MILK CARTAGE 



19 



lower by the amount of his cartage differential. (It is assumed that when 

 total market supplies approximate total demand, sufficient shifts will have taken 

 place among producers and distributors so that the purchases of individual dealers 

 will approximate their Class 1 sales and f. o. b. prices will tend to uniformity.) 



The present type of service offered under a variety of rates has provided pro- 

 ducers for the most part with adequate transportation that was and is indis- 

 pensable to them. Adequate as the service has been, the cost of it to the industry 

 has been high. Such cost may be considered strictly in terms of excessive mileage, 

 light loads, extreme variation in load sizes, unused truck capacity and the like; or 

 it may be regarded from a more inclusive viewpoint, and in addition to the high 

 operating cost embrace its influence on market stability and its responsibility 

 for extending the source of supply into poor producing areas. 



s^ 



£.. 



PROPOSED ROUTES 



/ ■ WESTFELO 



/ ' "^v/ A WEST 



I 



« 3PRINGRELD -2 





Figure 5. Allocation of Producers According to Proposed Routes. 



Proposed Reorganization of Service 



All members in the industry would probably welcome a more efficient cartage 

 service. The quarter-loaded and half-loaded trucks must be discouraging to the 

 independent carriers. The absence of standardized rates is not wholly satisfactory 

 to producers or to dealers. Unsatisfactory as the situation may have been, im- 

 provement was scarcely possible until a way could be shown which would not 

 interfere with relationships between producers and distributors. Accomplishment 

 of the desired objective would be facilitated by recognition of the transportation 

 service as an independent function. Two approaches to the problem are possible. 



