32 



sumed will hardly be in proportion to the gain in product, so that 

 with increased capacity comes greater profit. The greater profit 

 almost invariably accompanies the higher rate of production. 



By these comparisons between average and extra cows is brought 

 out the apparent advantage of keeping the latter, and yet the differ- 

 ence in value between them is generally very much under-estimated. 

 Consider for a moment the average cow, making an annual prod- 

 uct of 1,700 quarts of milk, worth 842.50, the cost for her keep- 

 ing being $40. Another cow consumes $50 worth of feed and 

 produces 2,500 quarts of milk, worth $62.50. A still better cow, 

 at a cost of $65 for maintenance, produces 4,000 quarts of milk, 

 worth $100. Two dollars and fifty cents, $12.50 and $35 repre- 

 sent the respective profits earned by these cows. If we assume 

 the value of the cow in each case to be her beef value (say $30) 

 plus the additional sum upon which she will pay 8^ per cent inter- 

 est, taxes and insurance, and 25 per cent depreciation, then cow 

 No. 1 is worth $37.50, No. 2 is worth $67.50 and No. 3 is worth 

 $135. These values are real, provided the useful period of the 

 cow in question is four years. If the period is longer or shorter 

 than that, a proportionally greater or less value would obtain. If 

 the useful period of a cow is three years, the depreciation factor 

 should be 33^ per cent, or if it is five years 20 per cent. While 

 these values are in no sense fictitious, they are not commensurate 

 with the market prices. The $37.50 cow will probably cost $40, 

 and allow her purchaser to lose $2.50 on the trade. The $67.50 

 cow will cost from $50 to $55, and leave a fair margin for the 

 risk taken. The $135 cow will cost possibly $70 to $80, and prove 

 the best bargain of the three. 



Carrying out these comparisons for herds of 20 cows of each 

 grade, each herd to be bought at the foregoing prices, kept for 

 four years and then sold for beef at $30 each, we have the fol- 

 lowing : — 



Dr. 



No. 1. To 20 cows at $40 each, 



To keeping four years at $40 per cow per annum, . 3,200 



To interest, taxes and insurance on purchase at 8 per 



cent, .......... 256 



$4,256 

 Cr. 

 By 136,000 quarts of milk at 2i cents, . . . $3,400 



By 20 beeves at f 30 600 



By loss, 256 



#4,256 



