Rocky Ford enterprise., 1907-08-09
FIXING OF THE COST
the FACTORS IN PRICES or
coMMooiriEs.
PRoDUcTloNANDDlsTRIBUTl0N
equity In Division Of Profits to All
Engaged in Producing. Msnufse-
turing and Selling.

Were the masses of people better
Uniformed as to principles underlying
business transactions and commerce
In general there would be less cause
Tor complaint as To matters pertain
ins To buying and selling OF com
modi,ies.
| oas Of the faults. II II may be 10
termed. Is the inclination Of the
must pay for goods required for do
nestle and other uses. There can be
no doab, 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 I'M
poTtant thinss To be considered In the
hslas Of the selling price OF all com
moiiti.s. These factors are the cost
of III. raw materials. the expense OF
manufacturing and tho expense Of dis.
tribution. From commercial trAnsar-
lions neither Of these basic elements
can be- eliminated. The farmer who In
the grower Of corn. wheat and other
cereals that comprises food stufs. re-.
cciy-s compensation for his product
In accordance with the laws Of sup
ply and demand. and the vaiucs that
may regulate the monetary markets of
the world. Tho producer Of cotton In
the southern states. must receive for
his product compensation that IL
based upon the cost Of labor. manu-
facturc and what finished articles In
the cotton line may bring In the mar
kc,S 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
uiactur-r who buys the raw products
must take into consideration III. cx'
pens. 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 tho price
that he pays for the raw material. In
the distribution Of goods the middle
man plays nm important part He In
the Ho.bctwccn tho producer OF the
raw material the manufacturer. and
the manufacturer and the consumer.
lie cannot well be eliminated from
commercial transactions. lie per
forms service that neither the pro.
duccr Of the raw material or the man
uiacturcr can more economically per.
form. The middle men are the Job.
bcrs. the commission agents and the
retailers: each performing his special
service In the matter OF distribution.
The consumer In the end Of the chain.
the final buyer of commodities who
utilixcs them for his own use and the
uses OF his family. There should be
n margin of profit In each OF tn.
different transactions that will allow
equitable compensation to each and
every one Interested In the production
Of n finished article. All goods have
u real value and this value Is deter
mined solely by the elements referred
to herein. The consumer must expect
| to contribute his mite towards the
support OF all engaged In commerce.
He is the beginning link, us well rs
tho ending link OF every transaction.
Tho farmer who grows wheat, when
he forces the grocer from whom he
buys his Hou. TO sell the -four at n
low rate. Indirectly has an influence
in lowering the market for the wheat
that he produces. When the consum-
er demands that goods be sold at
price below the cost of production. he
invites substitution OF inferior goods.
adulteration of the articles and en-
| courages system that is unwholc.
| some.
The people should understand that
they never receive something for
nothing, or receive anything of value
for less than its value unless under
some abnormal circumstance. or late
years there has a system grown up OF
offering great bargains In various
kinds of goods by catalogue sent
through the mails. and presenting ut
tractive and Elusive advertising that
goods are being sold at less than cost.
The intelligent man or woman will
carefully consider all the circum-
stances relative to such offers. and
will be guided accordingly. 1t is evil
dent that when special bargains are
made there are conditions that Justify
such bargains: that goods are not of
standard grade. are stale. or deterior-
ated In some manner Also there has
system of offering free premiums
grown up that is unwholesome, and to
an extent an imposition upon the peo-
pie as the system compels them to
pay for articles that are not essential
for them to have. The man who buys
sugar does not care to be forced un-
der the guise OF paying for sugar to
pay for paper of pins or package
of needles. even though these may be
free premium" 1t is well to bear
these points In mind, and little
study into business economics and
principles will be highly advantage.
Gus to the one who desires to know