Calculating Dividends. 213 



Dr. Babcock's results. The injustice of the "pooling 

 system," by which all kinds of milk receive the same 

 price, is evident from the preceding; if the milk of a 

 certain patron is richer than that of others, it will make 

 a higher grade of cheese, and more of it per hundred- 

 weight; hence a higher price should be paid for it. 



Payment on the basis of the fat content of milk is, 

 therefore, the most equitable method of valuing milk 

 for cheese making, and in case of patrons of cheese fac- 

 tories as with creamery patrons, dividends should be 

 calculated on the basis of the results obtained by test- 

 ing the milk delivered. The testing may be conven- 

 iently arranged by the method of composite sampling, 

 in the way already described for creameries (180). 



242. Cheese factory dividends, (a) Jlifidcnds 

 based on fal icst alone. As in the case of creameries, 

 the price to be paid per pound of butter fat must first 

 be ascertained. The factory records should show the 

 number of pounds of cheese made from the total milk 

 delivered to the factory during a certain time, generally 

 one month, and the money received for this cheese. The 

 cost of making the cheese and all other expenses that 

 should be paid for out of the money received for the 

 cheese, are deducted from the total receipts, and the 

 difference is divided among the patrons in proportion 

 to the amounts of butter fat delivered in the milk. 



The weights of the milk delivered and the tests of the 

 composite samples furnish data for calculating the 

 quantities of butter fat to be credited to each patron. 



