25 
ing and flushing of all machinery pipes and floors. A com- 
paratively large boiler plant is necessary, not only for gen- 
erating the motive power required for the operation cf ma- 
chinery but because much steam is required for condensing 
and heating, for sterilizing the products (in the case of evapo- 
rated milk plants) and for cleaning and sterilizing all machin- 
ery and pipes. Hunziker estimates a boiler capacity of 400 
H.P. necessary for a condensary of 50,000 pounds of milk 
daily capacity. Artificial refrigerating plants and electric 
lighting are also essential. Stocking says that “reliable auth- 
orities have conservatively estimated that adequate buildings 
and equipment for a minimum production on a commercial 
scale would cost in the neighborhood of $25,000 exclusive 
working capital.” A reliable informant, plants inspector for 
a large concern, writes that with the present cost of ma- 
terial and labor it will take from $100,000 to $150,000 to put 
up a plant of substantial and permanent construction to handle 
from 5%),000 to 100,000 pounds daily. In addition to this, run- 
ning expenses are also-high. The farmers are generally paid 
monthly. But the products must be stored a certain time in 
any case, and on account of wide fluctuation of the market 
large stocks must at times be kept on hand for several months. 
It is apparent then that initial investment, overhead and 
running expenses are high, and that a factory can be operated 
the more economically per unit of product the larger the fresh 
milk supply, provided that this can be gathered in sufficient 
proximity so as not to endanger its quality. There are thus 
lower and upper limits set to the size of factories by a number 
of conditions to be considered. 
4. It is on the commercial side that the industries differ 
most from other branches of the dairy business. The products 
are not standardized in the market as are cheese and butter or 
fresh milk. Condensed milks and milk powders are marketed 
under certain brands and labels. To introduce and keep them. 
on the market expensive advertising must be carried on. 
Large concerns have usually their standard brands but often 
also some minor ones in order to dodge competitors. The milk 
may be of the same quality but sold at different scales of 
prices. Companies must be able not only to keep large stocks 
on hand at times, but also to distribute the products in a wide 
market in order to equalize as much as possible local fluctua- 
