THE ECONOMIC FACTORS 139 



dicative figures from dealers, although the large com- 

 panies of course figure carefully their own particular 

 items. Data on production costs have been gathered 

 by various experiment stations, and show considerable 

 differences according to locality. 



Systems and rates of transportation as complica- 

 ting factors have elsewhere been referred to (Chap- 

 ter II). 



The cost of distribution has come in for special at- 

 tention. A large proportion of the total cost of milk 

 is chargeable to this item. The Boston Chamber of 

 Commerce investigation showed that "the greatest 

 single item of cost is delivery to the family trade, 

 equaling the total cost of collection in the country, the 

 operation of country plant, railroad transportation, 

 and city plant expenses." In some cases it approaches 

 the price paid to the producer. A notable study of the 

 distribution situation in one city, Rochester, N. Y., 

 has been made by Dr. John R. Williams, 10 who esti- 

 mated the difference in cost between an assumed model 

 system of distribution and the system actually exist- 

 ing among the distributers.* This difference was sur- 

 prisingly large, the extra cost due to the duplication of 

 routes and dispersion of customers under trade condi- 

 tions figuring to some $500,000 yearly for that city. 

 Bottle losses were also a very considerable item, esti- 

 mated at about $10,000 a year. Such charges are, of 

 course, paid by the consumer in the retail price. Dr. 

 Williams presents statistical details from investigation 



* The U. S. Department of Agriculture has collected figures showing 

 large variation in the economy of distribution as practiced by different 

 dealers. (Milk Plant Letter 15.) 



