10 MASS. KXPKRIMI'.N'I' STATIUX BULLETIN 304 



since 1930 the greatest competition in the sale of milk influenced by the pressure 

 of supply took place in the Gardner market. This condition was caused on the 

 one hand by the influx of producers into the distributing field so that the total 

 number of distributors increased from 25 in 1930 to 33 in 1932; and on the other 

 hand by a rapid fall in prices in the adjoining markets which caused some dealers 

 operating in several markets to divert some of their milk into Gardner and thus 

 add to the existing surplus of milk. L nder these conditions the prices of milk 

 began to decline in Gardner and about the middle of 1931 there ensued a real 

 price war with much of the milk selling below 10 cents a quart, not to mention 

 various concessions made by distributors in order to retain their customers. 

 To prevent a complete disorganization of the market and bring about an orderly 

 sale of milk, the distributors joined together in an organization through which 

 they agreed among other things to maintain a retail price of 12 cents. Inasmuch, 

 however, as the fundamental causes of competition resulting from oversupply 

 were not removed, and milk in the neighboring markets was selling lower, the 

 price agreement was operative only for a short period of time. At the time of the 

 investigation the prevailing retail price was 10 cents with much of the milk selling 

 below that figure. \\ ith the continued decline in prices and increased competi- 

 tion, the established dealers in Gardner, with large investments in plants and 

 high fixed charges, were decidedly at a disadvantage. 



With lower prices prevailing throughout the period, the consumption of fluid 

 milk has increased in Gardner since 1930, and the largest expansion in sales took 

 place in 1931 under the stimulus of low prices caused by undercutting. The in- 

 creased sales of milk by dealers in that year were due to the previously mentioned 

 regulations in regard lo the sale of pasteurized milk, introduced by the Board 

 of Health, which temporarily worked for the benefit of distributors with pasteuriz- 

 ing plants. By 1932, however, the producer-distributors, after complying with 

 the law requiring the tuberculin test for their cows and efi^ecting the necessary 

 adjustments, came back into the market and more than regained their former 

 position. 



AttlehoTO 



.'\s contrasted with the Gardner market, in Attleboro there has been a drastic 

 decline in the sales of milk since 1930. Among the factors responsible for this 

 situation, the most important has been a high price level for milk maintained 

 in 1931 and 1932 in the face of falling prices for other commodities. The system 

 of price undercutting has not been practiced here to the same extent as in the 

 other markets, with distributors agreeing not to sell their milk below 13 cents a 

 quart retail. At the same time the enforcement of the regulations of the local 

 Board of Health has made it difficult for new distributors to enter the market. 

 Although the milk sold in Attleboro market has been generally of better than 

 average quality, the fall in purchasing power and considerable unemployment 

 have forced many consumers to curtail their purchases of the product at pre- 

 vailing prices. Together with the decline in the sale of fluid milk, which has 

 amounted to about 20 per cent since 1930, there has been an increase in the 

 sale of canned milk, which nian>- consumers have found more economical under 

 existing conditions. 



The smaller consumption of milk in the Attleboro area has resulted in a con- 

 siderable surplus amonu local producers, and the market has given clear evidence 



