352 CITY MILK SUPPLY 



TABLE 110. STATEMENT OF THE AVERAGE PRICE RECEIVED, CLASSIFIED COST AND 

 NET PROFIT REALIZED PER QUART OF MILK HANDLED BY BORDEN'S 

 CONDENSED MILK COMPANY IN EASTERN TERRITORY DURING THE 

 YEAR ENDED JUNE 30, 1916 



Price Received : . . $0 . 0803 



Cost: 



Milk 0.0369 



Factory expense . 0126 



Freight . . 0. 0072 



Selling and delivery expense 0. 0201 



General expense . 0009 



Total cost $0.0777 



Net profit 0.0026 



Percentage of profit on net sales 3 . 25 per cent. 



Stated in another form the Company says that of the consumer's 

 dollar 16.44 ct. goes for materials and supplies such as bottles, cans, feed, 

 bedding, ice, etc., for the railroad 9.03 ct., for labor 25.41 ct., for the 

 dairyman 45.87 ct. and to the stockholders of the company 3.25 ct. 



The cost of producing and of delivering milk to the consumer must 

 vary considerably in the different dairy sections and cities but such in- 

 formation as the writer has leads him to the opinion that there is not a 

 great difference in the profit per quart of bottled milk which is made by 

 the dealers of the eastern half of the United States. 



With regard to the cost of operating a small milk route Kelly has 

 recently made the following estimate. The equipment required and the 

 cost thereof for handling 75 gal. a day in 250-qt. packages is shown in 

 Table 111. 



TABLE 111. INVESTMENT REQUIRED TO OPERATE A MILK PLANT HANDLING 75 GAL. A 



DAY (KELLY) 



Boiler $150 Motor ... $75 



Bottle filler 150 Miscellaneous 150 



Pasteurizing outfit 275 Cans 40 



Bottle washer. . 75 Bottle cases .. 30 



Total $945 



Charging 25 per cent, as the annual rate of interest and depreciation 

 on the $945 invested in plant equipment and 15 per cent, on the $500 

 that would have to be invested in delivery equipment and dividing these 

 charges by 12 the statement arrived at in Table 112 gives a fair idea of 

 the probable monthly expenses. 



If the milk was purchased at 4 cts. a quart $360 would have to be 

 added to this monthly expense which would make a total of $529.68. If 

 9,000 qt. were sold at 7 cts. a quart it would yield a gross income of $630 

 per month which would leave approximately $100.32 for the labor and 



