COST OF DISTRIBUTING MILK. 27 



The comparative analysis of costs, including both processing and 

 delivery, of retailing milk by cities and towois is exhibited in Table X. 

 Before comparing localities it may be well to note that by far the most 

 important item is labor, which varies from one-half to more than two- 

 thirds of the whole distributing cost. This includes only man labor, 

 horse labor being carried in the other items. This expense is greatest in 

 Springfield, where it amounts to nearly 2 cents a quart, and lowest in 

 Haverhill, where it is scarcely more than 1 cent. 



Depreciation is the smallest charge, and runs about 6 per cent, of the 

 total; actually it is lowest in Haverhill and highest in Springfield. 



Maintenance and circulating capital show great relative variation. 

 Both are relatively and actually lowest in Amherst and actually highest 

 in Worcester and Springfield. The two charges amount to .52 cents a 

 quart in Amherst, .85 in Walpole, .88 in Pittsfield, .92 in Haverhill, 1.03 

 cents in Worcester and 1.04 cents in Springfield. In general these items 

 increase with the size of the town. 



Amherst v. Walpole. 



Amherst seems to process and distribute its supply of milk more eco- 

 nomically than Walpole, notwithstanding the labor bill is slightly higher. 

 Omitting cream, our figures show in round numbers 500,000 quarts of 

 wholesale and retail milk delivered yearly in Walpole and 471,000 in 

 Amherst. On this basis, Walpole's labor costs 111.65 per 1,000 quarts, 

 and Amherst's $11.87; for retailed milk the labor expense is .$12.58 per 1,000 

 quarts in Walpole and .S13.69 in Amherst. Hired help is a little cheaper 

 and more plentiful in the eastern part of the State, though the personal 

 labor in both towns was computed at 25 cents per hour. The time occu- 

 pied in delivery is the same, though the average milk route in Walpole 

 is 25 per cent, shorter. Walpole serves more customers per wagon, 180 

 to 143 for Amherst, but delivers less milk per customer. 



The dealers in Amherst, however, expend less for maintenance and 

 working capital. The lower maintenance is due in part to the greater load 

 per horse, the average retail load per horse being 175 quarts, in contrast 

 with 143 quarts in Walpole. It must be noted, however, that Walpole 

 hauls more per wagon — including wholesale milk and cream, 234 quarts 

 to 214 for Amherst; the explanation is a two-horse wagon. In working 

 capital there is a margin of .19 cents per quart (43 per cent, less) in favor 

 of Amherst. Table X shows that these two items amount to nearly 40 

 per cent, of the total in Walpole as compared with less than 26 per cent, 

 in Amherst. 



With the exception of the items stationery and shrinkage, the Amherst 

 figures for circulating capital show a big saving. The greater stationery 

 charge is accounted for by the use of tickets by several of the Amherst 

 dealers. The wisdom of this expenditure is justified by the small loss in 

 bottles and a minimum loss by bad debts. It cost the five Walpole dealers 

 $340 a year for bottles, or 72 cents per 1,000 quarts of retail milk delivered. 



