Omaha daily bee., 1909-01-15
FORTUNES IN EGGS MYTHICAL
Trade Inclined 10 Doubt that Pack
ers Made Great Sums.
PROFIT LIES IN STORAGE CHARGE
sales for Future Delivery st Purchase
Price and Increase Later Does
Not Beneat Men Operat-
ing warehouses.

Poultry and egg dealers are inclined TO
doubt the popular belief that the big pack
ers have made immense sums OF money In
recent time through the storage OF g
It Is a fact that the price Of eggs did go
way up last year. almost to a point where
they became a luxury. It Is true also that
storage men have not altogether disclaimed
the 'rinor that they netted considerable
sums, men being not always unwilling to
have It thought that they bought low and
sold ~hlgh-exeept when the assessor is
around.
Nevertheless there are good reasons for
thinking that some OF the profit got away
from the packers and other storage men.
This is because Of the way the storage
business is conducted here and
The Armour company, which is far
and sway the largest concern in
Omaha, aims largely to make money
by selling its customers for fu-
ture delivery and charging regular stor-
age until the goods are delivered. This in
butter, for instance. is one-eighth OF a
cent a pound a month, which would be only
I cent for eight months.
storage Men Hold the Sack.
The storage company, for instance. sells
three carloads Of eggs in April to a mer-
chant anywhere in the country and holds
the eggs until called for. When delivered
the eggs are either sold at the stipulated
purchase price or the present market price
az has been agreed upon. In almost all
cases the former is the stipulation, so that
in the event of a rise the buyer nets the
increase less his storage charges. Inas-
much as the storage business is largely
conducted on this plan, a big increase in
prices does not help the packer.
To some extent. Of course, the storage
men buy and hold the eggs or butter or
poultry at their own disposal, but It is
authoritativeiy stated that this is but a
small percentage of the total business done.
With the other plan. in general vogue. eggs
have become for the packer as much of a
staple as is sugar.
This system Of business will be pursued
to a considerable extent by the Peoples
Ice and Cold Storage company, which is
building a big cold storage plant at Thlr-
teenth ana Chicago, which will have a
capacity OF 100000 pounds, or $500 car
loads.
Average Profit Not Great.
Storage eggs we're laid in last spring at
an average price of $.D the case, which
Is thirty dozen. They were sold on an aver
age of less than IS the case. This is the
first sale, or that by the packer. The eggs
sometimes changed hands several times
later before reaching the consumer.
There is good reason to believe that
higher prices generally prevailing for but
ter. eggs and other things are due in large
fact TO a demand. which has grown dis
proportionately to the supply. There has
been a far greater Increase in population in
the country than growth in amount Of dairy
and barnyard products. In 1907, for instance.
there were 100000 Immigrants into the
United States, and nearly all of these
adults with healthy appetites. This is
equivalent to adding a state the size OF
Nebraska to the union. All these OF
nearly all settled in cities and did not
add through labor to the amount of butter
and eggs brought to market. but helped to
consume them. nevertheless.