The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-12-27
KAPPER REVEALS
FAULTS Of OUR
MARKETING PLAN
Kansas Senator Talks Of
Waste Now Permitted and
Causes Of Shortage in Some
Sections.
BY ARTHUR KAPPER,
UNITED States Senator from Kansas.
Written especially for the Inter
nationai News Service,

thing is radically wrong with ma
tional system of distribution which
permits of absolute waste of food
products in one section of the eoun-
try when in other sections there ex-
lists good demand That condition
occurs frequently in the United
States. In the fruit producing Sec
tions of Michigan and New York
press reports declare that large guam
titles of fruit rotted and was wasted
because there was no market for it.
AT the same time high prices pre-
walled for fruit in the Midwest, where
the crop was cut short by late spring
ffosts. Producers in New York and
Michigan, the reports state, did not
obtain profitable prices for their crop
despite the fact that other sections
Of the country were anxious to buy.
Probably inadequate transportation
facilities and shortage Of labor were
factors in this condition. But at
any rate the system of distribution
failed to function to the profit either
Of the producer or the consumer. N
How Dollar Is Divided.
There is an enormous spread be-
tween the price and producer. obtains
for his, products and the price the
consumer pays for them. This spread
occurs in the marketing and distri-
button of those products. The Cali
fornia Fruit Growers exchange made
an investigation to determine how the
consumers dollar was divided.
Thirty representative markets were
included, and 5,4S5 reports were OBJ
tanned. The results showed that the
factors entering into the division of
nrfn, l.NlIr A,aA IT, iVNrd
j, citrus fruit in 1914, are:
Retail distribution cost (gross),
1913 per cent jobbers' distribution
cost (gross), SO per cent; growers
selling cost, 1.5 per cent; freight ana
refrigeration cost, 205 per cent, pack
ing houses cost, IA per cent; cost Of
picking and hauling to packing house,
"a per cent; proportion retained for
fruit on the tree, EST per cent.
These figures are supplied by g..
Harold Powell general manager Of the
California Fruit Growers exchange,
Los Angeles. They show that the re-
taller gets 1873 per cent and the
grower EST per cent of the consum-
er's dollar, The cost of jobbing and
retailing is 41.5 per cent. In one
town the jobber's markup was 10
per cent, and in another town % per
cent showing a wide variation. The
retailers margins ran from 20 to rs
per cent
Herbert Hoover recently made this
statement: 1.-THE margins between
our farmers and thu wholesalers. in.
ommodities--other than grain, in
some instances in normal times
are the highest in any civilized coun-
try-fully rs per cent higher than
in most European countries"
Where Farmer Loses,
Mr.. Hoover also said:
Analysis of the character OF the
margin between the farmer and the
wholesaler will show that decreases
In price find immediate reflection on
tho farmer while immediate in
creases In price are absorbed by the
trades between, and the farmer gets
but tagging increase"
Prices of hogs obtained BY farm
ers, prices paid by the consumer and
the margin between, as shown in
government statistics for 1914, 1919
and 1920. indicate an enormous loss
to both the producer and the con-
sumer--to the one in the low price
obtained and to the other in the ex-
cessiye price paid. These figures
are:
Price of hogs in principal states
per 100 pounds: 1914, $7.45; 1919,
S16.27; 1920, 1851. Price of cured
products to consumer for the 100
pound hog: 1914, 1887; 1919, 1928;
1920, 1871. Margin between the
farmer and the consumer 1914, $1.52;
1919, $21.06; 1920, s2234. ..
While the farmer has gained about
1912 in price the margin has in
creased by S10.S2 to the consumer.
/ The consumer has paid 30 cents more
! while the farmer got 30 cents less
Sduring the last year.
Faulty Transportation.
Inadequate transportation facilities
add to the costliness of the distribu-
ton system. In the face of car
shortage the producer can not move
his products readily, and often is
forced to sell on a glutted market at
low prices. The consumer, on the
other hand, is forced to pay an in
creased price for his, foodstuffs due
to lack OF equipment to bring the
comm ODDITIES to- market. An investi-
cation made by the United States
Food Administration showed that in
the case of potatoes the margin be-
tween the producer and the consumer
broadened 100 per cent in periods of
car shortage. ID
Enormous numbers of persons are
engaged in the final processes Of dis
tribution, increasing the cost. One
city has one meat retailer for every
400 inhabitants. 1t has been care
fully estimated that one dealer could
adequately serve every 1900 persons.
The result of such a condition Is that
the retailers operate on a nigh mar
gin and that only small income is
obtained by any Of them.
Thus it Is. evident that our waste
full system Of distribution is an un-
fair tax on both the producer and
the consumer. This can be reduced.
It will be possible to place a larger
part of the consumers dollar in the
hands Of the farmer and at the same
time supply food to the cities at
lower cost.