El Paso herald. (El Paso, Tex.) 1901-1931, 1916-09-11
WHOLESALER IS
MADE THE COAT.
Competition Keen, Territory
Large, Supply and De-
mand on the Job.

Don't blame US for the high cost OF
/ iivin9-we're the goats"
This was the tenor Of the reply made
{ by FL Paso wholesalers and brokers to
: the question: Why is the high cost of
living
/ The farmers. the manufacturers. the
+ retailers. the railroads. the customers.
the cost of packing. the green bug. the
price Of tin, the grain crop. the Euro
pean war. race suicide among the
salmon, supply and demand. and great
er selling expenses-these are some of
the factors which the jobbers declare
are responsible for the high prices of
necessities in EI Paso.
Wholesalers Make Little.
Wholesalers do not make as much
profit when the prices are up as when
they are low" said J. ". LOrentZen,
merchandise broker.
IF a jObber makes more than per
cent on sugar. he's making money.
When the market goes up. the retailer
IS usually protected by contract For
example, sugar cost S6-45 a 100 pounds
in May, and went Up 10 S7-S5 in June.
Most Of the retail dealers were pro-
tected against this rise by early con-
tracts
Competition among wholesalers is
keener than among retailers. for this
reason The retailer extends credit eX-
tensively, and his regular customers
come to him for everything. paying
virtually whatever he asks This is not
true with the jobber whose profit in
many cases is surprisingly small The
wholesaler is the goat
Another item to be considered Is the
customers insistence that goods be
packed in a sanitary way. All that
costs money Advertising is another
factor.
Large Territory.
"One OF the most important elements
responsible for the cost of living in
FL Paso is the added cost in covering
the trade territory. If one were to
draw a circle 100 miles in diameter
around Fort Worth, Dallis, Houston,
san Antonio, and Galveston, one would
include virtually all their trade terri
tory. Draw the same circle around Il
Paso, and what have your Desert
But the trouble really lies away
back with the farmer The farmer gets
high prices for his wheat. and the man
who buys il has no chance TO cover
The producer makes the |
market"
The crops are responsible for the
cost Of living, declares A B. Shindler. /
vice president of Runkle & Peacock, I
merchandise brokers.
81 Wheat.
''The corn crop this year is only SO /
per cent normal" he said I hear that I
-
corn Wheat went up Ia cents Fri /
lay. and corn rose a half cent
Canned goods are soaring, too. Pink
salmon is 80 cents a dozen cans higher
han normal. and England and all other
foreign Countries are gobbling up all
hey can get
Tin Is Higher.
THE cost Of packing has gone up. /
fiber and tin cost more Canned toma-
oes are Is cents per dozen cans high
r Some packers refuse TO quote until
hey have got all contracts filled,
or fear they won't have = surplus
sugar is the only thing that has gone
Town.
4 sort OF ouse-that-Jack-b built pro-
.ess was described by a prominent FL
oaso wholesale buyer.
Old Man supply and Demand.
The manufacturer raises the price,
he retailer has TO pay more, and the
Ultimate consumer is also the ultimate
ufferer," he explained Supply and
emand is AT the bottom of the whole
rouble- Dyestuffs, metals. paper, in I
act all kinds Of raw materials have
rown scarce. while the demand has
lcreased- The United States is now
IMPLYING virtually the entire South |
merican market The Europeans are /
sing up all the raw materials they
ave-"