8 BULLETIN 1442, U. S. DEPARTMENT OF AGRICULTURE 
ment with the estimated salaries of a privately operated business of 
the same size. This procedure was necessary since in most retail 
meat corporations the ownership was so restricted that the amounts 
paid the officers as salaries might be regarded as a combination of 
salaries and withdrawals of profits. 
Amounts paid members of the proprietor's family, who were en- 
gaged in the business, were analyzed to determine whether they were 
in agreement with the usual wages paid nonmembers for similar 
services. If not, the amount actually paid was disregarded and an 
estimated wage equal to the usual wage for such services was incor- 
porated in the profit-and-loss statement. 
The value of any free meat or meals given to employees was added 
to the amount paid as wages to determine the total wage amount 
paid to employees. 
RENT 
Rent included the amount paid as rent for the space occupied by 
the market. In the case of an owned building, an estimated rental 
was incorporated in the profit-and-loss statement. Garage or stable 
rent was included in " other delivery expense." 
WRAPPINGS 
The expense item for wrappings included outlays for paper, bags, 
other containers, and twine. 
REFRIGERATION 
In those markets where ice was the means of refrigeration the 
amount for refrigeration included expenditures for ice and a de- 
preciation allowance on ice boxes. Where an ice machine was used, 
this item included not only depreciation on the ice box but also 
depreciation on the refrigeration machine and, in so far as it was 
possible to obtain them, the various expenses incurred in the opera- 
tion of the machine, that is, power, water, ammonia, repairs, etc. 
LIGHT AND POWER 
Expenditures for light and for power used in the operation of 
grinding, slicing, and other machines, with the exception of the 
refrigeration machine, were included under the heading of light and 
power expense. 
DEPRECIATION 
An annual depreciation rate of 10 per cent was used on all shop 
and office equipment. A rate of 25 per cent per year was applied 
to motor delivery equipment and this amount included in " other 
delivery expense." The item of depreciation appearing in the dis- 
cussion, therefore, does not include depreciation on delivery equip- 
ment or depreciation charged on ice boxes and ice machines. 
DELIVERY EXPENSE 
The delivery expense item included expense incurred in the main- 
tenance of delivery service. It was divided into " delivery wages," 
