202 THE MARKETING OF WHOLE MILK 



been excessive is indicated by the normal increase in sup- 

 ply to fill the demand. Because of the nature of the in- 

 dustry, had profits been excessive, an over-supply would 

 have followed; had they been unsatisfactory, a shortage 

 would have been the result." l 



It was found that the relative weight of each of the 

 four groups of items based on average values during the 

 eight-year basic period was as follows: 



Relative weight Item 



19 Home-grown grains 



19 Mill feeds (wheat, bran, wheat middlings, hom- 

 iny, cotton seed meal, oil meal, gluten feed, dry 

 salt) 



35 Hay (including silage valued at the ratio of 3 tons 



of silage to I ton of hay) 



27 Labor 



100 



Variations in the prices of these four units were agreed 

 to "represent with sufficient accuracy, when applied, 

 according to the above ratio, the increase or decrease in 

 the cost of production of milk." 2 It was found that in 

 November, 1917, corn, representing home-grown feeds, 

 had increased in price 179 per cent over the basic period; 

 mill feeds had increased 81.8 per cent; hay 40 per cent, 

 and labor 50 per cent. Applying these percentages to 

 the old percentages the Commission got as a new index 

 the following: 



*MilkNetos 9 Ye\>., 1918, p. i. 



2 Ibid., p. 2, Report of Commission. 



