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neering, architects, statistics, transport, and laboratory, but insists on individual responsibility from the managing head of each subsidiary company. The results of each company are separately reported on a common and therefore comparable form.

The volume of business is represented by a turnover of about £20,000,000 per annum, and the quantity of milk dealt with last year was over 1,000,000,000 pounds.


In the history of the milk trade the relations between producer and distributor have often been somewhat strained. There have been faults no doubt on both sides. To-day, the National Farmers' Union, which controls the large majority of milk producers in its ranks, has organized the producer, and both sides are alive to the fact that they are both one industry, and that it is to their common advantage that there should be harmony instead of hostility between the two sections.

Last year the chairman of the milk committee of the National Farmers' Union, Mr. Langford, visited the United States and investigated the marketing of milk. Arising out of that visit a scheme was propounded which provides a basis for fixing a price for what is known as manufacturing milk; that is, for the six summer months all milk in excess of 10 per cent above the average production in the four winter months (in October and March the exact average quantity of the four winter months), November, December, January, and February, the price of this “ manufacturing.” milk being based on the average price of imported cheese month by month. This is undoubtedly a step in the right direction and has enabled the company to reduce the nominal margin between producer and consumer.

It may be mentioned that in one case a farmers' cooperative trading society transferred its business to United Dairies in 1921, on a profit-sharing basis, which appears likely to prove mutually satisfactory.

We are desirous of doing what lies in our power to improve and increase the production of milk, and with this aim have started several young farmers' calf clubs. These have been taken up enthusiastically by the boys and girls and will, I hope, be considerably developed in the future. In this connection, the Daily Mail has fostered the young farmers' club movement, and has been instrumental in starting clubs for pigs, horticulture, etc.


United Dairies (Ltd.) find employment for over 10,000 persons, and thus have an opportunity of contributing, in some measure, to the social amenities of their lives. This privilege is welcomed, and a social and welfare council has been formed which carries on an increasingly active existence under a devoted and untiring committee formed from members of the staff.

The functions of the council, as laid down in its constitution are: To foster and encourage the formation of welfare, sick, holiday, and savings clubs, libraries, literary and debating societies, lectures and classes on business and other subjects, sports, and social activities.

To coordinate and assist existing social and welfare organizations within United Dairies and its subsidiary companies.

To initiate, advise on, and assist proposed social and welfare schemes.

To promote general functions, such as concerts, dramatic performances, carnivals, etc., and to undertake central schemes in connection with any activities within the scope of the council.

To raise and obtain funds and make grants to approved existing and proposed social and welfare organizations.

To formulate welfare and other schemes for submission to the board of directors.

Sports clubs have been formed in various convenient centers, and these clubs meet each other in league competitions and tournaments for shields or cups, given by individual directors, for football, cricket, lawn tennis, golf, hockey, etc.

During the winter arrangements are made for concerts, carnivals, dances, dramatic performances, etc. These functions, whether held centrally or in the several local areas, provide opportunities for "reunion” gatherings of directors, officials, and members of all grades of the staff.

United Dairies dramatic and choral societies have been recently formed and enthusiastically supported, the initial public performance showing great promise and having been thoroughly enjoyed by large audiences.

Although financed in the first place by the company, the various clubs are largely self-supporting, and every care is taken to avoid any element of “ patronage” by the company.

In addition to its activities on what may be termed the social side of the work, the council is busily engaged upon schemes connected with welfare. These schemes, which include the provisions of rest homes and the establishment of savings clubs and superannuation, will in due course be submitted to the board of directors for consideration.

A house magazine, known as Our Notebook, is published quarterly, and serves to keep alive the family spirit which we regard as important in our large and widely spread family.


As business men you will want to know whether the financial results have been worth while. The following summary of these as shown by the balance sheets of United Dairies tells its own story:


Issued capital.


To June 30-1916..

1917.. 1918. 1919.. 1920. 1921.. 1922..

£932, 902

940, 155 2, 331, 489 2, 430, 681 3, 281, 336 3, 451, 241 3,908, 799

£66, 549 | 104, 795 1 153, 448 1 233, 444 ? 279, 668 : 356, 185

452, 691

1 Subject to excess profits duty.
2 Subject to excess profits duty and corporation profits tax.

There are over 12,000 shareholders to-day who are associated with the company.


Not less important, in my view, is the effect of our organization on public health, and I claim for United Dairies no small share in the improved mortality figures. The registrar general in his annual report for 1921, made the following statement :

The fall in infant mortality attributed to tubercle is so rapid and continuous that the disease is ceasing to be an important contributor to the death rate. This is the third year (United Dairies have been retailing 34 years) in succession recording a death rate below that of the previous years, and for tubercle as a whole the mortality is now only 30 per cent of that of 15 years ago.

London leads the large cities of the world in the lowness of its infant mortality rate.

The Times last fall drew attention to the fact that the infant mortality rate for the twelfth week in succession during the dreaded third quarter of the year was below 50 and that the Pasteurization of milk, carried out by United Dairies (Ltd.), was an important factor in reducing this rate, for it controls some 65 per cent of the total milk supply of the metropolis.

In London alone, our laboratory examines more than seven times the number of samples of milk and cream that are examined by the public authorities in the whole of England and Wales.


The Ministry of Health has recently recognized other standards of milk than butterfat and milk solids, and has propounded standards for certified grade A and Pasteurized milks. These standards necessitate a bottled delivery. All this is in the right direction and we welcome any wise legislation for the betterment of the milk supply.

Chairman MINER. I am very glad indeed that we have been able to have this paper. There is still a sufficient amount of time to be devoted to the discussion of it if you desire. Mr. Phillips announces he will be very glad to answer any questions.

Mr. WILLOUGHBY (of Florida). I would like to ask the speaker what proportion of the milk is being used for the manufacture of ice cream in the cities of Great Britain. In this country we find the making of ice cream one of the most remunerative parts of the industry. I was wondering if that trade was developing in other countries.

Chairman MINER. I think Mr. Phillips will take these questions down and then answer them all in one general discussion.

Mr. PHILLIPS. In regard to the ice cream, we put in a plant about 18 months ago, but in London the ice cream trade at present is practically nil. It is an industry which has to be fostered. There are various reasons why ice cream doesn't sell so readily in London as in America. Some say it is the dry atmosphere. We haven't been very successful at present. We find a seasonable trade for ice cream, but our weather conditions are so varying. We have a run on it for three or four days and then it goes flop. It is a business that has to be created and the demand has to be made, and we are taking a leaf from your book in that respect. We are doing advertising, and if there is anything in it we mean to have it.

Mr. Hough. What percentage of the milk produced in your country is used as fluid milk, and what percentage is manufactured?

Mr. PHILLIPS. As far as the United Dairies are concerned, it is about two-thirds fluid. We handle 12 per cent of the whole milk of the country.

Chairman MINER. Nobody seems to have paid much attention to that statement that was put out here which I thought would bring

I you all up on your toes, and that is that the infant mortality is less than in any city in the world.

Mr. GREENE (of California). The figures quoted, 50 to 100,000, don't substantiate that.

Chairman MINER. I don't question the figures, but I wanted to have them maintained. Any other questions?

Mr. Hough. It might be interesting to note, I believe, that New York City makes the same claim. One must be right.

Mr. LANE (of England). The statement as made, I think, is about right. We have also understood that London has the lowest death rate, and I am sure some of the divisions of London are extraordinarily small; but taking the whole of London.

Mr. GREENE (of California). Perhaps they don't figure the mortality on the same basis that it is figured in the United States. By infant mortality, do you mean infants under 1 year of age ? Mr. PHILLIPS. All deaths under 1 year of age. .

Mr. GREENE. One of the cities in this country which has the lowest rate was 32. I remember the figure, but not the name of the city.

Mr. PHILLIPS. Then we are beaten.

Mr. GREENE. And the year before we had a city with 28. member that because it attracted my attention that this last year the rate seems to be a little bit higher than the year before.

MEMBER. Did I understand the speaker to say there were 4,500 milk receiving stations in the country?

Mr. PHILLIPS. Forty-three.

Mr. SEXAUER. I would like to ask about the volume of milk that these creameries receive per creamery. I appreciate they vary considerably, but the volume of milk that is delivered individually.

Mr. PHILLIPS. From 3,000 to 15,000 gallons a day, imperial gallons.

Chairman MINER. With your permission now, I shall call for the reading of the next paper, “ Dairy and factory management,” by Prof. A. Peter, of Switzerland. Professor Peter, will you please come forward ?

Mr. A. PETER (director, Government Dairy School, Rütti-Zollikofen, Switzerland). I want to ask your pardon because I think Eng. lish is a language that is not very easy for me to speak, but I will try to speak as distinctly as possible so you can understand me.

I re


ALBIN PETER, director of the dairy school, Rütti-Zollikofen, Switzerland. The chairman of the program committee, Mr. L. A. Rogers, requested me to write a paper on “Factory management. "

Every dairyman, whether he be a helper, director, or manager, knows that there are two different directions in which he must

develop his knowledge; the first is the technical line, the second is established upon the economical questions of dairy management.

In the dairy literature these two domains have, until now, not been treated separately. Generally, the authors have, with some reason, preferred to write about the application of physics, chemistry, physiology, and bacteriology for the technical development of manufacturing processes.

The questions concerning the application of economical science for producing milk, for turning milk into products, and for the whole trade of milk and products have been treated until now more or less as a side line. Owing to these facts I thought that there was some lack in the dairy literature, and I tried to give a systematic collection and review of economic matters in dairying: A sufficient knowledge of the principal languages, together with the practical knowledge acquired by study trips to different countries, especially to the United States and Canada, allowed me to bring out my book 1 on a sound basis and to relate facts and instances observed under different conditions.

I beg to give here a summary of matters treated in my lectures, hoping this may arouse some interest in the English-speaking world.

The first chapter is titled "Allgemeine Wirtschaftslehre," which may be translated as “ General husbandry” or “General economy. "

I intend to give my students in this chapter a systematic and exact notion of economics, money and financial questions, banks, plan of management, etc. Then follows a treatise upon the function and application of work and capital as factors in the producing process. The chapter ends with a review of the modern forms of organizations (private enterprises, cooperative systems, pools, etc.).

The main part of my lectures is devoted to dairy husbandry, or more precisely to the questions of management of city dairies, condenseries, creameries, and cheese factories.

In this part a chapter is devoted first to “Production of milk." intending here to give my students the notion of the different conditions on which the producing of milk depends, it is to say climatic, geographic, and general agricultural conditions; then follow the questions of production costs, selling facilities, etc. In a couple

, , of pages I treat " The intensity of milk production"; this means the breeding of high-producing cows, the proper feeding of them, and the establishment of statistical data concerning the quantity of milk produced on a certain acreage.

A later chapter is titled “The milk supply” (Milchversorgung), relating to all questions concerning the supply of the population with fresh milk. Statistics concerning the relative milk consumption in different cities and countries are given. Then follows a treatise upon the different plans used in supplying cities with milk. the systems regulating the quantity to be transported every day to the place of consumption, the systems of sanitary control, and the means applied by the producer's societies and by law to insure a suitable and wholesome milk. A special chapter is devoted to the supply of infant's milk.

1 Peter, A. Milchwirtschaftliche Betriebslebre. Germany. Second edition, 1923.

Published by Paul Parey, Berlin,

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