June, 1940] Transportation of N. H. Milk 17 



Another principle which has been kept in mind is tliat smaller mar- 

 kets should receive their milk from an area contiguous to the market. 

 Proper routing of trucks makes this possible without adding to mileage 

 traveled. 



The transportation picture following this final stage of reorganization 

 is shown in figure 4 and Appendix Table IV. Compared with the pre- 

 ceding stage, a reduction in number of routes from 38 to 35, a small 

 saving in truck mileage, and a significant reduction in individual mileage 

 are secured. In the preceding stage, a total of 782 producers would be 

 visited by trucks, but following reallocation of markets this number 

 would decline to 776, through the elimination of calls on the same pro- 

 ducers by trucks from two different markets. 



In contrast to the effects of the two preceding stages of reorganization, 

 the savings possible by this final stage are small. This is because com- 

 paratively little intermingling of milksheds exists in this part of the 

 state. Reallocation of milksheds offers possibilities of reducing material- 

 ly assembly costs, only when intermingling of the milksheds is impor- 

 tant. 



Expressed as a percentage of the present costs, potential savings, com- 

 pared with the preceding stage, amount to only 2.9 per cent. (See Table 

 III.) This is in marked contrast to the effects of the two preceding 

 stages of reorganization. However, compared with the assembly now 

 in operation the total reduction in costs (excluding labor) by pushing 

 reorganization the whole way would be 26.7 per cent. 



Gains Through Reorganization of Routes and Reduction of 

 Charges to Competitive Levels 



TN this section are brought together the potentialities discussed not only 

 in the preceding sections of this study, but in those of the earlier 

 study. 1 



Considering first the gains possible from reorganization, the number 

 of commercial routes can be reduced by about one-third, and the total 

 mileage they travel by one-fourth. At the same time the total volume 

 of milk hauled can be increased by 30 per cent and the number of pro- 

 ducers 31 per cent. Because of this transfer of producers from hauling 

 their own milk to commercial routes, mileage traveled by individuals 

 has been reduced by 78 per cent. 



The potential reduction in assembly costs has been presented in per- 

 centage terms in Table III. In order to have a yardstick from which to 

 judge their absolute amounts, the total hauling costs, designated as 100 

 in tlie table, are presented at this point. Because of the non-inclusion 

 of labor costs and the various assumptions made, these monetary costs 

 are presented only as a total for the area. With these qualifications, 

 the daily cost of assembly for June, 1937, amounted to $362. By com- 

 plete reorganization this could be reduced by $97 or 27 per cent. Ex- 

 pressed on a yearly basis, keeping in mind that June is the month of 

 greatest production but that costs based largely on mileage and equip- 

 ment sufficient in size to accommodate peak production do not fluctuate 



1 MacLeod, et al., opus cit. 



