yo Ae mer eevee ARS tear Co co ea kat eo fe a Ae wen SDH D: : PR EA Ne d aoa —- rer PA Ose Rot Seren co ae ey pee are Am AAA ALN A + Stet ® a mope Co ~ sxhxceatonenthe yey 58 ers ty ewerereey reat Y ate SSO rs APLAR RA Ae oe ~~ Peer eN Serer es NAAN ete ~~ 9.2550 a aoe eee ; Creer wee eer ot) Se ee yt —~ Sorct rs AA ANAS Se ereriny ey) A So a AA ASAE RAL AURA oy a gm ieee, tet i) re ne ears ~. peers : Pe or i teal oes a hatgr. =... Gopyright Fo... shalt Shed) . NS ITED STATES OF AMERICA. UN a2" * Sea ee rd Bae DETERMINATION OF THE PRICE OF MILK ON THE RELATIVE VALUE PLAN AND THE COMPUTATION oft VALUE OF ANY AMOUNT OF MILK FROM to CENTS TO $t.60 PER CWT. FOR THE USE OF M36 %W'! Greameries and Gheese Factories. ee p= eas Je re pen cles axsge Ponte Ee Se ation Sk: | i Sa ee ry Co. LA PORTS crivyzy, Iowa, 1691. PREFACE. i Co ———_ +o T IS quite customary for persons to write books on certain subjects, and then offer as an apolegy for so doing that they had not discovered a practical treatise on the same subject in the market, which shows a lack of industry on their part and a want of appreciation of what has already been published, or an unwillingness to do justice to those who have already written upon the same subject. Adinitting that the field of discovery yields every now and then eee a parently new and wonderful, yet it is in very many instances only some old idea and principle in a new garb. An thus the author does not claim entire originality, but having due respect to what has already been said and done in the line of work of which this is a part, has attempted the grouping of a few well-known facts and principles into such a shape that they may be readily used in many of the various calculations necessary to be performed by Creamery Company Secretaries and Book-keepers, which will not only greatly expedite the work, but ensure greater accuracy. In order to enhance its value to many into whose hands it may fall, it was thought best to give a brief description of the methods adopted at the creamery of which the author has charge, especially in regard to the manner of working upon the test plan, that being the only known plan by which the patrons of a creamery or cheese factory may be justly paid for their milk. The test plan was experimented with during the years 1889 and 1890 by using Short’s Test and also the Iowa Experiment Station Test, or Prof. Patrick’s Test as it is more commonly known. In January, 1891, Dr. Bab- eock’s Test was tried and found so satisfactory that on February 1st it was resolved that all milk should thereafter be bought on the Relative Value Plan, and during the succeeding seven months the results have been remarkably satisfactory not only to the company but to nearly all the patrons, in both a financial and a moral point of view. In the refrigerator or cold room, on a shelf, is placed as many Mason’s fruit jars (pint or quart size) as milk pat- rons of the creamery. The covers of the jars are numbered with black enamel paint. A rack with an equal number of nine-inch test tubes is provided and placed on a shelf or stand at the weigh can, the tubes being so arranged in the rack, . 5 . nd that by commencing at one end or corner, they may be filled continuously. Into each tube during the afternoon of the day before, or at least before commencing work, is first put about as much preservative powder as would equal in size a small kernel of corn; * a small dipper 1} inches in diameter, 14 inches deep, with a bent handle is hung upon the edge of the weigh can. ’ The milk sheet (Figure 1) is prepared by writing upon it all the names of the patrons and assigning to each a number, which should be the same at least throughout the year, and although the names may be arranged differently from time to time on the milk sheet, yet each patron should preserve his own number; and finally provide a tablet printed and ruled as in Figure 2 with numbers and spaces from one to one hundred or more according to the number of patrons. All things being in perfect readiness for operation, suppose E. F. is the first patron to arrive in the morning with * The formula for the powder may be, Powdered Corrosive Sublimate, 1 lb., fine dairy salt, % lb., Rose Aniline Pink 3B, 4% oz. This formula is that given by Prof. Patrick, of the lowa Agricultural Experiment Station. The above should be thoroughly mixed and kept dry ina glass dish or bottle until used. The total cost of testing each patron's milk by this method, using Dr. Babcock’s test, does not exceed one cent each, per month. It is unnecessary to say that this is a poison and that care should be exercised in its use. ae milk, the moment the milk is emptie] into the weigh can, and while in a state of agitation, the operator takes from the rack. of test tubes the first tube and pours into it a dipperful sample of the milk, then, holding the tube in his hand till he has weighel the milk and opened the gate, he turns and puts the tube into the first place of the rack and sets down the weight of the milk in the day column opposite his name on the milk sheet and notices at the same time the number assigned to him, which number he places in the first blank space on the tablet opposite the printed number one. And thus the work is carrie on till the end of the run, when the printed numbers preceding the written numbers on the tablet should correspond with the number of milk deliveries and with the number of filled test tubes in the rack, and the written numbers corresponding to the patron’s numbers and also showing the order of delivery for that day. Since the samples have thus all been properly treated with the preservative, they will remain sweet for an indef- inite time and where skim houses are used, the bottles all having been washed and treated to a dose of the preservative before being sent out from the main factory, the samples, being carried in a driver’s case, always come in in good shape, and it is here that a point may be scored for this plan, for only enough preservative powder is used to be effective, with- out waste of material as would be the case if a large quantity were put into the jars not knowing in advance how many samples were to be or could be taken during the month. So after the run and at the leisure of the operator the rack of tubes and the tablet are taken into the refrigerator, when the tubes, beginning in the same order in which they were filled, are emptied into those jars of the same numbers corresponding to the written or patron number of each tube as shown by the tablet. And thus the operation is repeated from day to day, or as many times as deemed advisable during the month. Then a test is to be taken of the milk in each of the jars its number and quality being recorded, thus obtaining as close an approximation to the true average monthly test as is desirable under ordinary circumstances. As the Creamery is operated upon the semi-co-operative plan, it became necessary after deducting all expenses and the stipulated monthly interest to have a basis upon which to divide the proceeds, it was determined to use as such the selling weight of butter made, or what may be termed marketable butter, but the Babcock test showing only the actual amount of butter fui which is about 11 per cent less than the amount of butter yielded by the churn and worker. A few trial tests were made by increasing the amount of milk taken as a sample for a whole day’s run, and es gr results until they agreed when it was found that instead of taking but 17.6 ¢. ¢. of milk, about 19.5 ¢. ¢. were used, and, by the way, the results have been very close, indeed, usually less then .03 per cent. A new mark was then made upon the pipette and graduate, the increased size of sample being used, otherwise the test is used according to its accompaning directions. To make up the Pay Roll a sheet of paper is ruled into nine columns as in Figure 3. The names of the patrons are written in their order, the total amount of milk delivered by each is placed opposite in the third column and that followed by the test in the 4th column which was previously noted, next comes the determination of the price which is accomplished in agcordance with the directions preceding the Relative Vulue Tables of this book, then the computation of the amount for the milk as per directions preceding the Computation Tubles herein given. In the seventh column is summed up all charges of the company for hauling, butter, ete., which are to be deducted from the amount given in the sixth column, and the remainder being the net amount due the patron to date is placed in the eighth column and the check number put into the last. The footings of the third, sixth, seventh and eighth columns give a general summary ot the month’s work. Some of our creamerymen, or perhaps more properly speaking, some who are agitating the matter of the relative ek COL SSS. ee SSSSSSSSSSSSSSSSSSS_SSSSSSSSSSSSS= value plan, think that the butter fat should be the basis of payment for milk, but when we realize the fact that but few of the thousands of milk producers understand the meaning of the term butter fat, and too when the money used to pay the patron was brought into the treasury of the company through the medium of account sales which report so many pounds of marketable butter, that article so well known to all the world, why not use it for the basis of all computation? Why not have a uniform standard for both the commissionman or merchant and the dairymen? Why use a blind term for one and not for the other? Most assuredly the author acknowledges the im possibility of obtaining a test that will give the true per cent of butter yield under all the varying circumstances —different localities, skimming, separating, creamery churning and pack- ing of the butter—but anyone capable of properly managing a Creainery should be able ina few days of careful experi- menting to be able to get his test and churn to agree very closely, and once they agree he can safely work, and although he may be a few dollars ahead or behind in any one month it is very easy to add it to or take it from the proceeds of the next month so that none would be deprived of their just dues, however small for more than a month, and it is indeed vain to seek for absolute accuracy in most lines of business, but the author is of the opinion that we should be satistied with near approximations. However, if any should choose to use the butter fat as a basis, the author does not object, for the tables are of equal service for that plan as well, the only change necessary in making the pay roll is to rule an extra column between the fourth and fifth columns of Figure 3, (of course using the test | Babcock or any of the standard] at its rated mark as determined by the manufacturer). [See Figure 4.,| Having the amount of milk and the test, by using the Computation Tables the pounds of butter fat are easily determined, and then proceeding as outlined elsewhere. As will be observed the aim of the author has been to assist his co-laborers by letting the lights shine and providing a means for facilitating the work of the many computations devolving upon the creameryman, realizing the fact that the eritic has a sharp eye and that differences of opinions exist, the author trusts for charitable treatment at the hands of the reviewer and if he has in any degree succeeded in removing the difficulties of the work for his brother secretaries and book-keepers, or has brought to light any new ideas or schemes that will be of material help to anyone, he will feel amply rewarded for his efforts. i Mala. La Porte City, Iowa, July 10th, 1891. ; ACCOUNTIOE. ooo osca sce cresntesnees CREAMERY. 1 21 41 6 81 For Week Ending............ reek. i Aa 5 7 2 22 42 62 82 Name | No Mon Tue|Wed| Thu| Fri | Sat | Sun| | | Name! No |Mon| Tue|Wed| Thu] Fri | Sat Sun| 3 23 a 63 83 - =| im : | | < =| = : : wells sene| eve cofaccalla ure cen a ae A Se aa | z Alisa ae | cals eae | Rated | | | | | < | a | | | | * 5 25 45 65 85 FIGURE |. i FIGURE 2. No j|__Name | Milk _Test | Price | Amount | Charges — 2 Check |Check No. No. | Name | Milk eet EUGen Fat] Price Amount | Charges Check Check No |- a es Hine con eles Es amt Teeies S| ; rd et : rn faa edeoe aoe == | | = 2 J iz Ses ee | } | it | pe | “armel FIGURE 3 FIGURE 4. ‘Relative Value ‘T'ables. Ce Aa Directions for Use of the Wallies. Inasmuch as 4 per cent test is about the average for the ordinary grade of milk during the year it may be said that standard milk will yield a test of 4 per cent and then by finding the relative value of standard milk at any time it becomes an easy task to determine the price of any other quality for the said time. In this determination it is necessary, however, to recognize a standard for the test that shall be uniform in all the work. The words fer cent must mean so many pounds of marketable butter, or of butter fat, per hundred pounds of milk, according to the custom of the man- agement at the locality of the computator. To determine the price of standard milk of 4 per cent test (either butter fat or marketable butter), ascertain the total amount of all receipts of money forthe month, or such period as may be required in making up the pay roll, from the receipts deduct all expenses for labor, fuel, repairs, interest and other allowances, when the balance will be the amount to be paid out for milk. Find how many pounds of butter have been made (or pounds of butter fat have been bought) during the time specified. Divide the amount to be paid out for milk by one-fourth the number of pounds of butter (or butter fat) made during the said time and the quotient will be the Arzce sought to be paid for standard milk. Now, to find the price of the various patrons’ milk depending on the test, use the following table: Look along the horizontal line of figures from 4.0 in the Test column, until the price given by the above rule is found. [This line of figures enclosed as it is between two horizon- tal red lines gives the prices of s/andard milk from 35 cents to $1.20.] The vertical column in which it stands contains the prices per hundred. for milk of the various Zes/s indicated in the Test column on the corresponding horizontal lines. To price milk showing less than 3.0 per cent test, find the price by the table, of milk double the actual test and divide that price by two In order to avoid labor when using the yield of butter actually made, as a basis of computation, the test may be made to agree with the churn after a few trials by noting carefully the results and increasing or diminising the amount of milk used as a sample in the testing appa- ratus, and when the tests are correct the above rule is true and applicable for all creameries, private, stock companies or co-operative. Illustration.—Suppose a creamery receives during a month 478,980 pounds of milk from which is made 20,120 pounds of butter, and which yields by the sales account exclusive of freight and commissions $4,720. The total expense of labor, fuel, repairs, etc., is $340, leaving $4,380, to be paid out for milk. Dividing $4,380, by '% of 20,120 the pounds of butter made, and we have $4,380 —~— 5,030 = 87 cents, the price of milk making 4 pounds of éuffer per cwt. of milk, or if the total number pounds of butter fat* was 20,120 then by same manner we would obtain the price 87 cents for 4 per cent ¢est of butter fat. Now to find the price of milk testing 4.2 looking in the table for 87 in the line of prices of standard milk, as by the suggestion above, we find in the same vertical column for 4.2 a price of 91 cents and so too for milk testing 3.4 the price is 74 cents per hundred. *See illustration in the preface. Se eee "PRICE ( OF MILK PER 100 POUNDS, IN CENTS. = MILK PER 100 POUNDS, IN CENTS. a 2 é : 40 41 42 B 42 42 43 é 2 43 44 44 5 5 44 45 45 orl or t i) or or oF 1G 8 or ot on pore or ot ot PRICE OF MILK PER 100 POUNDS, IN CENTS, ou wo be ot ot ot Ss wm to or ot or “St ow or or ot St ot i) Si | o or ou Caleb w elses 75 acta 79 81 83 85 | PRICE OF MILK PER 100 POUNDS, IN CENTS. Soe tre swe ee 109 ee ZO Computation ‘ables. SSS Directions For Use of the Gomputation Vabklies. As will be observed the page corresponds to the price. The first vertical column and the alternate ones thereafter, as set off by the red lines containing the consecutive numbers from one to one hundred and fifty inclusive, represent the number of hundreds of pounds of milk, and the figures immediately following in the next column give the value in dollars and cents of the corresponding number of hundreds of pounds at the price indicated by the page number upon which the numbers are taken. The figures in the first vertical column to the right of the heavy line (two red lines and a blue one) and the alternate ones following con- taining the consecutive numbers from one to one hundred inclusive represent so many pounds of milk, the value of which in cents is shown by the numbers immediately following in the next column; fractions of cents less than 7-10 being dropped. Illustration —To find the value of 2,347 pounds of milk at 11 cents per hundred weight. On page 11 in the first vertical column find the number 23, and the number $2.53 in the adjoining column is the value of 23 hundred pounds, then looking for the number 47 in the second column of pounds to the right of the heavy line the value of 47 pounds is 5 cents, which added to $2.53 gives $2.58 as the value of 2,347 pounds of milk at 11 cents per hundred weight. Again, the value of 12,986 at $1.13 per hundred weight is found on page 113; by taking the value of 129 hundred pounds which is $145.77, adding to it at a glance the value of 86 pounds which is 97 cents, giving $146.74 the amount required. For amounts above 15,000 pounds, divide the number into periods of two figures each, and find value of each period separately. Example—Find value of 1,364,879 pounds at 89 cents per hundred weight. The number pointed off will be 136,48,79, on page 89 we find value of 136 hundred hundred pounds to be $12,104. The figures in the table giving value in whole dollars since hundreds of cents make dollars. The value of the next period 48 hundred is $42.72 and the value of the last period of 79 pounds is 70 cents all of which makes $12,147.42. for cream gathering Creamevies, the tables will answer quite as well by considering the number of inches instead of hundreds of pounds and using only the left hand portion of each page. Zo compute value ofary anount of crean, take out the value of the hundreds of inches which will be in dollars, and to it add value of the number less than one hundred, which will be in dollars and cents. Example.—F ind value of 2987 inches of cream at 11 cents per inch. On page 11 take out value of 29 hundred inches which is $319 and to it add value of 87 inches as shown in same part of the table to be $9.57 and we have $319 plus $9,57 equals $328.57 the amount required. After a little practice the several values sought can all be taken and added mentally at a glance thus expediting very much the labor of making up pay rolls. If the relative value plan is adopted and the basis of the computation for pay roll be the pounds of butter fat instead of the actual num- ber of pounds of butter churned, then use the tables in same manner as just indicated above for the cream gathering system. Illustration.—A. B. delivered during the month 13846 pounds of milk which gave an average test of 4.3 pounds of butter fat per hundred pounds of milk, what would be dughim when butter fat is worth 21 cents a pound ? On page 43 we compute his number of pounds of butter fat. 138 hundred at 43 = 5934, and 46 pounds = 20, giving a total amount of 5954, but our multiplier should have been 4.3 instead of of 43, hence our result should be divided by ten, giving a true result of 595.4 pounds of butter fat. Now, on page 21 the page corresponding to the price, we find by considering the number 5954 as a whole, that 59 hundred pounds at 21 cents would equal $1239, and 54 pounds, taken from left portion of table as mentioned above equals $11.34 giving total amount of $1250.34, but having considered our number of pounds as a whole number, the result is ten times tod great, hence removing the decimal point one place to the left we have $125.03 as the value of A. B.'s milk. Expressing the test in tenths, which is surely sufficiently accurate, thus calling 4.3 forty-three, or 3.9 thirty-nine, the above calculation of the amount of butter fat, when the amount of milk and the test is given would be greatly simplified. After thus entering the several amounts of butter fat into the pay roll, by footing the column, the total amount of butter fat received during the month is readily shown and as elsewhere suggested it is easy to determine the price to be paid per pound, always figuring to the nearest whole cent and if any surplus exist, it will be very small and can be added to the next month's proceeds. © oeleo SS 8 8&8 SIS FS DB F&F @ 10 _ = thet — a — ann an hl ee ew lee ell Os wo w | _ ~ _ - ~ ~- _ _ ou = oo b ~I > - bo > 9 23 9 36 9 49 9 62 975 7 7 7 8 8 8 8 8 8 8 8 9 9 9 | 9 9 9 9 9 10 wo ow | ow bo chee et hae far fer | ee ie we hela ae noe ee cc zu “i = = | —_ ts | | -_ to _ Ls) _ te _ to —_ se ee | | _ _ —) nn — el — ee | | | | -~_ wo ww WwW OO Ow wo wo Ww Ww ww ww ~_ st) 47 21 66 83 oso 6 8& S&S BS} Oo OD F&F BD @W ao wa wo HX ~ -» »- |e ww or or a oO w a ee or or iw ow 3 | 3 a | 4 4 4 4 ao on , ) + 31 31 25 =I Ca @ ~ le) ao S — et — = 2 2 2 3 3 3 - ple _ co —) 2 60 3 90 4 1 20 12 60 13 20 14 20 15 50 16 4 80 17 5 10 18 5 40 19 5 70 20 6 00 21 6 30 22 6 60 | 23 6 90 | 24 7 }20 | 2 3 3 3 4 4 + 4 1 1 1 2 2 2 3 3 3 4 4 4 36 04 | 36 88 , 8 72 36 72 ! 9 06 37 ee —~ ee ae Ls ee | 7 fon) oe © Oo 33) 95 34| 30 34 65 | 35| 00 | @ a ——— ee 43 430 44 44 43 | 86 29 72 15 64 50 39 37 Gt | 1 a1 Y-} 3) 2} 30] 11 4 48 26 |12 |51 | 24 | 76 | 86 cw ies eo erg 2s |18 |53 | 26 38 87 | 29 | 14 re 26 | 79 | 38 30 |14 | 55 |a6 | 90 | 38 | [31 | 15 56 27 | 81 39 (32 15 (st 27 | 82 | 89 | (33 16 | 58 |28 | ss | 40 | 3 |16 |59 |98 | 84 | 40 | (35 17 | 60 | 29 | 86 44 36 | 17 él 29 | 86 ve 37 18 8 30 87 42 | j38 | 18 63 go | 88 | as | 39/19 jet | a1 | 89 43 | 40 19 6 81 | 90 | 43 | 41 | 19 66 ol 43 42 | 20 | 67 92 | 44 43 | 20 a 93 | 44 44 | 21 | 69 ot | 45 | 45 | 91 E 95 | 45 | | | 88 89 63 00 63 50 | 64 50 oor tO 6 ee —— eA ET Te Se a | | | | 33 «15 33-80 45 10 75 27 30 ’ 27 | 95 28 | 60 29 | 25 5390” a4 60 35 | 30 | 90 | 94 50 108 36 104 ) 12 104 88 | 64 | 40 36 87 | 73 25 19 25 50 | 88/50 | 75 57 | 75 | 100 77| 00 | 125 96 | 25 | 150 | 115 |}50 || 25 | 19 | 50 38 116 | 22 60 61 62 63 80 60 40 20 00 87 8S 20 / 00 40 50 117 = 118 69 119 52 102 103 104 105 106 25 - 22) 62 23/ 49 24| 36 | | 23 | 10 129 130 64 | 65 70 ' 66 60 115 92 116 84 117 76 118 68 119 60— 120 52 121) 44 ] 122 36 | ) 123 | 28 ; 101 | 20 | 135 | 124 20 tT + 102 | 12 || 1: 125 | 12 103 | O4 | 1: 126, / 126, 127 | i388 00 Se 99 64 100 5 101 102 103 40 + 104 34 106 22 107 16 108 10 128 |78 129 | 72 130 66 | | 131 60 + 109 04 109 98 110 92 111 86 112 80 aT 132 54 133 48 134 42 135 36 136 30 48 96 a eee 153 154 ¢ 156 00 Se Ne Ae ee ee ee _ i—) | el one cod ced ao -_ CO tS = 95 105 00 28 89 29 | 96 31 | 03 32 | 10 59 92 | 60° 99 61 06 62) 13 66 | 34 | 67| 41 68 48 69| 55 134 82 135 89 136 96 138 08 139 70 62 71, 69 72 | 76 93 107 00 116 68 117 | 72 118 | 81 52. 80 53 90 17 28 165 39 166 50 136 137 138 140 06 117 | 16 30 T 166 | 44 167 58 168 72 169 86 135 136, 138° 30) 16 p 146 16 147| 32 148 48 149 64 150 163 56 164) 72 165 167 | 168 169. 170) Ss 1722 173 | 46 174 64 175 | 82 _ ow oT OO Cr fF we Ss - elie 2 eS eS eS alin - wow bo Se ee ep come) co 153 154 156 157 158 | 159 161 162 165 164 72 94 16 48 70 50 43 ) 51 66 52. 89 | 12 3d 124 133 56 | 134 | 82 136 OS 137 34 138 60 139 86 141 | 12 143 64 144 90 146, 16 147 42 148 68 149 94 85 a 71 12 72 39 73 (66 74 93 160 02 161 | 29 162 56 163 838 193 / 50 | 151 153 57 88 195 19 196 | 50 SEF BRK 167 168 170 171 176 178 179 180 182 183 64 96 28 60 88 20 52 84 16 48 80 184 186 187 188 190 191 12 44 76 08 40 109 35 110 70 112 05 113 0 114 | 75 116 10 11745 118 | 80 | 167 | 168 51 207 20 208) 60 210 00 ce & of 122 123 | 124 96 126 38 127 80 132 06 | 1 133 | 48 | 134 166. 167 56 ’ 168 98 170 40 180 181. 183 184 185 18 61 O4 47 90 3951 45 BS) i= a «1 as = —] =I ww oll Ss ) or —] o ive) _ _ ns —J — a bo os _ Ya as or u —] —_ rs a to b b — —] bo oo w rss = a al ts = oo nt S ~-) so ao — ee al 49 | 72 | 74 |111°] 99 | 148] i] | | { 1 ’ 25 37.50 50, 75 00 7) 112 50 100 150 00 125 187 50 150 225 00 25 387 «80 75 | T | 112} 100 | 130 a nan oes | ee 100 32 101 84 103 36 104 58 106 | 40 107 92 109 44 110 96 112 48 114 00 228 00 99 68 149 | 25 150 an GP — peel TT | TL Pie a i ae raat Panay ~~ re a Vey y ~~ "e % i ] ’ ? ¢ te ¢ ‘ i ‘ J . id ‘ - * \ 1 Winn O0008e9Se7?e 8