The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1907-08-24
ING OF THE COST.
the FACTORS IN PRICES or
COMMODITIES.
OBSERVATION-DISCLOSURES
Equity In Division Of Profits 20 All
Enesesd In Producing, Manufao-
turing and Selling.

Were the masses OF people better
informed as 70 principles underlying
business transactions and commerce
IN general there would be less cause
flor complaint as TO matters pertain.
Ing TO buying and selling OF com
modities.
One OF the faults. II II may be DO
termed. is the inclination OF the
people to complain about prices they
must pay for goods required for do
nestle and other uses. There can be
no doubt but that IN many districts
retail merchants exact exorbitant
prices. this 10 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
Fixing 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 10
the grower OF corn, wheat and other
cereals that comprises food stufYs. re-
ceives compensation for his product
In accordance with the laws OF sup
ply and demand. AID the values that
may regulate the monetary markets OF
the world. The producer OF cotton IN
the southern states. must receive for
his product compensation that Is
based upon the cost Of labor. manu-
facture and what nnished articles in
the cotton hne may bring In the mar
kets OF the world. The producer Of
the raw materials must pay for bis
labor, and for his investment In farm
lands and farm equipment The man
ufacturer who buys the raw products
must take into confederation the ex.
pense OF labor. the maintenance OF his
manufacturing plant the interest
upon the amount invested. and also
various other items. and tho 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 Is
the go-between the producer OF the
the manufacturer and the consumer
He cannot well be eliminated from
commercial transactions. He per
forms a service that neither the pro-
Queer OF the raw material or the man
ufacturer can more economically per
form. The middle men are the job
bers. the commission agents and the
retailers; each performing his special
service I'm the matter Of distribution
The consumer is the end OF the chain.
the final buyer OF commodities who
utilizes them for his own use and the
uses OF his family There should be
a margin OF profit In each OF the
different transactions that will allow
equitable compensation To each and
every one interested In the production
OF finished article. All goods have
real value and this value In 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. as well as
the ending link OF every transaction
The farmer who grows wheat. when
he forces the grocer frsm whom he
buys his -four To sell the -four at
low rate. Indirectly has an influence
In lowering the market for the wheat
that he produces When the oonsum.
er demands that goods be sold az
price below the cost OF production. he
invites substitution OF inferior goods.
adulteration OF the articles and en-.
courages a system that is unwhole-
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 malls. and presenting al.
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 10 such offers. and
will be guided accordingly. II 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 IL unwholesome. and 20
an extent an imposition upon the peo-
pie as the system compels them 10
pay for articles that are not essential
for them 20 have. The man Woo buys
sugar does not care 10 be forced IN
der the guise OF paying for sugar 10
pay for a paper OF pins or package
OF needles. even though these may be
free premium" II IL well 20 bear
these points In mind. and little
study into business economics md
principles will be highly advantage
Gus 20 the one who desires 20 know
about the proper value OF goods he
must buy.