4 N. H. Experiment Station [Bulletin 325 



lection and distribution lie outside the influence of the producer and he 

 has difficulty in doing anything' alxuii tlicin. 15ut llic liaiiliny of milk 

 from farm to country station or eity plant is an operation upon which 

 the producer can exert an influence." 



The extent to which rates actiudly charged departed from those ex- 

 pected under conditions of perfect competition was investigated and it 

 was found that there was a marked divergence of actual charges from 

 those which might be expected were competitive forces active in adjust- 

 ing rates. 



Method and Scope of Study 



Jn the preceding study of this series, ^ a detailed description of the 

 methods used to collect data, of the data themselves, and of the limita- 

 tions of the data, was given. It is not proposed to repeat this informa- 

 tion here, except to indicate that data referred to June, 1937, and in- 

 cluded a rather detailed description of truck routes operating at that 

 time.- 



Elinor additions and corrections have been made in some of the data, 

 as additional informalion has been obtained, but in the main, the situa- 

 tion as it existed in June, 1937, has been used as the base from which 

 to determine possible reorganizations. 



Tliough data were collected for all truck routes operating in the state, 

 only those in south-central New Hampshire are considered in this reor- 

 ganization study. The study was restricted in this manner for two rea- 

 sons: first, because without data fiom adjoining states, no complete re- 

 organization of routes in a milkshed whieh extended over the state line 

 coukl be made ; and second, because prineiples and techniques developed 

 in one section of the state could be applied with little moditieation to 

 others. 



Three schemes of reorganization have been assumed — each involving a 

 progressively more drastic reorganization than the one preceding. In 

 the first stage, it is assumed that i)roilueer-dealer relationshii)s would 

 remain undistui'bed ainl that only tliose producers whose milk is now be- 

 ing hauled on connnercial truck routes would participate in the reor- 

 ganized hauling. (Producers who exehanged hauling or who hauled 

 their own milk would not l)e included in the seheme.j The only ilisturb- 

 anee to the present route structure would be that the same truck might 

 deliver milk to several different dealers. 



The next scheme of reoi-ganization of i-outes woulil pi'ogress a step 

 further and would require that all milk now sold by producers at whole- 

 sale would be hauled on commercial ti'uck routes. (A few producers lo- 

 cated near the dealers to wiiich they sell milk are excepted.) This would 

 involve in some mai-kets. at least, a lai'ge addition to the volume of milk 

 availalile to commercial trm-ks with very little a(l<litional distance trav- 

 eled. Such a reoi-ganization might have advantages not oidy from the 

 standpoint (tf irdiicing costs to individual producers, but in making less 

 (•(►ngested and unsatisfactory the delivery of milk at the dealer's plant. 



The thii'd and most far-reaching reorganization would involve not 



' MacLeod, et ul., opus cit. pp -1, 5. 



" Details rcKardiriK the mcthnds of analysis used in this study are (riven in the appendix. 



