The herald., 1919-10-23
6U[WARK AGAINST
WINTER SHORTAGE
came Facts About Cold Storage
and the Charges Of ManipuIa-
,ion and Exorbltant Prices.

% has come into the nmeDght VI pun
20 .,tention; and this time In connec.
'.. With the nationwide search AFTER
.Ss cause for the high cost OF living.
r,ora can be no argument In behalf
boarding and holding back food sup
y Onas FOR speculative profits. But this
matter quite apart from the true
"a legitimate purpose Of cold stor-
aH ond. unfortunately, because OF
~ ~ much agitation and damaging pub
,,"I,v that have centered about the
~ from time to time, the real
ss performing function OF cold
800 has been largely obscured.
LAYING In Winter Stocks.
ctv.wise people. and even country
-. neople, have long since forgotten,
.m,dst the conveniences OF modern
ne that there was a time In the his
~. .r :, our country when laying in
,.,er,s stock" devolved upon each
snusebold individually. Today, one
Zoos not even need to remember that
u.s. are not an all-year-around prod
that butter is produced in scant
us,rnt in the winter, and cheese like
,sa Not q few would be completely
surprised to know that even meat pro-
'snnt,on has its seasons of scarcity.
Tna buver for the household in these
d.vs simply goes to the store, any day
h The wear, expecting to find these
~ similar commodities on the mar
tet
Are storaoes overstocked7
However, we are told that storage
,tocks of certain commodities are at
The present above the normal as COM
nored with this time last year. 1t has
Seen computed that the combined ex-
cess Of a number Of important foods
n cold and dry storage amount to III
nor cent. While on the face OF 1t this
looks like undue boarding Of reserves,
rst n must be remembered that COM
narisons with last year are altogether
misleading. Demands for a great
number of commodities have increased
tremendously. Our exports for June
we're double what they were a year
aso, and 40 per cent Of these exports
we're foodstuffs.
Moreover, our reserves last year
we're inadequate. Those who recall
anne of the extraordinary prices or
certain foods last winter and spring
knew precisely what it means to have
tao 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
Tor our future wants.
How Prices Ars Determined.
Cold storage has been criticised Sc
verely as an fundamentally that lends
Itself easily to the taking of unfair
profits. Without question its ability
TO extort has been grossly exaggerat-
I'd. 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 1t, 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
fiom month to month figured against
what should normally be In storage
during those months Tor the estimated
6smand) 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
1 l9lt1918 butter stored in June and
July at an average of 1884 cents q
pound, sold from November to March
It an average Of 27.45 cents a pound,
ewing a gross profit Of O.s1 cents a
pound. or scarcely enough to pay for
storage and nothing for net profit or
interest on investment. In 1916-1917
me Gross profit was 7.79 cents q
pound, and In 1917-191S it was 5S6
csnfa These gross amounts must
sovef storage charges and interest on
ue money tied up for several months
1ofe the net profits are arrived at.
\ y apparent from these figures that
Dtins Of foods is an uphill and down
~ euslness with its fat and lean
49, and Affords an average profit
..lea y not excessive in view of the
nat are run. Figures on storage
- tcr lS161916 show a net loss of
eenn dozen; for 1916-1917, an
aaly prosperous year, the net
nu were ga cents a dozen; and
a1-lsls there was a net loss of
- eants . dozen.
nzmvasant charges Of manipula.
~ ana control Of prices are prepos-
absurd in view of these sea.
= losses. The ups and down of
simply indicate the hazards of
sane; for the best laid plans Of
~. gan not foresee when a warm
may come which will start the
" aging, nor, on the other hand,
Z. ~ map that win shut of current
uon entirely. Year in and year