The Monte Vista journal., 1907-08-17
FIXING OF THE COST
THE FAcroRs IN PRICES or
COMMODITIES.
OBSERVATION-DISCLOSURES
Equity In Division Of Profits 70 Al
enssesd In Producing. Manufae-
turing and Selling.

Were the masses Of people better
Informed ~ to principles underlying
business transactions and commerce
In general there would be less cause
for complaint ~ to matters pertain.
ing to buying and selling Of com.
modities.
Ono Of the faults. II 1t may be 20
termed. 10 the inclination Of the
people to complain about prices they
must pay for goods required for do
mestic and other uses. There can be
NO doubt but that in many districts
retail merchants exact exorbitant
prices. this to an extent is the fault of
the people who are little acquainted
with real values. There are three Inn
portant things to be considered in the
liking Of the selling price Of all com.
modities. These factors are the cost
OF the raw materials. the expense OF
manufacturing and the expense of dis
tribution. From commercial transac.
tons neither Of these basic elements
can be eliminated. The farmer who is
the grower Of corn. wheat and other
cereals that comprises food stufls, re-
cetves compensation for his product
In accordance with the laws of sup
ply and demand. and the values that
may regulate the monetary markets of
tho world. The producer Of cotton In
the southern states. must receive for
his product compensation that 10
based upon the cost Of labor. manu-
facture and what finished articles in
the cotton line may bring In the mar.
kets Of the world The producer of
the raw materials must pay for his
labor. and for his Investment In farm
lands and farm equipment The man.
ufacturer who buys the raw products
must take into consideration the ex-
pense OF labor. the maintenance of his
manufacturing plant. the interest
upon the amount invested. and also
various other items. and the sum Of
these with what he can secure for his
finished product. regulates the price
that he pays for the raw material In
the distribution Of goods the middle
man plays An important part. He 10
the eo-hetweea ths producsr Of ths
raw material the manufacturer, and
tAe naaufactursr aad the consumer.
He cannot we'll b Eliminated from
Commercial transsctioas- He per.
forms . service that neither the pro-
ducsr Of the raw material or the man.
ufacturer can moro economically Der.
form. The middle men are the Job
bers. the commission agents and the
retailers: each performing his special
service In the matter OF distribution.
The consumer 10 the end OF the chain,
the Anal buyer Of commodities who
utilizes them for his own use and the
uses Of his family. There should be
margin OF pront IN each OF the
different transactions that will allow
equitable c0mpensation to each and
every one Interested In the production
Of finished article. All goods have
. real value and this value IL deter
mined solely by the elements referred
to herein. The consumer must expect
to contribute his mite towards the
support OF oil engaged In commerce.
He ID the BEGINNING link. % we'll a.
the ending link Of every transaction.
Tho farmer who grows wheat, when
he forces the grocer from whom he
buys his 6our to sell the nour at .
low rate. Indirectly has an innuence
IN lowering the market for the wheat
that he produces. When the consum.
Or demands that goods be sold At
price below the cost OF production. he
invites Substitution Of inferior goods.
adulterati0n Of the articles and On.
eouragss . system that 10 uawhois.
scme.