DISTRIBUTION OF MILK in 



was a sound one. 1 The surplus continued to be a matter 

 of controversy until the spring of 1910, when the surplus 

 system was discontinued as a result of a dairymen's 

 "strike" and a graduated price substituted. This prac- 

 tice continued until May, 1918, when the surplus plan was 

 again resumed. At that time the Regional Milk Com- 

 mission for the New England states secured an agreement 

 between producers and distributors which authorized the 

 commission to inaugurate a surplus plan, which the com- 

 mission did shortly afterwards. The plan was quite elabo- 

 rate and provided numerous checks, among which was a 

 set of records to be kept by the dealers which would enable 

 the milk administrator to verify the dealers' reports and 

 thus do away with suspicion on the part of the producers. 

 Much objection had been raised to the earlier plans on 

 the ground that the dealers were manipulating their rec- 

 ords. The plan as put into operation provided that each 

 dealer was to pay for fluid milk an established price and 

 for that portion worked up into by-products a price es- 

 tablished by the milk commission and later by the milk 

 administrator. Since each dealer could choose his own 

 channels for utilization of surplus, the result was a widely 

 varying price for different dealers, which to some extent 

 caused dissatisfaction among producers. 2 



A similar plan was tried in Akron, Ohio, in the summer 

 of 1918, without, however, any public supervision. The 

 plan was abandoned at the end of the first six months, 

 partly because of the fact that it led to different prices 

 paid by different dealers. For example, in April, May, 

 and June of that year the following prices prevailed: 



1 Report of Industrial Commission, 1900, Vol. VI, p. 410. 



2 The plan is fully discussed in the New England Dairyman, May, 1918, 

 pp. 2 and 3. 



