EIGHTH ANNUAL YEAR BOOK-PART VII. 297 



In case of the smaller creamery it would be, for the 13 per cent over- 

 run, 21.14c; 18.5 per cent overrun, 23.30c; and for the 23 per cent overrun, 

 23.27c. You will note in each case that the creamery getting only 13 

 per cent overrun pays more than 2c less per pound than that getting 

 23 per cent overrun, and more than Ic less than those getting 18.5 per 

 cent overrun. These estimates are based on evidence gathered from 

 reports and while they may appear theoretical they are very close to the 

 actual facts shown in these reports. At the same time, while these 

 creameries could pay these amounts, the statistics from the central 

 plant before referred to, show that with a 23c market and with an over- 

 run of not less than 23 per cent they paid but 19.6c per pound, 1.5c less 

 than the small creamery with the 13 per cent overrun and 4.74c less than 

 the larger creamery getting 23 per cent overrun. 



These figures are not given with any spirit of "knocking" on the large 

 centralizers of the country. They are simply facts, gathered from re- 

 ports to the Dairy Division of the U. S. Department of Agriculture and 

 should be placed before the farmers and creamery men of the country 

 so that they may know what the actual condition is. I do not claim that 

 the centralizing creameries could pay as much as small creameries, for 

 the reason that their cost of operation is a great deal more. It seems 

 that the only legitimate way in which the creamery situation can be 

 considered is on the basis of a net return to the farmer in every case. 

 If the farmers can organize and operate their own business and save 

 from 114c to 4%c per pound on his butter fat, it would seem to be a 

 wise business proposition on his part to do so. If the community can- 

 not support a creamery, there being too few cows, less than 400 as a 

 minimum estimate, the farmer will, of necessity, have to ship his cream 

 to some point where it can be churned, and for these farmers the cen- 

 tralized creameries are a necessity. 



On a number of occasions the question has been raised whether or not 

 the butter made in the centralized creameries will bring as much as that 

 made in the small creaemery. Those interested in the large plants have 

 persistently claimed that they could get full market value for their 

 butter. 



TABLE No. VIII. 



Average Elgin prices January 1 to September 30, 1907 ^ 27.58^ 



Average New York prices January 1 to September 30, 1907 27.83^ 



One large Centralizer gets net he under Elgin. 



Any creamery making good butter gets New York + 10. 



Commission and freight on butter at 



27. 83^ + Ic premium equals 2.59c!. 

 28.830 - 2. 59C equals 26.24?. 

 Centralizer gets 27.08c. 

 Creamery getting 50,000 pounds butter fat and making 18.5? orerrun can pay on this 



basis 26.980 



Centralizer did pay 24.430 



Or 2.55^ less than a 400-cow creamery could pay. 



For purposes of comparison of values Table 8 is given. The average 

 Elgin prices from January 1 to September 1, 1907, was 27.58c, the average 

 New York price for the same period was 27.83c. The United States De- 

 partment of Agriculture is in possession of figures which show that 



