354 THE MILK SITUATION IN THE DISTRICT OF COLUMBIA. 



It might be profitable to undertake butter making on account of the high 

 price which could readily be obtained for genuine buttermilk properly shipped. 



There is now a very large and profitable trade in artificial buttermilk, but 

 no account is taken of this in order that the estimate of income may be well 

 within the mark. 



The profits easily obtainable from hog raising are also disregarded. 



The amount of milk given by each cow is calculated at 2 gallons a day 

 on an average. With such a liberal allowance as $100 for the price of each 

 cow, this amount ought certainly to be exceeded. 



It is assumed that not much feed would be raised on the farm during the 

 first year, and the daily allowance is therefore placed at 20 cents per cow. 

 For the second year 10 cents per cow is allowed, but this amount would 

 gradually be reduced as the farm reached a higher state of cultivation, and 

 the profits would be correspondingly increased. For the summer months, at 

 any rate, it is safe to assume that the estimates of 20 and 10 cents given above 

 would be in excess of the actual cost. 



The estimates made for labor, feed, and depreciation give ample margin to 

 allow of raising sufficient calves to keep up the standard of the herd. 



With the estimates here given a profit is shown on the investment of $500,000 

 of over 12 per cent in the first year, rapidly increasing to over 20 per cent. 



If we allowed 2i gallons of milk for each cow as a daily average no un- 

 reasonable estimate the profits would be increased to at least 17 per cent 

 for the first year and 24 per cent for the second year, gradually increasing to 

 28 per cent or more. 



Efficient management would undoubtedly increase even these profits. 



Capital : 



1,500 acres, at $100 per acre $150 000 



1,000 cattle, at $100 100, 000 



Barns, silos, farm and dairy buildings, fences, cottages for men 



employed, machinery, dairy utensils, etc 175, 00<) 



Depot in Washington for distribution of milk, land and buildings 

 owned by company 75,000 



500,000 



Daily expenses : 



Labor and management, including town depot 250 



Shipping and distribution, depreciation, taxes, etc 100 



Feed (first year) _ 200 



550 



Estimating feed at $100 for second year, the total would be $450. 



Daily income : 2.000 gallons of milk, at 36 cents. $720. 



Daily profit : $170 in first year, $270 in second year, increasing in later years 

 to $320 or more. 



Annual profit: $62,050 in first year, $98,550 in second year, $116,800 or more 

 in later years, or 12.41 per cent, 19.71 per cent, 23.36 per cent, respectively. 



It is important to observe that 2,000 gallons is only a small part of the milk 

 consumed in Washington; that the milk shipped by the corporation would be 

 of the highest quality and would meet with a ready sale, probably even at a 

 higher price than that here estimated. 



If the stock of the company were divided among 8,000 people, each of whom 

 took 1 quart of milk daily, the whole output would be disposed of. 



By accepting subscriptions for $10 or $20 of stock a large number of cus- 

 tomers would immediately be secured. Stockholders would of course have the 

 first privilege of purchasing milk from the company, and so help to earn their 

 own dividends. 



It would seem that there should be very little difficulty about securing the 

 necessary capital if the directors of the company are men who would command 

 the unquestioning confidence of the people of Washington. 



HERBEBT P. CABTEB. 



ABLINGTON, VA., November 2, 1910. 



