The Birmingham age-herald., 1914-05-03

The butchers had to face the problem of making a profit out of lower prices. They made 1t by compelling the cattle dealers to cut prices. The cattle dealers next complained This did not disturb the municipality, as the principle Of Herr Barny and his fellow municipal traders Is that each town should look after It's own interests and Ignore the interests of outsiders.
 Next Budapest attacked the private bakers. It established four public bakeries, and reduced bread prices [ per cent The private bakers were obliged to cut down their prices. Today in Buda and Pest 50000 families, counting In all 250000 persons, purchase their bread from the city. Doctors say that Budapests municipal bread is purer and more nutri- tious than the bread of other Austro- Hungarian cities.
 Having established it's position as re- taller, Budapest challenged the producers and distributors. It was moved to this because the producers of meat eggs. an1 milk in the country round would have an agreement equivalent to a trust for keeping up prices. The municipality built additional slaughter houses and behind the trust farmers backs began to import cattle, sheep and pigs from remote parts of Hungary The stock was bought on the spot at low prices, and by good orr ganization was transported to the city at
 
 It's own meat in its own stores. The farm- CTS outside Budapest were angry, but helpless. and they reduced prices. The city next organized big municipal gem eral food store. to which it affiliated 2 branch stores in different wards. These stores sell practically all homegrown products. Their function is to frighten the private tradesmen. and to act as price regulators. They forced down prices everywhere. Like the butchers. other traders implored the city not to ruin them. The municipality graciously grant ed their petition Keep prices down, said the town syndic IS to deputation of milk traders. Tn that case we will put limit on our competition. But if we find anyone making unreasonable profits we shall doube the number of our stores"
 Budapest municipality justifies this attack on private enterprise by the argu- ment that private retail profits have been abnormally high. An examination made of the accounts of various traders cons frmed this view The traders predicted that they would be driven to bankrupt- cy. In reality the number of bankrupt cies has fallen. The town has lost no money. The initial financing of ito en- terprises was difficult. capital of over a million dollars had to be invested. But the loss suffered in several municipal en- terprises was covered ey the profits in others The municipality's principle, as far as possible, is to make no direct profit. The town, 1t calculated. would benefit indirectly The expectation was realized. The savings on food expendI- ture made by the citizens created . demand for better housing; and the town rates benefited from revival in building activity. A
 Numerous other Hungarian towns will initiate Budapest. The southern citlo0 of Temesvar and Theresiopol are about to open municipal milk stores. remoo> var municipality will buy a large farm and breed stock for town consump<io4i Grosswardein has purchased . poultry farm in the Majduken country. Not con- tent with selling poultry and eggs Go tfa citizens. 1t proposes to trade with other municipalities It will force the other municipalities to pay ordinary market prices and it win devote the profta to covering any loss incurred in solllnR food to Its own citizens at less than cos6 price In this way is will apply Hhrr Barny's principle that each town sne0l4 look out for itself.