There were no regulations that couldn't ever n made unrefrigerated raw milk safe in cities at the time. You either sold milk from cows raised in the city itself(which means cramped quarters and disease) or carted it in on a wagon (which means unrefrigerated milk sitting for hours). Adding formalin likely made it safer, it was so dangerous. The scandal thing played like it was what they were feeding cows (we feed cows high protein spent grains today and it's considered high quality feed), but the reality was milk in cities was always insane.