 1933, Page 5

CHICAGO’S MILK WAR

Agreement After Fight

New York, Aug. 21

Great importance is attached to the Chicago milk agreement and the court fight over it£ constitutionality. Undo Sam, for the first time, freezes prices and guarantees profits, and later developments may mean the fix* iug of prices of milk and similar commodities on a national- basis.

Chicago dealers were compelled to buy milk at a fixed price and sell at a fixed price. Under this- arrangement, most of the independent, cut price dealers in that city are expected to bo wiped out. This is a sample of what can be done under the licensing provisions of the Agricultural Adjustment Act and the National Industrial Recovery Act. About 75 per cent, of Chicago s milk is bandied by the five large companies in the Chicago Milk Dealers’ Association, sometimes called the •“Milk Trust.” That group buys from ithe Pure Milk Association Cooperative, controlling the output of 18.000 farmers. The independent dealers have bought from 2000 other farriers and, secretly, from some of the •co-operative members. Data indicate llbat they paid the farmers as much ias or more than, the liust did, ■though selling at Gi cents, as against mine cents. , All was fairly well until 193*, when flthe farmers, losing their markets for '.other products, began to pour m additional milk. Consumers, bard up, welcomed the cut prices. The organise*! iiminstry had also to undercut, so the .co-operative farmers got less.