Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-11-19
WHY FOOD fRICES ARE HIGH
Cost of Distribution Amounts to
60 to 20 per Cent.
To-Opcration OF All Interests Concern
cd and United Effort by Producers
Would lie of Benefit to YER
mont Consumers.
To the Editor of the Free Press.


In response to your request some weeks
ago, I venture to bring to the attention
Of the people of this commonwealth,
through the medium of your paper, with
its wide circulation, some problems which
are confronting us both in the rural and
urban communities, and to present these
In the light of many years of residence,
investigation and study The present Eu-
ropean conflict has accentuated some of
our difficulties which, even before that,
had come sharply into prominence; and,
for the people as a whole, there is no more
serious Issue than that of securing an
economical distribution of products, par
tcularly agricultural products. from the
producers to the consumers. The produce
ers complain that it is of little avail for
them to produce a surplus if they cannot
turn that surplus into wealth by an equit-
able sy stem of distribution or marketing
and the consumers, on the other hand are
stfl more vociferoui in their invectlve
against a system which compels them to
spend q larger and larger amount of their
Income for the means of subsistence
Many CONSUMERS cannot understand why
the farmer does not get rich in view Of
the high prices demanded for his produce
from those who would use it on their
ldDIeS. anu, III IKE manner, the farmer
cannot realize why there is such an out
cry on the part of the consumers when
the prices he receives for what he has to
sell are inadequate to pay all the costs of
production and leave a reasonable margin
of profit upon his capital 1t will first
OF all. be well to consider the present day
system Of distribution, in order to clarity
our view of the whole situation
The nrOductiOp a rroDS ic only a
portion Of the work which devolves upon
the farmer equally important is it that
successful production should he followed
by profitable marketing. Not long ago the
farmer carried his surplus to market IN
his own wagon and disposed of il, some
lines for cash on the public market
sometimes in exchange for the prod
acts of the grocer or other mer-
chant, and not infrequently, to the con
sumers at their own houses. Each com
munity depended for Its food supply chief
ly upon the products of the adjacent coun-
try, so that the consumers and producers
were farce to face. But all this has been
changed Cities are no longer dependent
upon supplies from the neighboring coun-
try, but bring their food from all quar-
tiers of the world during all seasons of
the year. Local supplies form but a small
part of the consumption; and, instead OF
looking in vain for the appearance of we'll
filled farmers wagons with products 20
meet our city needs, we turn to the rail-
road and the steamship. Householders
no longer lay in their winter stock in the
fall and tie up considerable domestic cap
ital in so doing; nor do the grocers buy
from the farmers immense amounts of
produce and hold It to satisfy the daily
needs of their customers during many
months of the winter and spring. Instead.
both customers and traders must depend
upon the daily supply brought from other
countries and from the cold-storage ware
houses of our own country The process
Of marketing, even under the simplest
conditions, is complicated by the number
Of parties through whose hands the prod
ucts pass between the producer and the
consumer, and the cost OF production on
the farm Is increa sed by the cost of car
riage to the local railroad station, thu
cost Of shipment by rail, and the ex-
penses of the wholesaler, of the iobber I
and Of the retailer. Where ca III of these
parties has no relation with the others,
and each is seeking, with ordinary bust
ness prudence, the largest returns from
the use of capital, it is inevitable tina
consumers prices Will soar to great
heights. Ordinarily, the merchant consid-
ers that 20 per cent. margin must he
left between his purchase price and his
selling price If he is to maintain the ex-
penses Of his establishment and secure Il
fair return on his capital; and If We omit
altogether the cost of transportation, and
give the Wholesaler, the jobber and the
retailer each % per cent on his cost, w .
yhall be making the consumer pay 95A per
cent. more for the products than the far
mer received; and when to this we add
the cost Of transportation 1t Is evident
that the consumer would have to pay
practically twice as much as the producer
received. But In the marketing of agri- |
cultural produce, there Is usually much |
greater risk borne by the distributors
than is the case with many other kinds |
Of commodities Some things, like small |
fruits and vegetables, must be sold at
once in order to realize anything upon |