i io THE MARKETING OF WHOLE MILK 



by taking 120 per cent of the average daily price of New 

 York 92 score (solid pack) tub creamery butter, as pub- 

 lished by the U. S. Bureau of Markets, for the month. 

 The price of 100 pounds of milk would be determined by 

 multiplying the percentage of butterfat in milk by this 

 price. This arrangement is expected to simplify the prob- 

 lem of determining the price to be received by producers 

 for surplus milk in the Philadelphia district/* 1 



In January, 1920, the price of 4 per cent surplus milk 

 in Philadelphia was $3.12 as compared with a basic price 

 for fluid milk of $3.61. 2 



The New England milk producers have probably had 

 more experience with surplus plans than have the pro- 

 ducers of any other section of the United States. For 

 many years milk had been sold in that market at a summer 

 and winter price; for example, in 1886 and 1887 the sum- 

 mer price was thirty cents per eight and one-half quart can 

 and the winter price thirty-six cents. These prices, how- 

 ever, applied only to milk which the dealers sold as fluid 

 milk plus a margin of about 5 per cent. "All surplus 

 beyond this was made into butter by the contractors at 

 their creameries on the farmer's account, allowing each 

 month, as the value of the butter, the average of the job- 

 bing price of butter quoted by the chamber of commerce 

 during the month and charging four cents per pound for 

 making. Thus the farmer was sure of getting at least 

 butter value for all the milk he could make/' 3 The 

 farmers, however, raised so many objections to this system 

 that in 1889 the matter was taken up with the state board 

 of arbitration, which decided that the surplus principle 



1 The Market Reporter, Jan. 17, 1920. 



2 Milk News, Feb., 1920, p. io. 



8 Report of Industrial Commission, 1900, Vol. 6, p. 409. 



