Evening journal., 1919-02-26
High Produce Prices Are Explained

Some OF the reasons for the prices Of
poultry, butter, and eggs are explained
in the 1919 Year Book of Swift & Com
pany, which has just been issued.
Butter. eggs, poultry and cheese are
highly perishable products, which are
subject TO rapid deterioration, accord
ing TO the Year Book, which continues
Therefore they require suitable ia
cllites for their collection and distri-
button.
THE principal reason why we handle
these products is that we have a ma
ticn-wide distributing and selling or
ganization composed Of 1000 refrigera-
tor cars, over 400 branch houses, regI-
lar refrigerator car trips to towns not
having branch houses. refrlgerating IA
cilities, corps of statesmen and expert
handlers Of perishable products, and
delivery equipment for reaching retail
ers. This distributing organization was
built up primarily to take care Of our
fresh meat; not 10 use II for other per-
shable products. which require similar
handling, and which reach the same
class Of retail dealers, would obviously
be an economic and social waste.
"Swift & Company handles such a
small percentage Of the total trade in
poultry, butter, eggs and cheese that
ID, Of course, has no control whatever
over market prices we are also IN
keen competition with all other pack
ers In the buying and selling OF these
commodities.
in order TO make still more effec-
tive our handling Of these products we
have established properly equipped
plants throughout the producing sec
tions where butter, eggs, and poul-
try are gathered from nearby commu-
mites and where they are skillfully
prepared and graded for market. These
commodities are then largely shipped
in carloads direct 10 our distributing
houses in different parts Of the coun-
try, thus enabling them TO arrive al
the principal population centers in the
very best condition. The route from
producer to consumer is the most di-
rect that is possible. and the number
OF landings is reduced to a minimum.
This system Of gathering and mar
keting results In an ever-ready cash
market for the producer, and also
broadens his market, because Of our
extensive distributing faculties. The
use OF cold storage warehouses In con-
nection with this system has also
tended TO broaden the market, make IL
more stable throughout the year, and
has generally tended TO increase pro
duction Of the commodities handled. |
AT the same time IL affords consumers |
the opportunity TO buy the best possi- |
bic products throughout the whole |
year, and at more uniform prices than /
would otherwise exist.
"The extremely high prices Of butter
and eggs during the winter of 1918 have /
been causing considerable alarm and
especially since the produc-
tion Of both these commodities during
the past year has been heavier than
usual.
1.-The three principal reasons for the1
extremely high prices Of these products /
are, first, that domestic demand has /
been very heavy because of high wages /
and general prosperity; second, the /
fact that the government was Obliged /
10 make tremendous lnroads on the |
stocks held in storage, and third, the /
fact that the profit margins allowed |
by the Food Administration kept the |
price so low during the early fall that |
storage stocks were used up too rap
idly.
I'm the case Of butter, the govern
ment, without any warning, comman-