Calculating Dividends. 203 



generally determined by agreement between the manu- 

 facturer and the milk producers, in case of proprietary 

 creameries, or among 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. 



228. 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 about 3 

 cents a pound; the difference between the total receipts 

 of the factory and the amount due the owner is then 

 divided between the different patrons, 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 3 cents a pound; 2% and 2y 2 cents are 

 sometimes charged. The larger the amount of milk re- 

 ceived at a factory, the lower will naturally be the cost 

 of manufacturing the butter. 1 



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 li/o cents, below the average market price 

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

 milk. 



1 Bull. 56, p. 26, Wisconsin exp. station; see Report 18, Iowa State 

 Dairy Commissioner, p, 33, 



