The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1920-10-22
sAV|NGONFARMDENcES
N. J. HOLMBERC OUTLINES
THE PLAN PROPOSED
The Prices Would Be Lower and
Delivery Expedited He
Pointed Out

st. Paul, Mimi. October 16.-rCor-
responding of The Associated Pressl
A group Of implement dealers In
q section of Minnesota or through the
state association OF implement msn
could purchase the entire output OF
an implement factory and distribute
the goods with q saving to the con-
sumner. the report OF the ipysstigation
of farm machinery prices 10y the state
department Of agriculture asserts,
Commissioner N. ]. Holmberg an
nounces.
Principal findings of facts as an
nounced follow:
One. Manufacturers costs and deal
efs' expenses increased.
Two. Prices increased more than
costs and gave manufacturer ana
dealer greater profits.
Three. Price and profit increaSns
are due In part to price understaA<
ings and agreement among manufac-
turers and to lesser extent among
dealers. =
Four. The farmer was not prevented
from making fair profits increase
In cost>of implement, as cost OF farm
products mounted more rapidly.
Five. There was no shortage of
machinery, due to more repairing OF
used machines and feweR sales for
export trade.
Raise In Prices.
Manufacturers prices Of nipple
ments to dealers increased eighty two
percent during the period from 1916
to 1918, while dealers prices to farm
ers increased sixty-two percent" the
report says. while the dealers per-
centage increase was smaller than
that Of the manufacture, their in
crease in dollars was not greatly
different. due to the higher prices on
which their increase was figured.
Net sales of dealers increaseGksix
ty percent: gross profits, seventy FIVE
percent: expenses. thirty eight per-.
profit on investment form nine per-
cent in 1915 to 1T.7 in 1918, or ninety
seven percent increase.
'"The federal trade commission res,
CARDS the control of Certain practices
In the farm implement business as a
national matter and the individual
state can exercise very limited con-
troll over them.
"All testimony failed to indicate
when lower prices will obtain. It did.
however, announce that they must
come by way Of lower lumber, steel,
paint and labor costs"
Outlining the plan of cooperative
purchasing by q state association Of
implement dealers, either by organi-
nations for the entire state, for sec
tions of the state or smaller CO oper :
atiye bodies, the report says.
implements Arc Essential.
"The state association, represent
ing ample credit to handle purchases,
could take over the total annual out :,
put Of a wagon factory-or other i'm
plement factory-on at least part Of
the output. The CO. operative associa-
lions in Minnesota, which now handle
farm implements might easily COM
bine their credits and make purchases
in this manner. A distribution of the
implements from factory to the asso-
Citations wolld eliminate needless in
termedfarfes with their attendant ex-
penses between the factory and the
farmer. Naturally. It would afford OPP
portunity for reduction in prices.
1.-The only obstacle to the plan
might be he<attitude of the National
Implement and Vehicle association,
which has gone on record as opposed
to the proposition. If such an asso-
cfatien should act to prohibit puI-
chases by responsible dealers poss-
essfng credit, they Immediately invite
restrictive and corrective legislation"
The Minnesota Investigation dn its
conclusions further points out.
One. Labor and materials entering
into farm implement manufacturing
have enjoyed larger increases than
the implements.
Tive. Manufacturers have eliminat-
ed the jobber and wholesaler to a
large extent, but apparently have
absorbed the gain in profits.
s.i Three; BETA Retail dealers fir their own
Four. Prison. made implements are
substantial and serviceable, and their
records recognize and register relia-
BILE Information on increases in the