DISTRIBUTION OF MILK loi 



sale to retail dealers at the same price as the consumer 

 pays, allowing the retailer to charge two cents above that 

 price, because it concentrates business in the hands of those 

 specially equipped to handle it. Milk should be kept and 

 delivered under controlled refrigeration." * 



Milk sales differ essentially from sales of most other 

 commodities in several important respects, and for that 

 reason should not necessarily be placed in the same class 

 with other goods in figuring the per cent of gross profits 

 necessary. These differences are: (i) Milk has a daily 

 turnover, whereas few other commodities, except certain 

 fresh vegetables, have even a weekly or monthly turnover. 

 Milk is seldom kept for over twenty-four hours before all 

 is sold or the balance taken back or replaced with fresh 

 milk by the dealer. (2) There is practically no loss on 

 milk, since the dealers generally make good any losses from 

 soured or spoiled milk. These differences are so funda- 

 mental that there would seem to be no justification for 

 the claim that milk, at a gross gain of ten per cent of sales, 

 is a no-profit line, nor for the contention that the same 

 percentage margin is required as is necessary for many 

 other commodities with a less rapid turnover. 



In New York City the store problem has of recent years 

 taken a new turn. In that congested center demand has 

 arisen for a cheaper milk. Large quantities of milk are 

 now retailed through stores in bulk, the consumer going 

 after his supply with his own vessel. This "loose" milk, 

 as it is called, is sold at several cents per quart less than 

 milk bottled and delivered. In January, 1 920, the " loose " 

 milk retailed at thirteen cents a quart, whereas the bottled 

 milk of similar grade was delivered at the homes at 

 eighteen cents. According to King's theory, this large 



'■ Grand Jury Report of Franklin County, Ohio, March, 1920. 



