Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1919-10-09


days simply goes to the store, any day
in the year, expecting to find these
and similar commodities on the mar
ket.
Are storases overstocked7
However, we are told that storage
stocks of certain commodities are al
the present above the normal as COM
pared with this time last year. 1t has
been computed that the combined ex
cess of a number of important foods
in cold and dry storage amount to IL
per cent. While on the face of 1t this
looks like undue boarding Of reserves
yet 1t 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 shat 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 1t 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 wholesale con.
demnation of our methods Of providing
for our future wants. (,
How Prices Are Determined.
Cold storage has been criticised Sc
verely as an instrumentality that lends
itself easily to the taking Of unfair
profits. Without question its ability
to extort has been grossly exaggerat.
ed. Storage warehouses are scattered
throughout all portions of the United
States and their contents are owned
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 OF
big ones. Tabulated figures of the
amounts la 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 Cor 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 1850 butter stored in June and
July at an average of 1854 cents a
pound, sold from, November to March
at an average Of 27.45 cents pound,
giving gross profit of 0.81 cents a
pound, or scarcely enough to pay for
storage and nothing for net profit or
interest on investment. In 1916-l9l7
the gross profit was 7.79 cents
pound, and in 1917-1918 1t 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 net loss of
% cents dozen; for 1916-1917, an
unusually prosperous year, the net
profits were 5.54 cents a dozen; and
for 1917-191S there was a net loss Of
LAP cents dozen.
Extravagant charges of manipula-
tion and control of prices are prepos-
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 warm
spell may come which will start the
hens to laying, nor, on the other hand,
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
the blessing of cold storage which