602 ANNUAL REPORT OF THB Off. Doc. 



by actually chinning small portions of cream. This plan was found 

 to be open to several objections. Finally, the discovery of the Bab- 

 cock test, in 1890, furnished a simple means of determining fat in 

 milk or cream. From that time on, the method of paying for milk 

 and cream at creameries on the basis of the fat content gradually 

 spread until now it is probably univesal. The relation of fat in milk 

 to yield of butter is so obvious that only persons lacking in aver- 

 age understanding can fail to appreciate the significance of such 

 I'elation. 



46. Calculating Dividends at Creameries oo Basis of Milk-Fat. 



Several different methods may be employed to determine the 

 amount of each patron's dividend, when payment is made on the 

 basis of the amount of fat in the milk. There are calculators pub- 

 lished that save most of the details in making calculations. Here 

 we present one of the simplest methods, showing all the necessary 

 details. It is essentially the same as the old method in use when 

 the weight of milk alone was used as the basis for payment, while, 

 on the milk-fat basis, it is the amount of fat that is used in making 

 calculations. We will illustrate this method as employed (1) in 

 co-operative creameries and (2) in creameries where milk is pur- 

 chased for a definite price. 



(1.) In Co-operative Creameries. — Taking the time covered by any 

 one dividend, whethv r a week or month, it is necessary to know (a) 

 the amount of milk dv'livered by each patron during that time; (b) 

 the per cent, of fat in the milk during the same period of time; (c) 

 the total or- gross amount of money received for the butter produced 

 during the same period;, and (d) the amount of expenses to be de- 

 ducted from the gross receipts, such as cost of manufacture, selling, 

 carting, etc. Having these data, we need only to apply the follow- 

 ing rule, which is given, for convenience, in three steps. 



Rule. Step 1. To find the amount of milk-fat furnished by each 

 patron: Multiply together the per cent, of fat in the milk and the 

 amount of milk delivered by each patron expressed in hundreds of 

 pounds, and decimals of a hundred. This gives the total amount of 

 fat in the milk delivered by each patron during the dividend yioriod 

 Example: 



