DISTRIBUTION OF MILK 



I2t 



vested and volume of sales, were larger in the case of some 

 cities than of others; but audits of the accounts of some 

 of the representative milk marketing organizations in dif- 

 ferent cities show that there is not even a general correla- 

 tion between net profits and the margins of gross profit 

 on retail sales. Even if per unit costs of plant operation 

 and delivery service were approximately the same, the 

 net profits of any particular business enterprise would be 

 dependent to a large extent upon the proportionate volume 

 of sales at the prevailing market prices to diflFerent classes 

 of wholesale and retail trade." ^ 



The following table from the Bureau of Markets gives 

 dealers' spreads or margins in twelve of the largest cities 

 of the United States for the nine months' period ending 

 March, 1919.^ 



Table XXI 



Dealers' Margins (Spread Between Price Paid and Selling Price) on Quart Sales, 

 of Standard Grade Milk Delivered to Different Classes of Trade 



City 



New York 



Chicago 



Philadelphia 



Boston 



Baltimore 



Pittsburg 



Cleveland 



Detroit 



Milwaukee 



Minneapolis 



New Orleans 



San Francisco 



Averages of above cities. 



Bulk milk 



to hotels, 



cents 



2-95 

 2.89 

 2.65 

 3.96 

 4.90 

 3.46 

 2.37 

 3.28 



1-74 

 2.47 

 1.67 

 2.18 

 2.876 



Bottled milk 



to hotels, 



cents 



95 

 8S 

 95 

 65 

 IS 

 36 



97 

 77 

 62 



52 

 42 

 57 

 731 



Bottled milk 



to families, 



cents 



6.87 



5.64 



4.76 



6.63 



6.76 



S.63 



6.19 



.02 



■24 



.84 



•42 



6.05 



5 92 



' Hoard's Dairyman, Jan. i6, 1920, quoting U. S. Bureau of Markets. ' Ibid. 



