352 THE MILK SITUATION IN THE DISTRICT OF COLUMBIA. 



It will be obvious that at the present time the carrying out of such a scheme 

 will be given plenty of publicity by the papers, and that comparatively little 

 advertising will be needed to enable the association to place all the milk that 

 it can purchase from the farmers. 



Probably it will be found desirable for the association to give financial help 

 to farmers who have good barn accommodation to spare, to enable them to 

 increase their stock and the association's supply. 



By paying 30 cents a gallon for highest grade milk and 26 cents a gallon 

 for second grade, and retailing them at 10 and 9 cents a quart, respectively, 

 the association would make a profit of 10 cents a gallon. The above wholesale 

 prices are much higher than dealers now pay, and 2,000 gallons a day could 

 easily be obtained. 



A CONCRETE INSTANCE OF THE WAY THE ABOVE PLAN WOULD WORK. 



Farmer B now ships to Washington 40 gallons of milk. He has 20 cows, 

 which are not tuberculin tested, and he has inadequate facilities for cooling 

 the milk and cleaning his cans. 



He obtains, at most, 22 cents a gallon for his milk, and can not afford to 

 have his cattle tested without compensation, or to improve his equipment. 



The association arranges with farmer B to have his herd tested and to 

 improve his outfit. It advances, say, $300, for replacing reacting cows with 

 healthy animals and for the needed improvements. 



Farmer B can now ship 20 gallons of milk of higher quality, and the asso- 

 ciation can afford to pay him 30 cents a gallon. From this they can deduct 

 5 cents and so pay off the loan, with interest, in less than a year. The farmer 

 will have been getting a net advance of 3 cents a gallon, and at the end of 

 the year will have a better herd and better equipment than he had before. 



Capital : 



From $10,000 to $15,000 advanced to farmers at interest. 

 Bottles, and complete equipment for bottling, washing, steriliz- 

 ing, etc $6, 000 



2 motor trucks, at $2,000 4,000 



2 small motor delivery trucks, at $1,000 2, 000 



20 delivery wagons and horses, at $350 7, 000 



Preliminary advertising 1, 000 



20,000 



Monthly charges: 



Wages and manager's salary 2, 500 



Rent 300 



Depreciation, repairs, gasoline and oil, horses' feed, bad debts, etc 1, 400 



Advertising, etc 100 



4,300 



Monthly income: 



2,000 gallons of milk daily for 30 days sold at a profit of 10 cents 



a gallon over wholesale price 6,000 



Net monthly profit on investment of $20,000 1, 700 



MANOR DAIRY Co., 

 Arlington, Va., November 2, 1910. 

 Mr. J. L. WILLIGE. 



DEAR SIR : I have pleasure in inclosing an outline of a plan for the organiza- 

 tion of a large dairy business. 



OflScials of the Dairy Division, Bureau of Agriculture, would be well able to 

 pass on the reasonableness of my estimates. 



I may say that if a corporation was formed somewhat on the lines sug- 

 gested I should be pleased, if the directors so desired, to become associated 

 in the management and to place all my time at their disposal for a year or 

 two and accept payment entirely according to the results achieved. I am con- 

 fident that the plan is the most efficient and economical possible, if it can be 

 organized with sufficient capital. 



Yours, very truly, HERBERT P. CARTER, 



