months of the last year by nearly one and three-quarter million dollars. If the same proportionate increase continues throughout the year, its gross sales will approximate something like ninety million dollars for the present fiscal year.

Before I conclude, may I take a moment to explain why the pooling organization was necessary. It is a reorganization of the old Dairymen's League created by the old league to be its successor. The old league was a mere bargaining association. It negotiated prices with buyers; and with prices determined, members delivered milk directly to the buyer, receiving payment directly from the buyer. This made it necessary to sell all milk at the same price regardless of the uses to which it was put; otherwise there would have been discrimination against some of the members. The problem thus presented had so many factors as to be a most vexatious one, as will be readily seen if I can paint a picture of conditions as they then existed.

Here was a large territory in which the cost of producing milk by reason of climatic and other material causes was very high. The costs of production for all milk entering cities were increased by the rules of the boards of health of cities in which the milk was marketed. No complaint is made of these requirements. They are, as a whole, necessary and have resulted in supplying the people of the city of New York with the best milk of any great city in the world. Here enters another complicating factor, in that within such territory through the year there is about twice as much milk produced as is consumed in the cities in the fluid form. If monthly production were uniform in quantity, the problem would be less complicated; but in the territory, as a whole, during some years about 40 per cent of the year's production appears in three of the high-producing months, while during the low-producing months the volume of surplus is comparatively small, there being a gradually lengthening period in each year when milk must be diverted to the cities from manufacturing plants. From this it will be seen that much of the one-half of the milk annually produced that is manufactured must be produced and handled in accordance with the sanitary requirements of the board of health, thus again increasing the cost of producing the milk that enters such manufacturing plants, while the manufactured products, be it butter, cheese, evaporated milk, or powder, must, by such manufacturers, be sold in competition with these products made in other regions where production costs are much less.

All of these, and other factors that I will not take time to explain. made it imperative that a method should be devised by which milk used for consumption in the fluid form should bear a price fairly related to the cost of producing it, while milk sold to manufacturers must be on a price basis that would permit them to compete with others, therefore the "pooling plan" became imperative, and by it the association can now name to all buyers one price for milk that enters the cities, another price for that entering manufacturing plants, while by the pooling of the proceeds no member is discriminated against, since it is immaterial to all members whether their milk enters manufacturing plants or the higher price city markets. By this plan, farmers delivering milk to manufacturing plants par

ticipate in the benefit of the city markets, while those whose milk enters such markets, share their proportionate part of the burden of the manufactured surplus.

As this meeting must soon close, I will close this discussion, thanking you for your very courteous attention.

Chairman WILLITS. I am very sorry, indeed, to limit Judge Miller. We have three other papers on the list, but I don't believe any of the gentlemen are here. These papers will be read by title and will be published in the proceedings.

Mr. G. DALLAS. I have been asked to read the last paper.

Chairman WILLITS. I have the honor of introducing to you Mr. Dallas, of London, who will speak on "Milk collection, treatment, and distribution in the industrial cooperative movement of England," on behalf of Mr. A. Park and Mr. R. W. Royle.

Mr. DALLAS. I want to say the English Cooperative Wholesale Society, of which I am to speak, is a society created, in the first instance, by the Rochdale type of retail cooperative societies. There is no town in Great Britain of any size and no city in Great Britain which has not a retail cooperative society, and the retail cooperative societies have thousands of members in every city. These societies have in turn created a wholesale society. This wholesale society has world-wide ramifications. It owns thousands of acres of land in Canada. It owns thousands of acres of tea plantations in China and Ceylon, large bacon factories in Denmark, in Great Britain, factories of every description, flour mills, textile mills, clothing factories, soap factories, for every product that people need in order to live. The milk department is only one of their departments, and I am asked to read the paper because the representatives of the society can not be here.

MILK COLLECTION, TREATMENT, AND DISTRIBUTION IN THE INDUSTRIAL COOPERATIVE MOVEMENT OF ENGLAND.

ALBERT PARK, manager, milk department, northern area, and ROBERT W. ROYLE, traffic manager, English Cooperative Wholesale Society, Manchester.

In drawing up this paper we are dealing chiefly with the milk department as governed by the English Cooperative Wholesale Society, although reference is made in general terms to a portion of the distributive side of the movement, under the heading of "Distribution."

Our principal system of milk collection is by motor lorries working from our various milk depots within a radius of approximately 5 to 10 miles.

Empty 10-gallon churns, thoroughly cleaned and sterilized, are delivered direct to the farms or the roadside stand erected for such purposes, the full cans being collected by the same vehicle or vehicles and conveyed direct to the dairy.

Great care is exercised in the direction of seeing that the radius covered shall be as limited as possible, so that the minimum of time. shall elapse between the time of milking and receipt in the depot. Further, we also endeavor to work to a time-table as far as possible, in order to insure that milk shall not stand on any given platform, or at the farms, an undue length of time, and if the farmer does not

conform strictly to this time-table he runs the risk of not having his milk collected.

TREATMENT.

On arrival at the depot all milk is tested for acidity, after which it passes through an extensive and scientific process in order to insure that it shall be thoroughly clean, pure, and of the highest hygienic value. Up to the present at our depots milk is treated by the "flash" process of Pasteurization, thus raising the temperature to approximately 170° F., then is passed over a cooler and reduced to approximately 30° to 32° F. (Whilst there may be differences of opinion, even amongst expert dairymen, as to the wisdom, or otherwise, of the "flash" system referred to, it is more than likely that before the end of the year we shall have adapted ourselves to the "positive" or "holder" process, in order to conform to the requirements of the new Government order, and thus be able to continue the sale of Pasteurized milk.)

We have in operation a fairly elaborate system of index cards showing the continual daily records of farmers' tests for fats, dirt, etc., thus enabling us at any time to turn to a farmer's record under any of these heads for any given period.

In addition to this, we also make tests of every consignment of milk leaving the depot to distributive societies, both for fats and dirt, in order to safeguard ourselves against the possibility of prosecution through the milk being tampered with in the course of transit.

From the depot the milk is largely transported by rail, although in some cases, within a given reasonable distance, it has been found possible to transport by road more economically, and with a greater degree of satisfaction than by rail.

In the past the English railway companies generally have not given the attention to the provision of suitable vehicles for the transportation of milk which is requisite; as a matter of fact, it has been found no uncommon thing for milk to be transported in vans previously containing fish, and anyone in the business must know there is nothing so subject to collect either taste or smell as milk. Again, we have at times to contend with open railway wagons, without even sheets to protect the cans from the sun and dirt. The recent parliamentary report confirms this experience, and we believe the various railway companies will be compelled by force of circumstances to change their transport methods of this commodity in the near future. Road transport is in certain areas within the vicinity of large towns assisting in bringing about the change.

A food such as milk calls for the highest possible efficiency. Insulated railway vans should be provided. If this latter was an accomplished fact the country would undoubtedly be saved a tremendous amount of money when a period of hot weather is experienced. The loss to-day by souring, in consequence of the failure to provide the proper transport vehicles, is sometimes most appalling. This loss, it must be remembered, has all to be borne by the general public.

Where milk is conveyed by road, delivery is made direct to the cool chambers of the distributive societies, but when consigned by rail the milk will probably arrive at the destination station in the early hours of the morning, and has thus to stand some considerable time at the railway station awaiting collection by distributive so

cieties. Thus it will be seen that there is a like od of the milk being in a less fresh condition, having to stand out in the open and running the risk of being tampered with, than when conveyed by road as in the case just mentioned.

DISTRIBUTION.

The Cooperative Wholesale Society, having so far collected the milk from the farmers and passed it through the depots in the manner stated, it is then passed on to the distributive societies for sale to the members.

Here, now, we come across one of the best features of cooperation, i. e., the elimination of the problem of overlapping. Through the medium of the Cooperative Union of Great Britain the whole of England and Wales is mapped out in areas operated by the various distributive societies. Each one sells his goods in a given area; and each one being a distinct entity, the method peculiarly suitable to the district operated is adopted. Thus it will be gathered that with each distributive society organizing its own system of milk distribution, these are many and varied, but undoubtedly they have proved a success, and the trade in milk by cooperative societies is gradually increasing throughout the country.

To illustrate this point we give examples of three different methods of distribution obtaining with cooperative societies:

No. 1 is a society situated in a town with approximately 130,000 population; the number of members just under 40,000, and employees 1.400. This society commenced retailing milk in its raw state at the close of 1904 within the limits of its own dairy. Ten years later delivery was extended to three villages with a total population of 5,500, quite near to where the society's dairy is situated. With the exception of 250 gallons per day from the society's own herd, the whole of the milk is bought from some 90 producers, such farms being within a radius of 6 miles round the dairy, and the present supply is approximately 4.500 imperial gallons daily.

The society finds cans, and collects from 60 of the farmers, at a charge of 1 penny per gallon, and the remainder delivers direct to the society's dairy, and receives the full contract price agreed upon between the farmers and the society at a meeting called specially for the purpose.

The average monthly delivery from each farm during the months of November, December, January, and February, with 10 per cent added, is the quantity to be paid for at a full price during the six summer months. The surplus is paid for at a price agreed upon for manufacturing purposes.

The dairy and plant are situated 3 miles from the center of the town, and were erected at a cost of £8,000. Here the milk is cleaned, Pasteurized, and cooled prior to being put into cold store until the following day. Milk required for retail trade is conveyed by motor from the dairy to the depots in the borough, and given out to roundsmen (milk sellers with hand barrows) for distribution to customers. Each man has a district allotted to him, and is not allowed to sell in any other district. The extreme borders of the town are served by four horses and floats in charge of men whose headquarters are at the dairy, from where they obtain their supply of milk direct. Af

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ter serving their customers, the aforesaid horses and floats call at the town depots and collect any surplus returns from the barrowmen, and return to the dairy. These men are paid trade-union rates of wages, and a commission of one-quarter penny per gallon on all milk sold. Their average sale is about 5 per cent of the total milk sold, thus leaving 95 per cent distributed by barrows in charge of 75 men and 10 women, on a commission basis. In pre-war days the commission was 11⁄2 pence per gallon on all milk sold (females paid the same as males), but during the war the commission was advanced to 34 pence per gallon, and at present it is 23 pence per gallon. The men in charge of the horses and floats work 48 hours in the seven days. It should be specially noted that milk is delivered only once in each day.

When the roundsman is receiving payment for milk, a check, or receipt, is made out in the presence of the customer, showing the member's share number, also the roundsman's number, and the progressive number of each check made in the roundsman's book, as well as the amount paid. In addition to the check given to customer, there are two carbon copies left in the book, and these must be returned, with cash, to the society's office, for purpose of checking cash and posting the amounts spent on milk by each member.

In the first full year, 1905, the average number of gallons sold per roundsman per day was not more than 15. After the first 5 years this average had increased to 25 gallons; at the end of 10 years the average was 30 gallons, whilst at the end of 1922 the average was 36 gallons.

During the months of May and June, when milk is at its highest point, an average of 40 gallons is reached, without any extension. of the time worked by the roundsman over and above that of 1905. This result has been obtained by increasing customers in the same street, until in some cases full work is found for a roundsman in one street only; others there are who serve two streets only, which adjoin each other.

The following are the amounts bought and retailed each year. with purchase and retail prices per imperial gallon. Surplus milk is made into either butter or cheese, and in some cases sold to neighboring cooperative societies engaged in retailing milk. All expenses incurred in converting surplus between purchase and retail amounts are included in the following: