No. 4.] REPORT OF DAIRY BUREAU. 445 



least for many years, when there was a change in one of the 

 six months 9 periods. The unusual nature of the situation 

 at the beginning of the year was increased, when negotia- 

 tions for the summer price began, by a demand on the part 

 of the producers for an abolition of the time-honored prac- 

 tice as to the manner of computing the return to be made 

 to the farmers for surplus milk. The wholesalers, con- 

 traetors, had been in the habit of contracting for an indefi- 

 nite quantity of milk at a fixed price, subject to the proviso 

 that the farmers should be paid butter value for the surplus. 

 This provision on the contractors' cards we find for the first 

 time in September, 1886. Consequently, if Farmer A was 

 to have 2$ cents per can, and he shipped to market 1,000 

 cans of milk in a month when the butter value of milk was 

 15 cents per can, and the surplus was 25 per cent, of the 

 receipts, his account would be accurately figured thus : — 



750 cans of milk, at 26 cents per can, . . . $195.00 

 250 cans of milk, at 15 cents per can (bntter 



value), 37.50 



Total, ' . . . $232.50 



But the contractors reached this conclusion in a different 

 way for their convenience in keeping their accounts. They 

 first computed the average price per can for the month, 

 which in the above case it will be seen was 23.25 cents per 

 can ; this figure being 2.75 cents less than the regular price, 

 the farmer's account would be made up by the contractors as 

 follows : — 



1,000 cans of milk, at 26 cents per can, . . $260.00 

 Discount for surplus, 27 . 50 



Balance clue, $232.50 



The farmer got the same amount of money by each way of 

 making the computation, but the contractors' method was 

 blind, putting a premium on misunderstanding, and being a 

 direct bid for confusion and trouble. An apparently arbi- 

 trary discount, misunderstood and obscure, naturally was a 

 source of great irritation, and for years it was the frequent 

 theme for discussion at milk meetings. This surplus was 



