The Newark journal., 1908-01-31
FIXING 0F TIE COST
THE FACTORS IN PRICES OF
 COMMODITIES. z
PR0DUCTIONANDD DISTRIBUTION
Equity in Division of Profits to All Engaged in Producing, Manufac-
 turing and Selling.


 Were the masses of people better informed as to principles underlying business transactions and commerce Tn general there would be less cause for complaint as to matters pertain ing to buying and selling of com modities.
 One of the faults, if it may be so termed, is 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 im- ! portant things to be considered i'll the fixing of the selling price of all com modfties. These factors are the cost of the raw materials, the expense of manufacturing and the expense of dis tribution. From commercial transac- tions neither of these basic clements can be eliminated The farmer who is the grower of corn. wheat and other cereals that comprises food stuffs, re- ceives compensation for his product | in accordance with the laws of sup ply and demand, and 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 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 is the go-between the producer of the raw material the manufacturer, and the manufacturer and the consumer | He cannot well be eliminated from 1 commercial transactions. He per | forms a service that neither the pro- ducer 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 l retailers; each performing his special service in the matter of distribution. 1 The consumer is the end of the chain, 1 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 a finished article All goods have a 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, as well as the ending link of every transaction. The farmer who grows wheat. when he forces the grocer from whom he buys his flour to sell the flour at low rate, indirectly has an influence in lowering the market for the wheat that he produces When the consum- CT demands that goods be sold at a 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 it's value unless under some abnormal circumstance. Of 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 at
 tractive and illusive advertising that