The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-10-20
THE TOPEKA STATE JOURNAL
INFORMIATION BUREAU
By FREDERIC j. HAsKIN. Director.
Washington, d. C.
THE MILK SITUATION.

I
high cost of milk, before you hear
their side of it," is the advice of the
department of agriculture.
Some harsh things have been said
concerning milk dealers since the
price of milk rose to Is cents a quart
The general consensus of opinion
among consumers is that the milk
dealer is simply using the war as an
excuse to make excessive profits.
The dairy division of the bureau
of animal industry, however, which
has made some experiments in dairy
ing itself, does understand the reasons
for the present high cost of milk In
the first place, suggests one of its
dairy experts, Take the case of the
farmer" For the dairy business.
with the exception of a few large con-
Germs, is divided into two separate in
dustries-the production of milk,
which is carried on by the farmer;
and the treatment and delivery OF the
milk, which is carried on by the deal
er. Some dealers have their own
Why Milk Costs More.
Now the farmer, according to this
dairy expert, is at present getting
cents a quart for his milk, when he
used to get z cents quart But
his profit is no greater; since dairy
cows must be fed, and fed well, if they
are to produce good milk. And the
price of feed has doubled. Corn,
WHICH used to sell from 80 to 90 cents
bdshel, is now selling at 81 and
more; the same is true of wheat, and
even cottonseed meal is worth twice
as much as it was before the war. In
addition to the increased cost of feed
is the increased cost of labor The
farmer must compete with munitions
factories and other large concerns,
some of which are paying workmen
So and SO a day. Forty dollars a
month, with board, is now the aver
age farm wage.
The dairy division of the bureau of
animal industry divides the farmer 5
costs into the following groups: Feed,
So per cent; labor, % per cent, and
overhead charges. 25 per cent. The
latter includes dairy utensils, the price
of which has gone up, fresh stock and
transportation charges. All of which
shows that the farmers margin of
profit is very slight, althO of course 1t
mounts up in the long run. Other
wise, he would not be selling milk, but
cattle feed, which is much less trou-
BILE.
Bottles and Caps Are Higher.
Comes now the case of the milk
dealer. When the farmer delivers the
milk at the city station, the milk deal
err gets it and hauls it to his dairy
plant That is his first expense after
the original cost. Next, the milk must
be pasteuriZed. That process, or
course, is not done without an outlay
of money. Then the milk must be
bottled and capped-and since the war
both bottles and caps have become
scarce and hence valuable. The prod
uct is then ready to be delivered in
small portions to numerous stores,
houses and apartments in various sec
tions of the city by a host of delivery
wagons and their drivers. A wagon
may have to travel three miles from
the dairy headquarters to deliver a gill
of
erably to the total cost of the milk.
If the delivery business could be dis.
pensed with, declares the dairy expert
of the department of agriculture. the
price of milk per quart could be low
cred approximately 3 cents But that
is obviously impossible. People would
not take the trouble to walk to a store
every morning for their supply of
milk and cream. In New York sew
eral dealers offered milk cents
for it, but the number who took ad-
vantage of the offer was negligible.
Great Increase in Canned Milk.
Now, add to all these expenses of
the milk dealer the fact that milk
itself is extremely scarce owing to
the war, and you find that the milk
business is by no means coming prof
its but is itself hard hit by the war.
At least, so says the department of
United States imported large quanti-
ties of dairy products from Europe
Scandinavia, particularly. Now, it is
not only not importing dairy goods,
but is exporting them to its allies.
Moreover, tons of milk that form erly
supplied whole cities are now being
put into tin cans as fast as possible
by American canneries in order to
feed the allied and American soldiers
in France. Often when a milk dealer
goes to renew his contract with a
dairy farmer for another year. he
finds that the farmer has already con-
tracted his output to a nearby con
densed milk cannery.
Under these circumstances, the
milk dealers are som eWhat exasper-
ated at the charges of unfair profits
made by the consumers. A number
of them filed into Mr.. Hoover's Of
flee not long ago, with the request
that Mr.. Hoover Immediately examine
the books of each and see for him
self how much profit was attached to
the milk business. Mr.. Hoover, how
ever, was not interested. A similar
investigation made in New York in
1916, when milk was selling at cents
a quart. aled the fact that one of
the largest milk concerns in the city
was making only three-tenths of a
cent profit on each quart of grade B.
milk sold. This is the grade which is
most popular in New York mas
much as the concern also handled a
number of more Improbable grades,
however, the rate of profit on their
total business was much lower.
End of War Before Reduced Prices.
This concern maintained its own
dairy farms. The figures obtained by
certified accountant from its books
are considered of especial interest at
the dairy division of the department
of agriculture, which believes that
they might have some effect in as
suaging the indignation of the much
be-taxed consumer. They are as fol-
lows:
Selling price Of milk. ......... 90
Cost -....--.--.-...-....... .O3797
country charges ACKNOWLEDGEMENTS. .00297
Ieam1ng and hauling. ........s...... .00294
Pasteurtzauon .....-................-O 0370
Bottles and caps ACKNOWLEDGEMENTS. O02i
Delivery expenses .-.-............. .023S4
Freight Observation-Disclosures. OOo34