El Paso herald. (El Paso, Tex.) 1901-1931, 1913-02-28


men at the consumers end of the chain
! Of distribution than by those closest
/ to the producer. In other words, the
bulk Of the gross profit on articles of
! consumption arises from the margin
! that the retailers add. The jObber
/ and wholesaler sell in such big lots
/ that their expense OF selling a dozen
| eggs and their profit together, may
| represent less than cent a dozen.
On the OJher hand, the retailer must
| sell In small lots, and he may not sell
! as many eggs in year as a big whole
/ SAFER sells on dun day. A cent q
| dozen might yield the wholesaler more
| net profit than cents would yield the
retailer Even II the retailer were op-
! Grating exactly at cost he would prob
price to come out on his sales But
when he adds his profits also-profits
large enough to make living for him
self and his family-his gross per
/ centage on his days sales must be
| high.
Few Consumers Organized.
Yet in spite OF the fact that the
margin required by the retailer is much
larger, perhaps, than those of all the
1 other middlemen in the chain of dis
trlDutlon taken together, there are
very fewer consumers organizations
Ior the elimination Of middlemen than
Ihere are producers organiZa tons
! where such organizations have been
established in the cities they have
l.
any Tor want OF patronage cOndi-
! ton that proves to the mind Of the
retailer that he renders the consumer
more satisfactory service than is rem
dered by the consumers organization
! Itself In other countries there are
cooperative stores by the thousand
( are rev IN the United States that
nave done so. while new experiments
are being launched every month
Farmers Cooperate In Buying.
ORGANIZATIONS Of consumers among
farmers than among city people These
S guS LiIS dssocIa tlO1s are organized IN
uIIIeISnI ways one system used in
some localities is the beef ring" In
order to have fresh beef at reasonable
prices, a number Of farmers form a
small association large enough to con-
sumo one steer a week Each farmer
takes his turn in furnishing a steer,
i toE MnIcn ne IS atIoWed regular mar
ket on-the-hOOf' prices. One member
OF the ring understands the art of
butchering and meat cutting and he is
allowed 81 or IS for each beef he kills
sod, and the proceeds are deducted
from the cost of the beef.
Each farmer is then given his share
or the beef at prOportiOnate prices for
each cut II one farmer desires more
Jhan his share Of the cheaper cuts he
may exchange better cuts for it In
this way the farmers are able to have
fresh beef all the time and at prices
that approximate those at which the
retailer DuFS MS carcdSSeS. Think of
Ilne pOrterhOuse steaks Tor Is cents a
pound and the best rib roast for ~
That is what cooperation in a beef
ring means.
Reduce Cost OF Living.
Could the consumer arrange to buy
direct from the farmer by organizing
a consumers. club, delivery to be made
to each member Of the club direct from
the freight office. he might effect as
successful a reduction in the cost OF
his table as the beef rings in the
instance, several consumers not long
ago bought number of live hogs from
buyers, bUtchered them, cured the
meat. and sold the parts the cOnsum-
ers did not want Those consumers
were able to enjoy fine Virginia shoul-
ders and hams. as good as ever came
from Smithfield. at a cost Of about Is
cents a pound, express included
Thousands OF farmers would prefer
10 sell direct TO the city consumer.
Just as thousands OF consumers would
be glad to buy the products OF the
farmers at a little more than the
farmer gets in the ordinary way. sonnet
times the sons OF farmers drift TO the
city and set up stores where they han
Ole farm produce shipped direct from
the farm But they soon find them
selves up against the high cost OF Nv
ing. ana with but the one middieman,-
their prices become the same as those
charged by the grQcers who buy
through the ordinary channels Of trade.
Petty Wars Among Dealers.
modern system OF distribution Is the
fact that the retailer, who will quar-
rel with his wholesaler If that whole
saler should happen to sell direct to
the consumer. often tries to buy ever
the head Of the wholesaler, just as the
consumer SOM tfmes tries 10 buy over
the head OF the retailer. Usually he
announces himself as a wholesale and
retail dealer, and then seeks to buy
direct from the jObber rather than
through the regular wholesaler. The
rsaNr 70 nHu
arrangement and then the combina-
ton wholesale and retail dealer de-
clares he is being Disseminated
against The iObber tells him he is a
retailer and has no right to buy at
Jobbers prices, but he cannot see it.
although he is wholly unwilling to
permit the wholesaler to sell direct to
the consumer.
Producers Get Less Than AIiddIemen.
One is afforded a striking instance !
OF how much more the middleman
makes in proportion to the number en- J
gagged as m1ddlemen than the farmer ]
makes in proportion to the total num- /
Der Of farmers. Statistics show that 4
more than One-third OF the people Of !
the country are engaged in agricul-
tural pursuits. They must make the |
major portion OF their living and All /
of their savings out OF the Six billion /
dollars worth of fOOdstuffs they have
to sell Less than 10 percent OF the !
people are engaged in the distribution /
of these toOdstuffs. and vet thew get !
seven billion dollars out Of the opera i
ton.
Whatever may be the profit Of the I
middleman. however. the consumer
usually finds it more satisfactory to /
deal with him than to buy direct. even
wnere Inat can be done. When the /
bricklayer is through with his day's 1
work he does not feel like having to
bother with direct marketing and such
worries. He is glad enough to nav
the added price that the middieman I
puts on in order to get rid oS Der-
forming for himself the functions
which the compassion merchant. the I
wholesaler and the retailer perform ]
for him.
Dealers Block Cooperation.
consumers buying organizations IN
many quarters experience the same I
dlf1lcultles that individual consumers
experience in getting the benefit of
wholesale prices. There are big houses
that viii sell direct to the consumer.
and also TO organizations. OF consum- |
ers. nut the common experience has |
been that II is difficult for such or Z
CARNATIONS to get standard goods at |
standard wholesale prices. Wherever !
cooperative buying has had its great
est success there has been behind the
cooperative retail business q cOOpera-
tive wholesale business. and frequently
there mas been behind this a cOOpera- !
i've mannfacturing business.
It mas been found that where huyinE 1
CLUBS nave been Organized distractions
OF All Kinds have been placed in their I