New York Agricultural Experiment Station. 43 



attempts have not taken into consideration the financial magnitude 

 of the business interests which they have undertaken to control. 

 Neither have they questioned whether their efforts were in accord 

 with or opposed to the economic laws which apply to the milk busi- 

 ness. 



This lack of familiarity with the financial side of the milk busi- 

 ness on the part of milk reformers is partly due to the fact that 

 but a small part of the investment is apparent to them and largely 

 because detailed information on this phase of the subject has not 

 been brought to their attention. 



In the present instance nothing approximating a census has been 

 attempted, but personal estimates regarding the financial magnitude 

 of the various items have been kindly furnished by several persons 

 most familiar with local conditions. These estimates have been 

 carefully weighed and figures selected which, while they are believed 

 to represent the facts fairly, are considered distinctly conservative. 

 These figures, together with an estimate of their relative accuracy 

 are as follows: Stimulated by the increased demand for milk, the 

 dairies have been increased to 41 and the number of cows to almost 

 exactly 600. This number varies slightly on account of the buying 

 and selling which are constantly occurring among the various dairies, 

 but the error at any given time will probably be less than 3 per ct. 

 The average value of the animals is more uncertain. About one- 

 third of these cows have changed hands recently at prices averaging 

 above $110 each, but it is undoubtedly true that these are the better 

 cows. Estimates of average value have ranged from $65 to $100. 

 Somewhat detailed estimates on the basis of known values of a con- 

 siderable number of the herds indicate that an average value of 

 $80 is probably accurate. 



It is a matter of practically unanimous agreement that in this 

 region a well balanced dairy farm must devote five acres to each cow. 

 This leads to the conclusion that 3,000 acres of land are required 

 in order to support the 600 cows. The value of this land is again 

 a variable factor. Much of it lies within a few miles of the city 

 and is held at $100 to $150 per acre. A few of the farms are less 

 favorably located. An estimate of $100 per acre is considered 

 conservative. 



In order to support the cows the farms must be equipped. Aside 

 from the buildings, the value of which is included with the land 

 the most expensive single item of equipment is horses. Since the 

 average dairy would contain 15 cows and the farm 75 acres the 

 estimate of equipment has been based on the results of known 

 auction sales of similar farms supplemented by known expense of 

 equipment on a few farms. The estimate of $1,500 per farm or 

 $20 per acre for equipment in addition to the buildings and cows 

 errs on the side of being too low. 



The capital invested in the city distributing end of the business 

 is in connection with two large milk companies and two distributers 



