The Era-leader., 1919-10-09
Bull WARK AGAINST
WINTER SHORT ACE
Some Facts About Cold Storage
. and the Charges Of Manipu|a'
tion and Exorbltant Prices.

Once again the subject Of cold stor-
age has come into the limelight OF pup
lie attention; and this time IN conhec
.tion with the nationwide search a1ter
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 a 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 colo
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 time IN the his
tory of our country when laying in a
winters stock" devolved upon each
household individually. Today, one
does not even need to remember that
eggs are not an all-year-around 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-
ductlon 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 storaoes overstocked7
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 las
been computed that the combined ex-
cess Of a number Of important foods
in cold and dry storage amount to 19
per cent. While on the face Of 1t this
looks like undue boarding of reserves,
yet 1t must be remembered that COM
parisons with last year are altogether
misleading. Demands for 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 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
demnatlon 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 oil 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
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 a
pound, sold from November to March
at an average Of 27.45 cents a pound,
giving q 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 1916-1917
the gross profit was ITO cents a
pound, and In 1917.101S 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 In not excessive In viaw ~ +ho