This report was signed only by the city members of the commission. The agriculturally-minded members and the Chicago milk producers knew that the prices secured by the ratio method as advocated by the commission were not high enough to cover cost of production. The fault was in the method of application. Hay and labor between them were made to represent, according to the commission, 62 per cent of the total cost of producing milk, which is altogether too high a weighting. This bad weighting was made worse because of the fact that thoroly up-to-date figures on hay and labor were not available, and the figures which were taken were far lower than those existing at the time when the report was actually published. The converting of silage into terms of hay instead of into terms of corn is a matter open to grave question in view of the fact that silage production costs are almost identical with corn production costs, and the alternative market for silage is the corn market and not the hay market. Several other mistakes were made which might have been avoided if the method had been applied by a thoroly impartial body well versed in the technique of dairying as well as the weighting of agricultural index numbers. The unjust prices secured by the commission should not be blamed on the ratio method, but on the way in which it was applied. The finest scales are not dependable in the hands of an ignorant or a dishonest man. We present herewith a historical milk chart indicating profits and losses from January, 1908. A full description of the derivation of the Pearson formula is to be found in Bulletin No. 216 of the Illinois Experiment Station. COST OF PRODUCING CROPS