The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1910-02-25

1
by the cold-storage warehouse In
creating an artificial level of prices.
Theoretically, the cold storage ware
house ought to check exorbitant
prices. 1t is filled during the seasons
of greatest abundance, when prices
are lowest, and is presumed to be
emptied during the unproductive win
ter months, thus keeping supply and
demand in touch with each other.
| In practice 1t does nothing of the
sort In 1904 there were $40 cold
storage warehouses in the United
States; in 1910 there are 500 Of
them Instead of serving the public
need and at the same time yielding
a fair return on the capital invested,
they are employed to create Cor
hers" in perishable foods and to man.
| ipulate prices.
For example, from 100000 to
100000 cases of eggs, each case
containing thirty dozen, are placed
in storage during the summer, when
they can be bought at wholesale in
the country districts for from four
teen to sixteen cents a dozen. With
drawing this huge quantity of eggs
from the open market inevitably in
creases the price of fresh eggs to the
consumer in the season when they
ought to be cheapest. During the
winter these storage eggs are sold
for from fifty to sixty cents per doz-
en-. Within twenty years the total
output of the American hen has in
creased several hundred per cent fas-
ter than the population of this coun-
try, yet the average price of eggs has
been steadily advanced, and is higher
today, even in winter, than before
there were cold-storage warehouses.
ExtOrtiOn of the Middleman
In the same way more than 1907
100000 pounds of butter, valued at
$25, 100000, is annually placed in
cold storage and sold in winter for
forty cents, or more, per pound. OF
poultry, more than 10000, 900
pounds are frozen every year. Yet
in the winter months the housek cep-
er finds that she must pay III lch
higher prices for chicken, turke or
duck, than when the farmer shipped
his fowls to market as the dealer or
dered them. The farmer, who is
blamed for prevailing high prices, is
really robbed of his legitimate prof
its by the cold-storage warehouse.
This, is, perhaps, the most conspicu-
Gus example of the extortion OF the
midd.eman as factor in the general
problem of the cost of living. When
the farmer sells his eggs at sixteen
cents a dozen, he does little more
than pay the cost of feeding his hens.
In winter the coldstorage company
reaps profits of 200 or 800 per cent
from these same eggs, but never a
penny of it finds its way into the
farmers pocket, and the consumer
bears the burden.
No Mercy for the Consumer -
Legislation has begun to recognize
the cold-storage business as a menace
to the general welfare, since the out
break of the meat boycott, and sever
al measures have been framed for
the purpose of bringing it's prices UNI
der some kind of regulation. The
tendency toward combination and
monopoly in restraint of trade has in
vaded this field of production, and
the possibility of storage warehouse
trust, organized for the purpose Of
"cornering" food supplies, is neither
remote nor fantastic. The public has
learned by hard experience that no
mercy is shown the consumer If divi-
denps can be increased. This was con-
spicuously shown by the Ice Trust,
which advanced its price in New
York from twenty-five to sixty cents
per hundredweight in the middle of
a broiling summer, thereby causing
the death of hundreds of babies. 1T
has been illustrated also in the con-
duct of the various local milk trusts.
In New York, whose supply is con-
trolled by two great corporations, one
with capital stock of 100000, 900, the
price of milk was recently advanced
from eight to nine cents per quart. |
Popular protest was SO violent, and
the District Attorney SO promptly be-
gan to investigate the alleged mon
Opoly, that the price went back to
eight cents within a fortnight. 1t
costs 100 per cent to carry the milk
from the dairy to the consumer, of
which more than Is per cent is profit
for the middleman. The American
1airyman today who sends his milk
10 the city is barely able to make
both ends meet and has found none
If the joyous prosperity popularity
to the farmer.
On the one hand, the retailer is
old that he must combine in order
% cut down the excessive cost Of
and distribution; on the
,ther every combination of dealers
n food supplies thus far undertake
N has resulted in higher prices to
he consumer, because of the shame
ul fact that greed is SO prevalent
nd the doctrine OF the square deal
o little needed in corporation control
wherever competition can be dimin-
shed or eliminated. The cry is that
he country needs more farmers and
etter farmers, else there can be no
scape from the grip of advancing
rices, and that population has far
utstripped the nations production
t staple foods. This is not true. In !
fteen years the population has in
reased no more than Is per cent, j
lille in the same time the cost of ,
lany of the staple foods has risen
lore than 100 per cent, such, for !
as the following: