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UNIVERSITY OF WISCONSIN STUDIES 



The general decrease in consumption has been estimated at 

 about 20 per cent, although the price of milk has not kept 

 pace with the price of a majority of other important articles 

 of food, during the present time of stress. 



Previous to the year 1912, milk was bought from the farmer 

 at a flat rate per hundred weight. In 1912 a bonus was paid 

 for milk averaging 3.8 per cent fat for the month, which 

 marked the beginning of payment for milk on the butter-fat 

 basis. In 1915 this more equitable method of payment was 

 finally established. A price was fixed for milk testing 3.5 per 

 cent fat with an increase of three cents per hundred pounds 

 for every tenth of one per cent above 3.5 per cent and a sim- 

 ilar decrease of three cents per hundred pounds for every 

 tenth of one per cent below 3.5 per cent down to 3 per cent. 



The following prices have prevailed in the Chicago milk dis- 

 trict for the last ten years. From 1915 on the prices are 

 based on 3.5 per cent milk with increase and decrease as noted 

 above. Previous to 1915 a flat rate per hundred pounds was 

 paid, regardless of butterfat tests. 



The prices beginning with November, 1917, were set by the 

 Food Administration during their hearing on milk prices 

 which will be referred to later. It has been customary to 



