The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1919-10-16
BUL WARK AGAINST
WINTER SHORTAGE
Some Facts About Cold Storage
and the Charges Of Manipula-
ton and Exorbltant Prices.


ton 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 profits 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
lefty that have conferred about the
/ subject from time to time, the real
service performing function of cold
storage has been largely cbscured.
Laying In Winter Stocks.
City.wise people, ana even country Il
wise people, have long since forgotten,
amidst the conveniences of modern |
life, that there was time in the his
tory OF our country when "laying in n .
winters stock" devOlved upon each
household individually. Today, one .
does not even need to remember that
eggs are not an all-yeararound prod.
uct that butter is produced in scant
amount in the winter and cheese like /
wise. Not 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 Storases oVerstoeked?
However, we are told that storage
stocks of certain commodities are at
the present above the normal as COM
pared with this time last year. 1t has
been computed that the combined eN.
cess of q number of important foods
in cold and dry storage amount to 10
per cent While on the face of 1t this
looks like undue boarding Of reserves,
yet Il must be remembered that COM
PARSONS with last year are altogether
misleading. Demands for great
number OF commodities have increased
tremendously. Our exports for June
were double what they were Il year
ago, and 10 per cent of these exports
were foodstulfs.
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 PrlceS Are Determined.
Cold storage has been criticised Sc
verely as an lnstrumentulity that lends
i itself easily to the taking of unfair
profits. Without a question its ability
TO extort has been grossly eXaggerat-
2 ed Storage warehouses are scattered
K throughout all portions Of the United
! States and their contents are owned
by thousands Of competing firms and
70 individuals. About half the storage
!. space In the country consists of public
A warehouses that rent space to who
ever wants it, either for small lots or
u big ones. Tabulatcd 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
~ during. those months Tor 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
u show, for instance, that in the season
IS of 1915-l916 butter stored in June and
q July at an average OF 1884 cents Il
pound, sold from November to March
y at an average of PAS cents a pound,
= giving gross profit of 0.S1 cents a
= pound, or scarcely enough to pay for
storage and nothing for net profit or
y interest on investment. In l9l6-1017
IS the gross profit was 7.79 cents n
N pound, and In 1917-191S 1t was $50
cents. These gross amounts must
10 cover storage charges and interest on
y the money tied up for several months
is before the net profits are arrived at.
1t is apparent from these figures that
~ storing Of foods Is an uphill and down
D hill business with its fat and lean
"a years, and affords an average profit
which is not excessive in view of the
:" risks that are run. Figures on storage
* eggs for 19l5-l9l6 show a net loss of
n 22 cents dozen for 1916-l917, an
unusually prosperous year, the net
g profits were 5.54 cents a dozen; and
for 1917-191S there was d net loss of
l. l.42 cents a dozen.
IS Extravagant charges of manlpula-
ton and control of prices are prepOs-
y terously absurd In view Of these sea-
h sons Of losses. The ups and down of
ie profits simply indicate the hazards of
f., the game; for the best laid plans of
- men can not foresee when a warm
e. spell may come which will start the
ig hens to laying nor on the other hand.