Calculating Dividends. 191 



varies somewhat in different creameries, on account of 

 the different ways of paying for the cost of manufacturing 

 the butter. The method to be followed is generally deter- 

 mined by agreement between the manufacturer and the 

 milk producers, in case of proprietary creameries, or be- 

 tween the shareholders, in co-operative creameries. The 

 following methods of paying for the cost of manufacture 

 are at the present time met with in American creameries. 



227. I. Proprietary creameries. First. When the 

 creamery is owned by some one person or company, the 

 owner or owners agree to make the butter for 3 or 4 cents 

 a pound; the difference between the total receipts of the 

 factory and the amount due the owner is then divided 

 between the different parties, according to the amount of 

 butter fat contained in the milk which they delivered. 



In the majority of cases, the price charged for making 

 butter is now 4 cents a pound; 3f and 3J cents are some- 

 times charged. The larger the amount of milk received 

 at a factory, the lower will naturally be the cost of man- 

 ufacturing the butter. l 



Second. The proprietor of the creamery sometimes 

 agrees to pay a certain price for 100 Ibs. of milk deliv- 

 ered, according to its fat content, the price of milk con- 

 taining 4 per cent, of butter fat being the standard. This 

 price may change during the different seasons of the year 

 by mutual agreement. 



Third. A creamery owner may offer to pay 1 to 2 

 cents, usually 1^ cents, below the average market price of 

 butter, for each pound of butter fat received in the milk. 



228. II. Co-operative creameries. In this case, where 

 the creamery is owned by the patrons, one of the stock - 



1 Wisconsin experiment station, bull. 56, p. 26. 



