+326. Comparison of methods.+--The best way to judge the different methods of paying for milk is to compare them with the true value based on the actual cheese yield as shown in Table XXIX.

TABLE XXVIII

SHOWING PAYMENTS FOR MILK BY FAT-PLUS-TWO METHODS

=========================================================================== PATRON

POUNDS

PER CENT

FAT PLUS

POUNDS

VALUE OF

AMOUNT

OF MILK

OF FAT IN

TWO

OF FAT

POUND OF

DUE EACH

DELIVERED

MILK

DELIVERED

FAT

PATRON -------+-----------+-----------+----------+-----------+----------+--------- A

100

3.0

5.0

5.0

$.353

$1.76 B

100

3.5

5.5

5.5

.353

1.94 C

100

4.0

6.0

6.0

.353

2.12 D

100

4.5

6.5

6.5

.353

2.29 E

100

5.0

7.0

7.0

.353

2.47 ===========================================================================

TABLE XXIX

SHOWING THE COMPARISON OF THE DIFFERENT METHODS OF PAYING FOR MILK AT CHEESE FACTORIES

================================================================

ERROR IN PAYMENT PER 100 POUNDS OF MILK BY PATRON

PERCENTAGE +----------------+-----------+--------------

OF FAT IN

POOLING SYSTEM

FAT BASIS

FAT-PLUS-TWO

MILK

METHOD -------+------------+----------------+-----------+-------------- A

3.0

+$0.46

-$0.08

+$0.10 B

3.5

+0.23

-0.04

+0.05 C

4.0

0.00

0.00

0.00 D

4.5

-0.23

+0.04

-0.05 E

5.0

-0.46

+0.08

-0.10 ================================================================

A careful study of the above table shows that the pooling system is in favor of the dairy-man with the poor milk, and that the fat basis favors the dairy-man with the rich milk. This is due, of course, to the fact that the casein does not increase in the milk quite in proportion to the fat. With the pooling system or fat basis of payment, no account is taken of the casein; but the fat-plus-two system is an attempt to recognize the casein, but considers the percentage of casein in all milk to be the same. This method is in favor of the dairy-man with milk low in fat, but not to the extent of the pooling system. The latter system considers the cheese-producing power of all milk to be the same. It favors the dairy-man with low-testing milk. The fat basis for payment recognizes only the fat and is an advantage to the dairy-man with the high-testing milk but not to the extent that the pooling system is in favor of the low-testing milk. The fat-plus-two method recognizes 2 per cent of casein in the milk. This favors the dairy-men with low-testing milk. Other methods[136] of paying for milk have been devised. Because the actual yield of cheese from the milk of different herds cannot be easily determined at the cheese factory, this method of payment cannot be employed. In localities in which all the dairy-men have the same breed of cattle and there is not a wide variation in the fat percentage, the fat basis is usually found to be the most satisfactory way to pay for the milk.

+327. Laws governing the production and sale of milk.+--Many states have laws regulating the sanitary conditions under which the milk may be produced. These laws relate princ.i.p.ally to the condition of the stables, the health of the cow, the food given the cow, and the care of the milk.

The following law[137] of Wisconsin is a good example:

"Adulterated milk, what const.i.tutes. Section 4607a. In all prosecutions under the preceding section, or any other section of these statutes, or laws amendatory thereof or supplementary thereto, relating to the sale of adulterated milk or adulterated cream, the term adulterated milk shall mean: milk containing less than three per centum of milk fat, or milk containing less than eight and one-half per centum of milk solids not fat, or milk drawn from cows within eight days before or four days after parturition, or milk from which any part of the cream has been removed, or milk which has been diluted with water or any other fluid, or milk to which has been added or into which has been introduced any coloring matter or chemical or preservative or deleterious or filthy substance or any foreign substance whatsoever, or milk drawn from cows kept in a filthy or unhealthy condition, or milk drawn from any sick or diseased cow or cow having ulcers or other running sores, or milk drawn from cows fed unwholesome food, or milk in any stage of putrefaction, or milk contaminated by being kept in stables containing cattle or other animals.

The term adulterated cream shall mean cream containing less than eighteen per centum of milk fat, or cream taken from milk drawn from cows within eight days before or four days after parturition, or cream from milk to which has been added or introduced any coloring matter or chemical or preservative or deleterious or filthy substance or any foreign substance whatsoever, or cream from milk drawn from cows kept in a filthy or unhealthy condition, or cream from milk drawn from any sick or diseased cow or cow having ulcers or other running sores, or cream from milk drawn from cows fed unwholesome food, or cream contaminated by being kept in stables containing cattle or other animals, or cream to which has been added or into which has been introduced any coloring matter or chemical or preservative or deleterious or filthy substance or any foreign substance whatsoever, or cream in any stage of putrefaction, provided, that nothing in this act shall be construed to prohibit the sale of pasteurized milk or cream to which viscogen or sucrate of lime has been added solely for the purpose of restoring the viscosity, if the same be distinctly labeled in such manner as to advise the purchaser of its true character; and providing that nothing in this act shall be construed as prohibiting the sale of milk commonly known as 'skimmed milk,' when the same is sold as and for 'skimmed milk.' Milk drawn from cows within eight days before or four days after parturition, or milk to which has been added or into which has been introduced any coloring matter or chemical or preservative or deleterious or filthy substance, or milk drawn from cows kept in a filthy or unclean condition, or milk drawn from any sick or diseased cow or cow having ulcers or other running sores, or milk drawn from cows fed unwholesome food, or milk contaminated by being kept in stables containing cattle or other animals and cream from any such milk, or cream in any stage of putrefaction are hereby declared to be unclean and unsanitary milk or unclean and unsanitary cream, as the case may be."

Most states have laws which determine the legal standard of milk. Any one selling milk which does not meet this standard is liable to be fined. The laws of most states prohibit the taking of anything from the milk or the adding of anything to it. This prohibits the skimming and watering. Skimmed-milk must be sold as such.

+328. Marketing of cheese.+--There are many different methods[138] of selling cheese. Each is adapted to certain conditions and each has its advantages and disadvantages. In cheese sections, the customary method of selling is on the board of trade, which is the meeting of the cheese-buyers and factory salesmen. They meet at a given place at a certain day and hour each week. Every board has its officers. There are different ways in which a board of trade may be operated. In some cases there is a large blackboard divided into columns. In the first column, the salesman writes the name of the factory and the number and kind of cheese offered for sale. At the top of the other columns are the names of the different cheese-buyers. The president usually opens the sale at a stated time and asks that all cheese be placed on the blackboard. When this is done he states that they are ready to receive bids on the cheese. The buyers then write the price a pound they wish to pay opposite each lot of cheese and in the column headed by their names.

After all the bids have been received and placed on the board, the presiding officer states that a certain length of time, usually fifteen minutes, will be given the salesman to withdraw his cheese if he does not think a high enough price has been offered; this is indicated by the salesman stepping to the blackboard and erasing the factory name and number of boxes. At the close of the stated time, the presiding officer declares the cheese offered on the board sold to the highest bidder. The purchaser then gives the salesman directions for shipping.

Sometimes a board of trade has a committee of one member elected by the factory salesmen and one elected by the cheese-buyers. These two members elect a third and these three const.i.tute the price committee. This committee meets each week and determines what the price shall be. This is known as the ruling. The factory salesmen and cheese-buyers then try to make private sales. By this method no one, except the persons concerned, knows exactly what price is paid for the cheese. Usually, a price above the ruling is paid.

At Quebec, Canada, there is a cheese-selling organization with government a.s.sistance. On paying a certain fee, any cheese factory may join. All the factories belonging to the organization ship their cheese to a central cold storage where the cheeses are examined and graded by a government inspector. A cheese from each vat is tried. These cheeses are separated into white and colored lots, then graded according to quality.

When the total number of cheeses in each lot is known, the lots are sold at auction. The purchaser must accept the cheese as graded. The better grades of cheese bring about the same price as on the market, but the advantage lies in the selling of the lower grades. Ordinarily, the purchaser takes advantage of the salesman when the cheeses are undergrade. The success of this plan depends on the accuracy of the person grading the cheese. This method seems to be growing in popularity, because the cheese-buyer can purchase large amounts of cheese at one time and be sure of the quality. A small fee, about one-twelfth of a cent a pound, is charged for handling the cheese.

Similar organizations are in operation in Wisconsin. The boards of trade and selling organizations deal almost entirely in Cheddar cheese.

+329. Mercantile exchanges.+--In the larger cities are exchanges where cheese is bought and sold by jobbers. This cheese is mostly Cheddar. The prices paid these jobbers tend to fix the daily price of cheese. These prices are published daily, for example, in New York Price Current. Some factories ship their cheese directly to these jobbers. The following are the cheese rules of the New York Mercantile Exchange adopted May 4, 1915:

CHEESE RULES OF THE NEW YORK MERCANTILE EXCHANGE

Rule 1. At the first regular meeting of the Executive Committee in each year, the President shall appoint, subject to the approval of the Executive Committee, a Cheese Committee to consist of seven members of the Exchange, who are known as members of the cheese trade, to hold office until their successors are appointed. It shall be the duty of the Cheese Committee to formulate such rules and regulations as may be necessary for the government of transactions between members of the Exchange, and to revise the same as circ.u.mstances may require. Such rules and revisions shall be subject to the approval of the Executive Committee.

Rule 2. All transactions in cheese between members of the Exchange shall be governed by the following rules, but nothing therein shall be construed as interfering, in any way, with the rights of members to make such special contracts or conditions as they may desire.

Rule 3. If a sale is made from dock, or platform, or to arrive, the buyer shall a.s.sume the same relations toward the transportation line by which the cheese arrives, as the seller previously held as regards its removal from the place of delivery within the time granted by such lines for that purpose. Transactions between members of this Exchange shall be governed as follows: Any member negotiating for any lot of cheese belonging to another member, the price having been agreed upon, shall examine such lot of cheese within twenty-four (24) hours after such negotiation takes place. Failure to examine within said time releases the seller from any obligations to make delivery thereafter, if he so wishes.

Rule 4. In the absence of special agreement, all cheese purchased "in store" shall be understood as being ready and designed for immediate delivery, but the buyer shall have twenty-four hours in which to have the cheese inspected, and weight tested, and shall not be liable for the storage and insurance, if removed within two days.

Rule 5. When cheese are sold to arrive, or from depot or dock, the cheese must be accepted or rejected within six business hours after notice of actual arrival to buyer.

Business hours shall be understood to be from 10 A.M. to 4 P.M. If buyer rejects the same, he shall state the reasons for rejection. Should the rejection be considered unfair, the seller shall at once notify the buyer that he declines to accept such rejection; and he may call for a Committee, which shall be composed of three members of the cheese trade; the seller choosing one, the buyer one, and the third selected from the cheese trade by these two, or, they failing to agree, the third shall be appointed by the Chairman of the Committee on Cheese. The Examining Committee shall at once inspect the lot of cheese in dispute, sampling not less than five (5) per cent of each mark or factory, and they shall immediately give their decision in writing to both parties. Either party failing to abide by the decision of the Committee may be summoned by the other party before the Complaint Committee under Section 24 of the By-laws. The fees for each examination shall be six ($6) dollars, to be paid by the party adjudged to be in fault.

Rule 6. The weight of all cheese shall be tested by a regularly appointed official weigher, and his certificates shall accompany the doc.u.ment conveying the t.i.tle of the property. Said official weigher to be appointed by the Committee on Cheese, subject to the approval of the Executive Committee.

Rule 7. The weigher's fee shall be twenty-five (25) cents per factory except where the owner requires more than ten (10) boxes be tested in which case the fee shall be fifty (50) cents, which shall be paid by the seller.

Rule 8. Unless otherwise agreed upon in testing the weight of cheese, not less than five (5) boxes or more than ten (10) per cent of the whole lot shall be a test, and said test shall be considered good for three (3) business days, including day test is made.

Rule 9. In testing weights, all over and short weights shall be taken into the average on each particular factory. Single Daisies shall be tested on half pounds, Double Daisies and all other sizes on even pounds.

Rule 10. Where a lot of cheese is found to test irregular in weights, either the buyer or seller may require the entire lot to be reweighed. The charge for same shall be three (3) cents per box.

Rule 11. Boxes of cheese which may be found largely at variance from original weights shall not enter into the average, but their weight shall be separately ascertained and certified to by the weigher.

Rule 12. Where sales are made, and the buyer finds damaged or sour cheese in excess of fifteen (15) per cent it shall be optional with him to refuse or receive the remainder of the lot purchased. But, in the event of his accepting the remainder of the lot, the sour or damaged cheese shall revert to the seller.

Rule 13. The Committee on Cheese shall appoint subject to the approval of the Executive Committee, a Cheese Inspector and also a Deputy Inspector, whose duties shall be, when called upon by members of the Exchange, to inspect the quality and condition of such lots of cheese as may be required and to render a certificate of such inspection. Where the cheese in the lots are reasonably uniform in quality, the examination of 10 per cent of the lot shall be considered sufficient, but this shall not prevent the Inspector examining a larger percentage of the lot, when he deems it necessary. The fee for inspection shall be fifty (50) cents for lots consisting of fifty (50) boxes or less. Lots exceeding fifty (50) boxes shall be one cent per box, which shall be collected from the member ordering the inspection.

Rule 14. The Cheese Inspector's certificate shall be made to read as follows:

NEW YORK MERCANTILE EXCHANGE

_Cheese Inspector's Certificate_

Inspection No.__________

This is to certify that I have this day inspected for M___________ the following cheese, now located at_____________________ Factory and identification marks_________________________ Quant.i.ty in lot__________________________________________boxes Quant.i.ty inspected_______________________________________boxes and find as follows: Flavor_______________________________________________________________ Body and Texture_____________________________________________________ Color________________________________________________________________ Condition____________________________________________________________ Boxes________________________________________________________________ Grade________________________________________________________________ Inspection charges________________

_____________________________________Inspector_

The certificate to have a blank margin of three inches at the bottom, for the purpose of inserting specifications of Inst.i.tutions, also for cheese sold under the Call, so that the Inspector may certify that cheese inspected fill the requirements as specified and the Inspector shall brand one impression on both boxes and cheese.

NEW YORK MERCANTILE EXCHANGE

OFFICIAL INSPECTION

Number_______________ Date___________________________

____________________________Inspector_

Rule 16. The Weigher's Certificate shall be made to read as follows:

This is to certify that the following is the actual test of ______ boxes, out of shipment of ______ boxes

Factory Mark___________________________________________

Marked Weights_________________________________________

Actual Weights_________________________________________