The Colorado statesman., 1917-09-01
MARKETING COSTS
FOUND TOO LARGE
Uncle Sans Experts Seek to
Eliminate Losses in Ham
ding Farm Products.
TERMINALS TOO NUMEROUS
Investigators Propose Remedies for
Evils Which Directly Affect the
Prices Received by the
Farmers.

The farmer has a direct interest in
the efficiency of the marketing organ
ization in cities, according to officials
of Uncle Sans department of agricul-
ture, since lack of efficiency may be
reflected in the poor prices he receives
for his products.
Sooner or later, it is argued, the
great majority of the perishable prod
ucts raised on the farm for sale finds
its way to the cities for distribution,
and whether 1t passes from the owner
ship of the farmer before or after
reaching such centers, the sales are
usually based on city quoted prices.
Many farm products, especially per-
lshables, are consigned to city commits
sion merchants to be sold for what
they will bring, the prices received in
such cases being directly dependent on
their city market value. Prices based
on these values are paid also when
such products are sold by the producer
directly to wholesalers or jobbers aft
er shipment to city trading centers.
Even the products which the farmer
sells at the nearest railroad station
are bought largely for consumption in
cities and so are paid for, in most
cases, at prices which are dependent
on those prevailing in city markets.
Study Distribution System.
The office of markets and rural or
ganization of the department has taken
up as one of its important studies city
marketing and distribution. Through
this project the aim of the office has
been to study marketing conditions in
various cities; to determine as accu-
rately as possible the sources of loss
and waste in city marketing and the
methods by which such losses and
wastes may be eliminated; to develop
general plans for efficient marketing
facilities of various kinds for cities,
and to aid by specific suggestions such
cities as may seek assistance in i'm
proving their marketing conditions.
The general fault, it has been found,
is the existence of numerous terminals
separated from each other and from
the wholesale district. In some cases
it was found that there are as, many
as a score of separate terminals ex-
isting in a city. Shipments for given
dealer may arrive at a number of these
terminals on the same day, neceSSitat-
ing much more costly carriage or the
employment of many more statesmen
than would be necessary If but single
terminal for perishables existed, and
the wholesale dealer has his store To-
Gated conveniently to it. Every extra
handling, every square of extra cart
age and every additional salary paid
increases the labor cost of marketing,
which must come out of the margin be-
tween the producers selling price and
the consumers buying price.
Separate Terminal Proposed.
The aggregate losses and additions
to marketing costs, due to inefficient
terminal facilities, are so great in the
average large city that market special
lists believe it would be feasible plan
in many instances for the communities
to promote and finance a separate ter
minal for perishables which would be
connected with all railroads.
The studies that have been made
of the various kinds of market institu-
tions have enabled the office of mar
kets and rural organizations to offer
an advisory service to cities, truck
growers and produce dealers organ
izations, which has proved very help
full.