EXPERIMENT STATION BULLETINS. 543 



The important and often unappreciated service performed by the dis- 

 tributors of the city milk suppl}^ has by these same conditions been 

 rendered more difficult and expensive. 



In the performance of its task this commission has sought the most 

 dependable data relating to the cost of producing and distributing market 

 milk and has held public hearings in the city of Detroit to receive the 

 testimony of interested producers, distributors and consumers. This 

 testimony included, on the part of the producers, a report of investiga- 

 tions in the cost of milk production in a typical market milk area con- 

 tributing to the Detroit supply, submitted by the field investigator and 

 milk accountant of the Michigan Experiment Station. This report 

 showed that on twenty-tive farms in a typical area the average cost of 

 milk production in October was .|3.36 per cwt., or seven cents a quart. 

 Notwithstanding this cost the dairj^men continued to deliver their milk 

 for shipment to Detroit at |2.G0 per cwt. or 5.1 cents per quart, on a 

 previously made contract. For the month of November the cost of 

 production was |3.18 per cwt., or 6.6 cents per quart and the milk was 

 sold on the same contract at |2.60 per cwt. That the December cost will 

 not be below that for November was clearly indicated by this report. 

 On the part of the distributors detailed cost sheets prepared by certified 

 public accountants "were submitted and the commission was offered 

 access to the books of distributors in the city. The data thus obtained 

 covered separately and in detail the cost of every operation in the pro- 

 duction, transportation, handling and distributing of the city's milk 

 supply. Quoting from a representative cost sheet of a large distributor 

 for the month of October, prepared by a local trust company these dis- 

 tribution costs, grouped under three general heads were as follows : 



Per qt. cts. 

 Hauling and station expense, transportation and miscellaneous .0119 



Receiving, pasteurization, bottling, bottles and caps, power 



and refrigeration and shrinkage .0151 



Selling and deliverj^, cold room and administrative expense. . .0354 



Total 0624 



In submitting verified costs, both producers and distributors expressed 

 a willingness to follow the plan laid down by, and cooperate with the 

 expressed wishes of, the United States Food Administration in having 

 the remuneration for their product and service fixed at actual cost plus 

 a very modest profit. Believing that the interests of the consumers 

 would be best served, and the welfare of all best promoted by the appli- 

 cation of this just principle, this commission has given it special em- 

 phasis in its price considerations. 



Since an adequate milk supply at all seasons is indispensable to the 

 welfare of a citj', it is* necessar^^ for this commission to arrange such 

 schedules of prices as will insure a proper safe-guarding of the market 

 milk areas and prevent the necessary city supplies from being diverted 

 into condensed milk and other similar products. Fortunately, this 

 task is simplified by the fact that the cost of production as shown by the 

 data before this commission closely approximates the prices prevail- 

 ing for milk purchased for condensing purposes in the same areas. 



The testimony taken reveals the fact that certain undesirable practices 

 have become common in the collection and distribution of milk which 



