The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1913-05-22
EXTRACTS TAKEN FROM THE AR,
TiClE "THE MIDDLEMAN"

(By Mike Kinney, Teamster and Edi-
tor, as published in The Gimlet," jan
uary, 1879
Has it ever occurred to o just
why there has been so much written
in the newspapers and magazines
about the eXortionate profits of the
middle man? Have you ever wonder.
ed why almost every publication that
comes to your home takes a shot at
the poor retail merchant? If you do
not know, let me give you the answer.
1t is-Advertising. The great metro.
pOlitan newspapers, the farm journals,
and the hundreds of magazines that
are published, cannot and do not eX-
pect any advertising patronage from
the retail merchant. Their advertis-
ing comes from mail order houses,
from manufacturers, and from depart
ment stores that are seeking to deal
with the consumer direct. Therefore
these papers constantly contain ar
ticles encouraging the in
every section of the country to send
his money to some far-away merchant
and thus save the profit of the retail
dealer at home.
The subscription price of practically
all newspapers and magazines shows
a loss. Often this subscription price
would not pay for the amount of plain
white paper used in the magazines or
newspapers you receive. All of the
profits of these publications come from
advertising, and so it Is to their inter
est to constantly work for a system
of distribution that will lead to more
advertising.
If all goods were bought by the cor
sumner from his local store, there would
only be advertising in the local paper.
Such a method of distribution, Of
course, would not suit the magazines
and newspapers. They, therefore,
have been for years advocating and
endeavoring to build up all kinds of
selling plans which lead to consumers
buying their goods just as far away
from home as possible.
Advertising was the reason that all
Of these publications were SO much in
favor of parcel post. Advertising was
the reason that it was mex to i'm.
possible to get any articles opposed to
the parcel post in a national daily
paper or a magazine.
The parcel post Is, of course, in
many respects a very good thing. In
many ways 1t will be a great owen
fence. We have however, been promis-
ed that it would reduce the cost Of
living. We have been promised that
it would bring the city man and the
country man in closer contact. /
have been doing a little investigating
and | find that nearly all of the parcel
post packages are going from the city
man to the country man, while the
country man is not sending back any
packages to the city man. Packages
are going from the city to the country,
and money to pay for these packages
is coming from the country to the city.
Under the old system the farmer
sold all of the products of the farm
for spot cash, and bought most of the
goods he needed on credit. Under the
new system, as planned by the mag
azines and newspapers, the farmer Is
to sell his goods direct to the city con-
sumner, without the necessity of any
middleman in the shape of a
chant. What l should like to know is,
how is the farmer going to secure his
city customers? Will the farmer adj
vertise in the newspapers and maya
znes? Will he send out circulars offer
ing chickens, eggs, and butter to the
city consumer? Will he sell goods to
the city consumer only for cash, or
will he give credit? II he extends
credit, how will he find out about the
financial standing of his customers?
1t would be somewhat of a joke,
wouldn't it, If the state of affairs
were reversed and the farmer should
have to pay cash for all the goods he
needs on the farm, while, in turn, he
would have to sell his farm products
on credit to the city man? / would
like to have a fine large photograph
of the farmers of this country selling
their products on time to the fellow
who lives in the city.
Manufacturers, jobbers, and retail
merchants all tell me that they are
getting up mail order parcel post
catalogues and circulars to be dis
tributed by the million, in order to de-
rive the greatest benefits from parcel
post in selling goods.
Now of course | I'm just a common,
ordinary teamster; my intellectual
dynamo only runs about half time.
But what I would like to figure out, If
all the above things are true-and l
do not believe they can be disputed
how is the parcel post going to lower
the high cost of living? II merchants
are to be put to all these expenses
they must either lose money, or add
the expense to the cost OF doing bust
ness, and necessarily advance their
prices in order to cover the added
cost.
Then, while l am rambling around
in my weak-minded way, suppose we
discuss this point: Has it occurred
to you that under the old system,
when goods were shipped by express
or freight, the transportation charges
we're collected from the c~onsignee?
Now when we send goods by parcel
most Wa must huv MARCEL most efamns