The Appeal., 1919-10-25
.BUL WARk AGAINST
WINTER SHORTAGE
Some Facts About Cold Storage
and the Charges Of ManipuIa-
ton and Exorbitant Prices.

age has come into the limelight Of pub
lie attention; and this time in connec.
tfon with the nationwide search after
the cause for the high cost Of living.
There can be no argument in behalf
Of boarding and holding back food sup
plies for speculative proffs. But this
is matter quite apart from the true
and legitimate purpose Of cold stor-
age; and, unfortunately, because Of
the much agitation and damaging pub
licity that have centered about the
subject from time to time, the real
service performing function of cold
storage has been largely obscured.
Laying In Winter Stocks.
City-wise people, and even country
wise people, have long since forgotten,
amidst the conveniences of modern
life, that there was a time in the his
tory of our country when ilaying in a
winters stock" devolved upon each
household individually. Today, one
does not even need to remember that
eggs are not an an-year-around prod
uct; that butter is produced in scant
amount In the winter, and cheese like
wise. Not q few would be completely
surprised to know that even meat pro-
duction has its seasons of scarcity.
The buyer for the household in these
days simply goes to the store, any day
In the year, expecting to find these
and similar commodities on the mar.
ket. -
Are storages overstocked7
However, we are told that storage
stocks lf certain commodities are at
the present above the normal as COM
pared with this time last year. It has
been computed that the combined ex-
cess Of number Of important foods
in cold and dry storage amount to 19
per cent. While on the face of it this
looks like undue boarding Of reserves,
yet 1t must be remembered that COM
PARSONS with last year are altogether
misleading. Demands for a great
number of commodities have increased
tremendously. Our exports for June
were double what they were a year
ago, and 40 per cent of these exports
were foodstuffs.
Moreover, our reserves last year
were inadequate. Those who recall
some Of the extraordinary prices Of
certain foods last winter and spring
know precisely what it means to have
too small holdings in storage. That
we are better prepared for next winter
than we were for last should not be
used as the basis Of a wholesale con-
demnation of our methods Of providing
for our future wants.
How Prices Arc Determined.
Cold storage has been criticised Sc
verely as an instrumentality that lends
itself easily to the taking of unfair
profits. Without question it's ability
to extort has been grossly exaggerat-
ed. Storage warehouses are scattered
throughout all portions Of the United
States and their contents are owned
by thousands of competing firms and
individuals. About half the storage
space in the country consists of public
warehouses that rent space to who
ever wants it, either for small lots or
big ones. Tabulated figures of the
amounts In storage are gathered and
disseminated by the government
monthly; and the amounts in holding
from month to month figured against
what should normally be in storage
during those months (or the estimated
demand) form the basis for prices:
Some Figures on Profits.
But the best information as to
profits in the cold storage business
consists Of actual figures and such
are published regularly by the federal
Department of Agriculture. These
show, for instance, that in the season
Of 1915-1916 butter stored in June and
July at an average Of 1854 cents q
pound, sold from November to March
at an average Of 27.45 cents a. pound,
giving a gross profit Of O.81 cents a
pound, or scarcely enough to pay for
storage and nothing for net profit or
Interest on investment. = In. 1916-1917
the gross profit was 7.79 cents a
pound, and in 1917-1918 it was $50
cents. These gross amounts must
cover storage charges and interest on
the money tied up for several months
before the net profits are arrived at.
1t is apparent from these figures that
storing of foods is an uphill and down.
hill business with its fat and lean
years, and affords an average profit
which is not excessive in view Of the
risks that are run. Figures on storage
eggs for 1915-1916 show a net loss of
2.2 cents dozen; for 1916-1917, an
unusually prosperous year, the net
profits were 5.54 cents dozen; and
for 1917-1918 there was q net loss of
1.42 cents dozen.
Extravagant charges of manipula-
ton and control of prices are prepes-
terously absurd in view of these sea-
sons Of losses. The ups and down of
profits simply indicate the hazards of
the game; for the best laid plans of
men can not foresee when a warm
spell may come which will start the
hens to laying, nor, on the other hand,
a cold snap that will shut off current
production entirely. Year in and year
out, as the figures would indicate, the
consumer pays but modest sum for
tho h1oSSin0 ia1