ioo THE MARKETING OF WHOLE MILK 



Margin allowed Number of places 



Two cents per bottle 3 



Two cents per quart, one cent per pint 21 



One and one-half cents per quart, one cent per pint 3 



One cent per bottle 12 



One cent per quart, one-half cent per pint 7 



Irregular but less than 2 cents per quart 9 



the University of Pennsylvania, has proposed that milk 

 dealers charge grocers nearly or quite the same price as 

 is charged their family trade, making the stores take their 

 profit out of an additional charge. The following quota- 

 tion illustrates his method of approach in his capacity 

 as milk price arbitrator for Pennsylvania and Maryland: 



"I was called not long ago to a city in Pennsylvania 

 where the price to the consumer was fourteen cents a 

 quart and the price to the grocery stores was twelve 

 cents a quart, the grocer retailing to the consumer at four- 

 teen cents a quart. About forty per cent of the total 

 milk consumed in the city went through the grocery store. 

 The dealers were demanding that milk should go up to 

 sixteen cents a quart because they were losing money. I 

 found through an accountant that they were not making 

 money and that they were losing heavily on the grocery 

 trade. I suggested that instead of advancing the price 

 of milk they lower it to thirteen cents and charge the same 

 price to the grocery store, assuring them they would then 

 make more money and deliver to the consumer more milk 

 because the consumer would be more satisfied. The one 

 milk dealer in the group who had accurate records immedi- 

 ately agreed to this and the plan was adopted. I have 

 gone back there repeatedly and find that the policy has 

 actually saved the dealers substantial sums of money. 



"A similar policy in other cities has brought similar 

 results. The cost of milk distribution is reduced by the 



