MONTAGUE BLAMES FARM CO-OPS, LABOR UNIONS FOR HIGH MILK COST
Montague Blames Farm Co-ops, Labor Unions for High Milk Cost Theodore G. Montague, former Madison milk company executive who now heads the giant Borden Co., in a report to that corporation's...
...Reports Labor Cost Is Handicap "In some markets the company's fluid milk division continues under the severe handicap of excessive labor costs per quart of milk distributed...
...He also alleged that excessive wage scales and commission rates imposed by some labor organizations constitute another factor to increase prices to consumers...
...The average monthly check of each of the recipients of public aid was approximately $15...
...If these two basic abuses are eliminated," said Montague, "the retail price of milk will find its natural lower level...
...The Montague report was sent out from the New York offices of the Borden Co., the second largest milk distributing corporation in the United States...
...Montague said, the average selling price per quart of milk has increased only three-quarters of a cent although the amount paid to farmers has increased more than one cent...
...Montague's report showed the company's earning last year totaled $7,-979,837, as previously announced...
...In the same report, MonUgue revealed that the Borden Co...
...had increased its net profits for the year 1939 to $7,979,837, a gain of $1,338,633 over 1938...
...Montague Blames Farm Co-ops, Labor Unions for High Milk Cost Theodore G. Montague, former Madison milk company executive who now heads the giant Borden Co., in a report to that corporation's stockholders issued on Saturday, levelled an attack at farm marketing co-operatives and labor organizations and blamed them for the high price of fluid milk...
...Because such an overwhelming proportion of each dollar of sales is represented by three items—cost of milk, labor, and taxes — all at-temps to set higher and higher fluid milk prices to producers inevitably increase prices to consumers with disastrous effect on consumption...
...The farmer will receive a sound price for his milk...
...Figures showed 1,923,000 recipients i of old age assistance, 325,000 family | recipients of aid to dependent clul-idrcn, 783,000 chid recipients of aid ! to dependent children...
...One of the greatest potential dangers in governmental price fixing in the milk industry is the ever present pressure to set fluid milk prices far above their actual relationship to other dairy products," Montague declared...
...The cost of distribution service declined one-third cent a quart despite substantial increases in wage rates and more than doubled tax costs...
...Ln 1938 net income amounted to $6,641,204, or 3.1 per cent on sales, and $1.51 per share...
...Montague, who ls one of the country's highest salaried milk company presidents, charged that retail milk prices are high because farm co-operative marketing organizations demand prices out of line with milk used in other forms...
...Net incomet was equivalent to 3.8 per cent on sales and $1.81 per share...
...Production and consumption wi:i be more nearly in balance, and, since the burden of carrying the surplus (now borne for the most part by the larger distributors) will no longer be such an onerous one, all producers and distributors will be more nearly on an equal basis...
...This in turn vitally affects distributing costs...
...Changes in Prices and Costs From 1923 to 1939...
...Nearly Sixth of U. S. Receive Aid WASHINGTON, D. C—Total payments for public assistance and earnings of persons employed under federal work programs in January, 1940, amounted to $274,485,400, according to figures made public here by the social security board...
...It was estimated that public aid under all these programs went to an unduplicated total of 18,164,000 persons in 6.342,000 households in January as compared to an unduplicated total nf 17.661.000 persons in 6,189,000 households in December, 1939...
...70,000 recipients of aid to the blind, 1,680,000 cases receiving general public relief, i and 107,000 cases for which subsis-j tence payments were certified by the farm security administration...
...Employment will be stabilized and at good wages...
Vol. 10 • March 1940 • No. 12
