The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-24
CAUSES OF HIGH COST
Of LIVING ANA[yzED
Republicans and Democrats
Differ on Findings
COST OF PRODUCTION
Farm Products Are Found to BE High
er and Cost the Farmer More.
Fertility of Land Is
Reduced

|
for the great increase in the cost of Nv
ing between 1900 and 1910. The majority
report of the special Senate committee,
which has been Investigating these aues-
tons. was submitted to the Senate today
by Senator Lodge. chairman of the COM
mittee. The minority report will be sub
mitted later.
The majority Of the committee found
that of the many causes contributing to
the advance in rices the following were
most marked:
Increased cost of production Of farm
products by reason of higher land values
and higher wages
Increased prices for farm products and
food.
Shifting of population from food pro-
ducing to food consuming occupations and
locations.
Immigration into food consuming local
tiles.
Reduced fertility of land resulting In
lower average production or increased
expenditures for fertilization.
Increasing banking facilities In agricui-
tural localities which enabled farmers to
hold their crops and market them to the
best advantage.
IT was found that this not only steadied
prices, but had a tendency to increase
| them.
Cold storage plants, which result IN pre-
venting extreme fluctuations of prices OF
corn commodities with the seasons, but
by enabling the wholesalers to buy and
sell them to the best possible advantage,
tend to advance prices.
Increased cost of distribution.
Industrial combination.
| ORGANIZATIONS of producers or of dealers.
Advertising.
Increased money supply.
DISQUALIFICATION.
Higher standard of living,
| Concernins the cost of food the report
| says:
| 1.-THE supply of government available
land for general farming has been ma
| terially reduced. and the ranges are being
rapidly cut up into homes for settlers The
| cost of producing live stock has ma
| terially Increased with the disappearance
of the range which necessitates producing
cattle on tame pasture and hlgh-prlceo
lands
| A study OF the tables concerning whole
sale prices of farm and food products
indicates that the advance in the Unlted
States in 10 years has been more rapid
than in Great Britain, Germany and many
other European countries, but 1t is noted
| they had approached more nearly Inc
world level of prices.
| comparison of meat prices In the
United kingdom and the United States
show that bacon in 1900 was 1874 per cent
higher IN the United Kingdam than in the
United States. and that IN 1909 II was 81 o
! per cent higher in the United Kingcem
than In the United States. About the
| same ratio existed in comparing beer,
4 mutton, wheat and corn.
Concerning retail prices the report
shows that in the United States in the
spring of 1910 they were at the highest
| point reached for many years. AS COM
! pared with the spring OF 1910 prices for
bacon were 70 per cent higher; ham, SO
per cent; -four was about so per ceR
higher; butter about IS per cent higher;
sugar about II per cent higher. and eggs
100 per cent higher.
Some few articles such as coffee and tea
were about the same price as in 1900 but
practically no articles offfood were lower
| than In 1900.
| Furniture was about the same price as
| in 1900 Earthenware was slightly lower.
Shoes and clothing were considerably
| higher.
Wages have not advanced as rapidly ar
have prices" says the report and prac
tically all labor difficulties which have
been subject of mediation In the United
States during the past few years have
| had as their basis the advanced cost OF
| living"
| 1t is shown that the advance in wages
has been more rapid In the United
Sates than In European countries. The
report says:
Wages in the United States advanced
in about the same degree as did prices
until 1907 Salaries have advanced very
little during the past ton years"
Hours of labor in practically all wage
occupations are shown to have been re-
duced. The reduction affected the week
ly earnings of employees for the reason
that the large majority of wage-earners
are employed on the piece basis or at an
hourly rate. From 100 per cent to ITO per
cent is the figures given as the advance
in wages in fifty years The majority
of the committee declare there has been
no material factor in contributing to
the advancement of high prizes In the
past decade The conclusion was based
on the fact that the advance was made
| In commodities which are usually pro-
duced in sufficient quantities to furnish
large surplus to other countries.
| The report says there are few figures
|
effect of the recent tariff revision. On
the subject of combinations the major
ity report says there are many indus
trial combinations which are not trusts
In the sense OF being organized for the
purpose OF controlling prices In restraint
of trade, but by reason OF manufactur-
ling or controlling considei able per-
centage of the output they are able to
exercise some control over prices. The
committee report says:
1.-THE price of many Of tho trust pro-
lduced commodities have no, advanced
as rapidly as have other commodities.
In some cases where such produced
commodities have advanced greatly the
advance appears to be due largely to
other causes such az short supply
It was found that labor unions had
not been apparently serious factor
in contributing toward advancing prices
says the report. Advanced cost OF foods
is laid to Increased expense Of dis
tributing food by wholesalers and re-
4 tailers. The committee found from the
| testimony OF, retailers that housewives
bought In small quantities and upon
rush orders which practice had great
~ Increased the expense of doing BIS
mess. The report saws tbrf II "a &C.