lated. In view of the fact, then, that the capital per establishment in butter-making must be greater than in cheesemaking, the tendency toward factory production must be less in the former than in the latter.

The following statement shows changes in the number of establishments from 1890 to 1910 due to the introduction of the hand separator and to concentration:

The number of establishments increased from 1890 to 1900, but decreased during the next decade owing to the fact that the hand separator made it possible to gather large quantities of cream over a wide territory and churn it at a central point. The rapid introduction of the hand separator dates from about 1898. The general use of the power separator from 1890 to 1900 caused an increase in the number of establishments and also a decline in the cream-gathering system. In the next decade, however, when the hand separator superseded the power separator in many sections of the country the cream-gathering system was restored. These changes are also indicated by the number of pounds of cream purchased. In 1900 there was a decrease in the amount of cream purchased for the reason that at that time the use of the power separator made it necessary to purchase whole milk. In consequence of the introduction of the hand separator there was, of course, a rapid decline in the number of skimming stations that became prominent before 1900. These separated the whole milk in remote communities and shipped the cream to the creamery to be churned. This system is still in use in some

eastern sections but has been discontinued in many sections of the North Central States in favor of separating the cream on the farm. The number of skimming stations in 1900 was 2,050. The change during the succeeding five years was so rapid that by 1905 the number had decreased to 1,602.

Concentration in the butter industry may be more definitely shown by the following statement:

The statement shows that in the ten years from 1900 to 1910 there was a substantial decrease in the number of establishments and an increase of more than double in the average output. The capital per establishment has also increased. The evidence is very plain, therefore, that during this period concentration has proceeded rather rapidly. Whether or not concentration in the butter industry proceeded from 1880 to 1910 cannot be separately shown because the census figures combine in most cases butter, cheese, and condensed-milk factories. In order that an idea as to whether or not concentration in the dairy industry as a whole has been in progress from the beginning of the factory system to the present, the following statement of combined establishments of butter, cheese, and condensed-milk factories is given:

1 The average capital of all butter, cheese, and condensed-milk establishments. The following two amounts are for butter establishments only.

The great increase of the average value of output in 1890 over 1880 was partially due to the fact that the price of dairy products was somewhat higher in 1879 than in 1889. The annual average butter price for 1889 was about two cents higher than for 1879. However, the difference in price can not alone account for the great increase in the value of the output. During this decade creameries installed the power separator and established skimming stations in outlying districts, and in this way enlarged the establishment and increased its output.

The more important movement toward concentration began after 1890. As already stated, this was in the butter industry and was due to the introduction of the hand separator. Concentration in the manufacture of cheese and condensed milk cannot extend as far as in the manufacture of butter, because in the former two industries whole milk must be brought to the factories, while in butter-making cream may be received. The transportation charge of the raw material in cheese-making and the manufacture of condensed milk is therefore considerably more than in the manufacture of butter.

CHAPTER II

ORGANIZATION FOR THE PRODUCTION OF BUTTER

THE organization for the production of butter may be treated under two general headings. The first concerns the production of the raw material, and includes a study of the cow-testing and breeding associations and societies for buying and selling; and the second has to do with the organization of the factory, the prevalence of the different forms of organization, and their geographic distribution.

THE COW-TESTING ASSOCIATION

The cow-testing association is an organization among dairy farmers formed for the purpose of ascertaining accurately the net income received from each cow.

The cow-testing association had its origin in Denmark in 1892.1 The idea was first conceived by State Counselor B. Boggild and outlined at a meeting of the Kildebrond Creamery patrons. Fourteen farmers agreed to weigh their milk and furnish samples to the creamery manager to be tested by him. The results of the records kept by this small group of men led to the organization of the Kildebrond Bull Association, which was formed for the purpose of improving the herd. The latter organization was a natural consequence of the results of the tests made, and opened the way to weed out the unprofitable cow by replacing her with a highly productive cow. The first formal coöperative cow-testing association in Denmark was organized

1 Vide, Circular 179, Bureau of Animal Industry, U. S. Department of Agriculture.

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January 23, 1895, at Lille, Skovgaard, Vejen. The association began with 13 members, but by 1909 their number had increased to 24 members. At that time the total number of cows owned by the members was 522, and two men as cow-testers were employed. The movement soon spread all over Europe. In 1909 Denmark had 530 cow-testing associations, Germany had 207, Sweden had 662, Norway had 146, Finland had 99, and in 1907 Holland had 86. The movement spread also to Russia, where there were in the neighborhood of 50 associations in 1909.

In the United States the first cow-testing association was organized at Fremont, Michigan, September 26, 1905, under the name of the Newaygo County Dairy Testing Association. The initiative in organizing this association was taken by the office of the Michigan State Dairy and Food Department. Thirty-one members joined the association, and regular tests of 239 cows were made during its first year. Since then the movement has grown steadily in the United States. In 1909 there were 32 associations distributed among nine states, as follows: Michigan, 5; Maine, 5; Wisconsin, 10; Vermont, 5; California, 2; Iowa, 2; Pennsylvania, 1; Ohio, 1; Washington, 1. Many more were organized in 1910. By 1912 there were 118 associations. Only 97 of these, however, were active.1 The Wisconsin Dairymen's Association for over six years has aided the farmers of its state to organize associations. In 1913 Wisconsin had 21 associations with a membership of 560 dairymen, and the cows whose milk was tested numbered 8,800.2 In New York the total number of associations in 1913 was 22. There is a tendency at times among mem

3

1 Agricultural Yearbook for 1912, p. 49.

Hoard's Dairymen, Dec. 9, 1910, p. 610.

3 Ibid., p. 618.