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Show 'J Tuesday, June 28, 1955 THE DRAGERTON TRIBUNE 3U afenay what if the price of milk is "fixed" a penny or so too high? But Milk is of major importance to the whole State of Utah. Some 2,000 dairy farmers who produce grade A are market milk including all that Safeway sells vitally interested in the prices they receive for their milk. The 757,000 consumers of Utah are just as vitally interested in the price of milk for there is no substitute particularly in a childs diet. For the past eight weeks (during the first "milk pricing truce requested by Governor Lee) a committee appointed by the Utah Legislative Council has been studying milk costs and prices. On June 17 the Milk Study Committee presented its conclusions to the council. One of the major conclusions was that the sale of milk in paper cartons for less than a quart should be prohibited. Safeway cannot, in good conscience, allow this conclusion to go, unchallenged. 20-cen- ts SAFEWAY BELIEVES MILK SHOULD BE AVAILABLE TO YOU AT THE LOWEST POSSIBLE PRICE. THAT'S WHY SAFE-WASELLS MILK ONLY FOR Y As Safeway testified before the committee, you pay As Safeway also pointed out to the Milk Study AND WHAT IF MILK IS SOLD TOO CHEAPLY BELOW COST? - This, too, can cost Utahns money. For this reason, it is Safeway's policy never to use milk as a loss leader. Safeway wifi meet its competisell and never will tors prices, but has never "milk below cost to attract customers. to make money Safeway sells milk as a business on it. As proof, Safeway presented its profit figures to the Milk Study Committee. In 1954 Lucerne Milk Company of Utah, selling to Safeway, made a net profit of on its investment while Safeway, $137,326 26.11 selling to its customers, made a gross profit of $124,223. (For the first 20 weeks in 1955 Lucerne made a profit of $52,575.08, and Safeway continued to make its normal profit in milk.) AND SAFEWAY BELIEVES THAT TO INSURE A GOOD, STEADY SUPPLY OF home-deliverie- s. MILK, DAIRY FARMERS MUST HAVE FAIR PRICES AND THOSE FAIR PRICES Safeway believes you are entitled to get this saving you earn it. MUST BE CONSTANT. That's why, Safeway presented all its cost figures to Utah's Milk Study Committee to show the committee that Safeway could sell 3.8 butterfat milk for less than the going price and would be able to sell it for still less in the future , . . and can sell a milk (one that just meets state butterfat content requirements) for an even lower price. That's why, it is Safeway's policy (a policy Safeway has never violated) to pay top market prices for milk plus a bonus for quality. Safeway believes that this is in the public interest because when the price farmers get for milk is protected, bottlers and retailers cannot pass the costs of competitive pricing back to the farmer. Safeway presented witnesses to the Milk Study from experCommittee witnesses who testified ience that where the price paid farmers for milk is protected, price wars do not occur. the Milk Study Committee made po However recommendation to protect the price dairy farmers gfet, for milk. ch I Despite these facts, the Milk Study Committee has, in effect attempted to force a "price fixing agreement among milk bottlers and retailers. One council member stated the committee was "just more or less pegging the price of milk out of stores at 20 cents. Such a pegged or fixed price if continued would prevent Safeway and other efficient organizations from passing their savings on to you. WHY SAFEWAY Com-- , if the price of milk you buy in stores is fixed mittee it will cost the just one cent per quart too high almost half people of Utah almost $450,000 a year a million dollars. cash for milk at Safeway and carry it home yourself you save the cost of credit accounts and expensive not-so-ri- you may ask IS PUBLISHING THIS STATEMENT Safeway was born in neighboring Idaho. We have a big stake inTJtah and a v citizen's concern for Utah's We believe we have a responsibility to the public, our employees, suppliers, and to the Milk Study Committee. stockholders to publish,, the record of Watch for these reports In this newspaper. well-bein- g. r our-testim- ony |