Word: costs
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Dates: during 1930-1939
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...construction company which is not usually afraid to bid is the industry's aristocratic Turner Construction Co. About half of its business is handed to it on a cost-plus basis without the indignity of competitive bidding, and it boasts that in four years picked at random (1923-27-29-30), its bills on 151 sample buildings costing $69,725,000 actually cut an average of nearly 2% from bid estimates; that over 60% of its business is repeat ordering by old clients...
...replace than its smaller competitors. (Only a month ago it resurrected some old-style hand rolling mills to help handle its huge order book.) Last week word leaked out that Big Steel would install three new continuous rolling mills in its new ($60,000,000) Irvin Works at a cost of over $10,000,000, which is just a drop in the bucket alongside what Big Steel and all the Little Steel companies will have to spend if operations stay at capacity...
...price of milk is set by the cost of home delivery. If home delivery were eliminated milk could be retailed in stores at 2? to 4? less than at present. Milk at 9? or 10? a quart would be possible, and at this price consumption would increase, much to farmers' profit, for the dairies pay most for milk that is sold in fluid form (i.e., not manufactured into butter, cheese, etc.). FORTUNE explains the conspiracy of circumstances which has prevented this simple solution, has continued to keep the price of fluid milk at uneconomic levels...
...Since 1933 the price of fresh delivered milk has been kept relatively higher than the cost of U. S. living in general, and from 1929 to 1936 per capita milk consumption dropped...
...much cheaper than home delivery has been established in many practical cases. Examples: Washington, D. C.'s Highland Farms sold milk through a chain of stations at 3? under the established 14? price and netted $75,000 in one year on a $100,000 investment. Safeway Stores' cost of delivering milk (including pasteurization, wages, depreciation, etc.) from farm to store customer through its 18-town Pacific Coast chain came to 3? a quart. Safeway complains that in many communities it would like to sell milk several cents cheaper than the law allows...