The Birmingham age-herald., 1913-09-14
Birmingham at Decided Dis
advantage as Compared to
Many Other Cities
MANY FACTORS GO
TO MAKING PRICES
Further Comparisons of Prices Paid
in Other Cities, Including Cleve-
land, st. Louis, New York,
Chicago and Knoxville
Ry ELLIS c. HOLLuMs

by ELLIS C. HoLLuMs
Most of the whoselase produce deal
ers when asked why ii is that prices
in Birmingham are, as a rule, higher
than in other cities, give the difference
in freight rates as the principal cause.
Farmers in the southern sections Of
the state can ship produce to St louis,
Knoxville, Cleveland or Kansas City
cheaper than they can to ,Birming-
ham. 1t costs nearly twice as much for
q inner at Fruithurst Ala, to shlp
his products to the Birmin CHAM market
as it does for him to ship the same
consignment to st. Louis. In order to
reach the Birmingham trade he has To-
ship via the Mobile and Ohio. and trans
ship via the Louisville and Nashville,
thus making 1t necessary for the dealer
to pay two rates. But when his ship
on through train with no change of
cars, and there is only one freight
tariff.
Skimming Close to Edge
Birmingh dealers are skimming as
close to the edge of profit as is con-
sistent with good business. it is said,
and the seeming high prices are due
TO combination of circumstances,
which are hard to combat
Frank Wade of Wade Brothers Pro-
duce exchange said "The freight rates
are principally to blame for the diff
ference in prices. If Birmingham deal
ers could get the same rate that other
cities have we could easily undersell
the wholesalers of other cities
c. +. Bell of the Bell-Rodgers Pro-
duce company said: THE prices quoted
in Knoxville, st. Louis and other cities
are correct, but that is the price to the
wholesaler and not to the retailer or
consumer. The big jobbers in these CEN
tral places quote the prices the whole
sale dealers pay them. OF course. the
If the Birmingham public desires to
secure produce as low some of the
quotations in other cities it can be
done right here on Morris avenue. The
goods they buy will not be delivered
to them !. will any credit be extended.
The only way 1t can be done is for the
consumer to come over here very early
In the morning with his pocketbeok and
a basket. He can buy direct from the
farm wagons as cheaply as can the
wholesale dealers.
Other Factors to Consider
When we buy poultry at Nashville
or some other point there are three or
four different things to be brought into
consideration before a profit can be
made. Nashville has better freight
rate by Is cents than Birmingham.
After deducting the charge for coops,
the freight, shrinkage, etc, when the
original cost of chickens is " cents
there is but little profit in selling them
at II cents to the retailer. The people
of Knoxville, ST. Louis Cleveland,
Kansas City and other cities pay just
as much for household necessities as
do Birmingham consumers. The prices
quoted in the papers outside of Bir-
mingham to-dealers are never the same
as the dealers price to. the retailers"
BlackfOrd Gives Views
r.. W. Blackford of the Donovan
Provision company said st Louis is
a great poultry center and one would
naturally think that the price in that
city would be lower than it is in Bir-
mingham. where the freight cost,
shrinlSage etc. must all be charged in
the price to the public. This is not so,
however. | received today quotations
of liz cents for chickens, f. o. b. st.
Louis, which is the price being quoted
In st. Louis. That price is mades to
wholesalers by the jobbers and as
sem ling dealers-men who make 1T
their business to assemble the poultry
crop and other crops for wholesalers
The people of st. Louis pay just as
much to the wholesalers as do the Bir-
mingham people. st. Louis and other
points north OF this city have the ad-
vantage of q much better freight rate
and that, one would think. should
cause prices to be lower. The prices
quoted, however. are not the whole
salers prices.
birmingham merchants are running
their business with Just as small
margin of profit as they can consist
entity do. There are but few business
enterprises with so large an element
of chance as the produce and poultry
business. The dealer must take chances
of spoilatton. shrinkage, slow demand
and other things which are not so
noticeable in other lines of business.
View 1t from any point you like,
think the Birmingham people are pay