The sun., 1912-08-05
BIG RETAIL MARKETS
WAY TO CAEAPEN FOOD
Committee to Consider Prices
and Costs submits
It's Report.
FOOD DEPARTMENT STORES
That the style Of Distributing
Agency Which Is
Recommended.

vestigating Commission. which deived
into the high cost of living in this and
other Municipalities in the State. has
filed a report IN which il declares that OF
all the food distributing agencies in
Greater New York, from municipal whols-
sale markets down To tho corner grocery
and the pushrart, the large retail unit
market or the food department store Is
the best economic type in point of eft
cheney.
II urges retailers. wholesalers and pr,-
vat. organizations to- NOV" toward the
development of these stores. which buy
direct. receive direct and soil direct. The
repor, recommends that municipal char
ters he amended 10y legislative enact
ment 80 as to provide for the creation
of a departments Of markets with economic
and sanitary supervision on of food supplies
and charged with the duty Of publishing
accurate statements of market needs and
prices for IN" benefit of producers. The
committee also finds that the primary
OF wholesale prices should be fixed by
systematic auction in lots for purchase
by retailers. the city or a public organl-
cation to act as the auctioneer. and fur
thcr recommends that railroad and steam
Ahip lines should be required to provide
adequate facilities for the prompt deliv-
cry of food products for sale at auction
1t their terminals and also temporary
storage plants. cold and general. with
sufficient capacity for one or two days
supply. Il advises that the companies
shall also he obliged to publish bulletins
setting forth when supplies will arrive.
The committees Investigations in this
city bed it 20 estimate that tn" city 3
annual food supply costs $3.50 .Ooo.oo0 at
the transportation terminals. but the cost
in the consumers kitchens aggregates
s5oo. .oOO. 600. or si"l per capita. The COM
rnissioncrs think. they say. that the diff
ference between the amounts. or sliO.oOc =
600. is due chiefly to the cost Of handling 8
and not 10y profits.
The Investigators found that tho pro-
dticer nowadays il receiving about ~
pr cent of the retail price. whereas in
their estimation he should receive from
10 to 20 per cent.
There j. much evidence TO show" the
report points out that commission men
and dealers in farm products delay set
Elements with shippers. report shipments
in bad condition without proof of same.
report that goods are damaged in transit
fail to follow instructions Of shippers as
to disposition of goods. &c. Legislation
to remedy these alleged malpra ctices is
desirable
The committee says that -the most
impressive features Of the wholesale dis
tribution Of food in Greater New York
are the agencies in the lower west side
of Manhattan Island and the stopIa ge
in transit unnecessarily Of a large por-
tion of the food supplies" The cost OF
wholesaling. including profits. it declares.
il probably about 10 per cent. and the
total cost of retailing is about 80 per
cent. both of which are added to the
first cost.
The report finds the New York city
markets bad and declares that the build
,ngs in the wholesale distric on the ex-
trelne southwesterly edge of Manhat-
tan are old. i'll built or i'll planned. and
none of them is located on railroad
tracks or pierheads. 1t says that If the
matter were in the hands Of powerful
commercial agency the wholesale plant
for food handling in the city would. with
two exceptions, be sent TO the scrap
heap.
In discussing the possible saving in
food distribution the committee expresses
the belief that if plans adopted by the
most successful agencies for wholesa 10
and retail distribution should he adopted
in the city at large the result would be-
an economic saving Of $60.00O.00U ITer
annum. or IL per cent. on the present
retail price.
The most efficient type of retail food
Ill trtI, in h., rAp,., ~ ,iy,,.
out, IL that which buys AT wholesale, In
primary markets. stores upon the prem
ises and sells with but a single handling
bet tween the car and the consumer, such
:is the chain store and the food depart
ment store. Invest igat ion showed that
prices in these retail markets are a little
lower than in the other retail stores. but
the invest gators agreed that the munich
pal market, would show far better re-
suits if the city provided ample cold and
general stord ge and if the stall owners
combined in buying and delivering.
The committee figures that mark ct =
Of the food department store type could
he operated with an addition to costs Of
products Of 30 per cent. as against an
addition to the cost by the wholesa ler,
jobber and retailer combined of between
40 and 30 per cent The committee esti
mated that 200 such markets. perha ID.
less, would perform the funct ion of food
distribution in Greater New York in the
most economic and satisfactory manner
Tho cost OF each unit in such system
including stock and fixtures, would ap.
proximate $jO,OO without land, which
could be leased and each unit would
require an additional capital of $50 800
making cost Of 500 900 for each unit
or q total cost for 200 stores Of $50. go 900
II land were purchased and buildings
constructed the total cost for the 20,
markets would be St0.OO0.OOO.
II was suggested to the committee that
such markets could be operated by some
philanthropio corporation under suitabl,
supervision. Another plan was that a
corporation. representing both producer
and consumers. be formed for the pur
pose Of owning and running the markets
the shares of stock to be in small units
and widely distributed.
Under the latter plan IL was suggested
that the preliminary financing be don'
by the State. money for the repayment
of advances being secured by charging
q small fec to producers and consumer
using tho market. II was asserted tina
this plan would create a self-s,istaininl
public utility in the nature OF a subway
or dock system, but instead Of the mar
ket bonds being II charge upon the bor
rowing capacity OF the municipalities
they would belong to the class OF self
sustaining securities.
The committee in It's Investigations RAJ
cross many things which are of int ereR